New York State Real Estate Salesperson Licensing Exam

Which of the following properties is most likely to be classified as commercial real estate?

1. Single-family home

2. Warehouse

3. Farm dwelling

4. Mobile home

The correct answer is: Warehouse

The classification of commercial real estate generally includes properties that are used for business purposes. A warehouse serves as an example of this category, as it is primarily utilized for activities such as storage, distribution, and logistics. These functions are integral to commerce and trade, aligning with the definition of commercial real estate. In contrast, a single-family home is typically classified as residential real estate, designed for living purposes. A farm dwelling, while involving a structure, is primarily associated with agricultural use and is also considered residential. A mobile home, similar to a single-family home, is generally classified as residential real estate, designed for personal living. Each of these options serves a primary purpose that does not align with the commercial nature associated with the warehouse. Therefore, the warehouse stands out as the most likely candidate for a commercial real estate classification.