Definition of Commercial Buildings

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Definition of Commercial Buildings

A commercial building uses more than

half its floor space for commercial purposes.

A commercial building is one that is dedicated to commercial activities. The technicalclassification of a commercial building for zoning purposes is that it has more than half ofits floor space used for commercial activities.

1.BasicsAn alternative definition of a commercial building is a structure that is not used forresidential or civic functions. Various retailers and other businesses lease space incommercial buildings in order to operate without buying a property.

Examples

Common examples of commercial buildings include "stores, offices, schools, churches,gymnasiums, libraries, museums, hospitals, clinics, warehouses and jails. Government

buildings are included except for buildings on military bases or reservations", according toTeachMeFinance.com.

Owners

Commercial buildings are owned by various individuals and group entities who constructthem or build them for profit. Developers build commercial properties with the intent toresell for profit or to lease for income. Other investors enter after construction for similarinvestment purposes. Some commercial buildings are developed by organizations forcompany operations.


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The Types of Commercial Buildings

There are many types of commercial buildings in the U.S., ranging from traditionalsandstone architecture to modern, multi-story, high-rise structures. Most of the newcommercial buildings are constructed using techniques that reduce the building's carbon

footprint using energy-efficient technology. New residential areas are often devoid ofcommercial buildings for environmental reasons -- councils using zoning restrictionswhich only allow for small corner stores and pollution-free cottage industries.

1.Shopping Mallso

Since the 1970s there has been a trend towards building large shopping malls in the suburbsaway from the business districts that were traditionally the places to shop and conductbusiness. Today virtually every large suburb in the U.S. has a large shopping mall thatincludes everything from supermarkets and specialty shops to banks, movie theaters andrestaurants. Certainly a one-stop shopping outlet, shopping malls have adequate parking,

baby crches and even medical centers incorporated into them.

Hotels and Pubs

o Large hotels are traditionally built in the main business districts of cities with fantasticlandscaped gardens, spacious lobbies, restaurants and specialty shops, as well as luxuryrooms with balconies that overlook the city. Architecturally, many large hotels aremonuments to modern design and reflect the level of commercial tourism of the area.Smaller hotels stand dwarfed by their larger counterparts and include a mix of older, classicarchitecture and modern building techniques.

Retail Stores

o Free-standing retail outlets, like large electrical and furniture stores and fast-food outlets,are found scattered all over the country in semi-residential areas, along highways and nearlarge shopping malls. Large commercial chains often build the same design, creating a


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modern architectural icon recognizable from a distance as belonging to that company. Retailstores account for 48 percent of the country's greenhouse emissions and nearly 70 percentof the total electricity consumed, so efforts are being made to make retail commercial

buildings more energy efficient.

High-Rise Office Skyscrapers

o Starting in the 1960s, the modern multi-story office block became popular and today youstill see office blocks going up in every large city and coastal area. Often housing shops and

banks on the ground floor, office blocks usually feature a central elevator and businessdirectory on the first floor. They are built largely of concrete and glass and can be anythingfrom 10 to 30 stories high. Office suites are leased to companies, providing them withindividual offices, meeting rooms and staff lunch rooms.

Industrial Estates

o Industrial estates are built away from central business districts and residential areasbecause of pollution and noise factors, and they typically feature one- or two-story offices

and warehouses with individual parking and loading bays. Commercial leasing companiesbuild industrial estates in developing areas to lease to manufacturers, suppliers and serviceproviders. Countries that do not have industrial estates have more inner-city traffic andtheir residential areas are littered with factory waste and pollution.

Commercial Building Types

The skyscraper is becoming more

environmentally friendly.

There are dozens of different types of commercial buildings worldwide, ranging frombasic laundromats and pubs to opulent hotels and majestic commercial banks.Commercial buildings usually consist of more than 50 percent space available for publicuse, and adhere to a different set of safety standards. Today, virtually all new commercial


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buildings are constructed to reduce their carbon footprint with energy-efficienttechnology.

1.Banks

oCommercial bank buildings have evolved from turn of the 20th-century stately multi-story

Victorian and Beaux Arts structures to signify stability, strength and integrity to "green"banks, such as San Francisco's New Resource Bank that uses solar-based energy technologyand loans funds for similar community-based solar projects, according to aia.org.

2.Restaurants

oCommercial dining establishments are either standalone structures or housed in multi-

business commercial buildings. Restaurants are generally divided into a dining area, crewpreparation workplace and kitchen. Contemporary dcor in fast-food restaurants mayfeature LCD screen menus, a mix of retro and modern furnishings, and a modern andindustrial architectural exterior design, according to retailtrafficmag.com.

Australia Congress- interested? Town Planners Urban Designers

3.Hotel

oMost commercial hotel buildings, not to be confused with motels, have changed little in the

basic presentation to clientele. The exception is that modern hotel buildings generally standalone with an emphasis on updating services and rebranding prominent hotel names, suchas Holiday Inn, to fit contemporary tastes. All must accommodate high-volume traffic thatrequires a sizable lobby, elevator, meeting rooms and rooms that feature a minimum of a

bedroom and bath.

4.Office Building

oThe office building, often in the form of a skyscraper in urban areas, requires significant

working space and adherence to strict safety codes. Since 2000, architects have designed


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commercial skyscrapers with an eye toward better use of floor space by using large-spanmega-trusses and reinforced concrete core walls to eliminate interior columns.

5.Supermarket

oSupermarket commercial buildings are designed to offer the best use of floor space formarketing products with an emphasis on impulse buying and floor plan to promotecustomer convenience. Supermarket commercial design also focuses more on lighting andenvironment to encourage more comfortable shopping.

6.Shopping Mall

oThe enclosed shopping mall has been part of the commercial building landscape since the19th century, but became more common in the 1950s and also had a significant building

boom in the 1970s. Constructed in suburban areas, vertical multi-use building designs andenvironmental-friendly technology are becoming the standard among mall builders,according to "Retail Traffic" magazine.

7.Retail Store

oRetail commercial businesses range from mom-and-pop convenience shops to massive "big-

box" discount outlets that provide all retail services, including a fast-food restaurant or tearoom under one roof. Since retail store buildings account for about 48 percent of the world'sgreenhouse emissions and consumes 68 percent of the world's electricity, more aggressiveefforts are being made to make retail commercial buildings more energy efficient.


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The Best Commercial Buildings

The best office buildings command the highest rent and it is a common practice tocategorize commercial buildings as Class A, B, or C properties. While commercial realestate professionals understand what is meant by each classification, there is no one,accepted definition, and how the term is applied varies according to regionalcharacteristics.

Age Class A buildings will generally be the newest buildings in the area, although there are many

exceptions to this statement. Outstanding properties may be considered by localprofessionals as Class A based on attributes other than age, and older, renovated propertiescan be included in this category. The Empire State Building opened its doors in 1931, it has

been continuously upgraded over the years, and is classified as an "A" type property.

Location

Some buildings will never be considered "the best" because of their location. Class Abuildings are usually considered to be those that are located in the central business districtof a bustling town. A beautiful, new building on the outskirts of a city, might never be called

a Class A; if the rents are higher in other parts of town, then the case could be made forclassifying this as a type "B" building.

Appearance

Class A office buildings are usually high rises and are well maintained with no signs ofneglect. Although they don't have to be winners of architectural awards, they do have to bepleasing to the eye. Tenants will not pay prime rental rates to have offices in an ugly


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building. The inside of the building is as important as the outside, and it must be clean andwell maintained.

Amenities

The inside of Class A buildings must be well appointed with lavish furnishings, fastelevators, marble floors in the lobby, and perhaps an atrium. Tenants want to feel that theyare renting space in one of the best buildings in town, and so, they are willing to pay topdollar. The building may have elegantly furnished conference rooms, with videoconferencing capabilities, that are available to the tenants. The building will be wired forhigh-speed Internet connectivity.

Parking

Class A buildings are likely to have a covered parking garage and they might possibly offervalet parking to visitors. In a densely packed city like New York, this will most often not bethe case, and tenants will commute by public transportation or rent monthly space in apublic parking garage. In less populated areas, the Class A building tenants will be more apt

to consider an attached parking garage as a necessary feature

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Definition of Commercial Buildings