Commercial Building

Any piece of real estate that is used for business operations and activities constitutes
commercial property, whether it is simply bare land or it is improved with buildings and other
facilities. A commercial building is any structure in which a business purpose is pursued or
operated. That includes both direct uses, where the company conducts business out of the
building itself, and indirect uses, where the building itself is the business.
An example of a direct use of a commercial building would include a grocery store or
mechanic’s shop located in the building in question. An example of an indirect business use is
apartment buildings, where the lease of individual apartments is the business activity that takes
place in those buildings.
Buildings and property that are designated as commercial in nature are subject to different tax
and financial rules, as well as additional or different legal requirements and prohibitions, in many
cases. Commercial designations also trigger different financing rules for purchase, lease and
improvement.
Examples of Commercial Buildings
Commercial buildings and property are generally classified into six different types or categories:
1. Office buildings
2. Retail buildings
3. Industrial buildings
4. Multifamily housing
5. Hotels and motels
6. Special-purpose buildings
Whether located in cities or suburban neighborhoods, office buildings are a commonly seen
type of commercial building. From smaller buildings of a few floors to skyscrapers hundreds of
feet high, office buildings can be found just about everywhere in the United States and other
developed countries. One specific subtype of office buildings, the medical office building, is
considered a specialized use. Office buildings of all types may lease individual offices, suites or
floors to many tenants or to a single tenant, who then subdivides the building as they see fit. In
many cases, office buildings are offered to tenants along with the opportunity to have the space
built to the tenant’s specifications.
Retail properties and buildings house all kinds of retail sales shops and restaurants. This
segment of the commercial property market can be quite complex, with numerous local zoning
regulations and state laws applying to various types of retail buildings and with market-rate rents
depending heavily on the type of building, the size, the layout and the number and type of
tenants. For example, retail properties may be single-occupancy buildings, such as outparcels
housing a single drugstore, or large, multi-tenant properties, such as malls anchored by a few
large stores with multiple smaller shops, booths and kiosks in between.
Buildings in which manufacturing, repair, research and development and warehouses are
located are known collectively as industrial buildings. These commercial buildings tend to be
located in specially designated zones created by local ordinances and regulations. They are
generally located outside of heavily urbanized areas but are near interstate highways and other
significantly traveled roadways, railways and transportation depots. Often, the designated
industrially zoned areas will be organized into industrial parks that house facilities for several
companies. Because of the additional noise and traffic industrial buildings tend to produce,
these zoned areas are usually isolated by buffer areas from residential neighborhoods.
The multifamily commercial building is restricted essentially to all residential real estate that can
house multiple families onsite. This would exclude single-family homes but would include
condominium, apartment and townhome developments. A multifamily residence is engaged in a
commercial purpose through the investment and management of its owners, with the income
flowing through the residents’ payment of rent. Apartment rental buildings are further classified
along the following lines, based on floors, location and the presence or absence of an elevator:
 High-rise buildings include one or more elevators and at least nine floors.
 Mid-rise buildings include multiple stories, though typically less than nine, and an
elevator.
 Walk-up buildings have multiple floors, usually four to six, but no elevators.
 Garden-style buildings house multiple apartments in three or fewer stories with a
courtyard or garden-like landscaping.
 Manufactured housing parks or communities (also known colloquially as “trailer parks,”
though this is often meant in a derogatory sense) offer land lots for rental to owners who
 place their mobile or manufactured homes (single- or double-wide homes) on the lots
and connect them to existing utility sources.
 Special-purpose housing is any kind of multifamily residential property that is dedicated
to or specifically aimed at a particular segment of the population, such as low-income
families or senior citizens.
Hotel and motel properties provide on-demand accommodations for business and pleasure
travelers. Hotels can be large-scale and either independent boutique hotels or chain-owned.
Hotels with higher price points tend to provide or rent space to other supporting businesses that
provide added value for hotel guests, such as spas, hair salons, restaurants, bars and clothing
retailers. On the other end of the spectrum are low-end motels with no additional amenities or
onsite restaurants. In addition, large resort areas and casinos are specialized hotel properties
that offer accommodations at a wide range of price points.
Finally, there is a catchall “special purpose” category that includes nonresidential properties that
are held by owners who invest in commercial real estate, but the properties don't naturally meet
any of the above characterizations, such as bowling alleys, miniature golf courses and storage
facilities.
What Is the Meaning of a Commercial Lease?
In addition to the several categories of commercial property, you may also encounter different
kinds of commercial leases. While commercial lease agreements tend to contain several types
of common boilerplate clauses, the specific structure of the lease’s terms can differ quite
dramatically, including most particularly the tenant’s payment obligations. Which type of lease is
right for your business depends on many factors, including your business plans and goals for
the property, your cash flow projections and cash on hand and other elements of your
company’s finances and operations.
A single-net lease or net lease obligates the tenant to pay only regular rent (however that may
be calculated), utilities and property tax. The landlord in a net or single-net lease takes care of
(or pays for) maintenance, repairs and insurance on the property and all improvements thereto.
Double net and net-net leases generally require the tenant to pay rent, utilities, property taxes
and insurance for the building and any part of the premises occupied by the tenant. The landlord
only pays for maintenance and repairs or performs these at his own expense. In triple-net
leases, the landlord pays for structural repairs to the property or buildings only, while the tenant
assumes all other expenses and costs in addition to the rent.
Finally, the full-service and modified gross lease generally divide the costs for structural repairs
and all the costs that fall under the label of “operating expenses” (including property taxes,
insurance premiums, utilities and maintenance) between both parties. For buildings that house
multiple tenants, such as malls and shopping plazas, the full-service or modified gross lease
structure is the most commonly adopted type. If operating expenses increase, the rent does not.
Negotiating a Commercial Lease
When searching for the right commercial property for your business, the suitability of the
property and its buildings for your business purpose are just the beginning. You will also need to
reach an agreement with the landlord on commercial lease terms that are suitable for your
business needs, goals and finances. Negotiating your commercial lease terms can be a
stressful or even anxiety-inducing experience if you’ve never done it before.
As a preliminary negotiation tool, it’s always smart to research rents for comparable locations
and facilities. Find out what rental and lease terms are offered for those locations, as well as
any significant differences among the properties so that you can address any objections from
the landlord. When you’ve done your homework and understand the average rental rates in the
area, you’re more empowered to reach terms that are mutually beneficial and fair. By the same
token, if you find numerous locations that are similarly suitable for comparison, you may be in a
renter’s market, and you may be able to convert that into a negotiating advantage. At a
minimum, you should consider asking for a shorter lease term duration (one year, for instance,
instead of two), in the event that rents begin to fall. That will free up your business sooner to find
a better set of terms. This may not be the best approach, however, if your business requires a
fixed-location commitment, such as a fine-dining restaurant.
Speaking of the lease term, pay special attention to this part of the lease agreement. If you’re
satisfied with the location and your company’s lease application was approved by the landlord,
the next biggest question is the term of the lease itself. Some businesses, such as restaurants,
will require a longer lease term, but for most small businesses, a term of one or two years with
optional renewal periods is most commonplace and generally best suited for the tenant. You’ll
enjoy some certainty and enough time to establish your operations and attract the right flow of
clients or customers to that location, but your business won’t be tied to a lengthy term.
Finally, pay attention to much more than just the amount of rent. Other costs, depending on the
specific type of lease structure you’re being offered, can add substantial expense to your
building expenditures and put a real strain on your budget. If your business will be responsible
for costs and expenses in addition to the rent, it’s important to get an estimate of those costs in
order to create an accurate budget and estimate for your business finances. These so-called
hidden costs may include maintenance or common area upkeep and can be quite substantial.
To secure the most favorable terms possible, consider asking for a cap or maximum amount
you can possibly be assessed for these items or alternatively consider exchanging the structure
for one in which the landlord assumes those costs and your business pays a higher rent. This
will add certainty to your budget and make financial projections much easier and more accurate.
About Commercial Buildings & Commercial Building Floor Plans
Designed as free-standing buildings, Commercial Building plans accommodate various
businesses and other groups. This collection of commercial building plans includes designs that
have one or more levels. Most are designed to accommodate more than one business or
tenant. Commercial building plans are available in a range of sizes, styles and design. Smaller
designs may provide one or two units, storefronts, or offices while the larger designs
encompass office buildings and floor plans that can accommodate a number of tenants. Strip
Malls and Miscellaneous Commercial plans are related to Commercial Building plans.

6 Critical Considerations When Planning a Commercial Building Construction Project

Constructing and planning commercial building projects is one of the biggest projects you’ll
handle in the course of business. The expense is tremendous, and flaws in your plan can make-
or-break your business. You have an endless number of considerations to make, so how do you
prioritize and determine which ones are the most important?
Planning Commercial Building Projects Is NOT Easy
At Peak Steel Buildings, we think we’ve got the answer to your problems. Our customers
make their decisions largely based on the following items. Make sure you give them some
thought before finalizing your design for any new construction plan.
How fast will it take your commercial building to be finished?
When it comes to business endeavors, we all know our time is money. Unfortunately, big
projects like building construction take weeks, if not months, to complete. Really think about
how important this aspect of your planning is to you. Certain options speed up build time
considerably. They allow you to get to work right away and begin to pay off your big investment.
Generally, faster construction allows you to save a big chunk of your budget as well. Not only do
you pay a crew for fewer days of work, but you pay interest on a construction loan for a shorter
time as well.
These savings of time and money aren’t realized any faster than when you build with
steel. From order to completion, your project could last fewer than 8 weeks.
How much will your commercial building cost?
Metal commercial buildings provide other avenues for savings too. Your initial
investment could be half of what you would have spent on stick construction. One of the biggest
reasons of course is the speed with which your building is completed, but there are other factors
at play as well. Materials are less expensive, both because red-iron steel is in ample supply –
and therefor, more affordable – and because fewer components are needed to finish a job.
How expensive will your building be to upkeep?
Initial costs aren’t the only budget concerns to keep in mind when planning commercial
building projects. Long-term use will have a big impact on your profit margins. From foundation
to roof ridge, steel structures are less expensive. With the appropriate insulation packages,
indoor environments are highly efficient. The metal panels used for walls and roofing won’t need
painting or sealing seal after year. In fact, your roof should last 25 years or more without
needing replacement. The treatments needed by wood buildings don’t apply to steel
construction. Metal is naturally resistant to many types of traditional wear, including mold and
rot, fire and damage from pests.
How will you organize your brand new building?
The more use you get from your new commercial space, the more value you get from
every dollar spent on construction. Steel buildings have an advantage you can’t find with any
competing material. The latest building technology allows for even wide open spaces to be
created without the use of metal support beams. Organize your business according to work flow
instead of working around practical design annoyances.
If the worst happens and your business goes under, this design feature is also helpful when it
comes to reselling your real estate. Your commercial building can be more easily repurposed
into a retail outlet, garage or government facility without troublesome columns throwing a
wrench in the works.
How difficult will expanding be?
The building you construct today is the building you may be forced to contend with for
decades. Staying put has its benefits, even as your business grows. It makes sense to choose
building materials like steel that are so easy to modify over time. What’s needed to add an
additional wing to your building? Simple disconnect one wall and add on extra panels. What will
you need to modify wood or concrete construction?
Maybe you don’t want to make things larger as much as renovate your space, moving doors
and windows around to improve functionality? This is an option you may ignore with a traditional
commercial building due to the cost and complexity. Those same tasks will be relatively easy
with a metal building, and they can have a marked improvement on productivity.
How attractive will new your building look?
Finally, it’s important to discuss one of the obvious problems arising from steel:
ignorance. Most business owners are living in the Stone Age – or more accurately, the 80s –
and consider metal buildings an ugly option capable of hurting your business cred. Before you
write off all the benefits, take a look at what’s available today in 2016.
When planning commercial building projects, today’s technology allows for attractive metal
buildings with roofs of various designs. You have access to multiple types of wall panels, doors,
windows, skylights, even specialty elements meant only for looks. Paint options extend to a full
range of colors, and even popular color combos. Don’t sell metal short because of its ugly past.
Move on and consider the aesthetic options you really have available before you make your
final decision.
 How are building regulations used for commercial building

 What qualifies as ‘building work’ and so falls under the control of the regulations.
 What types of buildings are exempt (such as temporary buildings).
 The notification procedures that must be followed when starting, carrying out, and
completing building work.
 Requirements for specific aspects of building design and construction.

Structure
Requires buildings to be designed, constructed or altered so as to be structurally safe and
robust, and so as not to impair the structural stability of other buildings.
Fire safety
Covers all precautionary measures necessary to provide safety from fires for building
occupants, persons in the vicinity of buildings, and firefighters. Requirements and guidance
covers means of escape in cases of fire, fire detection and warning systems, the fire resistance
of structural elements, fire separation, protection, compartmentation and isolation to
prevent fire spread, control of flammable materials, and access and facilities for firefighting.
Site preparation and resistance to contaminants and moisture
Includes the weather-tightness and water-tightness of buildings, subsoil drainage, site
preparation, and measures to deal with contaminated land, radon, methane, and all other site
related hazardous and dangerous substances.
Toxic substances
This controls hazards from the toxic chemicals used in cavity fill insulation systems.
Ventilation
Includes standards for ventilation and air quality for all buildings. It also covers requirements for
the prevention of condensation.
Sanitation, hot water safety and water efficiency
Lays down standards for the provision of sanitary and washing facilities, bathrooms and hot
water provision. It also covers safety requirements in respect to unvented hot water systems.
Drainage and waste disposal
Requires that adequate drainage is provided, and also deals with pollution prevention,
sewage infrastructure and maintenance. Technical design standards cover sanitary
pipework, foul drainage, rainwater drainage and disposal, wastewater treatment, and discharges
and cesspools.
Heat producing appliances and Fuel storage system
Covers the construction, installation and use of boilers, chimneys, flues, hearths and fuel
storage installations. Also requirements to control fire sources and prevent
burning, pollution, carbon monoxide poisoning, etc.
Conservation of fuel and power
Controls the insulation values of buildings elements, the allowable area of windows, doors and
other opening, the air permeability of the structure, the heating efficiency of boilers, hot water
storage and lighting. It also controls mechanical ventilation and air conditioning systems, space
heating controls, airtightness testing of larger buildings, solar emission, the certification, testing
and commissioning of heating and ventilation systems, and requirements for energy meters. It
also sets requirements for Carbon Index ratings.
Access to and use of buildings
Requires the inclusive provision of ease of access to, and circulation within, all buildings,
together with requirements for facilities for disabled people.
Glazing - Safety in relation to impact, opening and cleaning
Lays down the requirements for the use of safety glazing to avoid impact hazard and for the
suitable awareness and definition of glazed areas. Also included are safety requirements
relating to the use and cleaning of windows.
Electrical safety
Covers the design, installation, inspection and testing of electrical installations in order to
prevent injuries from electrical shocks and burns, and to prevent injuries arising from fires due to
electrical components overheating or arcing.
Materials and workmanship
A requirement for carrying out building work using the proper materials and in a workmanlike
manner.