Real Estate has been called many different names throughout history including property, freehold, fief, possession, barrow, rent and public trust. In the United States the term Real Estate is used mainly in reference to Real Property. Real estate is land consisting of all the structures on it and the actual property itself; immovable property; a right vested in the underlying object of real estate, buildings, or land in general. When speaking of land, the term also includes undeveloped land.
As an investor in real estate the marketability of a piece of property can be known as its “Residential Potential”. This definition can be a little tricky, but it basically means that this is where the buyer will get the most bang for their buck. The secondary market value of the same piece of property is its “Commerce Potential”. This is the market value that is realized when selling real estate; after all, if you’re trying to sell something that you don’t even own, isn’t that what selling real estate is about?
So, what are the main categories of Real Estate? In the U.S., they are divided into five main categories: Condominiums, Residences, Residential Real Estate, Commercial Real Estate and Unbranded Land. Within each main category there can be several sub-categories, such as Parking Facilities, Office Buildings, Mobile Home Parks, Manufactured Homes, Industrial Real Estate, Office Leasing, Structured Development and Stand-Alone Buildings. Not every piece of real property falls within one of these categories, but the majority of them do.
The main reason why people purchase Real Estate, especially in the form of residential Real Estate, is to live in a home that is within a community. It provides them with access to shopping, schools, parks, recreational centers and other services. The advantages of purchasing residential real estate can include lower prices, a variety of housing options and convenient location. Many cities have a vibrant, real estate scene and offer a variety of residential properties from town homes to condominiums and apartments. There are also some communities that are designed specifically for retirement or business use.
The next most common type of Real Estate is commercial real estate, which refers to development projects that are geared towards making an asset more marketable. This can include apartment buildings, shopping centers, office buildings, industrial real estate and specialty building types. Some examples of categories of commercial real estate include office buildings, warehouses, retail stores and strip malls. Corporate finance professionals make a great deal of their income through the sale and lease of this type of property.
The third most common type of Real Estate is industrial real estate, which refers to development projects that focus on the creation of specific buildings such as factories and warehouses. This is the most lucrative segment of the commercial real estate market and is one area that require a lot of study prior to purchase. The development costs for making these buildings can be staggering and can cause a project to go over budget and become unprofitable for the buyer. A large number of people who invest in commercial property are usually involved with the construction or renovation of buildings and are in need of experienced property management teams to oversee the entire process.