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
Reporting on Payment Practices and Performance Regulations
Approved amendment coming into effect 1 March 2025.
A new CIOB TIS on discharging CDM 2015 duties
Practical steps that can be undertaken in the Management of Contractors to discharge the relevant CDM 2015 duties.
Planning for homes by transport hubs
Next steps for infrastructure following the updated NPPF.
Access, history and Ty unnos.
The world’s first publicly funded civic park.
Exploring permitted development rights for change of use
Discussing lesser known classes M, N, P, PA and L.
CIOB Art of Building 2024 judges choice winner
Once Upon a Pass by Liam Man.
CIOB Art of Building 2024 public choice winner
Fresco School by Roman Robroek.
HE expands finance alliance to boost SME house building
Project follows on from Habiko public-private place making pension partnership for affordable housing delivery.
Licensing construction; looking back to look forward
Voluntary to required contractors (licensing) schemes.
A contractor discusses the Building Safety Act
A brief to the point look at changes that have occurred.
How orchards can influence planning and development.
CIOB Construction Manager of the Year award
Shortlist set to go head-to-head for prestigious industry title.
HSE simplified advice for installers of stone worktops
After company fined for repeatedly failing to protect workers.
Co-located with 10th year of UK Construction Week.
Time for knapping, no time for napping
Decorative split stone square patterns in facades.
A practical guide to the use of flint in design and architecture.
Comments