1. refers to property other than housing, such as office buildings, shopping centers, industrial parks, churches, or hotels.
Example: Real estate brokerage firms and mortgage bankers may divide their operations between residential and nonresidential activities; often the nonresidential portion is called "commercial and investment."
2. in taxation, when less than 80% of rent is from dwelling units, the owners cannot claim depreciation rates and lives used for residential property.
Example: A downtown apartment building derives 25% of its revenues from a first-floor lunchroom. Consequently, the owners have to use the longer depreciable lives appropriate for nonresidential properties.
