Commercial real estate is property that is used solely for commercial purposes or to offer a workspace, as opposed to residential real estate, which is utilized for living purposes. Tenants are often leased commercial real estate to conduct income-generating businesses. While official classifications vary by county, commercial real estate can generally be divided into eight basic groups.
Office space refers to all office buildings with workplaces available for rent by various businesses.
Industrial space refers to any property utilized for industrial purposes, such as heavy manufacturing, light assembly, bulk warehouses, and flex spaces that combine industrial and office space.
Multifamily complexes are residential rental properties with more than five units, such as apartment complexes, that are classified as commercial space because they generate rental revenue for the property owner or management business.
Any building used for retail purposes is considered a retail space. This could range from single stores to strip malls and shopping malls. Larger sites, such as malls, usually feature an anchor tenant, which is a larger department store that attracts other stores.
Hotels are classified into three distinct groups. Large, multi-room hotels with at least one bar or restaurant are known as full-service hotels. Limited-service hotels are smaller, more basic establishments that may not include amenities such as concierge services, 24-hour desk services, or turn-down service. Extended stay hotels provide larger rooms that resemble serviced apartments.
Mixed-use properties are properties that fall into more than one of the above categories. Multi-family apartment buildings with retail areas on the ground floor are common examples of mixed-use developments.
Farmland, agricultural real estate, unoccupied land, and brownfield land are examples of land that has previously been utilized for industrial or commercial purposes but is now accessible for reuse.
Commercial properties such as amusement parks, theaters, zoos, and parking lots are examples of special-purpose real estate. Any commercial property that does not fall into one of the following categories is classified as special-purpose.
Monroe Funding Corp has a wealth of experience and knowledge to help you reach your investing goals. To learn more about Florida Commercial Real Estate Loans, contact us online or by phone at +1 (954) 419-3539.