9 Types Of Commercial Buildings (Pros & Cons)

If you want to open a business, there is a world of opportunities that await you.

Unless your business operates solely online, you will need the perfect commercial building to accommodate your operations. From the initial design to the ribbon-cutting, an experienced contractor like APX Construction Group will help you make an informed decision for your business.

Different types of commercial buildings come in all shapes and sizes depending on your needs. Whether you choose to buy, build, or lease a commercial property, consider your options and any associated pros and cons.

1) Industrial

Industrial buildings are typically large and spacious and leave room for trucks, packaged equipment, or even large refrigerated spaces. There are three main types of industrial properties: warehouses, manufacturing facilities, and flex buildings.

Warehouses

Warehouses store products before they are distributed. Typically, the layout is a large open space with tall ceilings. The spaciousness is essential for accommodating freestanding rack systems.

Some warehouses have dedicated truck terminals where products are loaded from one truck to another, or from the truck to the warehouse and vice versa.

Manufacturing Facilities

While warehouses store goods, manufacturing facilities produce the materials. Heavy-duty products that require large machinery are produced in a heavy manufacturing facility, while smaller, less-complex goods are produced in light assembly facilities.

Flex Buildings

A flex building combines more than one use of the space in one property. For example, an office might be conjoined with a light manufacturing facility so that operations are consolidated in one place.

Industrial Buildings Pros and Cons:

✅ Pro: Can often be built out of pre-engineered metal which is very affordable.

❌ Con: Workers have higher risks of getting hurt in industrial settings.

2) Office

Commercial office spaces are occupied by business professionals. They can be standalone buildings or exist within a larger structure such as a shopping center. Office designs are typically divided into multiple rooms and require restrooms, a kitchen area, and HVAC units and controls. Examples of commercial office spaces include:

• Medical and dental offices
• Tech firms
• Law offices
• Newsrooms
• Insurance firms

Office Buildings Pros and Cons:

✅ Pro: Office spaces help foster productive work and professional relationships.

❌ Con: As businesses grow, they may subsequently outgrow their office space.

3) Retail

Retail properties are commercial spaces where products, goods, or services are sold to customers. Many retail buildings have sidewalks and parking lots, and some have multiple levels with escalators and elevators. Retail buildings can include:

• Malls
• Shopping plazas
• Department stores
• Big-box retailers
• Boutiques
• Grocery stores
• Banks

Retail Buildings Pros and Cons:

✅ Pro: Commercial retail spaces are typically priced lower than the average residential property.

❌ Con: The success of the business is highly dependent on the location of the building.

4) Restaurants

Restaurants are fairly straightforward commercial buildings, although they can come in many shapes and sizes. Restaurants can be anything from a drive-through coffee stand to a multi-level steakhouse. However, most restaurant spaces require:

• Room for a large kitchen with commercial appliances
• Storage space
• Walk-in refrigerators and freezers
• A dining area
• Public restrooms
• A waiting area

Restaurant Buildings Pros and Cons:

✅ Pro: It can be simple to convert pre-existing restaurant spaces into a layout that suits your needs.

❌ Con: Business can be largely dependent on the season or tourist activity.

5) Multi-Dwelling Units

Multi-dwelling units (MDUs) are apartment buildings, condominiums, and townhomes. This type of commercial building is comprised of multiple residential living spaces.

Beyond dwelling units, MDUs might also have common areas, mailrooms, parking structures, pools, and gyms.

MDU Buildings Pros and Cons:

✅ Pro: There is a high return on investment for people who own and operate MDUs.

❌ Con: Regulations are strict, and buildings require frequent maintenance upgrades.

6) Hotel and Lodging

Hotel and lodging commercial buildings are similar to MDUs, but the main difference is that hotels are meant for temporary lodging. Emergency housing shelters also fit into this category. Oftentimes, hotels have an on-site restaurant, so two types of commercial properties get combined. Additionally, there are lobbies and elevators, and some units may include a kitchenette.

Hotel Buildings Pros and Cons:

✅ Pro: The hotel industry is growing rapidly around the world, and demand is high.

❌ Con: Customer expectations are constantly changing, requiring frequent upgrades.

7) Government

Government buildings cover a wide array of commercial buildings. They can encompass anything from libraries to airports to town halls. Because of this, government buildings may resemble industrial structures or office spaces. The only differentiating factor is the building’s intended use.

Larger scale government buildings need to accommodate media personnel in press-conference rooms or newsroom studios.

Government Buildings Pros and Cons:

✅ Pro: Federal and local governments are highly-credible tenants.

❌ Con: Government buildings often have extensive security requirements.

8) Nonprofit

Nonprofit commercial spaces are similar to government buildings in that the design can resemble other commercial buildings. Nonprofit commercial buildings can encompass:

• Religious facilities
• Worksites with office spaces on-site
• Community centers (ex. The YMCA or YWCA)
• Charity retail stores

Nonprofit Buildings Pros and Cons:

✅ Pro: Nonprofit work is rewarding— both in personal satisfaction and tax breaks.

❌ Con: Nonprofits historically take a lot of time, effort, and money to be successful, and many shut their doors after a few years.

9) Special Purpose Properties

When it comes to commercial real estate, there are certain properties that don’t quite fit into any of the above categories. These commercial properties are called “special purpose properties.” Structures that fit into this miscellaneous category include:

• Bowling alleys
• Theatres
• Stadiums
• Amusement parks
• Zoos
• Skating rinks
• Concert venues

Each type of commercial property that fits under this umbrella term is unique in design, layout, and capabilities.

Special Purpose Properties Pros and Cons:

✅ Pro: In some niche markets, there may not be any local competition.

❌ Con: Most special purpose properties have unique design requirements that necessitate help from a specialized construction firm.

Open Your Business With Help From APX

Whether you dream of opening a retail shopping center, a local coffee shop, or a high-rise hotel, you need to work with a construction company that knows the ins and outs of all kinds of commercial building specifications.

APX Construction Group is highly experienced in every type of commercial sector, and we will bring your vision to life. Check out our past projects for inspiration!