An anchor tenant plays a pivotal role in the context of real estate development, specifically within shopping centers and office buildings. It usually refers to a prominent, well-known business that leases a significant portion of the property, thereby attracting other tenants and customers.
A blanket mortgage is a loan that covers more than one parcel of real estate. This type of mortgage is commonly used by developers who seek financing for a large tract of land that they plan to subdivide and sell without retiring the entire mortgage.
An unethical practice in real estate development and property management where project costs are manipulated for excessive profit or property value is compromised for immediate income.
A building permit is permission granted by a local government to build a specific structure at a particular site. The number of residential building permits often forecasts the number of housing starts.
A subdivision technique in which detached dwelling units are grouped relatively close together, leaving open spaces as common areas.
A community association is an organization of property owners that oversees common interests and responsibilities within a community, such as managing common elements in a condominium or enforcing deed covenants in a subdivision.
A legal instrument used to guarantee the completion of a real-estate development according to specifications. It is more encompassing than a performance bond, which ensures that one party will perform under a contract on the condition that the other party performs.
A Condominium Declaration, also known simply as a "Declaration," is a legal document that formally establishes the existence of a condominium. It describes the property in detail, outlines the rules and restrictions governing the condominium units, and defines the rights and responsibilities of the unit owners and the condominium association.
A corner lot is a parcel of land that is bounded on at least two sides by the intersection of two roads. Corner lots are often considered more valuable because they offer greater visibility and ease of access.
A dead-end street with a single entrance and a turning circle at the closed end, commonly used in residential subdivision design to increase privacy and reduce traffic.
Density zoning refers to laws that restrict land-use intensity by regulating the number of buildings or units that can be placed within a specific area.
Development encompasses the processes of enhancing products or creating new types of products, as well as the process of placing improvements on or making enhancements to parcels of land within the real estate industry.
Financial feasibility refers to the ability of a proposed land use or change in land use to justify itself from an economic perspective. While it is one test of the highest and best use of land, it does not necessarily make a project the most rewarding use of the land.
An arithmetic relationship of the total square feet of a building to the square footage of the land area, relevant in urban planning and zoning.
A loan provided to bridge the gap between a floor loan and the total amount of the permanent loan for real estate development, especially during the rent-up period.
Garden apartments are a type of housing complex that provides tenants with access to a common lawn or garden area, enhancing the living environment with green spaces.
A ground lease involves leasing land, usually on a long-term basis, to allow the lessee to develop property on that land.
An expense charged against private developers by the county or city as a condition for granting permission to develop a specific project. The purpose of the fee is to defray the cost to the city of expanding and extending public services to the development.
Investment Analysis is the study and evaluation of the potential return and feasibility of a proposed investment. This process assists investors in making informed decisions by analyzing various metrics and methods to project future returns.
Land development is the process of improving raw land to support construction. This comprehensive process involves several steps including planning, acquisition of government permits, subdivision, construction of access roads, installation of utilities, landscaping, and drainage.
Land-use succession refers to the dynamic process where the predominant use of a neighborhood or area changes over time due to various social, economic, and environmental factors.
A comprehensive strategy document utilized in various sectors such as general planning, real estate development, and taxation, outlining overall development or operational concepts and objectives.
Mortgage out refers to obtaining financing in excess of the cost to construct a project. It's a process used by developers to secure a permanent loan commitment based on a high percentage of the completed project's value. Due to stricter underwriting criteria, opportunities to mortgage out have become nearly nonexistent.
A new town is a large mixed-use development designed to provide residences, general shopping, services, and employment. Structured under a central plan, new towns aim to create a balanced community in previously undeveloped areas, preventing unplanned development.
Off-Site Costs refer to expenditures related to construction that are incurred away from the actual construction site. These costs are commonly associated with infrastructure improvements essential to support the construction project, such as extending roads, sewers, and water lines.
A planned development designed especially for office buildings and supportive facilities, catering to specific tenant requirements such as research parks or medical services parks.
Land within a developed area that is intentionally left undeveloped, serving as an amenity to surrounding occupants.
Plottage value refers to the increase in the value of land that results from the assemblage of smaller plots into a single, larger ownership entity. This amalgamation often makes the land more valuable and usable for various purposes, such as commercial or residential development.
Preleasing involves obtaining lease commitments for a building or complex before it is available for occupancy. It is often a requirement for securing a permanent mortgage.
Presale refers to the sale of proposed properties, such as condominiums, before construction begins. It is a common practice used by developers to secure funds and gauge market interest in their projects.
A production builder refers to a construction professional or company that builds homes based on a set of pre-planned designs and specifications, often using an efficient, assembly-line process. This model contrasts with custom builders who design and build homes according to individual customer specifications.
Redevelopment is the process of demolishing existing structures and constructing new improvements on a site. The new improvements often differ significantly from the old structures.
The rent-up period refers to the timeframe between the completion of construction and the point at which a newly constructed property becomes fully occupied.
Rezoning is the process of changing the land use designation of a specified parcel or group of parcels on the zoning map, thereby altering the permitted uses for the affected parcels.
Setback refers to both a specified distance from a curb or property line which restricts the erection of buildings, and to problems in business or manufacturing that lead to lower profits or delays in achieving targets.
A site refers to a plot of land that is prepared for or underlying a structure or development; essentially, it is the location of a property. The site is a key component in real estate and development projects, impacting various factors from zoning laws to property value.
A spec house is a single-family dwelling constructed by a builder or developer in anticipation of finding a buyer. It is built speculative, without having a specific buyer signed before construction starts.
Speculative building involves land development or construction without formal commitments from end users. Builders anticipate future demand, contrasting with custom building, which is contractually defined.
A subdivider is an individual or entity that partitions a tract of land into smaller plots for the purpose of selling these plots. Typically, a subdivider also installs necessary infrastructure such as utilities and streets to make the plots ready for development.
Sweat equity refers to the value added to a property by improvements resulting from work performed personally by the owner. It is a non-monetary investment that enhances the worth or appeal of an asset through manual labor and personal effort.
Take-out loan or take-out financing is a permanent loan replacing short-term financing, especially for construction projects, where the conditions specified, such as unit sales or lease percentages, need to be met.
A tax abatement is a reprieve from a tax obligation, varying from partial to complete forgiveness. Governments often grant tax abatements as incentives for real estate or industrial development.
A Tenant Finish-Out Allowance, also known as a Tenant Improvement Allowance, is a sum of money provided by a landlord to a tenant for the purpose of customizing and improving the leased space to meet the tenant’s needs.
A tract, or parcel, of land is a defined area of real estate, typically held for the purpose of subdividing into smaller plots for development or sale.
A tract house is a type of dwelling that features similar design and floor plan characteristics as other houses within a residential development.
Transfer Development Rights (TDR) is a zoning ordinance mechanism designed to protect land designated for low-density development or conservation by allowing property owners to trade development rights.
Zoning is a legislative action, often at the municipal level, that divides municipalities into districts to regulate the use of private property and the construction of buildings within these established zones. Zoning is part of the state's police power and must further the health, morals, safety, or general welfare of the community.
