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
Global Asbestos Awareness Week 2025
Highlighting the continuing threat to trades persons.
The context, schemes, standards, roles and relevance of the Building Safety Act.
Retrofit 25 – What's Stopping Us?
Exhibition Opens at The Building Centre.
Types of work to existing buildings
A simple circular economy wiki breakdown with further links.
A threat to the creativity that makes London special.
How can digital twins boost profitability within construction?
The smart construction dashboard, as-built data and site changes forming an accurate digital twin.
Unlocking surplus public defence land and more to speed up the delivery of housing.
The Planning and Infrastructure Bill
An outline of the bill with a mix of reactions on potential impacts from IHBC, CIEEM, CIC, ACE and EIC.
Farnborough College Unveils its Half-house for Sustainable Construction Training.
Spring Statement 2025 with reactions from industry
Confirming previously announced funding, and welfare changes amid adjusted growth forecast.
Scottish Government responds to Grenfell report
As fund for unsafe cladding assessments is launched.
CLC and BSR process map for HRB approvals
One of the initial outputs of their weekly BSR meetings.
Architects Academy at an insulation manufacturing facility
Programme of technical engagement for aspiring designers.
Building Safety Levy technical consultation response
Details of the planned levy now due in 2026.
Great British Energy install solar on school and NHS sites
200 schools and 200 NHS sites to get solar systems, as first project of the newly formed government initiative.
600 million for 60,000 more skilled construction workers
Announced by Treasury ahead of the Spring Statement.
The restoration of the novelist’s birthplace in Eastwood.
Life Critical Fire Safety External Wall System LCFS EWS
Breaking down what is meant by this now often used term.
PAC report on the Remediation of Dangerous Cladding
Recommendations on workforce, transparency, support, insurance, funding, fraud and mismanagement.
New towns, expanded settlements and housing delivery
Modular inquiry asks if new towns and expanded settlements are an effective means of delivering housing.
Comments