Physical Asset

An item of economic, commercial or exchange value that has a tangible or material existence. Physical assets are the opposite of intangible assets, which have value but are nonphysical such as leases, computer programs or agreements. Physical assets can be inventoried or stored, although they may go through depletion, depreciation, deterioration or shrinkage in the storage process.

Investopedia Commentary

Usually, the term physical asset refers to things that can be removed from a business in the event of default. Physical assets found in a restaurant, for example, are chairs, tables, refrigerators, a cooking range and so on.

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See also: Asset, Default, Depreciation, Intangible Asset, Inventory, Tangible Asset