Further classifications then exist as buildings are designated as Class A, B, or C. A miscellaneous catch-all category that essentially covers everything elseĬommercial properties that are defined as office properties can range from a single-tenant space to a skyscraper, and everything in between.Within the scope of commercial properties, there are generally six different types: Unlike residential rental properties, in which a tenant pays a set monthly fee for the entire apartment (and, that is how the lease agreement is spelled out), commercial property leases are generally drawn up in such a way that the occupant is paying a certain amount per square foot of space.Schools do not qualify as being commercial real estate however, places of worship and lodging entities such as hotels, may be qualified as commercial properties.As such, a commercial property does not strictly need to be a store or restaurant it can also be a space in which income is being generated by providing services to people, such as a law office or a doctor’s office.

A space that allows companies to carry out day-to-day operations and serve customers or clients.

For example, a building in New York City that is 10 stories high with 6 of floors being dedicated to apartments or residential dwellings, with the remaining 4 floors being dedicated to commerce, would not be considered a commercial building.Īdditionally, a commercial building (or, land) may also be defined as a space that has the potential for being one that brings in income.Īdditional qualities of commercial real estate include: A commercial building definition is one in which at least 50 percent of its floor space is used for commercial activities, such as retail, the providing of services, or food service (restaurants and the like).

Shop office inside building