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 (10 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.
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 Covenant of Seisin is a legal promise in a deed, typically a general warranty deed, by which the grantor assures the grantee that they own the property being conveyed and have the legal right to transfer it.
A percolation test evaluates the rate at which water drains into the soil, primarily to determine a site's suitability for a septic system. It is a critical due diligence step for real estate investors considering undeveloped land.
A Planned Unit Development (PUD) is a type of real estate development that allows for a mix of land uses and housing types within a single, master-planned community, offering design flexibility and integrating common open spaces and amenities.
A plat map is a detailed drawing that divides a parcel of land into lots, blocks, and streets, showing property boundaries, easements, and other features essential for legal property descriptions and development.
The network of pipes, fixtures, and drains within a property that handles the supply of fresh water and the removal of wastewater, crucial for property functionality and value.
Police power refers to the inherent right of state and local governments to regulate private property for the protection of public health, safety, morals, and general welfare, without providing compensation to the property owner.
Pre-leasing is the practice of securing lease agreements with tenants for a property that is still under construction or undergoing significant renovation, prior to its completion and readiness for occupancy.
Private Equity Real Estate (PERE) involves institutional or high-net-worth investors pooling capital to acquire, develop, manage, and sell real estate assets, typically through a fund structure, with the goal of generating significant returns over a medium to long-term horizon.
Property condition refers to the overall physical state of a real estate asset, including its structural integrity, mechanical systems, and cosmetic finishes, which significantly impacts its value, investment potential, and future expenses.
A Property Condition Report (PCR) is a detailed document outlining the physical state of a property, identifying existing defects, potential issues, and necessary repairs. It helps buyers, sellers, and lenders understand the property's health before a transaction.
A Property Disclosure Statement is a legal document provided by a seller to a buyer, detailing known material defects and conditions of a property. It is a crucial component of real estate transactions, ensuring transparency and aiding buyer due diligence.
A Property Identification Number (PIN) is a unique numerical code assigned to each parcel of land by local government agencies, primarily for property tax assessment and record-keeping purposes.
Property rights are the legal entitlements defining how individuals or entities can own, use, transfer, and dispose of real estate, forming the bedrock of all property transactions and investments.
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