Commercial buildings are designed to be sold or leased in the private sector, and commercial construction refers to creating and renovating those buildings. A wide range of buildings and property types fall under the commercial real estate umbrella.
These commercial properties are like a hybrid of residential and commercial real estate and are primarily used as investments. The multifamily classification ranges from something as small as “plex” properties (duplex, triplex, quadruplex) to large apartment buildings, which are defined by the number of stories they have.
Garden apartments are 3-4 stories with 50-400 units, no elevators, and surface parking. It’s a collection of apartment building clusters that share space like dog parks or common outdoor areas. Mid-rise apartments are usually in urban locations and stretch up to 12 stories with elevator service. High-rise apartments are located in larger markets and boast over 100 units.
Similar to multifamily properties, office buildings are classified by size and usually fall into one of three categories: Class A, Class B, or Class C.
- Class A buildings are top of their class concerning location and construction quality.
- Class B properties have better construction, but the location may not be the best.
- Class C is rundown, needs rehabbing, and is located in an undesirable area.
Central business district (CBD) office buildings are in the heart of metropolitan cities and include high-rise offices in downtown areas. Suburban office buildings are mid-rise, can be found outside the city center, and can often be found in office parks.
Strip malls or shopping centers are small properties that may or may not include a more prominent, big-name tenant that will help draw in shoppers — like a grocery store or drugstore. These strip malls also contain a mix of small retail businesses. Community retail centers are a bit larger and have multiple anchors and at least one restaurant.
Power centers are even larger, include smaller retailers and are anchored by big box stores, and generally contain several outparcels, which are pieces of land designated for standalone tenants like banks or restaurants with drive-throughs. Regional malls top the list, maxing out at 2,000,000 square feet.
Industrial and Warehousing
These buildings vary in size depending on what they’ll be used for. Most manufacturers would consider their facilities to be “heavy manufacturing”. They’re built to accommodate machinery and are heavily customized, which means another tenant would have to renovate for the property to fit their needs. Light assembly can also house manufacturing operations, but they’re much more streamlined and could be reconfigured like storage facilities and office space.
Flex space is mixed-use, falls under the umbrella of industrial property, and can easily be converted to meet various needs. Bulk warehouses span the range of 50,000-1,000,000 square feet in terms of footprint and need easy access for transportation to and from the property for distribution and logistics.
Healthcare and Special-Use
It’s not just hospitals; outpatient clinics and even veterinarian hospitals fall in this category. They can be standalone, part of retail centers, or anchored in some strip malls. They’re open to all demographics and must be built with accessibility and well-being in mind. Special-use properties are miscellaneous commercial properties like educational facilities, sports structures, theaters and entertainment venues, parking lots, and even zoos.
The Bottom Line
To find success with your next commercial construction project, choose the right team to be by your side every step of the way. Our success is based on active communication between all our team members and the total involvement of the company officers. We can assist you by providing complete, turnkey services or tailoring our services to meet your specific requirements. Contact us today to get started!