Real Estate Consulting

Classification. Office buildings are usually loosely grouped into one of three categories: Class A, Class B, or Class C. These classifications are all relative and largely depend on context. Class A buildings are considered the best of the best in terms of construction and location. Class B properties might have high quality construction, but with a less desirable location. And Class C is basically everything else.

Central Business District (CBD). Office buildings located in the central business district are in the heart of a city. In larger cities like Chicago or New York, and in some medium sized cities like Orlando or Jacksonville, these buildings would include highrises found in downtown areas.

Suburban Office. This classification of office space generally includes midrise structures of 80,000-400,000 square feet located outside of a city center. Cities will also often have suburban office parks which assemble several different midrise buildings into a campus-like setting.

Garden Apartments. Suburban garden apartments started popping up in the 1960s and 1970s, as young people moved from urban centers to the suburbs. Garden apartments are typically 3-4 stories with 50-400 units, no elevators, and surface parking.

Midrise Apartments. These properties are usually 5-9 stories, with between 30-110 units, and elevator service. These are often constructed in urban infill locations.

Highrise Apartments. Highrise apartments are found in larger markets, usually have 100+ units, and are professionally managed.

Greenfield Land. Greenfield land refers to undeveloped land such as a farm or pasture.

Infill Land. Infill land is located in a city and has usually already been developed, but is now vacant.

Brownfield Land. Brownfields are parcels of land previously used for industrial or commercial purposes, but are now available for re-use. These properties are generally environmentally impaired.

Strip Center. Strip centers are smaller 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. Strip centers typically contain a mix of small retail stores like restaurants, dry cleaners, nail salons, 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.

Power Center. A power center generally has several smaller, inline retail stores, but is distinguished by the presence of a few major box retailers. 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.

Full Service. Full service hotels are usually located in central business districts or tourist areas, and include the big name flags like Four Seasons, Marriott, or Ritz Carlton.

Limited Service. Hotels in the limited service category are usually boutique properties. These hotels are smaller and don't normally provide amenities such as room service, on-site restaurants, or convention space.

Extended Stay. These hotels have larger rooms, small kitchens, and are designed for people staying a week or more.

Alternative & Special-Purpose Assets. The asset classes outlined above represent the primary segments of commercial real estate; however, investment activity extends well beyond traditional property types. Special-purpose assets — including self-storage facilities, car washes, entertainment venues, marinas, theaters, funeral homes, community centers, senior care facilities, and faith-based properties — often present unique operational and capital structuring considerations.