Market trends, demographic analysis, economic indicators, and research methods for real estate markets.
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Foundation terms you need to know first (51 terms)
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.
Price Per Square Foot (PPSF) is a real estate metric calculated by dividing a property's total price by its finished square footage, used to compare property values on a standardized basis.
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.
Market value in real estate is the most probable price a property should bring in a competitive and open market under all conditions requisite to a fair sale, with the buyer and seller acting prudently, knowledgeably, and typically uninfluenced by undue stimulus.
Walk Score is a numerical rating from 0 to 100 that measures the walkability of any address, indicating how easy it is to live car-free based on proximity to amenities.
Complex strategies and professional concepts (27 terms)
A market phenomenon where a declining real estate market appears to reverse and begin an upward trend, only to quickly resume its downward trajectory, trapping investors who bought into the false recovery. It often leads to significant losses for those who misinterpret the temporary rebound as a true market bottom.
The Case-Shiller Home Price Index is a leading measure of U.S. residential real estate values, tracking changes in home prices across 20 major metropolitan areas and nationally using a repeat-sales methodology.
Real estate financial modeling is the process of creating a quantitative representation of a real estate investment or development project to forecast its financial performance, assess risk, and support strategic decision-making.
Demand elasticity measures the responsiveness of the quantity demanded of a good or service to a change in its price or other influencing factors, crucial for real estate market analysis and investment strategy.
A value trap in real estate refers to an investment property that appears to be undervalued or a bargain but possesses underlying fundamental issues that will lead to further price depreciation or underperformance.
A recession is a significant, widespread, and prolonged decline in economic activity, typically characterized by negative Gross Domestic Product (GDP) growth, rising unemployment, and reduced consumer spending, impacting real estate markets through decreased demand and property values.
The Recovery Phase is a stage in the real estate market cycle following a downturn, characterized by stabilizing prices, increasing transaction volumes, and a gradual return of investor confidence, signaling the beginning of an upward trend.
Regional Market Analysis is the process of evaluating economic, demographic, and real estate-specific factors within a defined geographic area to identify investment opportunities and assess risks.
The regulatory environment in real estate investing encompasses the laws, rules, and government policies that govern property acquisition, development, ownership, and management, significantly impacting investment decisions and operational strategies.
Remote work trends refer to the widespread adoption of working from outside a traditional office, significantly impacting real estate demand, property types, and investment strategies across residential, commercial, and industrial sectors.
Rent control refers to government-imposed limits on the amount landlords can charge for rent and the rate at which rents can be increased, typically enacted to promote housing affordability.
Rent growth is the percentage increase in rental rates for a property or market over a specific period, directly impacting an investment's cash flow and valuation.
A rent increase is when a landlord raises the amount of money a tenant pays for rent, typically at the end of a lease term. It's a common practice to keep up with rising costs and market values.
A rent roll is a comprehensive document detailing a property's rental income, occupancy, and lease terms for each unit, essential for financial analysis and property management.
Rental analysis is the process of evaluating a property's potential rental income and expenses to determine its profitability and investment viability.
Rental comparables are recently rented properties similar to a subject investment property, used to determine optimal rental prices, forecast income, and assess market demand.
Rental demand is the total number of prospective tenants actively seeking rental properties in a specific market, directly impacting occupancy rates and rental prices.
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