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.
Real estate refers to land and any permanent physical structures or improvements attached to it, encompassing everything from residential homes to commercial buildings and undeveloped land. It is a tangible asset that can be bought, sold, or leased for various purposes, including living, business operations, and investment.
A real estate asset class refers to a category of real estate properties grouped by their characteristics, use, and investment profile, such as residential, commercial, or industrial properties.
Real estate contracts are legally binding agreements between parties involved in the buying, selling, leasing, or transferring of real property, outlining the terms and conditions of the transaction.
A real estate fund is a pooled investment vehicle that allows multiple investors to combine their capital to invest in a portfolio of real estate properties or real estate-related assets, managed by professional fund managers.
Real estate investing is the practice of purchasing, owning, managing, and/or selling properties for profit, leveraging assets to generate income, capital appreciation, and tax benefits.
Real Estate Law is the body of legal principles governing the ownership, use, and transfer of land and attached structures, crucial for investors to navigate property rights, transactions, zoning, and landlord-tenant relations.
The real estate market encompasses all transactions involving the buying, selling, renting, and leasing of land and properties, influenced by supply, demand, and economic factors.
Real Estate Owned (REO) refers to properties that have been repossessed by a lender, typically a bank, after an unsuccessful foreclosure auction. These properties are then managed and sold by the lender to recover the outstanding loan balance.
A real estate portfolio is a collection of investment properties owned by an individual or entity, designed to generate income, appreciate in value, and diversify investment risk.
The Real Estate Value Chain describes the sequential stages involved in creating, enhancing, and realizing value from real estate assets, spanning from initial concept to final disposition.
A recession-resistant asset is an investment that tends to maintain or increase its value and generate stable income even during economic downturns, often due to providing essential goods or services.
Redevelopment is the process of transforming an existing, often underutilized or distressed, property or land into a more productive and valuable asset, typically involving significant renovation, demolition, or a change in use.
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