Office buildings and shopping malls are the only two things that came to my mind when one talked about commercial properties. Then my mind went absolutely blank and I simply could not think of more examples. Commercial real estate actually comprises many categories and upon doing some research, I managed to learn a lot. So here are some categories commercial real estate can be divided into:
While some meanings can seem overlapping, you can get a better understanding by talking to someone who works in the real estate sector. I know of a friend who works with an industrial real estate developer and hence I know a lot more about manufacturing and warehousing than I know about other types of commercial real estate.
- Office buildings
- Industrial real estate
- Heavy manufacturing: Commercial properties installed with customised machinery for the large manufacturers fall within this category. Because of this reason, the property needs to undergo considerable renovation in order to lease it to another tenant.
- Light assembly: Easier to reconfigure, commercial properties under this category are used for product assembly and storage.
- Flex warehouse: As the name suggests, such spaces are flexible and be used as office and industrial space both.
- Bulk warehouse: Considering warehouses are an important component of supply chain in India, bulk warehouses are huge to incorporate products needed for regional distribution and have various facilities installed.
- Retail
- Multifamily
- Land
- Miscellaneous
While some meanings can seem overlapping, you can get a better understanding by talking to someone who works in the real estate sector. I know of a friend who works with an industrial real estate developer and hence I know a lot more about manufacturing and warehousing than I know about other types of commercial real estate.