What is Commercial Real Estate?

What is Commercial Real Estate?

Commercial real estate is an essential part of the real estate economy, and yet some consumers may never realize what commercial real estate represents. Simply, commercial real estate is any type of real estate that is not residential real estate. Most people think of homes and condos when they think of the real estate market, but the commercial real estate market includes everything from office buildings to stadiums and even vacant land. Anything where people don’t live and sleep could be considered “commercial” depending on the use.

Below are some of the most common types of commercial spaces:

Office Space
Office Buildings

Office spaces are the largest category of commercial real estate. They can include anything from small single office buildings and office condos, to the huge skyscrapers you see downtown. That huge building downtown was sold as a single piece of commercial real estate in the past. Office building can also be leased or sold as condos to new owners who lease or mortgage the space and make monthly payments.


Warehouse space represents a huge number of the larger spaces available for sale or lease in commercial real estate. Some warehouses can be hundreds of thousands of square feet in size. Many of the new warehouse spaces being built are for mail and shipping warehouses for retailers and manufacturers. This category can also include truck depots, distribution centers, cold storage, and temporary storage.

Multi-family BuildingsMulti-family Buildings

This type of commercial space is usually defined as having more than 4 residential units. Multi-family buildings includes condos buildings, large apartment complexes and residential hotels. Many times these types of properties are priced at a “per unit” cost to help the investor compare housing unit costs.

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Retail SpaceRetail Space

Retail commercial space includes shopping centers, shopping malls, strip malls, restaurants, large showrooms, big box stores, grocery stores and many other types of spaces where consumer spend their money to purchase goods and services. Retail spaces can include a vendor booth or kiosk up to a giant mall project.

Medical Office SpaceMedical Office Space

Medical commercial space can include office condos and other small office sales and rentals in a designated medical building or medical office. Usually, the medical office space has specific requirements on the types of practice and office that may be opened in that location. Commercial real estate that is also medical office space includes hospitals, clinics, nursing homes, and rehab centers.


Vacant LandVacant Land

Vacant land is considered commercial real estate, and can be any type of lot that ranges from a few square feet to thousands of acres of desert or mountain land. Vacant land can be used for a variety of purposes from residential, mining, agriculture, storage, ranching, manufacturing and many other purposes that are not permitted in residential areas. Most vacant land is zoned for a specific use or purpose by the city or county.

Start Exploring Your Commercial Real Estate Options

Digsy can help you identify your commercial real estate needs, and get you into your next business space at the best price and terms. Contact Digsy to find out about the best commercial properties in the area, as well as off-market commercial real estate properties that are not listed on the internet.

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  1. A large establishment company ..

  2. I didn’t realize how much I use commercial buildings! They are a big part of my life. I go to shopping places, restaurants, and grocery stores all the time. http://www.macsaustralia.com.au/commercial-industrial-building-construction

  3. Like you mentioned in the article, I am one of the people who only thinks of homes and condos as the only thing that makes up the real estate market. After reading through this article I now know that all land is part of the real estate market and it all plays a big role. Now that I know that even vacant land is part of the market, I will talk with my wife about finding some vacant land that we could buy to construct a house on. http://schuelergroup.com/listings/commercial-industrial/