The Business of Real Estate
Updated: Sep 11
What is Real Estate?
Real estate is real property that consists of land and improvements, which include buildings, fixtures, roads, structures, and utility systems. Property rights give a title of ownership to the land, improvements, and natural resources such as minerals, plants, animals, water, etc.
Real estate is a form of real property. It differs from personal property, which is not permanently attached to the land, such as vehicles, boats, jewelry, furniture, and farm equipment.
The five main categories of real estate
There are five main categories of real estate which include residential, commercial, industrial, raw land, and special use.
Residential Real Estate
Residential real estate: Any property used for residential purposes. Examples include single-family homes, condos, cooperatives, duplexes, townhouses, and multifamily residences.
Commercial Real Estate
Commercial real estate: Any property used exclusively for business purposes, such as apartment complexes, gas stations, grocery stores, hospitals, hotels, offices, parking facilities, restaurants, shopping centers, stores, and theaters.
Land: Includes undeveloped property, vacant land, and agricultural lands such as farms, orchards, ranches, and timberland.
Industrial Real Estate
Industrial real estate: Any property used for manufacturing, production, distribution, storage, and research and development.
Special Purpose Real Estate
Special purpose: Property used by the public, such as cemeteries, government buildings, libraries, parks, places of worship, and schools.