Preexisting Use refers to properties or structures whose existing use does not align with current zoning regulations but were legally established under previous zoning rules.
Prefabricated construction involves assembling building components in a factory before delivering and installing them on-site. This method often reduces construction time and costs while ensuring consistent quality.
Preleasing involves obtaining lease commitments for a property prior to its availability for occupancy, often required for securing permanent mortgage financing.
The preplanning stage of real estate development involves seeking financing and obtaining government approvals prior to beginning architectural drawings.
A Prime Contractor, also known as a General Contractor, is primarily responsible for the overall coordination of a construction project. This role includes hiring and managing subcontractors, securing necessary permits, ensuring compliance with building codes, and overseeing the project to completion.
A prime tenant in real estate is the tenant who occupies the most space within a shopping center or office building. These tenants are considered creditworthy and are essential in attracting additional customers or traffic.
Private covenants, often referred to as deed restrictions, are legal obligations imposed in a deed that restrict the use or activities that may be conducted on property. These covenants are designed to maintain a certain level of standard or uniformity within a development area or neighborhood.
A pro-forma statement is a financial document that projects future income and expenses for a property, enabling investors and developers to make informed decisions based on estimated financial performance.
In the realm of real estate, a production builder constructs homes based on pre-designed plans and specifications, often creating multiple houses using an assembly-line process. This method contrasts with custom builders, who craft unique homes tailored to individual needs.
Progress payments are partial payments made to a contractor or builder as specific stages of a construction project are completed. These payments are contingent on the fulfillment of predefined milestones, ensuring that the contractor receives payment for the work completed to date without having to wait until the entire project is finished.
A PUD or Planned Unit Development is a type of real estate development designed to maximize land use efficiency by integrating residential, commercial, and sometimes industrial units within a single community. PUDs often feature a variety of property types, such as single-family homes, townhomes, apartments, and commercial spaces, along with shared amenities and open spaces.
A Real Estate Mutual Fund is a regulated investment vehicle focused on investing in securities offered by real estate-related companies, including REITs, real estate development and management firms, and homebuilders.
Realty, also known as real estate, encompasses properties consisting of land and buildings on it, along with its natural resources like crops, minerals, or water. Realty is a crucial component of the economy and plays a significant role in investment, development, and personal wealth management.
Reconfiguration in real estate involves altering the physical shape or layout of a property to better suit new requirements, tenant needs, or functional uses.
Redevelopment involves the demolition of existing improvements and the construction of new improvements on a site. The new improvements often differ from the old ones in various aspects...
A Release Clause in a mortgage is a provision that allows the borrower to pay off a portion of the mortgage debt, thereby freeing a corresponding portion of the property from the mortgage lien. This is especially useful for subdivided properties or developments where individual parcels are intended to be sold separately.
A remnant parcel is an uneconomic remainder of land left after a larger parcel has been sold or developed. Typically, this piece of land is too small or oddly shaped to be of significant commercial value on its own.
The rent-up period refers to the span of time it takes for newly constructed properties or newly vacated buildings to achieve full occupancy through tenant leasing. This phase is crucial for property owners and developers as it significantly impacts potential revenue and return on investment.
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.
A retention pond is a reservoir designed to hold a specific amount of water indefinitely. Typically, the pond will drain to another location when the water level exceeds the desired level. This term is often used in contrast to a detention pond.
Rezoning is the legal process of changing the designated use of a specific parcel or group of parcels on a zoning map, altering the previous permitted activities to suit new needs or goals. This can involve changing residential areas to commercial, industrial to residential, and more.
Scale refers to the proportional relationship between the dimensions of a drawing, plan, or model and the dimensions of the physical object it represents. It is crucial in real estate and construction for accurate representation and implementation of designs.
Seed money is the initial capital needed to start a real estate development project, covering costs such as feasibility studies, loan application and commitment fees, and initial legal and accounting services.
A setback line is a defined distance from a curb, property line, or other demarcated boundary within which no permanent structures may be constructed. Setback lines are crucial for urban planning, promoting safety, aesthetics, and privacy within a community.
A 'Shell' refers to the structural frame of a building that has been completed to a point where it is ready for tenant improvements. This typically includes the main structure, basic utilities, and HVAC installations, but lacks interior finishings.
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.
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.
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.
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.
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 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 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.
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.
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.
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 subdivider is an individual or company responsible for partitioning a large tract of land into smaller, individual plots for the purpose of selling those plots. If the land is improved, the subdivider also takes on the role of a developer.
In real estate, a surety is an individual or entity that guarantees the performance of obligations or responsibilities, usually relating to contractual agreements. This acts as a safety net ensuring that the party performing the work will fulfill their commitments, or the surety will step in to cover any losses or damages.
Surplus land is a portion of a parcel that exceeds the area required to support the current highest and best use of the property, but holds no separate value apart from the main parcel.
Sustainable development refers to a philosophy that views construction within the constraints of long-term environmental health, emphasizing building to meet human needs without compromising the ability of the natural environment to support such development.
Takedown refers to the instance when a borrower actually accepts money from a lender under a line of credit or loan commitment, often structured in stages to align with project milestones.
Takeout financing is a type of long-term loan that replaces short-term interim financing, allowing project developers to refinance debt incurred during the construction phase. This helps bridge the gap between the completion of a project and its permanent financing, ensuring liquidity and financial stability.
Takeout financing refers to the commitment to provide permanent financing following the construction of a planned project. It typically requires specific conditions to be met, such as achieving a certain percentage of unit sales or leases. Most construction lenders mandate takeout financing to ensure the construction loan is 'taken out' by a permanent loan post-construction.
A takeout loan is a type of long-term financing that replaces short-term interim financing, such as a construction loan, to repay the short-term loan and provide capital for further development or investment.
A strong track record can significantly influence a developer's ability to secure financing and attract investors for new projects, ensuring successful and timely project completion.
A tract house refers to a dwelling that shares a similar style and floor plan with other houses in a development. This type of construction is commonly used in subdivisions and is often associated with mass production techniques.
A triplex is a type of residential building that contains three separate apartment or townhouse units within one structure. Each unit typically has its own entrance, and the building can offer different living spaces and layouts for tenants or owners.
A turnkey project is a type of development where the developer completes the entire project on behalf of a buyer, turning over the keys upon completion. This comprehensive approach includes all necessary activities such as land purchases, permits, planning, and construction.
The underimprovement occurs when a property or development exists at a lower investment or utility level than the optimal usage potential of the site.
The Urban Land Institute (ULI) is a nonprofit organization that provides leadership in the responsible use of land and in creating and sustaining thriving communities worldwide.
A zoning variance is permission granted by a zoning authority to a property owner to allow for a specified violation of zoning requirements, typically granted when compliance is impossible without rendering the property virtually unusable.
The water table represents the upper level of an aquifer below which the ground is fully saturated with water. It is a crucial factor in the study of hydrology, agriculture, and real estate development, influencing water supply management and construction planning.
Wetlands are areas of land where water saturation is the dominant factor determining the soil and the types of plant and animal communities living there. Commonly recognized wetlands include marshes, swamps, bogs, and fens.
A white elephant in real estate is a property that is too expensive to maintain relative to its value or revenue-generating capability, often making it a financial burden instead of an asset.
A zone refers to an area designated by local government regulations for a specific use, subject to certain restrictions or conditions. These uses can range from commercial to various types of residential applications.
A Zoning Map is an official municipal or local government document used to define how different parcels of land within a jurisdiction can be used, including specifications for residential, commercial, industrial, and other uses.
