Commercial buildings are structures that are used for business purposes. This includes office buildings, retail stores, warehouses, and manufacturing plants. These buildings are typically larger and more complex than residential structures. They often have specialized features, such as loading docks and large open spaces.
Types of commercial buildings
Here are some of the types of commercial buildings:
Office buildings
Depending on the needs of the community, office buildings are a typical type of commercial building that can be found in cities and even towns of any size. Depending on where it is located and how much the developer wants to invest, an office building may only have one story or it may be a skyscraper. An office building’s owner may rent out the entire structure or maintain offices there. Tenants in an office building could be multiple businesses operating on the same floors or just one.
Restaurants
Restaurants are another common type of commercial building. If a building doesn’t have multiple uses and only has one restaurant in it, the owner may also own the restaurant or they may lease the building to the restaurant owners. This holds true regardless of the type of restaurant—franchise, chain, or independent. A restaurant building may be constructed specifically for the tenant in accordance with brand standards or it may be constructed to accommodate any restaurant tenant. Due to their kitchens, restaurant buildings frequently have more sophisticated requirements than other commercial buildings.
Retail
When people think of commercial buildings, many of them immediately picture retail spaces. Retail refers to any type of store or shop, including big box stores that occupy an entire building designed like a warehouse and small retailers housed in a building with other retail establishments. Because of this, a retail building may only have room for one business or may have several, like a strip mall. Storefronts are almost always present in retail buildings so that customers can enter directly, though in some circumstances, such as malls, access may be available from inside the structure.
Hotels
Even though it may seem like hotels are only permitted as residential structures and are not, in fact, commercial buildings Hotels are typically regarded as commercial establishments because they are more of a commercial business than simply renting out apartments, and because the turnover is frequently quicker. While some hotels are modest, one-story roadside inns, others are skyscrapers that also house restaurants and shops. Depending on a number of variables, the hotel’s owner might also be the building’s owner or licensor.
Warehouses
Large cities and rural areas alike frequently have warehouses as commercial structures. Warehouses are frequently used as a hub for storage by other types of businesses. For example, a logistics and shipping company might use one to hold packages while processing and transporting them, or a retailer might keep stock there until it is needed in a store. Warehouses may serve as a temporary stopover for the items they contain or as a long-term storage facility. Some warehouses require careful climate control due to the items they store.
Industrial
Actually, a wide variety of structures are classified as industrial buildings, including manufacturing facilities, workshop facilities, and even specific kinds of warehouses. An industrial building may contain dangerous chemicals, have large machinery, or provide services to customers like an auto shop. Despite the fact that industrial buildings can house a diverse range of business types, they are frequently amalgamated due to potential noise or safety issues. This prevents these kinds of structures from being too close to residential areas, though the exact distance will obviously vary depending on the city or town.
Healthcare
Although it may not seem like it, many hospitals and clinics are for-profit businesses with a focus on providing services to patients, or customers in the healthcare industry. As a result, healthcare facilities are regarded as a specific kind of commercial building. This can range from large hospital campuses to small clinics. Small clinics may be found in their own small building or a multi-use building that they lease a space in, whereas the larger hospital buildings are typically owned by the hospital owners and specially built for their needs.
Multi-use
A multi-tenant commercial building is one that serves multiple purposes. These tenants may consist of eateries, shops, offices, and even medical facilities. It can also include residential rentals, and would still be considered commercial as long as 51% of the tenants were commercial tenants and not residential Because they don’t depend on a single type of business, multi-use buildings can be a good investment for developers and provide some security.
What is a commercial building?
Commercial buildings are buildings where commercial activities take place. Commercial buildings include office buildings, retail space, warehouses and more. Compared to commercial property, which also includes multi-family structures like apartment buildings, this is somewhat different. This is because businesses are located in commercial buildings, whereas businesses are not required to be located on commercial property in order for it to generate income for its owners. In some cases, multi-use structures with a mix of spaces, like a retail area and apartments, can still be referred to as commercial structures.
Why is it important to understand commercial buildings?
For a range of professionals, understanding commercial buildings is crucial. You should be aware of the types of commercial buildings you could operate out of and how local zoning laws might impact your business if you intend to launch your own business and require a physical location. Knowing the distinctions between residential and commercial buildings will help you better serve your customers if you work in real estate.
You should be aware of what makes a building commercial as well as the laws and codes that apply to various types of commercial facilities if you are a developer, work in construction, design buildings as an architect or engineer, or are otherwise involved in the construction of commercial buildings. Infrastructure requirements for commercial buildings can be very different from those for residential buildings.
What is a commercial lease?
The contract that a business owner signs with the owner of the building or space they intend to rent is known as a commercial lease. This is comparable to a residential lease one would sign for a home or apartment, but there are some differences between the two. The main distinction is that a commercial lease lacks the same consumer protections and requirements as a residential lease, so those signing one should take extra care and possibly seek legal counsel to ensure they fully understand what they are signing.
Commercial leases are negotiable, and because there are so many elements of a commercial building that may need to be covered by the lease, it’s helpful to prepare your requests in advance. Both real estate owners and business owners should be aware of this.
Tips for negotiating a commercial lease
The following are some elements of a commercial lease that you might want to discuss as you negotiate:
