Commercial Real Estate is properties used by businesses to either generate a

profit, capital gains, or rental income.

Confusion between residential and commercial real estate usually occurs when
dealing with multi-level properties that serve as tenant’s residences. A residential
real estate has a structure intended for dwelling and not for commercial use,
while commercial real estate is for commerce. Since the multi-level property
provides a rental income to the landlord, it is considered commercial real estate
for him.

Commercial Real Estate is classified as:

1. Multi-Family– is a residential property turned into rented spaces or

commercial real estate. The best example of this is townhouses, condo
units, or houses for rent.

 Office- are properties that house some of the city’s largest companies to
professional space designed for the needs of the medical field and
suburban office space that provides convenience to the business’
employees and client.

Offices are classified as Class A, B and C. Class A are prestige buildings that
house big companies with rent that is above the average in the area. Class B is
fair to good buildings with an average rent while Class C are functional areas
with below the average rent in the area.

 Industrial- these are properties intended for industrial operations for

different tenants. The types of industrial, commercial real estate are the
same as industrial real estate, the only difference is it is used for profitable
purposes by its owner.

 Hotel– covers establishments that serve accommodations, meals, and

services intended for travelers and tourists. Hotels are classified into six
categories:

 Limited-service- hotels with room service, on-site restaurant, or

concierge.