The Absorption Rate is an estimate of the expected annual sales or new occupancy of a particular type of land use, providing a measurement of how quickly available real estate inventory is being sold or leased.
The abstraction method is a technique used to estimate the land value by subtracting the depreciated value of the improvements from the total market price of the property.
In real estate appraisal, the adjusted sales price refers to the indicated price of a comparable property after adjustments have been made to account for differences between comparable and subject properties.
AREUEA, the American Real Estate and Urban Economics Association, facilitates the exchange of ideas and research among academics and professionals in real estate and urban economics. Established in 1964, AREUEA supports academic research and policy analysis to advance the understanding of urban development and real estate market functioning.
A census tract is a geographic region defined for the purpose of taking a census, which is typically delineated by the U.S. Census Bureau to capture detailed demographic data about residential areas.
CLARITAS is a demographic information provider offering comprehensive reports and maps to analyze markets, select site locations, and effectively target customers. It addresses questions such as customer and prospect locations, ideal business locations, competition positioning, and market potential.
The Comparative Sales Approach, also known as the Sales Comparison Approach, is a real estate appraisal method that estimates the value of a property by comparing it to similar properties that have recently sold in the same area.
The Comparison Method, also known as the Sales Comparison Approach, is a real estate appraisal method that bases the value of a property on the sales prices of similar properties in the same area.
Cost new rent refers to the minimum market rental rate needed to justify new construction projects in a real estate market.
A leading provider of commercial real estate information, analytics, and online marketplaces, delivering real-time data on comparable sales, lease rates, absorption, and construction across various geographic markets.
A Data Plant comprises compiled statistical information used by appraisers or other real estate professionals to evaluate property values, market trends, and comparable sales data, playing a pivotal role in real estate appraisal and market analysis.
The 'Date of Appraisal' refers to the specific date on which the value of a property is determined by an appraiser. It is a crucial component in real estate transactions as it establishes the value of a property at a specific point in time, impacting sale prices, taxes, and loan terms.
The Direct Sales Comparison Approach, also known as the Sales Comparison Approach, is a real estate appraisal method used to estimate the value of a property by comparing it to recently sold properties with similar characteristics within the same market area.
Evaluation in real estate involves a detailed study of the potential uses of a property, but it does not focus on determining the present value. It includes analyses such as market trends, feasibility studies, highest and best use assessments, and base land use.
A feasibility study is a detailed analysis aiming to determine the viability, risks, and profitability of a proposed real estate development, ensuring that the project fulfills investors' objectives and aligns with market demand.
Fundamental Demand Analysis is an element of Market Analysis where the demand for a property or property type is forecast based on expected changes in underlying demographic and economic factors for the market area.
A technique within market analysis to estimate future demand for a property based on recent trends and projections.
Market analysis involves studying supply and demand conditions in a specific area for a specific type of property or service. It aids developers in deciding project types and securing financing for proposed developments.
Market Area refers to the geographic region from which one can expect to draw the primary demand for a specific product or service offered at a fixed location. It helps businesses and developers comprehend and delineate their potential customer base.
A systematic analysis conducted to understand and evaluate the market conditions for a particular product, service, or strategic business decision, focusing primarily on supply and demand, competition, and economic indicators.
A market survey involves collecting primary information on neighbouring properties to assess their characteristics, rent levels, and tenant occupancy, helping stakeholders make informed decisions.
In real estate appraisal terminology, 'Marketing Time' refers to the estimated duration a property would need to be on the market to sell, following the date of the appraised value.
National Decision Systems (NDS), now known as Claritas, is a data company that provides demographic and psychographic information used for geographic segmentation and market analysis.
Net Absorption measures the amount of newly occupied space in a given period minus the space vacated or put back on the market during that same period, providing key insights into market demand and occupancy trends.
Overbuilding occurs when there is more real estate construction in a specific area than the market can absorb within a reasonable amount of time. This imbalance between supply and demand often leads to vacant properties and lower rental rates.
The Primary Market Area (PMA) is a defined geographic region from which a business, such as a retail store or real estate development, expects to draw the majority of its customers or tenants. Identifying and understanding the PMA helps businesses to gauge market demand, optimize marketing strategies, and make more accurate financial projections.
Primary Market Population refers to the population located within a shopping center’s primary trade area. It often forms the majority of the customer base for the shopping center.
A depiction of the future based on a specific set of assumptions, commonly used in real estate for anticipating financial performance, market conditions, and project outcomes.
A distinguished collective of leading experts specializing in real estate valuation, business valuation, research, advisory, counseling, and market analysis services.
Real Estate Information Systems (REIS) are technological platforms designed to gather, store, analyze, and manage data related to real estate operations. They are essential for streamlining property management, facilitating transactions, and providing sophisticated market analysis.
Reilly's Law of Retail Gravitation posits that larger shopping centers attract more customers compared to smaller retail spaces.
REIS is a large data bank that includes historical rental rates on more than 100,000 properties. It is widely utilized by professionals in the real estate industry for market research, analysis, and forecasting.
Residual Demand refers to the amount of product (such as houses, office space, or building sites) that a specific provider can expect to sell in a particular market. This concept involves understanding the provider's expected market share within a competitive market, influenced by factors such as the attractiveness of the provider's product compared to the competition and how well the existing market is currently served.
Retail gravitation refers to the ability of a shopping center to attract customers from distant areas, with larger centers having a greater drawing power.
A retrospective appraisal estimates the value of a property at a specific point in the past, often for purposes such as tax assessments, legal disputes, or historical analysis.
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 unit of comparison is a critical tool used in real estate appraisal to compare properties of varying sizes and characteristics. These units ensure consistent evaluation and assist in determining a property's fair market value.
Value in exchange refers to the worth of a property based on its ability to be traded for goods and services. It differs from investment value or value in use, focusing primarily on what the property can be exchanged for in the open market.
