The term commercial property refers to buildings or land intended to generate a profit, either from capital
gain or rental income. Commercial property includes office buildings, medical centers, hotels, shopping
centres, retail outlets and stores, farm land, multifamily housing buildings, warehouses, and garages.
Commercial property is commonly divided into six categories:
- Office Buildings – This category includes single-tenant properties, small professional office buildings, downtown skyscrapers, and everything in
- Retail/Restaurant – This category includes pad sites on highway frontages, single tenant retail buildings, small neighborhood shopping centers,
larger centers with grocery store anchor tenants, "power centers" with large anchor stores such as Best Buy, PetSmart, OfficeMax, and so on even regional and outlet malls.
- Multifamily – This category includes apartment complexes or high-rise apartment buildings. Generally, anything larger than a fourplex is
considered commercial real estate.
- Land – This category includes investment properties on undeveloped, raw, rural land in the path of future development. Or, infill land with an
urban area, pad sites, and more.
- Miscellaneous – This catch all category would include any other nonresidential properties such as hotel, hospitality, medical, and self-storage
developments, as well as many more.