5 Types Of Commercial Real Estate

Commercial real estate. 5 types of commercial real estate - Awan Properties.

What is Commercial Real Estate? 

Commercial real estate is a type of property that is leased out for business and retail purposes. In commercial real estate, properties that are designed with the intent of housing commercial tenants are purchased or rented out. In commercial real estate, raw land is also included in this type of purchase for the purpose of commercial developments. There are 5 types of commercial real estate.

5 Types of Commercial Real Estate

  • Office 
  • Retail
  • Industrial
  • Multifamily
  • Special Purpose


The office is the most common type of commercial real estate. These buildings are in the form of single-tenant offices to mid-rise or high-rise buildings. Offices are further categorized into 3 classes. I.e. Class A, Class B, Class C.

Class A, Commercial Real Estate

These types of commercial real estate properties are newly constructed or renovated. These buildings are in good condition. And primarily located nearby all amenities. These properties are managed by Professional Real Estate Management Companies

Class B, Commercial Real Estate

These buildings are relatively older than Class A buildings. These buildings require major capital investment for repair and upgradation. Although these buildings are well maintained and managed but require renovation for making them a popular target for investors

Class C, Commercial Real Estate

Class C, Commercial Real Estate are poorly located and typically used for redevelopment opportunities. It requires major investments to improve the infrastructure.


Retail buildings are another popular commercial real estate buildings. These properties are in the form of malls, restaurants, banks, and community retail centers. These are often located in urban areas. The general size of these properties ranges from 5000 square feet to 350,000 square feet.


Industrial commercial real estate includes warehouses to large manufacturing sites. These properties lend themselves to more investment opportunities. 


Multifamily properties are in the form of high-rise or mid-rise buildings with the accommodation of single, 2 to 3-bed apartments. Residential tenants tend to invest in these units because they have shorter lease terms than office and retail tenants. 

Special Purpose

These properties are designed for specific use. These types of properties are difficult to reuse for another repurpose. These include car washes area, self-storage facilities, and schools. Tourism industries occupied large proportions of special-purpose commercial real estate. Hotels, airports, amusement parks, and sports stadiums are also some examples. Mixed-used buildings are also included in special-purpose commercial real estate. 

If you want to buy sell or invest in commercial real estate in DHA Islamabad and Bahria Town Islamabad. Contact Us

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