A Handy Guide to the Different Types of Commercial Real Estate


With the overwhelming variety of commercial real estate available, it’s easy to be puzzled about what constitutes as commercial real estate. Knowing the variety and their differences is particularly important to those looking to invest and diversify their financial portfolio. From its core definition to its variety, here is a handy guide to the different types of commercial real estate available in the Philippines.

Commercial real estate is any space or property that is developed for the purpose of earning revenue. This broad definition includes a range from a small office to a multi-family condominium all the way to hectares of industrial plants.

While all of the prior mentioned are properties that are built to generate revenue, the different types of commercial real estate can vary in profit margins, initial investments, as well as in the specific set of expertise necessary in managing such investments. This guide can help you determine which commercial real estate investment is best suited to fit your ideal lifestyle.

Office Spaces

This type of commercial real estate includes properties built for multinational companies, and small to medium enterprises to operate from. Although it poses more risk than investing in residential real estate, investors are often drawn to this type of investment for its potential to yield more profit. Office spaces are also classified in different tiers that can indicate the property’s market value. The classification can also inform investors about the initial investment required. Office spaces are categorized as either Class A, B or C, with A ranking as a top tier, well-maintained facility in a prime location; B as a close second with a need for slight repairs; and C as poorly maintained office spaces that have been around for at least 20 years. While class A office spaces can be highly sought after, it also requires a larger initial investment. Class C spaces on the other hand may not initially be appealing, but can potentially be refurbished or “flipped” to turn a better profit.

Retail Spaces

This type of commercial real estate property includes establishments that house retailers and food establishments. Retail spaces can be as small as a strip of a few boutiques, or as large as malls anchored on specific multinational retail brands such as well-known department stores, or big-box grocery stores. There’s higher risk involved when investing in retail commercial real estate due to its sensitivity to economic shifts. When an economy booms, the retail industry in turn flourishes. However, the opposite can be said during an economic downturn. Like the nature of most investments, though, the higher risk has the potential to gain higher return when most especially paired with the right expertise.

Multi-family Properties

Unlike the free standing nature of residential real estate, a multi-family commercial real estate property is typically a group of adjacent residences owned by a single entity. Multi-family properties can come in the form of townhouse compounds, apartment buildings and high rise condominiums. For someone looking to expand their real estate portfolio, acquiring a multi-family property would be more efficient than having to go through several transactions of free standing residential real estate investments. A higher percentage to profit is also more feasible when managing multi-family properties. With this structure, an investor’s revenue isn’t solely reliant on a single tenant's occupancy. Should a vacancy arise, the overall revenue from the other tenants can still balance out the cost of the current vacancy.


Industrial real estate are developments that house various different types of industrial operation. Manufacturing plants, bulk warehouses, research and development facilities, data centers are all examples of industrial real estate.

With the growth of any economy, the demand for industrial real estate follows suit. While this undertaking requires a larger initial capital investment, the potential to reap higher revenues is imminent. Managing this type of commercial real estate investment undoubtedly requires a highly specific set of expertise to ensure that the facilities are maintained to industry standards.


Commercial real estate is a broad umbrella term that also covers other highly specific types of properties such as hotels, special purpose properties like hospitals, amusement parks and smaller scale storage facilities. Similar to industrial real estate properties, these large scale ventures require a highly specific set of knowledge and expertise for their development and maintenance. Micro-services for the upkeep of these facilities can be offered for both the convenience of their tenants, as well as the additional revenue flow for the investor.

All the various types of commercial real estate can be found around the Philippines. In Western Visayas alone, its fast growing economy is seeing the rise of numerous commercial real estate developments. 

Designed with a signature sophistication, Rockwell Center Bacolod is set to create a sustainable community, expertly designed to flourish. It has 21 commercial lots ranging from 1500 to 2000 sqm, with 7-meter linear parks in between for investors to create and build impeccably developed spaces. .

For more information on this development, please visit our website.