Quick Answer
Commercial property is any land or building used for business rather than as a home. In the UK, the main types are offices, retail, industrial (including warehouses and factories), leisure and hospitality, healthcare and other specialist property, and mixed-use buildings. In England, what a building can legally be used for is set by planning use classes. Since 1 September 2020, most shops, offices, cafés, gyms and light industrial units sit together in Class E, which means they can switch between those uses without planning permission. Heavier industry is Class B2, warehousing is B8, and uses such as pubs, takeaways and cinemas are “sui generis”, needing permission for any change. Knowing the type and use class helps you judge a property’s value, flexibility and risk.
Why Property Type Matters
A shop on Hanley’s high street and a warehouse off the A500 are both “commercial property”. That’s where the similarity ends.
They attract different tenants, sign different leases, earn different rents and carry very different risks. They’re even governed by different planning rules. Buy without understanding those differences and you could end up with a building you can’t let, or one you can’t legally use the way you planned.
Think of property types like vehicles. A van and a sports car are both cars on paper, but you wouldn’t buy one when you need the other. Commercial property works the same way.
At Rory Mack Associates, we’ve been helping owners, investors and businesses across Staffordshire, Cheshire and Shropshire find the right property since 1992. This guide covers every main type, plus the planning rules that sit behind them.
What Counts as Commercial Property?
Commercial property is any property used for business purposes rather than as somewhere to live. That includes offices, shops, warehouses, factories, hotels, pubs, surgeries and much more.
Commercial vs non-commercial property
The simplest test is how the building is used:
- Commercial: used to run a business, sell goods or services, or earn income from business tenants
- Residential (non-commercial): used as a home, such as a house, flat or house in multiple occupation
- Mixed-use: a bit of both, such as a shop with a flat above
The distinction matters. Commercial property is taxed differently, needs different finance, is let on different leases and pays business rates instead of council tax.
The Main Types of Commercial Property
1. Offices
From a single room above a shop to a whole headquarters building, offices house professional and administrative work. You’ll find serviced offices, co-working space, business parks and traditional town centre suites.
What matters: location, parking, transport links, broadband, energy efficiency and flexibility. Hybrid working has changed demand, so modern, efficient space with good facilities lets far more easily than dated offices. Our guide to what today’s commercial tenants really want covers this in detail.
2. Retail
Retail covers anything from a corner shop to a shopping centre, including high street units, out-of-town retail parks and roadside convenience stores.
What matters: footfall, visibility, parking, local spending power and nearby competition. Retail has faced pressure from online shopping, but well-located units serving everyday needs still perform. For ideas on empty units, see repurposing retail.
3. Industrial
Industrial property includes factories, workshops, warehouses, distribution centres and trade counters. It ranges from small starter units to huge logistics sheds.
What matters: road access, eaves height, loading doors, yard space and power supply. Online shopping and manufacturing have kept demand strong, especially for smaller units. Staffordshire’s position on the M6 and A50 makes it a popular location.
4. Leisure and hospitality
This covers hotels, pubs, restaurants, cafés, gyms, cinemas and other places people go to eat, drink, stay or have fun.
What matters: location, licensing, the operator’s trading record and the condition of specialist fittings such as kitchens. Values often depend on how well the business trades, not just the building.
5. Healthcare and specialist property
Some buildings are designed for very specific uses: GP surgeries, dental practices, care homes, nurseries, schools, places of worship, petrol stations and data centres among them.
What matters: sector regulations, tenant covenant strength and long-term demand. These properties can offer long leases, but they’re harder to repurpose if the tenant leaves.
6. Mixed-use
Mixed-use buildings combine more than one type, most often shops on the ground floor with flats or offices above. They’re common in market towns across Staffordshire and Cheshire.
What matters: managing two sets of rules. The commercial and residential parts have different leases, compliance requirements and tax treatment. Good block management keeps both sides running smoothly.
Land and development sites
Not all commercial property has a building on it yet. Development land, car parks and open storage yards are commercial property too. Their value depends heavily on planning potential, which a development appraisal can assess.
Commercial Use Classes Explained
Every building in England has a planning “use class” under the Town and Country Planning (Use Classes) Order 1987. It sets out what the building can lawfully be used for. Changing to a use in a different class usually needs planning permission, and getting it wrong can lead to enforcement action from the council.
The big change in 2020
On 1 September 2020, the old system was overhauled in England. Classes A1 to A5 (shops, cafés, takeaways and pubs), B1 (offices and light industry) and D1 and D2 (community and leisure uses) were abolished. Most of these uses moved into a single, flexible Class E.
If you see A1 or B1 on older paperwork or in old adverts, that’s why. Those classes no longer apply to new applications in England. Wales still uses the older system.
The current use classes for commercial property
| Use class | What it covers |
| E: Commercial, business and service | Shops (E(a)), cafés and restaurants (E(b)), financial and professional services (E(c)), indoor sport and gyms (E(d)), medical and health services (E(e)), nurseries and day centres (E(f)), and offices, research and light industry (E(g)) |
| B2: General industrial | Industrial processes that don’t fit into E(g), such as heavier manufacturing |
| B8: Storage or distribution | Warehouses, distribution centres and open-air storage |
| C1: Hotels | Hotels, boarding and guest houses |
| C2: Residential institutions | Care homes, nursing homes, hospitals and boarding schools |
| F1: Learning and non-residential institutions | Schools, museums, libraries, places of worship and law courts |
| F2: Local community | Small shops selling essential goods (up to 280 square metres, with no similar shop within 1,000 metres), community halls, outdoor sport and swimming pools |
| Sui generis | Uses in a class of their own, including pubs and bars, hot food takeaways, cinemas, theatres, nightclubs, petrol stations, car showrooms and large HMOs |
Why Class E matters to owners and investors
Within Class E, you can switch from one use to another without planning permission. A former bank could become a café, a gym or a clinic. An office could become a shop.
There are exceptions. A planning condition on the original permission, or the lease itself, can still restrict the use, so always check both. Even so, that flexibility is valuable. It widens the pool of possible tenants and reduces the risk of a building standing empty. It’s one of the first things we look at when advising on a property’s value.
Watch out for sui generis
Sui generis uses don’t belong to any class, so any change of use needs planning permission. Turning a pub into a shop, or a takeaway into a café, isn’t automatic. If you’re buying a sui generis property with a change of use in mind, check the planning position first.
Always check before you buy or let
The use class affects what a tenant can do, what a building is worth and whether your plans are lawful. Check the planning history with the local council, and make sure the lease’s permitted use clause matches. Our commercial property due diligence checklist covers this and more.
Which Type of Commercial Property Is Right for You?
It depends on whether you’re occupying the building or investing in it.
If you’re a business looking for premises, start with how you work. How many staff? Do you need customers to find you, or lorries to reach you? How much flexibility do you need over the next five years? Our guide to buying vs leasing commercial property helps with the next decision.
If you’re an investor, each type has a different balance of risk and return:
| Type | Typical lease length | Tenant demand | Ease of reletting |
| Industrial | Medium to long | Strong | Usually good |
| Offices | Medium | Mixed; strongest for modern space | Depends on quality |
| Retail | Short to medium | Mixed; strongest for local convenience | Depends on location |
| Leisure and hospitality | Long | Tied to the operator’s trade | Can be hard |
| Specialist | Long | Narrow but committed | Can be hard |
| Mixed-use | Varies by part | Spread across two markets | Usually moderate |
For the full picture, read our guide to investing in commercial property.
A real-world example
Picture two investors, each with £300,000 to spend in Stoke-on-Trent.
The first buys a former bank on a busy high street. It’s Class E, so when the bank leaves, it can be let to a café, a gym or a dental practice without a planning application. Three types of tenant can view it, not one.
The second buys a former pub, planning to turn it into a shop. Pubs are sui generis, so that needs planning permission, and the council may be reluctant to lose a community asset. Months pass, and the building sits empty.
Similar prices, similar locations. The difference was a use class that took a minute to check.
How Rory Mack Associates Can Help
Whatever type of commercial property you’re buying, selling, letting or managing, our team knows the local market across Staffordshire, Cheshire and Shropshire. We offer:
- Commercial sales and lettings for every property type
- Commercial valuations from RICS Registered Valuers
- Property management and block management
- Business rates advice and appeals
- Development appraisals, capital gains tax valuations and building insurance assessments
Browse our current commercial properties to see what’s available now.
Summary
Commercial property is any property used for business rather than as a home. The main types are offices, retail, industrial, leisure and hospitality, healthcare and specialist property, and mixed-use buildings, plus development land. In England, use classes decide what each building can lawfully be used for. Since 2020, Class E has grouped most shops, offices, cafés, gyms and clinics together, giving owners far more flexibility, while sui generis uses like pubs and takeaways still need permission to change. Understanding both the type and the use class is the first step to buying, letting or investing well.
Looking for commercial property in Staffordshire, Cheshire or Shropshire? Get in touch with Rory Mack Associates on 01782 715725.
Frequently Asked Questions
Any land or building used for business rather than as a home. This includes offices, shops, warehouses, factories, hotels, pubs, restaurants, gyms, surgeries, care homes and development land. Mixed-use buildings, such as a shop with a flat above, are part commercial and part residential.
The five types most often quoted are office, retail, industrial, leisure and healthcare. Many people also count mixed-use buildings and specialist property, such as data centres or petrol stations, as separate categories.
Class E is the “commercial, business and service” use class introduced in England on 1 September 2020. It covers shops, cafés and restaurants, financial and professional services, gyms, medical services, nurseries, offices and light industry. You can switch between Class E uses without planning permission, unless a planning condition or the lease restricts it.
It’s Latin for “of its own kind”. Sui generis uses don’t fit any use class, so any change of use needs planning permission. Examples include pubs, hot food takeaways, cinemas, theatres, nightclubs, petrol stations, car showrooms and large houses in multiple occupation.
No. Commercial property pays business rates instead, based on the property’s rateable value set by the Valuation Office Agency. Mixed-use buildings usually pay business rates on the commercial part and council tax on the residential part. Read more in our guide to understanding business rates.
