If you’re looking to invest, it’s useful to know the different types of commercial property available.
Investing in commercial property can be a lucrative venture, but navigating the various types can be challenging without proper guidance.
This blog post explains the different types of commercial property in the UK and their unique characteristics.
Office buildings
One of the most common types of commercial property in the UK. These can range from single-tenant properties to skyscrapers housing multiple businesses. Office buildings are usually classified into three categories:
- Grade A: High-quality buildings with top-notch amenities, located in prime business districts.
- Grade B: Older buildings with good facilities, often situated in less central locations.
- Grade C: Functional buildings in need of renovation, typically in less desirable areas.
Retail properties
Designed for businesses that sell goods or services directly to consumers. These properties vary significantly in size and style, including:
- Shopping centres/malls: Large complexes with multiple retail stores, restaurants, and entertainment facilities.
- Retail parks: Clusters of stores, often with shared parking areas, usually located on the outskirts of towns and cities.
- High street shops: Individual retail units located on main streets, often in town and city centres.
Industrial properties
These cater to businesses involved in manufacturing, warehousing, distribution, and other industrial activities. These properties include:
- Warehouses: Large spaces used for storage and distribution of goods.
- Factories: Facilities equipped for the production and assembly of products.
- Flex spaces: Versatile buildings that combine office space with industrial or storage areas.
Multifamily properties
Residential buildings designed to house multiple families or tenants. While primarily residential, they are considered commercial properties when they contain more than four units. Types include:
- Apartment blocks: Structures with multiple separate units, ranging from small complexes to high-rise buildings.
- Townhouses: Multiple connected units, each with its own entrance.
- Purpose-built student accommodation: Residential units specifically designed for student occupancy.
Hospitality properties
These include establishments that provide lodging, meals, and other services to travellers and tourists. These properties cover:
- Hotels and inns: Ranging from luxury resorts to budget accommodations.
- Guest houses: Smaller, more intimate lodging options, often in converted homes.
- Serviced apartments: Offering longer-term lodging options with amenities like kitchens.
Special purpose properties
Uniquely designed for specific uses and are often difficult to repurpose. Examples include:
- Healthcare facilities: Hospitals, clinics, and nursing homes.
- Educational institutions: Schools, universities, and training centres.
- Religious buildings: Churches, mosques, synagogues, and other places of worship.
Mixed-use properties
These properties combine elements of residential, commercial, and sometimes industrial spaces within a single development. These properties are designed to create self-contained communities where people can live, work, and play. Typical examples include:
- Urban developments: Complexes with retail stores on the ground floor and residential units above.
- Live-work spaces: Buildings that offer space for both living quarters and small business operations.
Conclusion
Understanding the different types of commercial property is crucial for making informed investment decisions. Each type comes with its own set of legal, financial, and logistical considerations.
Feel free to contact us for personalised advice and to learn more about how we can assist you in your commercial property ventures.