Amazing Facts About Commercial Building and the Best Places to Buy
Are you in need of a commercial building to buy or rent for your business? Also, are you wondering where the right place will be to find one? Then this article is for you.
As you read on, you will discover everything you need to know about commercial buildings and the best places to rent or buy one from.
What is a Commercial Building?
A commercial building is a real estate that is used for business activities. Commercial building usually refers to buildings that house businesses, but can also refer to land used to generate a profit, as well as large residential rental properties.
The designation of a property as a commercial property has implications for how it is financed, how it is taxed, and how the laws are applied to it.
Also, 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).
Additionally, a commercial building (or, land) may also be defined as a space that has the potential for being one that brings in income.
Different Types Of Commercial Building
1. Office Building
Office buildings can be single-tenanted or multi-tenanted, and many are build-to-suit. They are typically categorized into urban and suburban properties. Urban office buildings are found in major cities and include high-rise properties and skyscrapers.
Suburban office buildings include midrise structures located outside of a city center. Office buildings can also be classified into:
- Class A buildings are considered to be the most prestigious and have state-of-the-art systems, high-quality finishes, definite market presence, and excellent accessibility
- Also, Class B buildings are deemed to have fair finishes, adequate systems, but with a less desirable location
- Class C buildings compete for tenants looking for purposeful space at rents below the average
2. Retail Spaces
This is a type of commercial building. Retail includes the properties that house restaurants and retailers.
They can be multi-tenanted or single-use, standalone buildings. The retail sector is complex because the type of shopping centers – such as community retail centers, regional malls, power centers, out parcels, or strip centers – is determined by metrics like the size, trade area, concept, and types and number of tenants.
3. Industrial & Warehousing
This is a type of commercial building.
These buildings house industrial operations for a variety of tenants and are usually located along major transportation routes outside of urban areas.
Industrial buildings can be grouped into industrial parks and are classified into four types:
- Heavy manufacturing: heavily customized buildings with the machinery required by manufacturers to operate and produce goods and services
- Bulk warehouse: these buildings are usually large and serve as distribution centers
- Flex industrial: industrial buildings that can be easily converted and typically comprises a blend of both industrial and office space
- Light assembly: these commercial properties are not customized and can be easily reconfigured. Typical uses include product assembly, storage, and office space
4. Multifamily Real Estate
This sector covers all forms of residential real estate outside of single-family, including condos, apartments, townhomes, high-rise apartment buildings, and co-ops. Just like office buildings, multifamily properties are categorized into class A, class B, and class C.
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This is a type of commercial building. The land category includes investment properties on raw, undeveloped land, infill land that has been developed but now is vacant, and brownfield land that has previously been used for industrial purposes and is available for re-use.
Best Commercial Space and Property Websites
Here are some of the best commercial building and office property websites:
1. Hudson Yards New York
Location: New York, New York
Hudson Yards is a mixed-use development located on Manhattan’s West Side which features retail, office space and residential.
It is the largest private real-estate development in the U.S. Hudson Yards made the list because it is user-friendly and it has beautiful imagery and robust content which truly tells the story of the property.
Location: Oakland, California
Eastline is a mixed-use development located in Oakland that features office and community arts space. Eastline made the list because of its use of history and the local community to tell the story of the property.
It also features user-friendly navigation to find all of the important information. Eastline sets itself apart by highlighting the history of Oakland’s Uptown neighborhood.
3. Uptown Station
Website Designer: Allis
Location: Oakland, California
Uptown Station is a mixed-use development with office and retail space. Uptown Station is great because of its use of vivid imagery and consistent styling.
4. 7700 Parmer
Website Designer: SpaceCraft
Location: Austin, Texas
7700 Parmer is a 1,299-acre campus development located in Austin, Texas. It is home to notable brands such as eBay, PayPal, EA, Oracle, and Dunn & Bradstreet.
Also, 7700 Parmer’s website made the list because of its clean design, user-friendly navigation, and focus on highlighting its strengths. This is one of our own websites that we wanted to showcase.
There is seamless navigation and a clean layout of this website. By not flooding the pages with information, the user can easily find what they are looking for without wading through unnecessary content.
This makes it easier for the user to read the website and find CTAs. This website also maintains a focus on the high-value aspects of the property.
Location: Austin, Texas
MetCenter is a large mixed-use business park offering both flex and office space in Austin, Texas. MetCenter made the list because of its interactive aspects and user-focused content.
One of the most unique aspects of this website is the “Economics” page. This page shows how the property is the most cost-effective choice for tenants.
This website sets itself apart with an interactive map that shows where certain types of buildings are located in the development. This is helpful for prospective tenants looking for specific types of space for their business.
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Ways to Find Commercial Space for Rent
Here are four ways for a business owner to find a commercial building for rent:
1. Hire a Commercial Real Estate Brokerage
The best way to find commercial space is by hiring a commercial real estate broker.
Commercial real estate brokerages are dedicated exclusively to leasing and selling commercial property – office, retail, and industrial real estate.
Aside from your commercial attorney, your commercial real estate broker will be your expert adviser throughout the leasing process.
Since commercial real estate doesn’t have a listing database, brokers are the best resource for what is available and may become available in your market.
Not only will your commercial real estate broker be able to help you find space, but they can also help you negotiate your lease so that you know you’re getting the best deal possible.
Brokers can help negotiate rental rates, build-out allowances, rent abatement periods, and so much more. And the best part about hiring a commercial real estate broker to represent your business?
It won’t cost you a dime. Just like residential real estate, the property owner pays your broker’s fee. So not only will a broker help you find commercial real estate and save you money during negotiations, they won’t cost you anything!
2. Search the Internet
If you’re just starting your search, you may not yet need a broker to help you find a commercial property.
Maybe you just want to see what’s available in the market. Or get a feel for rent prices.
Utilizing Loopnet, CREXi, and Craigslist to scratch the surface and familiarize yourself with the market is a good route.
Sure, these online resources may not have 100% of the information you need to make a decision, but they’ll have enough to get you comfortably educated.
These resources will give you the ability to search by product type, square footage available, and (except for Craigslist) other minor details, such as amenities.
Another benefit of scouring these online listings? You’ll be able to find a commercial real estate broker that’s focused on the neighborhood or area you’d like to be in.
Keep in mind, too, that as you reach out to these listing agents and landlords to find commercial property that they are not on your side. They’re out to negotiate the best deal for themselves or their clients, so be sure you have an attorney at the very least.
3. Network with Business Owners
Business owners that are currently located in the neighborhood or area where you’re looking to rent commercial space can be a phenomenal resource. They’ll usually know what’s available or coming available soon in the area.
Entrepreneurs and small business owners are like a family, especially within certain neighborhoods. Neighborhood groups are also a wonderful way of making these connections.
Try the local Chamber of Commerce, merchants associations, BNI groups, etc. If you’re serious about being in the area, then join these groups and let everyone know you’re on the search for commercial space.
Chances are good someone will know which direction you should take.
These associations probably have pages & boards where you could ask for information on available commercial space, as well.
4. Drive Around Your Market
Another way you could find commercial space for rent is by driving the areas you’d like to open your business. Depending on where you live, you may also want to walk the neighborhood.
Pay attention to buildings that have boarded-up windows or seem to have no cars parked in the lot at peak times. You’ll also see “for lease” signs in the windows, often with a number to call.
Sure, driving or walking your market can be time-consuming, but it can also be very rewarding. You may discover parts of your neighborhood that you’ve never seen before or find a hidden gem of a business.
Keep a running list of all the properties during the search that piqued your interest. Pull the tax records and use white pages in an attempt to find a phone number. Sometimes, you have to be a bit of a detective.
During your search for property, you’ll either find a broker that knows the area very well, or you may find a good landlord with property asking for reasonable rent.
We hope this article was quite helpful for you. If it was, please do well to share it with friends and loved ones.