ConstructionWhat Is Commercial Construction and Types?

What Is Commercial Construction and Types?

Commercial construction is an industry that revolves around the leasing and selling of a building. That includes property renovation & construction services on land that is explicitly reserved for commercial purposes.

Commercial premises include warehouses, retail stores, parking lots, malls, hotels, office buildings, and medical centers. Apartment complexes are also considered commercial structures because their primary purpose is to generate a cash flow.

These spaces can range from an office to a warehouse manufacturing goods or medical and retail facilities. Each project varies in size and importance, making them unique. Each structure is unique to the next, as the client will have the deciding vote for the layouts and designs of each system. Each client brings a unique perspective to their project.

Common Types of Commercial Properties

Several properties fall under the classification of commercial properties. These properties can be anything from multi-family homes to hotels. Here are some kinds of commercial properties:

Retail Properties

Retail properties are commercial real estate specifically zoned and used for selling consumer goods and services. Along with shops, a retail property might host a restaurant or office space. Retail property can be as little as a single-tenant building and scale up to a large shopping mall.

Here are some different types of retail properties:

  • Convenience stores
  • Grocery stores
  • Hotels and resorts
  • Restaurants
  • Strip malls
  • Healthcare facilities
  • Consignment shops
  • Big box stores
  • Warehouses

Industrial Properties

Also known as industrial real estate, industrial properties consist of properties for non-public commercial use. Industrial properties tend to involve many behind-the-scenes types of activities to which the general public rarely has full access. Here are some examples of industrial properties:

  • Distribution warehouse
  • Heavy manufacturing
  • General warehouse
  • Light manufacturing
  • Datacenter
  • Showroom buildings
  • Flex space

Office Building

An office building refers to a variety of different scenarios. Each set has its own set of pros and cons, but each type refers to a variety of spaces, including:

  • Storage rooms
  • Mailrooms
  • File rooms
  • Reception center
  • Meeting spaces
  • Work rooms


An apartment is a property unit occupied by one or several buildings. It can also be a separate dwelling that has its own entrance. It will also include a kitchen and bathroom. Apartments can be single- or multi-story units within a multifamily or multi-unit building.

Commercial Land

Commercial land, also known as commercial real estate, is intended to generate a profit for the owner. This profit comes either from capital gains or rental income.

What Are the Three Types of Construction?

Commercial construction offers numerous work opportunities for commercial construction contractors, managers, and a list of other construction professionals. The three types of construction are as follows:

  • Federal construction: These projects are similar to state projects. With a federal structure, the person who owns the site on which a building is being constructed would pay for the project rather than whoever funds the construction itself. These stipulations make it a state or a federal project. Construction of a new courthouse or other government building would fall under this category.
  • Private construction: This deals with the construction of any building or structure for commercial or residential purposes. It can be for restaurants, schools, apartment complexes, and shopping centers.
  • State construction: These are projects funded by a city, municipality, or government entity. Erecting a bridge or building a sewer line are two examples of state construction.

What Are the Three Scales of Commercial Construction

When discussing commercial construction, you need to remember the three scales of a commercial building. The three scales are small, medium, and large-scale commercial construction. Here we will take a look at each one:

Small-Scale Commercial Construction

Small-scale commercial construction—or light commercial construction—deals with minor renovations such as a garage or similar projects. These include home renovations and office space redesigns that focus on changing a structure’s design. These jobs, sometimes coined “facelift” jobs, are less costly and take minimum labor to complete.

Medium-Scale Commercial Construction

Medium-scale commercial construction deals with renovating and remodeling commercial buildings. This includes upgrading, restructuring, adding on, and more. These projects are more complex and take more time and effort than small-scale projects. Examples of medium-scale commercial construction are:

  • Grocery stores
  • Water parks
  • Shopping malls
  • Convenience stores

Large-Scale Commercial Construction

Large-Scale Commercial Construction typically refers to when a building gets knocked down and then rebuilt from the ground up. This scale of a project is done to create a new structure based on a unique vision. The building is prepped, and plans are erected to create the new concept. Examples of these types of commercial buildings include:

  • Strip malls
  • Shopping centers
  • Community retail centers
  • Airports
  • Hospitals
  • Government buildings
  • High-rise buildings
  • Hotels
  • Multi-family residences
  • Office buildings
  • Roads

Final Words

When you need property renovation and construction services, be sure to do your research. The amount of information out there is vast, and sifting through it to find what you are looking for can be a daunting task. Knowing what direction you want to go in can drastically improve your overall outcome.

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