Different types of real estate properties including residential, commercial, industrial, and land investments.
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Foundation terms you need to know first (60 terms)
Development costs are all the expenses incurred during the process of acquiring land, designing, constructing, and preparing a real estate project for use or sale, from start to finish.
An office building is a commercial property designed for businesses to conduct administrative, professional, or commercial operations, offering spaces for work and meetings.
A retail center is a commercial property designed for various retail businesses, ranging from small strip malls to large shopping centers, providing goods and services to consumers.
An industrial warehouse is a large commercial building used for storing, manufacturing, or distributing goods and materials, serving as a critical link in the supply chain for various industries.
Real assets are physical, tangible investments such as real estate, commodities, and infrastructure, valued for their intrinsic properties and often used as an inflation hedge and portfolio diversifier.
Complex strategies and professional concepts (12 terms)
Build-to-Rent (BTR) refers to residential communities, typically single-family homes or townhouses, that are purpose-built by developers specifically for rental rather than for sale, offering a professionally managed, amenity-rich living experience.
Brownfield redevelopment involves the acquisition, remediation, and revitalization of properties that are contaminated or perceived to be contaminated, often due to past industrial or commercial use. It transforms environmentally challenged sites into productive assets, contributing to urban renewal and sustainable development.
Land improvements are depreciable additions to land that enhance its utility and value but are separate from the land itself. These assets, such as fences, driveways, and utility systems, have a limited useful life and are subject to specific accounting and tax treatments.
Held for Sale Classification is an accounting designation for non-current assets or disposal groups whose carrying amount will be recovered primarily through a sale transaction rather than through continuing use, requiring specific criteria to be met under GAAP and IFRS.
An STR Pro Forma is a detailed financial projection and analysis tool used to evaluate the potential profitability and performance of a short-term rental property, incorporating dynamic pricing, seasonal occupancy, and higher variable operating expenses.
A 1-4 Family Rider is a mortgage contract addendum for properties with one to four residential units, granting the lender additional rights and protections, particularly concerning rental income in the event of borrower default.
An Accessory Dwelling Unit (ADU) is a secondary housing unit on a single-family residential lot, offering independent living facilities for one or more persons, often used by investors to generate additional rental income or increase property value.
Adaptive reuse is a real estate strategy that converts an existing building from its original purpose into a new, often more profitable use, preserving the structure while meeting modern market demands.
Adverse possession is a legal doctrine allowing a non-owner to acquire title to real property by occupying it openly, continuously, exclusively, and hostilely for a statutory period, without the true owner's permission.
Agricultural real estate refers to land and any associated structures primarily used for farming, ranching, timber production, or other agricultural purposes. It represents a unique investment opportunity focused on food production and natural resources.
An anchor tenant is a prominent, well-known commercial business that attracts significant customer traffic to a property, enhancing its value and stability for real estate investors.
An appurtenance is a right, privilege, or improvement that belongs to and passes with the land, automatically transferring to the new owner upon sale.
An appurtenant easement is a right that benefits one parcel of land (the dominant estate) and burdens another adjacent or nearby parcel (the servient estate), typically for access or utility purposes, and runs with the land.
An asset class is a group of investments that share similar characteristics and behave similarly in the market. In real estate, it categorizes properties like residential, commercial, or industrial, each with distinct risk and return profiles.
Augmented Reality (AR) is a technology that overlays digital information onto the real-world environment, enhancing a user's perception of physical surroundings through devices like smartphones or smart glasses. In real estate, it's used for virtual staging, interactive property tours, and visualizing future developments.
Average Daily Rate (ADR) is a key performance indicator (KPI) that measures the average rental income generated per occupied room or unit per day, primarily used in the hospitality and short-term rental industries.
Brownfield redevelopment involves the acquisition, remediation, and revitalization of properties that are contaminated or perceived to be contaminated, often due to past industrial or commercial use. It transforms environmentally challenged sites into productive assets, contributing to urban renewal and sustainable development.
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