What Type of Companies Occupy Commercial Properties?

One great thing about investing in commercial real estate is that it can be occupied by several types of businesses. Since the spaces are highly flexible and versatile, they allow companies to get creative on what they do and how they layout the operations. It spans across different verticals and in this article, we show you the opportunities that exist in the commercial real estate space. We go through the top categories and the different types of businesses in each category. 

Industrial

Industrial companies are the best when it comes to having CRE tenants. This is because they need a large amount of square footage and they are ready to sign long-term contracts. That said, they are also more resilient as a business during changing economic conditions. 

Here are a few examples of industrial companies that often rent out CRE properties:

• Fabrication

• Manufacturing

• Commercial printing

• Co-Packing

Retail

Retail businesses have become the lifeblood of various commercial real estate portfolios. The companies make up a big number of tenants for CRE property owners. If investors can strike deals with large brands, it can help anchor the locations while attracting other retailers to sign leases too. 

Here are a few examples of retail companies that rent out CRE properties:

• Gaming

• Fashion

• Art & Craft Supplies

• Furniture 

Food

Just like there are different sizes and business models with retailers, there are many different models of food establishments across the United States. This diversification in the food industry is a huge benefit to those leasing commercial real estate whether it is a stand-alone property, in an office park, or as a part of mixed-use developments. 

Here are some examples of food companies that rent out CRE properties:

• To go only

• Dine-in restaurants

• Commercial kitchens

• Fast Casual 

Professional Services

It is great to have a professional service provider as your tenant since a lot of these businesses are essential to the economy and they are more adaptable in an uncertain market. They are also great businesses since they require a large-sized property or those that plan to expand with time and would need a larger property space. 

Here are a few examples of different professional service businesses: 

• Accounting firms

• Marketing agencies

• Janitorial companies

• Law firms

Entertainment

Lastly, many entertainment companies require commercial real estate properties. An entertainment business can range anywhere from gaming to escape rooms and gambling. You will see many such businesses need a large amount of space and will need larger properties like adventure parks or escape rooms. 

Here are a few different types of entertainment businesses:

• Adventure parks

• Laser tag

• Escape rooms

• Gaming and gambling

Investing in the commercial real estate space is a great way to enjoy passive income while watching your investments grow. In an uncertain market like today, CRE investment can bring stability to your portfolio.