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.
Land appreciation refers to the increase in the market value of undeveloped or developed land over time, driven by factors such as economic growth, population shifts, infrastructure development, and changes in zoning regulations. It represents a key component of long-term real estate investment returns.
Land banking is the strategic practice of acquiring large tracts of undeveloped land and holding them for an extended period, anticipating future appreciation in value due to market growth or development potential.
Land development is the process of transforming raw, undeveloped land into usable and valuable property by adding infrastructure and preparing it for construction or sale.
Land due diligence is the comprehensive process of investigating a parcel of land to identify potential risks, liabilities, and opportunities before purchase or development, covering legal, environmental, physical, and financial aspects.
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.
The Land Registry is a government department responsible for recording the ownership of land and property, along with any associated rights, restrictions, or burdens. It provides a definitive, state-guaranteed record of title, simplifying transactions and preventing fraud.
A land swap is a strategic real estate transaction where two or more parties exchange parcels of land or properties of similar value, often to achieve specific objectives like consolidating parcels, optimizing land use, or deferring capital gains taxes.
Land value refers to the inherent worth of a piece of land, separate from any buildings or improvements on it, driven by its location, potential use, and market demand.
A property ownership arrangement where an investor holds rights to use and occupy land or a building for a specified period, as defined by a lease agreement, without owning the underlying fee simple title.
A legal description is a precise, legally sufficient identification of a parcel of land, defining its exact boundaries and location for official records and transactions.
Location analysis is the systematic evaluation of geographic areas to assess their suitability and potential profitability for real estate investment, considering various market, economic, and demographic factors.
A long-term rental involves leasing a property to a tenant for an extended period, typically 12 months or more, providing investors with consistent monthly income and potential property appreciation.
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