
Commercial property (also called commercial real estate) generally refers to property that is used for business activities rather than for residential living.
Here’s what is usually classed as commercial property:
1. Retail
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Shops, shopping centres, supermarkets
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High street stores, retail parks
2. Office
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Office buildings (single-tenant, multi-tenant, or entire skyscrapers)
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Co-working spaces
3. Industrial
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Warehouses and distribution centres
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Factories, manufacturing plants
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Workshops
4. Hospitality & Leisure
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Hotels, hostels, guesthouses (if run as a business)
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Restaurants, cafés, bars, pubs
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Gyms, cinemas, theatres
5. Mixed-Use
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Properties that combine residential and commercial (e.g., shop on the ground floor with flats above, where the shop element is classed as commercial).
6. Special Purpose Commercial
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Petrol stations
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Care homes (if run as a business)
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Medical centres, dental practices
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Schools, nurseries (private/independent)
👉 The key distinction:
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Residential property = used as a dwelling (houses, flats).
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Commercial property = primarily used for business purposes, to generate income, or provide services.
Would you like me to also explain how HMRC, UK law, or lenders define commercial property? (It can vary slightly depending on whether we’re talking tax, planning, or mortgages.)
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