The property market has become a major area of finance. Purchasing property requires a significant investment, and each parcel of land has unique characteristics, so the property industry has evolved into several distinct fields. Specialists are often called on to valuate property and facilitate transactions. Some kinds of property / real estate businesses include:
- Appraisal: Professional valuation services
- Brokerages: Assisting buyers and sellers in transactions
- Development: Improving land for use by adding or replacing buildings
- Property management: Managing a property for its owner.
- Property Marketing: Managing the sales side of the property business
- Property Investing: Managing the investment of property
- Corporate Property: Managing the property held by a corporation to support its core business – unlike managing the real estate held by an investor to generate income
Within each field, a business may specialize in a particular type of property, such as residential, commercial, or industrial property.
A Real Estate Investment Trust or REIT is a tax designation for a corporation investing in property that reduces or eliminates corporate income taxes. The REIT structure was designed to provide a similar structure for investment in property as investment trusts provide for investment in stocks.
Like other corporations, REITs can be publicly or privately held. Public REITs may be listed on public stock exchanges like shares of common stock in other firms.
