NAICS 53 - Real Estate and Rental and Leasing

The Sector as a Whole

The Real Estate and Rental and Leasing sector comprises establishments primarily engaged in renting, leasing, or otherwise allowing the use of tangible or intangible assets, and establishments providing related services. The major portion of this sector comprises establishments that rent, lease, or otherwise allow the use of their own assets by others. The assets may be tangible, as is the case of real estate and equipment, or intangible, as is the case with patents and trademarks.

This sector also includes establishments primarily engaged in managing real estate for others, selling, renting, and/or buying real estate for others, and appraising real estate. These activities are closely related to this sector's main activity, and from a production basis they are included here. In addition, a substantial proportion of property management is self-performed by lessors.

The main components of this sector are the real estate lessors industries (including equity real estate investment trusts (REITs)); equipment lessors industries (including motor vehicles, computers, and consumer goods); and lessors of nonfinancial intangible assets (except copyrighted works).Excluded from this sector are establishments primarily engaged in renting or leasing equipment with operators. Establishments renting or leasing equipment with operators are classified in various subsectors of NAICS depending on the nature of the services provided (e.g., transportation, construction, agriculture). These activities are excluded from this sector because the client is paying for the expertise and knowledge of the equipment operator, in addition to the rental of the equipment. In many cases, such as the rental of heavy construction equipment, the operator is essential to operate the equipment. Also excluded from this sector are mortgage REITs and establishments primarily engaged in managing the financial portfolio assets of REITs on a fee or commission basis. These establishments are classified in Sector 52, Finance and Insurance.

• Includes leasing of tangible assets such as real estate and equipment.
• Covers leasing of intangible assets excluding copyrighted works.
• Encompasses property management, real estate brokerage, and appraisal services.
• Excludes equipment rentals with operators and mortgage REIT financial management.
• Key players include real estate lessors, equipment lessors, and intangible asset lessors.
• Focuses on leasing assets owned by the lessor rather than providing operational services.

• Leasing commercial, residential, and industrial real estate properties.
• Renting and leasing equipment including vehicles, computers, and consumer goods.
• Managing real estate properties for third-party owners.
• Buying, selling, and renting real estate on behalf of clients.
• Appraising real estate for valuation and transaction purposes.
• Leasing nonfinancial intangible assets such as patents and trademarks.
• Performing self-managed property maintenance and operations for leased properties.
• Negotiating and administering lease agreements and contracts.

• Real estate lessors and brokers
• Equipment rental and leasing companies
• Property management firms
• Real estate appraisal and valuation services
• Equity real estate investment trusts (REITs)
• Intangible asset licensing firms