Commercial property definition
Property can be defined as something that a person or business has legal title over. Having legal title over property provides the owner with certain enforceable rights. Property may be categorised as tangible (‘real’) or intangible. In the built environment, tangible property refers to real estate or land, whereas ‘personal property’, or chattel, is all that which is not ‘real property’.
The word ‘commercial’ relates to things that are concerned with or engaged in commerce, that is, activities that are intended to make a profit. In its broadest sense therefore, commercial property (or commercial buildings or commercial premises) typically refers to property or buildings that accommodates activities intended to make a profit. This might include shops for example.
The Town and Country Planning (Use Classes) Order categorises uses of land and buildings. Developments may not be used for purposes that are not within the use class for which they received planning permission. However, there is no single use class that might be considered to encompass all commercial property, but rather there are a range of classes, including: A1. shops, A3. food and drink, B1. business and so on.
Changing the use of a development from one class to another may require planning permission, although changes of use may be permitted without the need for a planning application for certain allowable uses (for example, changing a restaurant into a shop).
This becomes more complex however, as there are a number of types of building that whilst they do seem to encompass 'commercial' activities, they are generally not described as commercial. For example, the Office for National Statistics (ONS) differentiates between commercial and industrial buildings.
In its methodology, ONS suggests that ‘private commercial’ includes:
- Schools.
- Universities.
- Health.
- Offices.
- Entertainment.
- Garages.
- Shops.
- Agriculture.
- Miscellaneous.
Whereas ‘private industrial’ includes:
- Factories.
- Warehouses.
- Oil.
- Steel.
- Coal
However, the Royal Institution of Chartered Surveyors (RICS) suggests that commercial property:
'...covers all types of real estate used for business purposes. The principal sectors within commercial property are retail, office, industrial and leisure. Commercial property serves a vast array of purposes supporting public and private sector business and services, such as government, service industries, education, healthcare, manufacturing, telecommunications and other civil infrastructure. The exception is real estate related to agricultural or residential use.' |
Rather confusingly, Uniclass 2015, (a voluntary classification system for the construction industry that can be used to organise information) defines commercial entities as:
- Auction buildings.
- Department stores.
- Financial and professional services buildings.
- Markets.
- Mixed use buildings.
- Motor vehicle sales entities.
- Shop units.
- Supermarkets.
- Wholesale buildings.
For more information see: Uniclass.
Given the variety of conflicting definitions available, it would be wise to make clear which is being used when referring to commercial property.
See also: Shops and commercial premises definition.
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
The average kinetic energy of molecules
Temperature in buildings, explained on DB
Women and unequal pay in project management
Main barrier to entering the profession, new study reveals.
IHBC’s response to Parliamentary Committee
On Levelling-Up and Regeneration Bill.
Finalists for 2022 CIOB Awards revealed
Over 70 managers and organisations shortlisted for the 14 awards.
Types of building sensors on BD
From biometric to electrical current, chemical and more.
Government mandates detectors in rented homes
Changes are due to come into force on 1st October 2022.
80% of major government projects are rated red or amber
Heed advice and insight of this report IPA tells the government.
The end of the games but continued calls for action
From the Commonwealth Association of Architects.
CIOB respond to the government call for evidence
For the Levelling Up, Housing & Communities Committee.
How are buildings and their occupants responding to extreme heat?
BSRIA's Technical Director reflects on recent weather patterns.
Landownership in England in 1909
A national valuation to fund old-age pensions.
The world’s largest Commonwealth memorial to the missing.
Long after the end of the defects liability period.
BSRIA Occupant Wellbeing survey BOW
Occupant satisfaction and wellbeing in buildings.
Geometric form and buildings in brief
From the simple to the complex.
Understanding the changing nature of insulation
And the UK Government guidelines.
Three year action plan to improve equity, diversity and inclusion
Commitment agreed to by major built environment bodies.
The Construction Route – what needs to change?
Electrical skills, low carbon, high-tech and the building services revolution.
Deep geothermal power possibilities
Ultra-deep drilling with millimeter-wave beam technology.
BSRIA Briefing 2022- From the outside looking in
Looking at the built environment from space.
Competence requirements for principal contractors and designers
BSI standards 8671, 8672 and 8673.
Bringing life to burial grounds.
From failed modernism to twenty-minute neighbourhoods.
Design chill and design freeze
The gates process and change control.
Comments