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.
The Hub and Spoke Model is an advanced real estate investment strategy that centralizes high-value operations or assets (the 'hub') while decentralizing complementary, often smaller, assets (the 'spokes') to optimize efficiency, diversify risk, and enhance market reach across a portfolio.
A flexible work arrangement where employees split their time between working remotely (e.g., from home) and working in a physical office location. This model significantly impacts commercial real estate needs and residential property demand.
An impairment loss occurs when an asset's carrying value on the balance sheet exceeds its recoverable amount, indicating a decline in its future economic benefits or fair value.
The Income Capitalization Approach is a real estate valuation method that estimates a property's value by converting its expected future income (Net Operating Income) into a present value using a capitalization rate.
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.
Infrastructure refers to the fundamental facilities and systems, such as roads, utilities, and public services, that support a community and are crucial for real estate development and property value.
An institutional investor is a large organization, such as a pension fund, mutual fund, insurance company, or endowment, that pools money to invest in various assets, including real estate.
Institutional-grade assets are high-quality, large-scale real estate properties that attract significant investment from institutional investors like pension funds, endowments, and sovereign wealth funds due to their stable income, low risk, and strong market positions.
Intangible assets are non-physical assets that hold significant value for a real estate investment or business, contributing to its competitive advantage and long-term profitability, though they lack physical form.
Joint Tenancy with Right of Survivorship (JTWROS) is a form of property co-ownership where two or more individuals hold equal, undivided interests, and upon the death of one owner, their share automatically transfers to the surviving owner(s) without probate.
A Joint Venture (Development) is a strategic partnership between two or more parties, typically for a specific real estate development project, pooling resources, expertise, and capital to share risks and rewards.
Just compensation refers to the fair market value paid to a property owner when their private property is taken for public use by the government through eminent domain, as mandated by the Fifth Amendment.
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