Market Reports

Retail comprises the properties that house the retailers and restaurants we frequent. They can be multi-tenanted (often with an anchor, or lead tenant, that serves to drive traffic to the property) or single-use, standalone buildings.

The retail sector is complicated, as the type of shopping center—for instance, a regional mall, community center, strip center, or power center—is dictated by many metrics, including the size, concept, types and number of tenants, and trade area.

Industrial buildings house industrial operations for a variety of tenants, and are mostly located outside of urban areas, especially along major transportation routes. The low-rise buildings can also be grouped into industrial parks. The properties are categorized into four types:

• Heavy manufacturing
• Light assembly
• Bulk warehouse
• Flex industrial

Multi-family properties are the go-between for residential and commercial real estate. While they can serve primarily as a residency, the general purpose for the property type is for investment (owner-occupied or not). The multifamily asset class includes everything from a duplex up through a multi-hundred unit apartment building.

Office buildings are generally categorized into two types: urban or suburban. Urban office buildings are found in cities and include skyscrapers and high-rise properties—some may even total as much as a few million square feet in size. Suburban office buildings are usually smaller in stature and sometimes grouped in office parks.

Office buildings can be multi-tenanted or single-tenanted, and many are build-to-suit. They’re also ranked in three tiers: Class A, Class B, and Class C. The Building Owners and Managers Association International (BOMA) explains.