The 6 Categories of Real Estate

We all know that real estate is land and buildings, but did you know there are different types of real estate? In fact, there are six main categories of real estate. Here’s a quick overview of the six categories of real estate:

1. Residential Real Estate
   Residential real estate consists of both new construction and resale homes. The majority of Americans live in residential real estate, which is why “home” is often used as a synonym for “residence.” Residential real estate includes single-family homes, townhouses, condominiums, and Cooperative apartments.
2. Commercial Real Estate
   Commercial real estate includes retail stores, office buildings, warehouses, and industrial parks. These properties are used for business purposes and generate income through things like rent, sales, and leases. Commercial real estate is typically divided into five subtypes: office, industrial, retail, multi-family, and hospitality.
3. Industrial Real Estate
   Industrial real estate is defined as any property that is used for the production, distribution, or storage of goods and services. This type of property can include factories, assembly plants, distribution centers, self-storage facilities, and warehouses.
4. Retail Real Estate
   Retail real estate is any property that is leased for the sale of goods or services to customers. This type of property usually takes the form of shopping centers or malls but can also include stand-alone stores. Department stores, grocery stores, convenience stores, and strip malls are all examples of retail real estate.
5. Hospitality Real Estate
   Hospitality real estate is any property that provides lodging, such as hotels or motels. This type of property also includes restaurants, resorts, spas, golf courses, nightclubs, and conference centers.
6. Mixed-Use Real Estate
   Mixed-use real estate is any property that includes a combination of two or more different types of uses. For example, a building with ground-floor retail space and office space on the upper floors would be considered mixed-use real estate. Other examples include properties with a mix of residential and commercial uses or a mix of hospitality and entertainment uses.

Whether you’re looking to buy a new home or lease commercial space for your business, it’s important to familiarize yourself with the six main categories of real estate—residential, commercial, industrial, retail, hospitality, and mixed-use. With this knowledge in hand, you’ll have a better understanding of the different types of properties available to you and what each one has to offer.