SIC Code 6552: Land Subdividers and Developers
Gain insight into the classification for subdividing and servicing land for sale, a distinct category from general construction or cemetery development.
The Standard Industrial Classification (SIC) system was established in the United States in 1937 as a method for government agencies to uniformly classify industries. This system uses a four-digit code to categorize businesses based on their primary activities. While it has been largely succeeded by a newer system, various government bodies and businesses still utilize SIC codes for classification and reporting.
Defining SIC Code 6552
The official title for SIC Code 6552 is “Land Subdividers and Developers, Except Cemeteries.” This classification is designated for establishments whose primary business involves subdividing real property into lots and preparing that land for resale. The scope of this code covers land preparation, which includes activities like installing roads, water lines, and sewer systems to make raw land suitable for sale.
It applies to the entity improving and selling the land itself, not the company that subsequently constructs buildings on those lots. For instance, operative builders who construct buildings for sale are classified under a different code, Industry 1531. Furthermore, the definition explicitly excludes establishments that are primarily engaged in developing cemetery lots, which are classified under SIC Code 6553.
Business Activities Included
Several specific business activities fall under the umbrella of SIC Code 6552. The most direct examples are businesses describing themselves as “land development” or “real property subdividing and developing” companies. These entities acquire tracts of land with the express purpose of dividing them into smaller parcels for sale to builders or individuals.
Other included operations are “lot subdividing” and “real estate developing.” This can also encompass more specialized development projects. For example, entities that develop land for mobile home parks or hotel and motel sites are included within this classification, provided their main activity is the subdivision and servicing of the land itself rather than the vertical construction and operation of the final properties.
Corresponding NAICS Code
As the U.S. economy evolved, the SIC system was officially replaced for most statistical purposes by the North American Industry Classification System (NAICS) in 1997. For businesses previously classified under SIC Code 6552, the direct successor is NAICS code 237210, titled “Land Subdivision.”
The scope of NAICS 237210 is very similar to its SIC predecessor. It covers establishments primarily engaged in servicing land and dividing it into parcels for sale. This includes grading land and installing infrastructure such as roads, utilities, and storm drains. For any business involved in land development, understanding this corresponding NAICS code is important for federal statistical tracking, government contracts, and proper industry classification on various financial and regulatory documents.