A commercial building is a property designed to accommodate business activities and generate profit. These buildings are purpose-built for many industries ranging from retail and office space to manufacturing.
Types of Commercial Buildings
There are many types of commercial buildings as we explain in this section, each designed to support specific industries.
Office Buildings
Office buildings are designed to support business needs, including administrative and managerial tasks. They can range from single-tenant properties to multi-tenant skyscrapers.
Serviced offices are a specialised category of office building, offering plug-and-play workspaces with access to shared amenities like meeting rooms and breakout spaces. Many serviced offices in London can be found in landmarks such as The Shard or The Gherkin.
Retail Properties
Retail properties differ from office buildings as they house businesses that directly interact with customers. This includes high-street shops, boutiques and large shopping centres.
These buildings require high foot traffic and greater visibility, so they are usually found in city centres.
Industrial Buildings
Industrial buildings are tailored specifically to warehousing, manufacturing and logistics operations. They are typically found in industrial parks with easy access to transport links such as motorways and docks.
Leisure Facilities
Buildings such as cinemas, theatres and gyms fall under leisure facilities. They often require large spaces and specific design features such as soundproofing.
Mixed-Use Developments
These buildings combine commercial, residential and, in some cases, recreational spaces into one. For example, a mixed-use development may have retail stores on the ground floor with serviced office space on the middle floors and penthouse apartments.
Types of Non-Commercial Buildings
Non-commercial buildings serve other purposes that are not focused on generating money. They include:
Residential Buildings
These include houses, flats, and apartments designed for people to live in. The buildings prioritise features such as kitchens and bedrooms rather than the infrastructure required for business operations.
Government Buildings
Government buildings are owned and operated by public authorities. They are designed to house services essential to government and public administration. Taxpayers usually fund these properties, and they focus on serving the public instead of making a profit.
Non-Profit and Religious Structures
Churches, mosques, and community centres are classed as non-commercial properties as they support their communities rather than generate profit.
Buildings That Fall into Both Categories
Some buildings fall into both categories (commercial and non-commercial) depending on their function. Here are a few examples:
Healthcare Facilities
A private hospital that charges for diagnostics and treatments is considered a commercial building.
An NHS hospital offering public-funded care without profit is a non-commercial building.
Educational Facilities & Schools
Whether an educational facility or school is considered a commercial building depends on the type of school.
For example, private schools or training centres that charge students are classified as commercial. A state school or non-profit training centre is classed as non-commercial.
Cultural Buildings
Galleries or event spaces which charge admission are commercial buildings.
A government-funded museum with free entry is a non-commercial property.
Key Features of Commercial Buildings
Flexible Workspace Layouts
Open-plan designs accommodate collaborative workspaces, whilst private offices offer a focused environment. Serviced offices, for example, often include meeting rooms and shared breakout spaces.
Reliable Infrastructure
Reliable infrastructure, including high-speed internet, security systems, and fire safety measures, is crucial in a commercial building. Serviced offices are run by a management team that deals with all aspects of the building’s infrastructure.
Additional Facilities
Commercial buildings can also feature fully stocked kitchens, onsite gyms, and roof terraces. These help to enhance employee satisfaction and productivity.
Excellent Transport Links
Strategically located near stations, motorways and local amenities, commercial buildings offer excellent transport links. Many serviced office providers make the most of this by offering office space in areas like Soho or the City, which ensures easy access for their clients.
Zoning Laws for Commercial Buildings
Zoning laws dictate how land can be used and what properties can be built. These regulations in the UK are key to ensuring that urban areas are organised and functional. Examples of key zoning classifications include:
Business Districts
A prime example of an area designed for high-density commercial use is the City of London. Business districts like this have a range of office buildings, serviced offices and retail spaces, which create a hub of economic activity.
Mixed-Use Zones
These zones allow a mix of commercial, residential and recreational use. For example, mixed-use zones in London often have offices above retail units, creating multi-functional communities.
Industrial Zones
Industrial zones are far from residential areas and are reserved for factories, warehouses, and other industrial facilities. This is to reduce noise and air pollution.
How Commercial Spaces Support the Growth of Cities
Commercial buildings are essential to the growth and vibrancy of cities throughout the UK. They also contribute significantly to the social and economic development of these areas.
Driving Economic Growth
Businesses operating from commercial spaces generate revenue, provide job opportunities and attract investment.
In London, commercial buildings are home to many companies, from creative startups in areas like Shoreditch to global corporations in Canary Wharf. This mix ensures a steady flow of income generated via business rates, taxes and consumer spending.
In addition, as the demand for high-quality workspaces, including serviced offices, rises, this creates opportunities for property developers, landlords and flexible workspace providers.
Encouraging Collaboration and Networking
Commercial spaces, particularly serviced offices, are designed to encourage business interactions. Communal areas such as kitchens and breakout spaces in these buildings provide a wealth of networking opportunities.
Retail spaces can often offer collaborations with companies renting offices nearby. These business relationships can be mutually beneficial, providing free advertising and word-of-mouth recommendations to a broader market.
Improving Urban Infrastructure
As commercial areas develop and expand, they require infrastructure improvements. Businesses depend on reliable transport links, public services and utilities. Therefore, cities invest in these facilities.
An excellent London example is the creation of the Elizabeth Line. This was driven by the need to connect East and West London easily via key transport hubs such as Heathrow and Paddington.
Revitalising Underused Areas
Commercial buildings can transform neglected urban areas into bustling business hubs. For example, the development of retail, office, and residential spaces has completely transformed Kings Cross in London. This has boosted the local economy and enhanced the appeal of the area.
Attracting Global Investment
Well-developed commercial spaces easily attract global investment. Mayfair in London is a great example of this. With its range of office spaces and luxury boutiques, businesses in Mayfair continue to attract investors from all over the work due to its prestigious reputation.
Sustainability in Commercial Building Design
As more businesses prioritise sustainability, commercial buildings are implementing more eco-friendly measures to minimise environmental impact.
Energy Efficiency
Lowering energy consumption is the priority of sustainable commercial building design. This is achieved by implementing features such as LED lighting. Smart HVAC systems, motion sensors and the use of solar power.
Eco-Friendly Materials
Materials used in commercial buildings are crucial to sustainability. Building developers are prioritising recyclable and responsibly sourced materials like recycled steel and bamboo. Low-VOC paints, paints with lower volatile organic compounds, are becoming popular as they improve indoor air quality.
Green Certifications
Achieving green certifications has become a way of highlighting a building’s commitment to sustainability. Certifications such as BREEAM evaluate energy usage alongside factors such as water efficiency and building materials.
Leasing vs. Owning Commercial Property
For businesses looking for office space, whether to lease or own a commercial building depends on their needs and budget. We have found an increase in companies choosing to rent space, especially in cities like Manchester or London.
Advantages of Leasing Commercial Property
Leasing offers lower upfront costs and greater flexibility. Serviced offices, for example, reduce long-term commitments, making it easier for startups to expand their space or relocate as their business grows.
Advantages of Owning Commercial Property
Owning a commercial building offers long-term stability and financial benefits. However, it requires significant upfront investment and maintenance.
Future Trends in Commercial Buildings
Increase in Smart Buildings
Smart features transform commercial buildings by implementing advanced technologies to enhance efficiency and tenant experience.
AI-powered systems can help predict maintenance needs, optimise energy usage and streamline operations. Virtual reality lets clients view potential office space remotely and plan their layouts. The integration of 5G connectivity ensures a reliable internet connection which caters to tech-driven companies.
Health and Wellness-Oriented Designs
Health and wellness features are becoming more popular in commercial properties.
Biophilic elements like plants and green spaces help promote mental well-being, whilst improved air quality and natural light boost productivity.
Buildings incorporate community-focused designs to include communal lounges and fitness areas to encourage collaboration and interaction.
More Mixed-Use Developments
As mentioned earlier, mixed-use developments are buildings that encompass retail, office space and residential use.
These buildings often create self-contained ecosystems where people can live, work and socialise. They are gaining popularity in urban areas where space is limited.
Commercial buildings are key to the growth of major cities in the UK. With technological advancements, flexible workspaces and sustainable designs, these spaces cater to modern businesses.
