Commercial real estate covers a diverse group of structure
types and uses, as well as vacant land. Learn specifics about some of the most
common ones here.
These categories are discussing the sale of "real
property", the land and/or buildings. Though business owners frequently
sell their business entity together with the real estate, the valuation of the
business enterprise itself is not treated in this discussion.
1. Multi-Family
Commercial Real Estate
Multi-family commercial real estate property types include
duplex homes, and other construction for habitation by mulitple family groups.
Condominiums are frequently called multi-family because of their construction
as a group, but are normally listed and sold as single family residential
units. Duplex homes are also frequently listed and sold as residential units to
a buyer that lives in one side and rents out the other.
2. Retail Space Real
Estate Properties
This category would include single buildings used as stores
for clothing, electronics and other consumer products, as well as malls, strip
centers and the like. Restaurant spaces are a specialty subset of the retail
category, with some listings shown as restaurant/retail. Valuations can be
based on size and land value, retail sales per square foot or other investment
return calculations.
3. Office Buildings
and Office Complexes
A single building designed for office use, or a group of
offices in a single building or cluster of buildings would fall into this
category. When offices are grouped in structures with single ownership, they
are listed as commercial office rental property. The owner derives income from
the rental payments of the office tenants. These can be valued based on the
rental income return on investment, rather than methods using square footage
and land value. Medical & Dental offices are a subset.
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