Types of Commercial Property in India

1. Types of Commercial Property in India Commercial property commercial real estate is an asset that has the potential to generate profits through rental income or capital gain. Commercial property can be anything ranging from a commercial building to a residential duplex or even a warehouse or restaurant. If you can create profit by holding it or leasing it or even by selling it then the property is considered to be a commercial property. Commercial Real Estate often involves a larger upfront investment than a residential property, but the rate of return is always higher. Unlike the case of residential real estates, you do not have renters but business owners to involve with. You establish a B2B relationship rather than B2C and since it is an income producing business the property tenants stick to the lease terms and rather pay the rent reliably. Let’s have a more detailed look at di?erent types of commercial properties in India: 1. O?ce: o?ce buildings can be di?erentiated into two types based on their locality i.e. urban and suburban. Urban o?ces include skyscrapers and high-rise buildings that are found in cities. Whereas suburban o?ce buildings are often grouped into o?ce parks and are usually smaller in stature. These buildings can be multi tenanted or single tenanted based on

2. the need. They can be categorised into class A, class B and class C based on the average rent for the area. 2. Retail: The properties in this category include retailers as well as restaurants. They can be single use standalone buildings as well as multi-tenant often with a lead that drives tra?c to the property. This sector is very diverse and at the same time very complicated in itself varying upon the categorisation i.e. types, concepts, size, number of tenants and trade area. Single tenant buildings usually include national chains or often pad sites which are single tenant buildings within a shopping centre, often a restaurant, a bank or a drug store. 3. Industrial: Industrial are mostly located outside urban areas and are for industrial operations. They are generally located on major transportation routes and are low rise buildings categorised into industrial parks. They can be classified into four groups: ○ Heavy manufacturing ○ Light assembly ○ Bulk warehouse ○ Flex industrial 4. Multifamily: Residential real estate buildings are covered under the multifamily sector. It basically includes real estate properties outside of single family such as townhomes, cooperatives, condos as well as apartments. They are also classified into class A, class B and class C like o?ce buildings. These real estate properties are meant for sale but can be rented as well. 5. Hotel: This sector of real estate often includes establishments meant for travellers and tourists. They provide accommodations, meals and services that are required by tourists. They can be categorised into two types i.e. flagged and independent. Flagged hotels are the ones which are a part of major hotel chains such as Marriott, Taj etc. 6. Special Purpose: Special purpose properties may be owned by commercial real estate investors and do not fall into any of the above-mentioned categories. They can range from amusement parks to churches to self-storage or any special purpose facilities. Thus, the above-mentioned commercial real estate properties can be utilised for generating income as well as work as an asset. They can serve the purpose of buying, selling and investing depending upon what you are looking for. The Commercial Real Estate market in India is growing rapidly but a proper knowledge and awareness is what we are lacking when compared to residential real estate. Hence one should first understand the aspects and characteristics for a smooth sail into it.