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Real Estate Glossary

Expected Value (EV)

This is the foreseen value for an investment at a certain point in the future. It is estimated by multiplying all possible outcomes by the probability that each outcome will happen and then adding up all of those values.

Real Estate Glossary

Average free rent

Indicated in months, this is the span of time the rent abatement concession is anticipated to be granted for the tenant. This is part of the leasing incentive under the current market conditions. Average free rent may increase or...

Real Estate Glossary

Contract

Under the U.S. judicial system, a contract is a document that provides each party with a right that is enforceable. It is a legal agreement between individuals or entities that requires one another to conduct specified and...

Real Estate Glossary

Core Investment

This is an investment made for a high quality real estate asset or site that is usually located in an accessible and desirable sub-market. For an asset to be considered this, it must command among the sub-market's highest rents...

Real Estate Glossary

Hard Money Loan

With this asset-based loan, the borrower acquires funds secured by the value of a piece of real estate that is often at a higher interest rate than a traditional commercial property loan. Hard money loans are used for turnaround...

Real Estate Glossary

Economic Sectors

These are the divisions or branches of an economy on the local or regional scale where particular activities take place. There are three sectors: primary (retrieval and production of raw materials), secondary (transformation of...