In the real estate market, there are generally two kinds that come to mind. Commercial real estate and residential real estate. So simply put, either a home or a business. Now this covers the broad understanding of what is involved in the real estate market, however it goes much deeper than this!

We will break down the types within the commercial real estate market, that serve specific purposes based on the category it falls under!


The Classification of Offices: Office buildings are generally grouped into three different categories. The categories are Class A, Class B and Class C. The classification of these categories are based on context largely, and do not have a strict criteria that runs through them. Class A is considered the best, due to the location, as well as the construction. Class B have high quality construction, however something like the location may be less desirable. Class C is basically what is left that A and B do not possess.

Central Business District (CBD):  Office buildings that are located in the central business district in the heart of a city. These buildings may include highrises depending on the cities.

Suburban Office Buildings: To achieve the requirements of suburban office buildings, the space involved will generally fall between 80,000-400,000 square feet located outside of a cities center. Sometimes there will be suburban office parks involved in relation to the primary buildings.


Heavy Manufacturing: This category of industrial property is generally put under the special use category that mainly applies to large manufacturer’s due to their use heavily customized machinery and the need to renovate the property for their specific needs.

Light Assembly: These structures involve more simple manufacturing properties, much different than the heavy manufacturing. The most typical uses for this property is office spaces, storage and product assembly and not requiring renovation.

Flex Warehouse: As the name suggests, this property is flexible in it’s ability to house mixed property, for example both industrial and office.

Bulk Warehouse: These types of properties are on a very large scale, that involves somewhere between 50,000-1,000,000 square feet. These properties tend to involve some form of regional distribution of products, resulting in the need for easy access for trucks and the exiting of highway systems.


Strip Center: These properties have the tendency to be on the smaller side and may involve anchor tenant larger than average retail tenants that draw in customers.

Community Retail Center: These properties are in the range of 150,000-350,000 square feet, and may involve multiple anchors like grocery stores and drug stores, along with some restaurants in the mix.

Power Center: These properties consist of smaller inline retail stores and the inclusion of a few major box retailers like Wal-mart, Lowes, Best Buy and the like. The big box retailers tend to have around 30,000-200,000 square feet.

Regional Mall:  Properties of this type have between 400,000-2,000,000 square feet and have multiple anchor tenants or big box retailers.

Out Parcel: Out parcels are plots of land that are designated for individual tenants like fast food restaurants and banks.


Garden Apartments:  Typically 3-4 stories with 50-400 units without the implementation of elevators, but includes surface parking.

Midrise Apartments: Typically 5-9 stories ranging from 30-110 units and including elevator services. Often found in urban infill locations.

Highrise Apartments: Generally found in larger markets and include 100 or more units that are professionally managed.


Full Service Hotels: Found primarily in central business districts and tourist areas and often house the larger company names like Four Seasons or Ritz Carlton.

Limited Service Hotels: Generally these hotels, as the name suggests, have limited services, something like boutique properties. Due to these limited services, things like room service and on-site restaurants are not available.

Extended Stay Hotels: Hotels that host large rooms to help accommodate longer stay periods.


Greenfield Land: These properties involve farms and pastures.

Infill Land: Located in cities and has been developed but now lies vacant.

Brownfield Land: Parcels that were previously used for industrial or commercial purposes, but are available for re-use, however tend to be environmentally impaired.


As seen above, there are an abundant types of commercial real-estate, each having specific purposes dependent upon the function of what’s being built there. Even so, there are other types of commercial real estate that can be constructed and owned, for example self-storage, car washes, theme parks and many many more.

If you have any questions or interest in commercial real estate, give us a call or send us an email! We at Kontor keep your ahead of the curve!

Phone: (612)567-1810


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