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Different types of commercial real estate

On Behalf of | Nov 21, 2022 | Commercial Real Estate |

Commercial real estate properties ca be income-producing assets. In Michigan, there are several different types of properties from which to choose. Here is a brief overview of the major categories of commercial real estate.


Commercial multifamily residences include more than four units. Anything less, and it’s considered residential. Income for this type of investment comes from rental leases and frequently includes money generated by coin-or-card-operated washers and dryers in a laundry room. Apartment buildings and assisted-living facilities are in this category, as well as other structures.

Office space

There are three classes of office buildings, ranked from A to C. The most desirable “A” buildings cost more and command the highest rent. “B” buildings are quality properties that may be older and not in the most desirable locations. “C” properties may need repairs and renovations. They cost less and will generate less income than the other two categories. However, “C” buildings can likely be fixed and promoted to a “B.”


Industrial properties run the gamut from large manufacturing and distribution plants to a one-unit warehouse. You can often find these types of properties located side-by-side in industrial parks, near major highways, trains and airports to facilitate shipping. This type of commercial real estate is the most heavily regulated sector due to complicated zoning and environmental concerns.


Retail is a vast category that includes most places where people shop or pay for services. From large to small, this group’s got it all. This sector contains the regional shopping centers that attract people who will drive hours to reach them, the mom-and-pop bakery on the corner, the neighborhood hair salon and the local gym.

Commercial real estate offers a fascinating and diverse opportunity for investors. Protect yourself and thoroughly evaluate the property before you sign the purchase agreement.