There are many different types of properties, and understanding what makes them unique is essential to making sense of real estate. With that in mind, in this post, we talk about the different types of real estate and their characteristics. Keep reading to learn more.
What Is Real Estate?
Simply put, real estate is a property that consists of land and the buildings and natural resources found on it.
The terms “real estate” and “realty” derive from the Latin term “realis,” which means “actual.”
This refers to the fact that real estate properties are tangible (that is, they can be touched and have a physical presence) as opposed to other intangible assets, such as stocks or bonds, which exist only on paper.
While the idea of owning and selling land and properties can be traced back to the dawn of history, the profession of real estate broker is relatively recent, having its beginnings around 1900 in the United States.
How Many Types of Real Estate Are There?
There are at least two classifications of real estate. According to the first classification, there are four types of real estate:
- Residential real estate
- Commercial real estate
- Industrial real estate
- Land
A second classification adds a fifth category, known as special use, so we have:
- Residential real estate
- Commercial real estate
- Industrial real estate
- Land
- Special use.
1. Residential Real Estate
This type of real estate refers to properties designed as a living space for families or individuals. Some types of residential real estate include single-family homes, multifamily complexes, apartments, and townhouses, among others.
2. Commercial Real Estate
Commercial real estate is any property used for business purposes or to generate revenue. The basic types of commercial real estate include office space, industrial properties, multifamily rentals, and retail.
To learn more about commercial real estate check out our previous blogs, “Commercial Real Estate and Recession: What You Need To Know,” Cap Rate vs NOI: What Is the Difference?” and “Commercial Real Estate: the Difference Between Vacancy Rates and Availability Rates”
3. Industrial Real Estate
This category refers to real estate that is used to house industrial activities such as manufacturing, storage, and research. Some subcategories of industrial real estate include heavy manufacturing, light manufacturing, warehouses, and distribution facilities.
4. Land
In real estate, the term “land” refers to a portion of the surface of earth including the area above and below it. This includes vacant lots, agricultural lands, and timberland.
5. Special Use
The special use category includes properties that are suitable for just one limited use and cannot be converted to other uses, such as mines, oil wells, museums, golf courses, marinas, and amusement parks, among others.
Chantel Aguilar: Your Commercial and Investment Property Expert in Orange and LA Counties
Looking to purchase or sell commercial real estate in Orange County or LA County? Chantel Aguilar maximizes property exposure and works diligently to provide each client and every listing with the resources and time required to drive results.
Contact Chantel by telephone at 562-447-0665 or by email at [email protected] and get the knowledgeable assistance you are looking for.
