How Many Types of Real Estate are There?

Jamell Tousant

September 8, 2022

How many types of real estate are there?

Many real estate types exist, including residential, commercial, and industrial properties. There are pros and cons to each. For example, commercial properties command higher rents than residential ones and require longer leases. This means higher income for property owners and property management costs. If you are interested in buying commercial property, here are some things to consider.

Mixed-use properties

Mixed-use properties are a type of property used for commercial and residential purposes. The mixed-use structure allows for a more diversified value proposition, resulting in higher returns for property owners. This property is an excellent choice for urban centers and has many advantages. In addition to adding value to a neighborhood, mixed-use properties are tax-efficient. Learn more about the tax benefits of mixed-use properties with Incentax.

Mixed-use properties also have a favorable impact on the environment. Not only do they create more diverse neighborhoods, but they also decrease traffic and harmful carbon dioxide emissions. Additionally, mixed-use properties benefit the community by encouraging foot traffic and neighborhood business, which boosts the local economy.

Industrial real estate

There are several different types of industrial real estate. There are Class A buildings, Class B buildings, and mixed-use properties. Class A buildings represent the top of the line in terms of quality. They typically feature high ceilings and top-of-the-line mechanical systems. In addition, they usually attract high-income tenants and have low vacancy rates, giving investors peace of mind.

The demand for industrial real estate continues to increase. The growth of 3-D printing, robotics, and other technologies has driven a sharp decrease in labor costs, which has increased the demand for industrial space. Additionally, more companies are returning their operations to the United States to take advantage of increased economic stability and employment opportunities.

Residential real estate

Residential real estate consists of single-family residences, apartment buildings, condominiums, townhouses, and cooperative housing. These types of properties are often considered less expensive than commercial properties. Many residential real estate projects require a low down payment of about three to 10 percent of the building’s price.

Real estate includes land, buildings, and air rights above and below the ground. The word “real estate” means “physical property” and comes from the Latin word “res” (rex). In the U.S., voting rights were restricted to owners of real estate. The most common types of residential real estate are single-family dwellings, apartments, condos, duplexes, and vacation homes.

Commercial real estate includes property for business purposes, such as warehouses, factories, and offices. It also has vacant land. Generally, industrial property is used for manufacturing products or services.

Special use real estate

Special-use real estate is a commercial property with limited use and is usually devoted to a particular business. This type of property may be specialized or custom-built. It also requires a technical team to manage and invest in it. In addition, this type of property can sometimes be used for public purposes.

Value is difficult to determine for special-use properties, which is why buyers should do their research before making an offer. For example, when purchasing vacant land, it’s essential to consider the property’s future use. It could be suitable for office buildings, shopping malls, industrial complexes, or subdivisions. In these situations, a real estate agent specializing in this type of property is your best bet.

Commercial real estate

When we think of commercial properties, we think of buildings and land used for business and work. This can include industrial properties, multifamily rental facilities, and retail space. Each of these types has different uses and must comply with zoning laws. For example, industrial properties need to be in a designated area and can’t be built in the middle of a residential neighborhood. Most commercial properties are owned by investors and are leased to tenants for a specific time. The lease period is usually five to 10 years in a single-family building but can vary for multifamily properties.

In the retail sector, many different types of buildings have different uses. Some of these types include single-tenant facilities, ideal for a single business, while others are more suited for many tenants. These properties are characterized by certain square footage and a specific tenant mix.