A commercial building is a building where commercial activities take place. Commercial buildings are intended to generate a profit, either from capital gains or rental income. They include office buildings, retail space, medical centers, hotels, malls, warehouses, and garages. Commercial buildings are used for commercial purposes and can combine functions, such as offices on levels 2–10, with retail on floor 1. When space allocated to multiple functions is significant, these buildings can be called multi-use. Local authorities commonly maintain strict regulations on commercial zoning, and have the authority to designate any zoned area as such; a business must be located in a commercial area or area zoned at least partially for commerce.
According to UpCounsel, a commercial building definition is one in which at least 50 percent of its floor space is used for commercial activities, such as retail, the providing of services, or food service (restaurants and the like). Additionally, a commercial building (or, land) may also be defined as a space that has the potential for being one that brings in income. Schools do not qualify as being commercial real estate; however, places of worship and lodging entities such as hotels, may be qualified as commercial properties.
Types of commercial buildings include:
- Office buildings
- Retail buildings (e.g. convenience stores, big box stores, and shopping malls)
- Medical centers
- Hotels
- Warehouses
- Garages
- Flex buildings (a building that combines more than one use in a single facility)
- Pad sites (a standalone building, commonly in front or within a shopping center)
- Special-purpose buildings (e.g. casinos, churches, schools, airports, and bowling alleys)
In summary, a commercial building is a building where commercial activities take place and is intended to generate a profit. They include various types of buildings such as office buildings, retail buildings, medical centers, hotels, warehouses, and garages.
