A Guide To Commercial vs Residential Construction

In the world of construction, it's important to know the distinction between commercial vs residential projects. Each type comes with its own set of rules, challenges, and opportunities, shaping the way buildings are designed, financed, and built. For example, commercial construction requires a larger scale of planning, coordination, and resources to make the building functional and profitable, while residential construction prioritizes comfort, aesthetics, and livability.

This blog explores the difference between commercial and residential construction, examining what sets these two sectors apart and how to navigate the complexities of each.

The best way to highlight the process differences between residential and commercial construction is first to take some time to define each.

So, what is a residential property? A typical residential property is a house or building designed for short-term or long-term habitation by an individual, multiple persons, or a family.

While some people buy residential for investment or resale purposes, most buy them to live in, raise a family, or perpetuate a familial legacy. Residential properties are meant to be lived in, so the values for homeowners and renters are more emotion-based than investment-based, like in a commercial property. 

A typical commercial property is a building, land, or property expressly used for profit-making, business, and investment purposes. It typically takes about 11 months to build an average-sized apartment building with 20+ units in a city.

It’s worth noting that some residential properties also double as commercial property. For example, an apartment building or condominium is legally classified as a commercial property instead of a residential one, even though the property functions as a habitation (more on that later).

Now that we have this baseline understanding of the difference between a residential and commercial property, let's dive deeper into those differences.

One of the most defining differences between residential and commercial construction is the building materials used in each process. The building materials for a single-family home will be a lot cheaper than the materials required to build an office building.

• Residential properties: The most plentiful building materials in a single-family home are wood, drywall, and cement for the foundation. Depending on the home's size, construction can be finished within three to seven months.

• Commercial properties: The construction of a commercial property or building may require large requisition orders of glass, metal rebar, cement, steel, scaffolding, wiring, and so on. It also requires specialists who know how to use such materials. When it comes to constructing high-rise commercial buildings, building materials have to be ordered in stages to accommodate construction in phases. It can take a year to complete the construction of a commercial building in optimum circumstances.

The permit process to build a residential vs a commercial building is shorter and relatively straightforward.

• Residential properties: The potential homeowner or property owner can apply for a building permit to build a house themselves. It can take seven days or two weeks to get a permit for a residential property.

• Commercial properties: The owner or investors behind commercial property construction need to apply for a building permit with a local city council or relevant authority. It could take a month or longer to obtain a permit to construct a commercial property depending on the project’s scale.

There are a lot of differences between the construction of commercial vs residential properties. However, what they have in common is that never can begin without a reference to a professionally commissioned site plan.

Luckily, if you need help with a construction project, My Site Plan are here to help. We can create a site plan for both residential and commercial properties in as little as 24 hours. Find out how we can help today.