Real Estate

Real estate is tangible. It’s a piece of land and any building or structures on it, as well as the air above and the ground below. Everyone comes into direct contact with real estate. The places we live, work, go to school, vacation, shop, and exercise are all assets to be bought, sold, and rented. The real estate industry provides a variety of services that enable people to live and work in the environments that are best suited to their budgets and lifestyles. Real estate can be divided into two categories: residential and commercial.

The home is the centerpiece of residential real estate, whereas commercial real estate consists of the office, apartment, hotel, industrial, and retail sectors. Office buildings are the centerpieces of the office sector; apartment buildings are the focus of the apartment sector; traditional hotels and resorts make up the hotel sector; and stores and shopping centers are the centerpieces of the retail sector. Retail space consists of shopping malls, stand-alone tenants like Home Depot, and mom-and-pop stores such as the local dry cleaners. There are three general types of retail product: shopping centers, strip commercial stores, and freestanding stores.

Industrial real estate revolves around manufacturing facilities. The industrial category is divided into three subcategories: storage, distribution, and research and development. Industrial buildings are generally not as aesthetically pleasing as other buildings, yet they are critical to the production process of many items used in society on a daily basis. Industrial buildings have a wide variety of uses: manufacturing, warehousing and distribution, and research and development.

Real estate is usually discussed in terms of square feet. For example, the price to lease or buy real estate is usually based on an annualized square foot basis. Additionally, hotels, apartments, and condos may be discussed in per-unit terms.

The commercial real estate development and operation sector alone supports more than 8 million jobs, and many others work in real estate fields such as construction, mortgage banking, property management, real estate appraisals, brokerage, and leasing. In addition, many others are engaged in corporate property and in real estate lending in commercial banks, savings and loans, and insurance companies.

The primary role of real estate brokers and sales agents is to help clients buy, sell, and rent properties. Brokers and agents provide similar services but brokers are licensed to manage their own real estate companies and can work independently. Sales agents are required to work with real estate brokers. More than half of all real estate brokers and sales agents are self-employed. Many work from their home office. Others work in brokerage offices or leasing offices. Some may work part of the time in a branch office and telecommute on certain days. Regardless of the office setup, they often spend hours away from their desks, meeting with customers to show them properties and traveling to see properties that are for sale.

Real estate and property managers oversee various aspects of residential, commercial, or industrial properties. They make sure the property’s finances are managed appropriately, such as bills paid on time. They also ensure that the property is well maintained and has a good appearance. Real estate and property managers work out of an office but, like real estate brokers and sales agents, spend much of their time away from their desks. Their day often consists of showing apartments, visiting the building engineer, checking on maintenance and janitorial staff, investigating any building problems reported by tenants, and also dealing with owners and board members.

Land and building owners usually have appraisers and assessors review their property and estimate its value before selling, mortgaging, taxing, insuring, or developing it. Real estate appraisers and assessors work in offices but they too spend many hours away from their desks conducting site visits. Commercial appraisers typically spend more time at their desks than residential appraisers as their work entails analyzing data and writing reports on properties, which can take up to several weeks at a time.

Property owners and sellers also rely on research findings before deciding whether to buy or sell property. Organizations such as Situs RERC, which was formerly known as the Real Estate Research Corporation, and the Real Estate Research Institute provide real estate research and analysis, market studies, property valuations, investment criteria, and other services for the commercial real estate sector. Situs RERC serves clients such as lending institutions, large and small development firms, investors, owners, and government agencies at all levels. The Real Estate Research Institute (RERI) is a non-profit organization that gathers research on real estate investment performance and market fundamentals. Its mission is to "encourage and reward research on real estate as an investment and as an asset class that is both academically rigorous and of value to the institutional real estate profession." RERI solicits, evaluates, and raises funds for specific proposals for real estate research from academics, industry, and the investment community.

Large real estate companies may contract outside parties to handle marketing and promoting their services. For instance, some advertising agencies specialize in real estate clientele. Marketing and promotion includes television commercials, social media and mobile advertising, direct mailings such as flyers and brochures, as well as e-newsletters and e-mails. Real estate professionals who are self-employed or work for small companies may handle some aspects of marketing and promotion, including cold-calling people about real estate listings.

In addition to marketing their own services to attract clients, real estate agents and brokers create marketing plans for people who are selling their homes and buildings. These plans include setting up open houses so that potential buyers can see the property firsthand and have their questions answered in person. Web sites have also become important marketing tools in the real estate industry because real estate professionals can post photos of homes and buildings and also give virtual tours through online videos and 360-degree photography.

There are a variety of ways to train for real estate jobs and to enhance skills, from webinars to courses offered through professional associations to real estate degree programs at colleges and universities. The National Association of Realtors, for instance, offers numerous ways to advance a career in the real estate business. Some of its options include an online university for continuing education courses for certifications and designations; code of ethics training, which is required every three years; a Master of Real Estate program; and self-study programs for association executives, which covers such topics as association management and professional standards.