Term
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Definition
-anything that can be owned/possessed
-tangible/intangible |
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Term
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Definition
-physical: automobiles, clothing, land, buildings
-real & personal property |
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Definition
-nonphysical
-include contractual rights: mortgage & lease agreements
-financial claims: stocks & bonds
-interests/patents/trademarks |
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Term
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Definition
-includes the area above/below the earth
-aka real property
-rights to land & its perm structures
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| real estate: a tangible asset |
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Definition
| 1. the land & its permanent improvements |
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Definition
| includes fixed structures: buildings, fences, walls & decks |
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Definition
-components necessary to make the land suitable for building construction/other uses
-referred to as infrastructure: streets, walkways, storm H2O drainage systems, H2O, sewer, electric, telephone utilities |
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Term
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Definition
| building site/lot & includes infrastructures, but NOT structures |
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Definition
-larger area that does not include any improvements
-distinction vs. land important when value of land considered |
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Definition
-movable & not permanently affixed to the land
-ex. mobile home |
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Term
| real estate: a bundle of rights |
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Definition
2. denotes the "bundle" of intangible rights that are associated w/the ownership & use of the site & improvements: shelter, security, privacy, as well as a location that facilitates business/residential activities |
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Term
| real estate: an industry & profession |
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Definition
3. may be used when referring industry/bus activities related to acquisition, operation, & disposition of physical assets |
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Term
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Definition
| competition among users for physical location & space |
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Term
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Definition
-serve to allocate financial resources among households & firms requiring funds
-2 public/private categories: equity (owners: rent & appreciation) & debt (lenders) INT |
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| Real Estate Capital Market Participants |
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Definition
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Term
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Definition
-process of converting expected FCF into PV
-incorporates the opportunity cost of waiting for the uncertain cash flows |
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Term
| characteristics of real estate markets |
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Definition
1. heterogenous products
2. immobile products
3. localized markets
4. segmented markets
5. priv negotiated trans w/↑ trans C |
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Term
| investment-grade properties |
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Definition
-aka institutional-grade real estate
-lg & valuable commercial properties; $10M+ |
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