South Dakota Property Management Practice Test

Commercial real estate encompasses properties that are used for business purposes and generate income. Office buildings fall directly into this category as they are designed to accommodate businesses and professional services, making them examples of commercial properties. These buildings can host a variety of enterprises, including law firms, tech companies, and consulting agencies, and they are typically leased out to tenants seeking space to conduct their business activities.

In contrast, residential apartments and single-family homes are categorized as residential real estate since they are primarily intended for living purposes rather than business use. Farmland is another distinct category of real estate, primarily defined by its agricultural purpose, which differs from the commercial aspect of generating income through business activities. Thus, office buildings represent the essence of commercial real estate as they directly facilitate commerce and business operations.