Level 3 Chapter 1: Use-Based Properties Flashcards
5 Types of Property
- Residential
- Commercial
- Industrial
- Agricultural
- Special purpose
Residential Real Estate
Real estate that is used for housing
Types of Residential Property
- Single-family residences
- Vacation properties
- Multi-family residences
- Townhouses
- Condominiums
- Apartment buildings
- Manufactured homes
Commercial Real Estate
Commercial real estate generally refers to properties that: Are used for business purposes, Are used to generate revenue, Are typically considered investment properties (more on these later)
Types of Commercial Property
- Office buildings
- Retail complexes
- Gas stations
- Entertainment venues
- Restaurants
Industrial Real Estate
Industrial real estate is a broad category that includes properties: Used for the manufacture of products or materials, Used as distribution facilities, Used as warehouses. The buildings are typically constructed or remodeled with highly specialized features for the particular needs of the tenant. Industrial leases tend to be much longer than those drawn up for commercial or residential use.
Types of Industrial Property
- Manufacturing plants
- Distribution facilities
- Warehouses
- Storage facilities
- Research facilities
- Data centers
Agricultural Real Estate
Agricultural real estate includes: Properties used for the commercial cultivation of food, feed, and fiber
Commercial ventures used to provide us with fruits, vegetables, livestock, plants, wood products, and other resources that are an essential part of our daily lives. Agricultural properties can vary greatly in size and purpose. Some properties include a vast number of improvements while others are little more than raw land with a border fence. Property tax purposes, the on-site residence of the owner of an agricultural enterprise may not be considered agricultural real estate, but rather residential real estate. That “on-site residence” would include the owner’s home and all related residential structures. If the agricultural real estate contains housing facilities for employees of the agricultural business, however, that WOULD be included in the property tax assessment.
Types of Agricultural Property
- Family and commercial farms
- Ranches
- Orchards
- Nurseries and greenhouses
- Pastures
- Feed lots
Special Purpose Real Estate
Designed for a specific use and have limited adaptability for other purposes. Often publicly owned, Require substantial reinvestment to convert to another purpose or use, Do not come up for sale as frequently as other property types
Types of Special Purpose Property
- Churches
- Schools
- Recreational facilities
- Cemeteries
- Government-held land
