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12 Feb 2019

Real Estate 101: A Crash Course On Real Estate Types

If you're considering purchasing real estate–whether you intend to use the property yourself for housing or business or as an investment property–it is important to understand the different kinds of buildings that are available. Here is what you need to know about the six kinds of buildings on the market. 

Retail

There are of five basic types of retail buildings: downtown shopping centres like the Eaton Centre; single-storey supermarkets like Loblaws; warehouse-type distribution centres such as Costco; mixed-use retail like Bayview Village Shopping Centre; and commercial/residential buildings in which the ground floor is generally occupied by retail units and superstores while residential units are above.  

Since fewer and fewer people are turning to traditional retail store options, landlords are creating these new rental alternatives to satisfy the variety of renters in the market.

Single-Family Residential Dwellings

A stand-alone house (also called a single-detached dwelling, detached residence, or detached house) is a free-standing residential building. These buildings are meant to house a single family, as opposed to a multi-family residential dwelling like an apartment building or condominium.

Currently, in the residential market, supply is low and affordability is a major concern due to high-stress tests. (The mortgage stress test ensures borrowers can withstand the stress of an interest rate increase. It is based on the interest rate offered with the loan and the current benchmark rate.) Still, prices are increasing as the demand for single-family dwellings continues to rise.

Condominiums

A condominium/condo s a type of living space which is similar to an apartment. It differs because it is independently sellable and therefore regarded as real estate. The condominium building structure is divided into several units that are separately owned, surrounded by common areas that are jointly-owned by the owners of the condo units.

At this time the condo market has shown the most strength through all the market changes, rate increases, stress tests and price increases due to both affordability and the lifestyle choices of residential real estate purchasers.

Office

In real estate, an office building structure is used primarily to conduct business relating to administration, clerical services, consulting, and other client services outside of retail sales. Office buildings can hold a single business or multiple firms.

There is still a high demand for office spaces especially due to the ever-growing tech industry.

Purpose-Built Rentals

These buildings are occupied rental units in privately-initiated, structures of three units or more units for the specific purpose of renting to tenants. 

Currently, the amount of buildings built just for rentals has tripled as a result of the difficulty in buying condominiums or single-family dwellings. However, the challenge for house hunters persists as rent prices have also increased and requirements to rent have become more difficult.

Industrial

Large industrial properties include medium-to-large warehouses and factories that are designed to manufacture or store goods. They include distribution companies such as third-party logistics (3PLs). On the larger end of the scale are the 'big box' industrial spaces like Walmart.

The high demand for online retail has actually created a greater need for warehouse spaces to store product which has also resulted in increased rent prices for them.

 

Kandice Henry is a Real Estate agent with iPro Realty LTD. She has been in the Real Estate field for over 10 years.

Her hands-on knowledge began when she purchased, flipped, and leased her own properties. Two years ago she began her career as an agent and has had much success helping clients purchase and lease in both the residential and commercial sectors. She is a hard working agent who truly cares about finding the perfect fit for her clients. Kandice's resourcefulness lends to her full, experienced team behind her that is ready to help you close your next lease or purchase.

Follow her on Instagram and LinkedIn

Read 1043 times Last modified on Friday, 15 February 2019 12:14
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