The Society of Industrial and Office Realtors® (SIOR) is a leading global professional and association organization for industrial and office real estate brokers. This prestigious designation is awarded to seasoned brokers who have demonstrated superior knowledge, advocacy, and success in their markets.
A plot of land prepared for or underlying a structure or development. This term refers to the specific location of a property, including its geographic, environmental, and infrastructural features.
A Site Assessment (Environmental) is a crucial evaluation process used to identify any potential environmental contaminants or liabilities present on a specified piece of real estate.
A Site Development Agreement is a contract established between a developer and a land user such as a big-box retailer. This contract details the responsibilities and obligations of both parties regarding site preparation, utility installations, and the construction of streets and parking lots.
Site improvements refer to modifications and enhancements made to a parcel of land to increase its usability, safety, and appearance, facilitating better utility of any structures built on it.
A site plan is a detailed architectural drawing representing the design of improvements on a parcel of land. It showcases the placement, orientation, and relationship of all structures, landscaping, driveways, parking lots, and utility connections.
Site to Do Business (STDB) is an online platform provided by the CCIM Institute that offers GIS-based data and tools to help commercial real estate professionals perform market analysis, site comparison, and demographic research, enhancing informed decision-making in real estate transactions.
A site-built home is a type of residential structure that is constructed primarily on its assigned site using stock materials. Although some components may be prefabricated off-site, the home is erected, framed, and finished by workers on location.
Siting refers to the strategic placement and orientation of a building or other structure within a specific plot of land, taking into consideration aspects like elevation, orientation, and views for maximizing environmental benefits and usability.
Situs refers to the economic attributes of location, encompassing the relationship between a property and surrounding properties, distant points of interest, and the linkages to those points. This aspect of location contributes significantly to the market value of real estate.
Slab foundation, or simply 'Slab', refers to a flat, poured concrete building base, lacking basements, commonly used in residential construction, especially in areas prone to soil movement or those with high water tables.
A slum is a critically dilapidated residential area characterized by inadequate housing, poor living conditions, and lack of vital infrastructure. These areas often suffer from severe deprivation, high population density, and social challenges.
A slumlord is a derogatory term used to describe a property owner or landlord who operates buildings in poor conditions, typically in a slum, and invests very little in the upkeep and maintenance of their rental properties. Such landlords often prioritize rent collection over ensuring their properties are habitable and safe.
The Small Business Administration (SBA) is a U.S. government agency that provides support to entrepreneurs and small businesses. The agency's activities include loan guarantees, contracts, counseling sessions, and various forms of assistance to small businesses.
The Small Business Administration (SBA) is a United States government agency established to support and promote small businesses. It provides resources such as low-interest loans, business counseling, and development programs to help businesses start, grow, and succeed.
A Smart Building, also known as an Intelligent Building, uses advanced digital technologies to enhance the performance and efficiency of the built environment through automation, integrated systems, and IoT devices.
The Society of Industrial and Office Realtors® (SIOR) is a global organization affiliated with the NATIONAL ASSOCIATION OF REALTORS® that focuses on supporting professionals involved in the sale and leasing of industrial and office properties, including warehouses, factories, and corporate offices. The SIOR confers a prestigious designation that signifies a high level of expertise, achievement, and ethical standards in the industrial and office real estate sectors.
The soffit is the underside of a roof that extends beyond the exterior walls, covering the eaves.
A soft market in real estate refers to a market condition where there is an oversupply of properties, leading to decreased demand and lower prices, often creating favorable conditions for buyers.
Soft money refers to contributions that can be tax-deductible in a development or investment context. It also sometimes describes non-physical construction costs such as interest during construction, architectural fees, and legal fees.
The Soil Bank is a land management program in which farmers are paid to hold agricultural land out of production to stabilize commodity prices and promote soil conservation. Subsidies for this program are usually provided by the U.S. Department of Agriculture.
Soil boring tests are geologic engineering tests conducted to determine the ability of the soil to support proposed structures and to ascertain the necessary foundation design based on soil strength and properties.
Solar Heating technologies capture solar energy to provide hot water for residential, commercial, and industrial use through both active and passive systems, leading to energy savings and reduced environmental impact.
A sole proprietorship is a business owned and operated by a single individual, with no formal legal entity separating the owner from the business. This structure offers complete control, but also personal liability.
Solid waste refers to any garbage, refuse, sludge, and other discarded materials resulting from industrial, commercial, mining, agricultural, and community activities. These wastes can be in a solid, liquid, or contained gaseous form, and include nonhazardous and hazardous waste materials.
Southern Colonial is a large, early-American-style, 2- or 3-story frame house with a characteristic colonnade extending across the front. The roof extends over the colonnade.
Space planning is the process of deciding the use and allocation of space for a proposed user, involving organizing and designing functional spaces within a building or area to optimize efficiency and accommodate activities effectively.
A Spanish Villa is a Latin-style, asymmetrical, 1- to 3-story house known for its distinctive painted stucco exterior walls and red tile roof.
SPEC, short for speculative, refers to real estate built without a pre-committed tenant, buyer, or user, with the prediction that demand in the market will ensure occupancy after completion.
A 'spec house' refers to a single-family dwelling constructed by a developer before having an identified buyer, based on the anticipation that the finished home will meet local market demand and sell within a reasonable period.
A special agent is an individual authorized to act on behalf of another person in a restricted capacity, often for specific tasks or responsibilities. This limited authority distinguishes the special agent from other types of agents like universal agents, who have broad powers.
A special assessment is a unique tax levied on property owners to fund public improvements that directly benefit their property, such as new curbs, gutters, sidewalks, or street lighting.
A Special Assessment District is an area where a special assessment is imposed on property owners to fund public projects that provide specific benefits to the residents within the defined area.
Special Benefits are those affecting the untaken portion of property in a partial condemnation, benefiting the owner disproportionately compared to the general area. The value of special benefits may reduce a condemnation award.
Special Servicing refers to a specialized department within a lender’s organization tasked with managing loans that are in default or are at risk of default. The primary objective is to resolve the issues, either through collection strategies or by reworking the loans to bring them back into good standing.
A Special Use Permit, also known as a Conditional Use Permit, is a right granted by a local zoning authority to conduct specific activities within a zoned district. These activities are conditional uses permitted within the zone only upon special approval from the zoning authority.
A Special Warranty Deed is a type of deed in real estate where the grantor warrants only against title defects or claims that arose during their ownership of the property, not for previous owners.
A special-purpose property is a building with unique features and limited uses, making its marketability niche-driven. Examples include churches, theaters, schools, or public utilities.
A Specialty (Shopping) Center is characterized by a distinctive environment typically anchored by restaurants, theaters, or other entertainment venues, offering unique merchandise and targeting both tourists and local shoppers.
A specific lien is a claim on a specific piece of property used as collateral for a loan. This differs from a general lien, which is a claim on all assets of an individual.
Specific performance is a legal remedy where a court orders a party to fulfill the terms of a contract if they have refused to do so, particularly common in real estate due to the unique nature of property.
A Specific Use Permit (SUP) allows certain uses of property that would not be otherwise permitted under the zoning regulations of a particular area, provided certain conditions are met. It requires a detailed review process to ensure compatibility with surrounding land uses.
Specifications detailed instructions provided in conjunction with plans and blueprints for construction. Specifications may stipulate the type of materials to be used, special construction techniques, dimensions, and colors.
Speculation in real estate refers to investment decisions made based on predictions about the future value of property. This can involve acquiring property with the expectation of selling it off at a higher price after a favorable market change or development.
Speculative building involves land development or construction without a formal commitment from end users, with the expectation that demand exists or will form for the finished product.
A speculator is an investor who engages in risky financial transactions with the hope of substantial gains by forecasting future market events.
Spendable Income refers to the amount of cash flow that property owners receive after all operating expenses, mortgage payments, and taxes have been deducted.
A split-level home, also known as a tri-level, is a residential property style where the floor levels are staggered. These homes typically have at least two sets of stairs, leading to different story levels.
Split-Rate Capitalization is a technique in real estate appraisal to estimate property value by using different capitalization rates for different periods, typically to account for varying degrees of risk and return over time.
Spot Zoning refers to the act of rezoning a specific parcel of land to a use that differs from the zoning classification of its surrounding area. This practice is often scrutinized for creating inconsistencies in land use and is generally disallowed by courts.
In real estate, a 'spread' refers to several key financial differences, often pertaining to prices or interest rates, that can significantly impact transactions, investments, and profits.
A spreading agreement is a financial arrangement that extends collateral over multiple properties, often used to secure additional loans or consolidate existing loans.
Square footage is a measure of the area of a piece of real estate, typically measured in square feet. It represents the total floor area within a property's boundaries.
Square Footage of Living Area is a crucial metric in real estate, measured by the exterior walls, excluding basements, garages, carports, patios, or atriums. Different regions may have varying standards on what counts towards the living area.
A squatter is an individual who occupies a property without the permission or legal authority of the owner. Over time, under certain conditions, squatters may claim legal rights to the property through adverse possession.
Squatter’s rights refer to the legal allowance to use the property of another in the absence of an attempt by the owner to force eviction. Over time, this right may eventually be converted to title to the property through adverse possession, if recognized by state law. It does not apply to publicly owned property.
The SRA designation is awarded by the Appraisal Institute to highly qualified residential appraisers, indicating a high level of expertise and ethical standards in residential real estate appraisals.
Stabilized income (or expense) represents the rental income or expense, or the net operating income that is expected to be reached upon completion of construction or after a major renovation. This anticipated level of income or expense reflects a stable financial performance of the property once it has been fully leased and operational.
Stabilized Value refers to the valuation of a property after it has achieved a consistent occupancy rate and stable operating expenses, reflecting its true income-generating potential under normal market conditions.
A stable mortgage is a hybrid mortgage loan instrument that merges fixed and adjustable rates in the same loan, creating a balanced approach to risk and predictability.
Stachybotrys Chartarum is a type of mold known for growing in areas of a structure exposed to constant moisture and is often claimed to have adverse health effects. It is commonly referred to as 'black mold' or 'toxic mold.'
A stacking plan is an organized representation of tenants and their respective floor locations within a high-rise office building. It serves as a strategic planning tool for property managers and investors to optimize the use of vertical space.
Stagflation is an economic condition characterized by a combination of stagnant economic growth, high unemployment, and persistent inflation. This rare phenomenon presents significant challenges for policymakers and investors, as traditional remedies for inflation or stagnation can worsen the other condition.
Staging refers to the process of preparing a residential property for sale through various means such as remodeling and interior decoration to enhance its marketability.
A stakeholder in real estate is an individual or group that has an interest or can be affected by decisions regarding land or property usage. This term is often used to justify government regulations that affect private property rights.
The standard deduction is a flat amount that reduces federal or state taxable income, differing based on the taxpayer's filing status.
Standard of care refers to the level of diligence, caution, and professionalism expected from real estate brokers, agents, and appraisers in their professional activities.
A commitment made by a lender to make a sum of money available at specified terms for a specified period, subject to the payment of a standby fee by the borrower.
A Standby Fee is a sum required by a lender to provide a Standby Commitment. The fee is forfeited if the loan is not closed within a specified time.
A Starker Transaction, also known as a delayed tax-free exchange, is a method used in real estate to defer the payment of capital gains tax on the sale of an investment property by using the proceeds to purchase a like-kind property.
A starter home is typically a modest-sized house designed for first-time homebuyers. These homes serve as entry points into the housing market, often featuring less than 1,500 square feet and existing within an affordable price range.
A method for determining just compensation for condemnation prevalent in many states, providing a detailed procedural framework for property valuation unlike the more general Before-and-After Rule.
A State-Certified Appraiser is a professional who has met the stringent requirements set by state appraisal boards, ensuring they possess the expertise to provide accurate property valuations for various purposes such as sales, mortgages, and investments.
A statute is a formal written law enacted by a legislative body. Statutes are often designed to regulate behavior, mandate certain actions, or set standards and guidelines for various activities.
A state law that stipulates that certain contracts must be in writing to be enforceable. This includes deeds, mortgages, and other real estate contracts, except for leases shorter than one year.
The statute of limitations is a specified statutory period after which a claimant is barred from enforcing a claim in court.
Statutory Dedication refers to the formal process where property owners, such as developers of subdivisions, dedicate parts of their property, like streets, to public use by filing a plat.
Statutory foreclosure is a foreclosure process that is conducted according to statutory laws, without supervision by the courts. This is in contrast to judicial foreclosure, which involves court intervention and oversight.
The statutory right of redemption allows a mortgagor to redeem their property within a specified time after a foreclosure sale, as provided by state law.
Steering is an illegal practice of guiding prospective homebuyers or renters to or away from certain neighborhoods based on racial or ethnic composition. This act is a violation of the Federal Fair Housing Act.
A step loan is a type of adjustable-rate mortgage where the interest rate is adjusted only once during the life of the loan, blending characteristics of both fixed-rate and adjustable-rate loans.
A step-up lease, also known as a graduated lease, involves periodic scheduled increases in rent at predetermined intervals over the lease term, allowing for predictable revenue growth for landlords and manageable rent for tenants.
A stepped-up basis is an adjustment to the tax basis of inherited property, increasing the basis to the property's fair market value at the time of the original owner's death, thus minimizing capital gains tax for the heirs.
A Stick-Style or Carpenter Gothic House is a nineteenth-century architectural style characterized by its exposed framing members, steep high roofs, complex silhouettes, diagonal braces, and extensive gingerbread trim.
Stigma in real estate refers to a negative perception or image of a property, even after any associated problems have been resolved. This can significantly affect the property's value and marketability.
Stipulations are specific terms or conditions outlined within a written contractual agreement. These conditions must be met for the contract to be enforceable or finalized.
A stop clause in a lease stipulates the amount of operating expenses above which the tenant must bear the cost. Often, the base amount is the expense for the first full year of operation under the lease.
A straight lease, also known as a flat lease, is a type of rental agreement where the tenant pays a fixed rental amount through the duration of the lease term, regardless of changes in property expenses or other variables.
Straight-line projection method involves estimating a uniform level of rent or revenue over the life of a lease or contract, even when irregular growth in that income stream is expected.
Straight-Line Depreciation is a method that applies equal annual reductions in the book value of a property. It is primarily used in accounting for replacement and tax purposes.
The Straight-Line Recapture Rate is a component of the capitalization rate that accounts for the annual loss in value of a wasting asset by assuming equal depreciation each year over the asset's useful life.
Strategic default is the intentional cessation of payments on a debt despite having the financial means to fulfill the obligation, typically done for perceived financial benefits.
A straw man is an individual who purchases property on behalf of another person or entity to conceal the identity of the actual purchaser. This tool is often employed in real estate transactions to prevent price inflation from sellers realizing the true buyer's identity.
Strict foreclosure is a legal process wherein the mortgagee has the right to take possession of the mortgaged property directly if the mortgagor defaults on the mortgage agreement. This type of foreclosure is infrequently utilized in modern real estate markets.
Strict liability is a legal doctrine that holds an owner responsible for the cleanup of a contaminated site, regardless of whether the owner was negligent. This implies that any property involvement with contaminants could entail cleanup costs even if the current owner did not cause the contamination.
Strip Development or Strip Shopping Center refers to a form of commercial land use in which individual retail establishments have direct access to a major thoroughfare, commonly lacking an anchor tenant and utilizing intensive signage to attract customers.
A structural inspection is an evaluation of the integrity of a structure or a building's foundation conducted by a licensed professional structural engineer. This process aims to identify any potential or existing structural issues that might jeopardize the safety and stability of the building.
A structure refers to any constructed improvement to a site. This term encompasses a wide range of edifices such as buildings, fencing and enclosures, garages, gazebos, greenhouses, kiosks, sheds, and utility buildings.
A type of real estate transaction where the seller accepts guaranteed periodic payments over a specified time period in the future instead of receiving the entire sales price at the closing. The buyer usually pays a discounted lump sum to purchase an annuity that ensures these periodic payments to the seller.
Subagency is a real estate relationship where a sales agent attempts to sell a property listed with another broker. This arrangement is commonly seen within a Multiple Listing Service (MLS). Under subagency, the listing broker and the selling broker share the commission upon a successful sale.
