Our glossary of industry terms is one of the most visited sections of our site. We work continually to keep it current and are always adding new terms. In addition, if you ever can't find an industry word you are looking for, let us know. We'll research it and add it for you.
The cost of actually constructing property improvements.
In the central business district, this could mean a building higher than 25 stories above ground level, but in suburban markets, it generally refers to buildings higher than seven or eight stories.
Highest and best use
The reasonably probable and legal use of vacant land or an improved property that is physically possible, appropriately supported, financially feasible and that results in the highest value
A tenant retaining possession of the leased premises after the expiration of a lease.
A portion of a loan commitment that is not funded until an additional requirement is met, such as completion of construction.
The length of time an investor expects to own a property from purchase to sale.
The acronym for heating, ventilating and air conditioning.
A mortgage position with equity-like participation features in both cash flow and the appreciation of the property at the time of sale or refinance.