How are the four major commercial real estate types classified?

The classification of the four major commercial real estate types focuses on building class and property location. This classification system helps categorize properties into specific groups based on their overall quality, age, condition, and geographic market characteristics.

Building class, typically referred to as Class A, B, or C, denotes the quality of the building, prestige, amenities, and overall appeal to tenants. For instance, Class A properties are high-quality buildings located in prime areas, whereas Class B and C properties may offer less desirable features and locations.

Property location is also critical because it influences factors such as accessibility, visibility, and the socio-economic environment of the area. These characteristics can significantly affect the attractiveness of a property to potential tenants and investors, thus directly impacting its market value and rental potential.

The other options focus on less relevant factors such as rental rates and market demand, which, while important in a broader analysis of market performance, do not fundamentally classify commercial real estate types. Similarly, classifications based on the number of employees or financial performance do not fit within the conventional framework used in real estate categorization. Location and square footage alone also fail to provide a comprehensive depiction of a property's classification in the commercial real estate landscape.