Nonresidential

Nonresidential refers to land and buildings that are not used as housing. In planning, real estate, and urban economics, it encompasses commercial, industrial, office, retail, institutional, hotel, and other uses intended to support business operations or public services rather than dwelling residents. The term is often contrasted with residential property, which is designed for long-term occupancy by individuals or households.

Zoning and location affect nonresidential property: districts specify allowed uses, density, and standards. Buildings vary widely, including office towers, shopping centers, warehouses, factories, hospitals, schools, and hotels. Common design considerations include circulation and accessibility, parking, loading facilities, ceiling height, mechanical systems, and energy efficiency. Nonresidential sites often require easy access by road, public transit, and utilities, and they may have higher environmental and safety compliance requirements.

Economic aspects: Income generated from leases typically determines property value. Rents are commonly quoted per square foot; leases may be net or gross. Occupancy or vacancy rates, credit quality of tenants, and lease length influence risk and capitalization rates. The nonresidential market tends to be more sensitive to macroeconomic conditions, interest rates, and business cycles than residential markets.

Management and regulation: Ownership and operation involve property management, tenant relations, and compliance with building codes, fire safety, accessibility standards, and environmental regulations. Sustainability programs and certifications related to energy efficiency and green building practices are increasingly important in evaluation and operation of nonresidential properties.

See also: commercial real estate, industrial real estate, office space. The term nonresidential does not denote a single building type but a broad category of properties used for purposes other than housing.