Types of Commercial Buildings and How to Invest Wisely !

Talk about commercial properties, and most people discuss shops or office spaces. But as a budding commercial investor, you should broaden your investment choice to make the right and informed investment decision. So, in addition to office spaces and shops, let’s discuss a few other commercial buildings and how to invest in them wisely.

What is a Commercial Building?

In simple words, a commercial building is a space where people conduct various business or commercial activities. These buildings often include retail space, warehouses, office buildings, etc. Their layout differs from that of residential structures. They are designed and built from the viewpoint of business convenience.

Types of Commercial Structures

Let’s now look at various types of commercial properties or buildings.

1. Office Buildings

Office buildings are common across urban areas. They could either belong to a single company or be a commercial hub that houses various types of businesses like banks, shops, showrooms, boutiques, eateries, etc. These buildings are mainly situated in prominent locations to give their tenants the prime location their business requires.

2. Retail Spaces

Retail_Shop (1)


India’s retail sector is on a growth spree. Many new brands are emerging and thus offer a diverse range of options for their shoppers. Amidst an environment conducive to retail growth, retail buildings are on the rise.

What are retail buildings? Retail structures are stores or shops that range from small retail spaces or massive showrooms. Thus, retail buildings mostly have a single tenant who leases the entire building or multiple ones with smaller shops.

Like office buildings, retail spaces also demand a prominent, convenient and accessible location so their tenants can receive walk-in customers.

3. Warehouse Spaces

Warehouse spaces are different from their counterparts that require a prominent location. Warehouses are often located away from the city, which is in the city’s outskirts, where space availability isn’t a concern.

Warehouses are required by businesses that stock goods. It includes textile dealers, food and beverage suppliers, etc. However, it should be noted that the type of warehouses varies with the type of goods they stock. For instance, warehouses for fisheries will require cold storage and maintaining the right temperatures and conditions to help keep the fish fresh and edible.

4.  Industrial Facility

Manufacturing Space 

Industrial buildings are another significant type of commercial building. These are primarily used as workshops, manufacturing facilities, etc. These are multi-sized spaces, the size of which varies with the business they intend to serve.

For instance, the requirements of a small fabrication workshop will differ from that of a space that hosts an automobile manufacturing assembly.

Often, these spaces are leased for the long term to save manufacturing overheads and hedge against the continually rising rents. These types of buildings are often found in industrial areas situated at a distance from industrial zones.

5. Hotels and Restaurants

Hotels, in particular, require a specialized and separate building. As the trend is these days, restaurants can be opened in a small shop space (eatery or food joint), a part of which could be converted into a kitchen. Most hotels have their own building. But in the case of restaurants, especially larger ones, the space is leased, the reasons for which aren’t any different from the purpose that drives industrial leases.

How to Invest in a Commercial Property – Overview


Let’s quickly overview the most significant factors you must consider while investing in a commercial property.

Location: Look for an accessible and logistically convenient option. Your location might not necessarily be a prime one. But it should have potential as a business hub, as your tenants will choose it only if it holds commercial promise.

Type of Property: Decide the type of property based on its location. For instance, invest in an office space if the location is a business hub. On the other hand, buying a shop space where a lot of B2C business happens might be prudent.

Layout: Inspect the layout. Contemporary business owners don’t prefer cluttered or congested layouts. Even if a particular space is compact, they look for layouts that offer a certain level of comfort to their employees, associates, and clients.

Developer: Look for the developer’s credibility, previous projects, fulfillment of commitments, construction quality, etc. Check the developer’s overall market reputation and transparency while discussing your investment’s RoI.

Building’s Age: If you are eying a resale property, check out the building’s age. Refrain from investing in excessively old buildings, as that might result in various expenses that could directly impact your returns.

Documentation: Ensure proper documentation and that all the dues and taxes have been paid. Hire a lawyer to help you determine the appropriateness of everything to avoid problems or liabilities in the future.

Returns: Hire a realtor or discuss your investment objectives with the property’s sales team. Insist on getting a realistic picture and calculating the returns on your investment. An approximate figure can also help you make a decision.

Assured Rentals: This could be considered a subset of the returns part. Assured rentals are promised returns for a particular property. Builders give them to investors on investing in their project. Check if the developer offers such an assurance and how realistic or genuine is it.

Invest in Kohinoor World Towers for Multi-Sized Office Spaces, a Prime Location, and Better Returns!

Kohinoor World Towers (KWT), Pune 

As an investor, if you are searching for commercial properties in Pune, consider investing in Kohinoor World Towers (KWT). KWT is an enormous under-construction commercial project in Pimpri Chinchwad near Pune. The project features multiple buildings and various multi-sized office spaces, ultra-modern amenities, and the benefits of a proud and prominent address. To know more, call +91 20 6764 1818.

Related Post - Commercial Real Estate Trends - What to Expect in 2023?



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