Types of Real Estate

There are several types of real estate, each with a unique purpose and utility. The main categories are:

1️⃣ Land

Land is the baseline for all types of real property. Land typically refers to undeveloped property and vacant(= not occupied) land. Developers acquire land and combine it with other properties (called assembly) and rezone it so they can increase the den
sity(= compactness) and increase the value of the property.

2️⃣ Residential

Residential real estate consists of housing for individuals, families, or groups of people. This is the most common type of estate and is the asset class that most people are familiar with. Within residential, there are single-family homes, apartments, condominiums, townhouses, and other types of living arrangements.

3️⃣ Commercial

Commercial property refers to land and buildings that are used by businesses to carry out their operations. Examples include shopping malls, individual stores, office buildings, parking lots, medical centers, and hotels.

4️⃣ Industrial

Industrial real estate refers to land and buildings that are used by industrial businesses for activities such as factories, mechanical productions, research and development, construction, transportation, logistics, and warehousing(= storing goods).

rezone = reclassify (a property, neighborhood, etc.) as belonging to a different zone or being subject to different zoning restrictions