Industries and Specialties
Office buildings are generally categorized as either Class A, B, or C. These classifications really depend on context and interpretation, and are not very black and white. However, Class A property should be in the best location, with the best type of construction and improvements. Class B is one step below that. Could wither be that the construction is of high quality but the location is inferior, or vice versa. A Class C property would be an office building of inferior construction quality and location.
Central Business District. These are office buildings located in the heart of the city. In bigger cities like New York, or even mid size ones like Orlando, these can be high-rises. found in and around the down town area.
Suburban Office Buildings. Naturally one can find office buildings of all classes and sizes, located outside the city center. Depending of the need, some businesses and/or investors prefer the down town high rises in the CBD, but others like free standing mid-size buildings, or part of an office business park in a suburban area.
Due to the economic growth and housing market up-word trend of the past couple of years, combined with lower inventory of multifamily units caused by the condo conversions of the pre-recession real estate boom and population growth of many American cities, multifamily has been one of the hottest segments of the commercial spectrum. Developers are scooping up land and building new apartment communities faster than one can blink, and investors are buying these at very low cap rates.
Garden Apartments. Garden apartments are typically 3-4 stories with 50-400 units, no elevators, and surface parking.
Mid-rise Apartments. These properties are usually 5-9 stories, with between 30-110 units, and elevator service. These are often constructed in urban infill locations.
High-rise Apartments. High-rise apartments are found in larger markets, usually have 100+ units, and are professionally managed.
Arguably one of the most popular and wide spread segment of the commercial real estate investment market.
Strip Center. Strip centers are retail properties that may or may not contain anchor tenants. An anchor tenant is simply a larger retail tenant which usually serves to draw customers into the property. Examples of anchor tenants are Wal-Mart, Publix, or Home Depot. Strip centers typical contain a mix of small retail stores like Chinese restaurants, dry cleaners, nail salons, cell phone providers, etc.
Community Retail Center. Community retail centers are normally in the range of 150,000-350,000 square feet. Multiple anchors occupy community centers, such as grocery stores and drug stores. Additionally, it is common to find one or more restaurants located in a community retail center. Out Parcels can be found adjacent to these.
Power Center. A power center generally has several smaller, in-line retail stores, but is distinguished by the presence of a few major box retailers, such as Wal-Mart, Lowes, Staples, Best Buy, etc. Each big box retailer usually occupies between 30,000-200,000 square feet, and these retail centers typically contain several out parcels.
Regional Mall. Malls range from 400,000-2,000,000 square feet and generally have a handful of anchor tenants such as department stores or big box retailers like Barnes & Noble or Best Buy.
Out parcel. Most larger retail centers contain one or more out parcels, which are parcels of land set aside for individual tenants such as fast-food restaurants or banks. These are often used for build to suit projects.
Industrial Property can be divided in several subcategory with some of the most popular being outlined below.
Heavy manufacturing. This is really a special use category that most large manufacturer’s would fall under. These types of properties are heavily customized with machinery for the end user, and usually require substantial renovation to re-purpose for another tenant. These areas would normally fall under heavy industrial zoning districts, like the I-4 Industrial Zoning in Orange County, Florida for example.
Light Assembly. These structures are much simpler than the above heavy manufacturing properties, and usually can be easily reconfigured. Typical uses include storage, product assembly, and office space.
Flex warehouse. Flex space is industrial property that can be easily converted and normally includes a mix of both industrial and office space. Because of its flexibility this is a popular choice with many business owners. Investors are now seeing some great returns in the industrial flex market.
Bulk Warehouse. These properties are very large, normally in the range of 50,000-1,000,000 square feet. Often these properties are used for regional distribution of products and require easy access by trucks entering and exiting highway systems. One example can be the new Publix distribution center near the Orlando International Airport.
Vacant Industrial Land. Vacant Industrial Land is in very high demand in the Central and South Florida Areas. Land is often used for building owner operated or income producing facilities, or for equipment storage.
Land can be very diverse, and the price to acquire it depends on a multitude of factors like the current zoning, future land use, location, buildable acres, presence of wetlands, mitigation credits, previous uses and the environmental impact these may have had on it, ecological factors, density, and more.
In Fill Land. Infill development is the process of developing vacant or under-used parcels within existing urban areas that are already largely developed. Most communities have significant vacant land within city limits, which, for various reasons, has been passed over in the normal course of urbanization.
Brownfield Land. Brownfield is a term used in urban planning to describe land previously used for industrial purposes or some commercial uses. Such land may have been contaminated with hazardous waste or pollution or is feared to be so. Once cleaned up, such an area can become host to a business development such as a retail park.
Greenfield Land. Greenfield land is undeveloped land in a city or rural area either used for agriculture, landscape design, or left to evolve naturally. These areas of land are usually agricultural or amenity properties being considered for urban development.