Understanding the Concept of Commercial Real Estate

If you are new to the concept of commercial real estate, let us help you get a firm grasp on it with this article.

What is Commercial Real Estate?

Commercial real estate is a property that is used exclusively for the purpose of business and not personal living. It can include but is not limited to offices, co-working spaces, retail, entertainment, educational and healthcare facilities, etc.

Commercial real estate is most often used in regards to leasing the property to the tenants so that they can generate an income through the use of it. Typical commercial real estate can include small stores, and shops to big shopping malls. People and businesses usually go for real estate in Ajman because of the wide range of options they offer.

If we take a closer look, we will find that commercial real estate consists of four classes and they are:

Multifamily Rental

These types of commercial real estate are buildings that have multiple compartments and units all comprising inside a single structure. In this, we can include an apartment building that has more than five units. A building that has more than five units is considered commercial real estate because the owner initially bought it with the intention to rent it out to tenants instead of living in it. Real estate in Ajman can provide you with several advantages when it comes to multifamily rental properties.

They are further classified in accordance with location and size.

  • High Rise Buildings: Upto 7+ stories
  • Mid-Rise Buildings: In between 5 to 12 stories
  • Garden: less than 4 stories

Since these types of properties are more in demand because of their multi-purpose usage, real estate in Ajman aids their clients with numerous commercial real estate property options.

Office Space

These buildings include spaces that are fit for providing the tenants with cubicles, meeting rooms, and reception areas. Since commercial real estate is an easy and reliable option, they are far more used by companies than any other type of commercial real estate. In addition to this, office spaces are categorized into three groups and that are:

Class A

These buildings are built in the most sophisticated and modern way. They provide furnished spaces like magnificent lobbies, high ceilings, floor-to-ceiling mirror windows, and other expensive facilities. These buildings are called Class A because they provide a great experience to their tenants with high-tech installations and state-of-the-art capabilities.

Class A buildings may or may not include daycare facilities, valet parking, lounges, in-house showers, dining options, gyms, outdoor spaces, etc.

Class B

These buildings come second to Class A and serve a wide range of clients. They target clients and tenants who come from the middle class. These buildings do not provide fancy amenities and cutting-edge technology but they are still functional and provide a professional environment. They are typically older buildings in comparison to Class A buildings. Since they do not come with high-end facilities, they provide their tenants with room for improvements and development. They may not provide facilities for parking or AC installations in every room. Companies that acquire a Class B building may be in the business of providing creative or IT services.

Class B buildings can incorporate outdoor spaces, security, parking facilities, cafes and shops, and conference rooms, etc.

Class C

This includes the lowest level of commercial real estate properties. These buildings are really old and historic. They are usually located in unpleasant areas where there is an overall low value of commercial real estate and lower rents. They often require some repair work in order for them to be functional. When people require a room that is both very affordable and usable, they are seen to be the greatest choice.

Class C buildings are often used by businesses that come in the category of service-oriented or industrial-oriented like security, construction, electrical, plumbing, etc.

Class C buildings usually have onsite break rooms, parking spaces, and personal lavatories, etc.


Retail buildings include shopping malls, restaurants, entertainment centers, etc. These buildings are quite expensive in terms of buying and renting since the buyers and renters are looking to establish large-scale shops and businesses that will eventually bring a lot of foot traffic. Like other commercial real estate properties, most retail leases are long-term and can range from anywhere between 5 to 10 years.

These kinds of buildings usually have one or multiple anchor tenants which are big brands or names that lease the largest amount of space in the building. They are responsible for bringing in the most traffic because of their big brand names. Real estate in Ajman provides modern retail buildings that are furnished with top-of-the-line facilities.

Industrial Use

These commercial real estate properties include buildings that are for industrial purposes as the name suggests. These buildings are usually located away from the city and in secluded areas. These buildings include manufacturing, distribution centers, and warehouses.

Since they serve the purpose of mostly making some products or dealing with heavy supply chain functions, they have to follow the required zoning regulations. Real estate in Ajman aids its clients with great industrial commercial buildings which are safe and secure.

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