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.
Foundation issues refer to structural problems affecting a property's base, often caused by soil movement, water damage, or poor construction, leading to significant repair costs and impacting property value.
A fourplex is a single residential building containing four separate living units, offering investors diversified rental income and accessible financing options, often used for 'house hacking' strategies.
Fractional ownership allows multiple unrelated parties to share in the ownership of a high-value asset, typically real estate, dividing costs, usage, and appreciation proportionally.
Functional obsolescence refers to the loss in property value due to an outdated design, inadequate utility, or undesirable features that no longer meet current market standards or buyer preferences. It can be curable or incurable, significantly impacting a property's marketability and investment potential.
Global Food Demand refers to the total worldwide requirement for food, driven by population growth, rising incomes, and dietary shifts. For real estate investors, it signals opportunities in agricultural land, food processing facilities, and logistics infrastructure.
A legal document used to transfer real property ownership, implicitly guaranteeing the grantor has not previously conveyed the property and that it is free from undisclosed encumbrances created by the grantor.
A grantor is the legal owner of a property who transfers ownership to another party, known as the grantee, typically through a deed in a real estate transaction.
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.
Highest and Best Use refers to the reasonably probable and legal use of a property that is physically possible, financially feasible, and results in the highest value, guiding optimal property utilization and investment decisions.
A legal provision that allows homeowners to protect a portion of their primary residence's value from property taxes and, in many cases, from creditors, thereby reducing their annual tax burden and enhancing financial security.
Hospitality real estate refers to properties designed for short-term lodging and guest services, including hotels, motels, resorts, and short-term rental properties. These investments are highly sensitive to economic cycles and require specialized management.
House hacking is a real estate investment strategy where you live in one unit of a multi-unit property or a portion of a single-family home, and rent out the remaining units or rooms to cover your housing expenses.
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