💼 A Guide to 5 Key Commercial Property Types 🏬 | CRE Investing 101

🏢 What Are the 5 Types of Commercial Real Estate? | CRE Explained 💼

June 07, 2025•2 min read

🏢 What Are the 5 Types of Commercial Real Estate? | CRE Explained 💼

💼 A Guide to 5 Key Commercial Property Types 🏬 | CRE Investing 101

🏢 5 Types of Commercial Properties Explained: A Quick Guide for Investors & Business Owners

When entering the world of commercial real estate (CRE), understanding the different property types is essential. Whether you're an investor looking to diversify your portfolio or a business owner searching for the right space, knowing how each asset class functions helps you make informed decisions.

Here’s a breakdown of the five most common types of commercial properties:

1. Office Buildings 🖇️

Office properties range from small professional condos to skyscrapers in urban cores. They’re typically divided into:

· Class A: High-end buildings in prime locations with top amenities.

· Class B: Good-quality properties with moderate updates.

· Class C: Older buildings needing renovation or repositioning.

Why it matters: Office space demand fluctuates with remote work trends and economic cycles, making location and tenant mix crucial.

2. Retail Spaces 🛍️

Retail properties include everything from single-tenant buildings (like fast food drive-thrus) to shopping malls and neighborhood strip centers. These spaces thrive on foot traffic, visibility, and access to highways or residential communities.

Pro tip: Triple net (NNN) leases are common here, transferring many costs to tenants.

3. Industrial Properties 🏭

Industrial real estate is booming, thanks to e-commerce and logistics. Common types include:

· Warehouses

· Manufacturing plants

· Flex spaces (office + industrial)

Why investors love it: Stable tenants, long leases, and growing demand.

4. Multifamily Apartments 🏘️

While technically residential, properties with 5+ units are classified as commercial. These range from garden-style apartments to high-rise complexes.

Investment insight: Multifamily is considered one of the most recession-resistant CRE types due to consistent housing demand.

5. Special-Purpose Properties 🏥

This category includes:

· Hotels and motels

· Medical buildings and surgery centers

· Self-storage facilities

· Churches and schools

Key point: These often require custom buildouts or zoning, but can generate higher returns due to niche demand.

Final Thoughts

Each CRE type comes with unique risks and rewards. Working with an experienced commercial real estate broker can help you identify the right opportunities, evaluate cash flow potential, and navigate leases or acquisitions smoothly.

📍Serving Katy, Fulshear, and Greater Houston – we’re here to help you build wealth through commercial real estate.

https://www.houstonrealestatebrokerage.com/

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https://www.commercialexchange.com/agent/653bf5593e3a3e1dcec275a6

http://expressoffers.com/[email protected]

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https://author.billrapponline.com/

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Bill Rapp, CRE Broker

I am a Houston commercial broker, with residential experience, as well as a lending background. I have been in the real estate industry for 14 years and counting, and I have worked in many roles within the industry and each has given me a unique perspective of the industry as a whole. My dedication to clients is rooted in this industry knowledge, but also includes my desire to go the extra mile in networking to source off market opportunities for my clients. Me and my team at eXp Commercial have a cutting-edge technology package that gets the widest exposure for each transaction. eXp Commercial offers a nationwide network through which we can deliver the best exposure and professional advice to achieve our clients’ goals while also minimizing their risk. Clients appreciate my methodical method of discovery in our initial consultation. Through which we can get to know each other and their specific’s business’s needs and objectives on a granular level. Our processes help navigate each transaction and its potential pitfalls through to a successful outcome for our clients. It is my stated goal to provide our clients with extensive market analysis and expertise that fosters innovative solutions and rewarding commercial real estate opportunities.

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