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 duplex is a residential building containing two separate living units, each with its own entrance, kitchen, and facilities, often used by investors for rental income or "house hacking."
A legal right allowing one party to use or access another's property for a specific, limited purpose, without owning the land. It creates a non-possessory interest that can affect property value and use.
An easement in gross is a legal right to use another person's land for a specific purpose, where the right is attached to a specific individual or entity, rather than to an adjoining parcel of land. It does not transfer with the land's ownership.
Economic obsolescence refers to a loss in property value due to external factors unrelated to the property itself, such as changes in market conditions, economic downturns, or shifts in local demographics. It is typically considered incurable by the property owner.
Eminent domain is the government's inherent power to take private property for public use, even against the owner's will, provided that fair and just compensation is paid.
Encroachment is an unauthorized intrusion of a structure or improvement onto an adjacent property, crossing the established boundary line.
A claim or liability against a real estate property that affects its title and may diminish its value or restrict its use, but does not prevent its transfer.
Entitlements in real estate refer to the legal rights and approvals granted by governmental authorities for a property to be developed or used for a specific purpose, often involving zoning changes, permits, and environmental clearances.
An Environmental Impact Study (EIS) is a detailed public document mandated by environmental laws (e.g., NEPA, CEQA) that rigorously assesses the potential significant environmental effects of a proposed major project, identifies alternatives, and proposes mitigation measures to inform decision-makers and the public.
Environmental insurance provides coverage for liabilities and costs associated with pollution incidents, contamination, and environmental damage, crucial for real estate investors managing properties with potential environmental risks.
Environmental liability refers to the legal responsibility of property owners or operators for the cleanup of hazardous substances and other environmental damage on or emanating from their real estate assets, often involving significant financial and legal risks.
Environmental remediation is the process of removing pollutants or contaminants from soil, groundwater, sediment, or surface water to protect human health and the environment, often crucial in real estate transactions and redevelopment.
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