Different types of real estate properties including residential, commercial, industrial, and land investments.
Master property types & classifications with our progressive approach
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 Brownfield site is a property that has been previously developed, often for industrial or commercial use, and may have real or perceived environmental contamination that complicates its reuse or redevelopment.
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.
A Certificate of Occupancy (C of O) is a legal document issued by a local government agency certifying that a building or structure is safe, compliant with all applicable codes, and fit for legal occupancy or use.
Class A buildings represent the highest quality and most desirable properties in the commercial real estate market, characterized by prime locations, modern amenities, superior construction, and professional management.
A Class B building is a commercial or multifamily property that is typically older but well-maintained, offering functional amenities and a balance between quality and affordability, often targeted for value-add investment strategies.
Class C buildings are older, typically 20+ years, in less desirable locations, often requiring significant renovation, but offer high cash flow potential and value-add opportunities for investors.
A clear title signifies undisputed legal ownership of a property, free from any liens, claims, or other legal encumbrances, ensuring the seller has the full right to transfer ownership to a buyer.
A commercial loan is a debt financing product used by investors to acquire, develop, or refinance income-generating real estate properties, distinct from residential mortgages due to its focus on property performance and business use.
Commercial Real Estate (CRE) refers to properties used exclusively for business activities or to generate income, encompassing office, retail, industrial, and large multifamily assets.
Commercial Real Estate (CRE) Market Analysis is the systematic process of evaluating market conditions, trends, and factors to assess the viability and potential performance of a commercial property investment.
Comparable Sales (Comps) are recently sold properties similar in characteristics to a subject property, used to estimate its fair market value.
A condominium is a privately owned individual unit within a larger building or community, where the owner also shares ownership of common areas and facilities managed by a Homeowners Association (HOA).
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