Which of the following is a type of commercial model?

• A. Office
• B. Residential
• C. Hotel
• D. Farm

Answer: (A)

In commercial real estate financial modeling, the focus is on income-producing property types. Office buildings are a standard commercial model because they generate rents from tenants and have well-established cash-flow drivers—occupancy, rent per square foot, operating expenses, and lease structures. These elements form the backbone of a commercial pro forma, guiding how net operating income and property value are projected.

Residential properties are typically analyzed with different frameworks that emphasize sale dynamics and personal occupancy patterns, not the same commercial cash-flow mechanics. Farms represent agricultural assets with unique revenue streams and valuation methods distinct from typical commercial properties. Hotels belong to the hospitality sector and require modeling around occupancy, average daily rate, and revenue per available room, which is a separate modeling framework from office-based commercial properties. Because of these standard distinctions, office aligns best with a type of commercial model.