Industrial buildings offer plenty of features, so it is wise to invest in one. For a profitable investment, you need to know all the types you can get and what you get with them.
Although business spaces need more upfront investment than residential property, the returns are usually greater. Firms can also get the benefits of triple net leases, which put the costs of taxes on real estate maintenance, insurance or on the shoulders of the lease tenant.
After investing in commercial buildings, the benefit is that you mainly deal with the firm owners (a B2B connection) instead of directly talking with the renters (a B2C link). Companies that make income as tenants in the property are more likely to follow lease conditions and pay rent on time.
Now let’s get a brief overview of the kinds of commercial buildings.
Industrial Application Commercial Buildings
These sites mostly have ample cargo space and truck-loading docks with many HVAC units and points for electrical distribution. Many also contain an accessible flat roof and other added logistics features. A few industrial buildings also have large refrigerated areas. Subcategories of industrial buildings are:
Manufacturing Facilities: This type of structure is to make raw materials or final products. These are in either one of two types: a large manufacturing plant or a small assembly center. A heavy manufacturing facility generally produces heavy-duty items and has large machines and tools for production.
Warehouses: Companies use warehouses as storage spaces for many types of businesses, for example, shipping and logistics companies that use a warehouse to store their goods. At the same time, they process and move their goods to a retailer who holds their stock in warehouses until a retail store needs it. Many warehouses also have climate control features due to the nature of stored objects.
Flex Stores: A building with more than one purpose in one location is a commercial flex space. An office space paired with a light manufacturing facility is a perfect flex building example. The primary characteristic of this type of building is its area available for office space.
Retail Commercial Buildings
This kind of property is one where customers get the products or services. A careful property inspection can involve a single unit or an entire retail facility. Retail is like any shop or store, including big box shops that fill a whole warehouse-style building to smaller retailers that share a space with other retail firms.
Due to this, retail buildings may only contain one business or may have many retail spaces, such as an outlet mall. Subcategories of structures for retail spaces are:
Mall: It is a closed shopping center with multiple outlets. These can be food courts, department stores, and movie theaters.
Shopping Centre: This type of property is often called a strip mall, and it can differ significantly in terms of size and type of tenant. They are open-air storefronts with multiple buildings under one roof or in a complex. Shopping centers often house large-box stores (like Home Depot and Target) and smaller restaurants, shops, and convenience stores.
Office Commercial Buildings
Commercial offices are spaces that medical professionals, tech companies, and others need. A general characteristic of office space is its division into many rooms. Commercial buildings usually have bathrooms and kitchens in basic home style. Subcategories of office spaces are:
Office Buildings: This type of space is for more occupancy and can vary in size. It can be anything like a simple building or a high-rise. It may have some HVAC and electrical systems, and if it is a multi-level building, it should at least have a staircase and an elevator.
Condominium or suite: Firms design these structures with the notion that the property owner or manager will manage the roof, exterior, and communal areas, while the tenants own, rent, and take the core of these places. These separate spaces could be units, an apartment, or even building wings. It can also be a part of a shopping mall or an industrial facility.
Dental or Medical Office Suite: The typical office suite is a larger area, which later narrows down into smaller areas like offices, examination rooms, and treatment rooms. The office space has waiting rooms, restroom(s), HVAC controls, electrical systems, and plumbing basins or points of distribution. The dimensions and complexity of these areas can differ widely, and it’s not uncommon for them to have custom-designed and permanently constructed structures.
What You Must Know
Some commercial properties might not be in any of the above-listed types. These are special-purpose spaces like casinos, churches, airports, and schools. If you’re looking to buy, sell or invest your funds, the simplest method is to get more knowledge about the local commercial properties.
