real estate exam 1
Terms in this set (53)
special characteristics of real estate
interdependence of land uses
long gestation period
the amount or quantity of the good or service that will be offered at various prices.
the amount or quantity of the good or service that will be desired at various prices.
When the price negotiated between suppliers and demanders results in the quantity of the good or service offered by the suppliers equaling the quantity of the good or service desired by the demanders.
Real estate space markets
Involve transactions for the rights to use land and buildings. Demand involves people, firms and other entities willing to pay various prices for use of space.
Buildings that will generate the highest rents per square foot due to their high quality and/or superior location.
Buildings that most tenants would find desirable but are lacking certain attributes that would permit owners to charge top dollar.
Buildings that offer few amenities but are otherwise in physically acceptable condition and provide cost-effective space to tenants who are not particularly image-conscious.
Buildings with few amenities and poor locations and/or physical condition.
Office space market
Retail space market
single tenant buildings
aka a convenience center, designed to serve a relatively small trade area. Anchor tenant is usually a supermarket.
Designed to serve a larger tade area than a neighborhood center (3 to 5 mile radius), it includes a wider variety of merchandise. Anchor tenant us usually a discount store or junior department store.
Designed to serve a primary trade area within a radius of 7 to 12 miles, these centers offer a rull range of goods and services. Usually designed as enclosed malls with at least one, and sometimes several, full-line department stores serving as the anchor tenants.
Super regional center
Designed to serve trade areas with a radius of more than 50 miles, these centers often exceed 1 million square feet of space and offer a tremendous range of products and services.
Industrial space market
Commonly divided into three categories:
Agricultural space market
commonly divided into three categories:
annual (seasonal) cropland
Lodging space market
Divided into five categories:
resort (destination) hotels
extended stay hotels/motels
Residential space market
single-family detached homes
single-family attached homes (condos, co-ops, town houses, etc.)
real estate asset market
Reflects transactions involving cash-flow rights to real estate. The term cash-flow rights refers to the claims to the future cash flows that the buildings and land are expected to generate.
the market for capital assets of all types
examination of the supply and demand sides of a real estate space market segment and the balance (equilibrium) between these two sides. the goal is to assist real estate market participants in making effective real estate decisions.
Basic inputs to market analysis
rent or price level
quantity of new construction started
quantity of new construction completed
absorption of new space
measure of the amount of unoccupied space as a percentage of the total amount of space in the market
Ex: 50 empty rental apartments and 1500 total rental apartments has a vacancy rate of 3.3 (50/1500= 3.3)
the rate at which homes sell in a given area during a given time period
the total amount of new space that became occupied during a specified time period.
the net change in the amount of occupied space in the market segment during a specified time period.
Months supply= (vacant space + space in construction) / net absorption per month
Determinants of a community's comparative advantage
basic activities, produce goods and services for sale or consumption outside the area's borders.
nonbasic activities, which produce goods and services for sale or consumption within the community itself. construction, public utilities, retail, finance, service industries and nature.
the return that a particular parcel of land will bring in the open market
highest and best use
use of a parcel that will produce the highest return or price to the owner. Constrained by legal restrictions and the physical characteristics of the parcel.
refers o the maximum rent that a potential real estate space user would be willing to pay or bid for a specified location.
construct new buildings between (existing structures).
postulates that from a central business district, several concentric zones radiate outward.
star-shaped city with growth extending outward along transportation lines
Theorized by Homer Hoyt who found that particular types of development tended to extend in wedge-shaped sectors from the center of the city
the passage of older hosing to less affluent families as it ages
emphasizes that many commercial activities occur in cluster and that in most cities there is more than once center of commercial activity.
as an area in which types of property are similar; as a distinct geographic area or one distinguished by a conspicious physical feature; as a social unit, a community with religious or ethnic ties; and as a group of people with the same general level of income.
death or abandonment
Gentrification is a process of renovation of deteriorated urban neighborhoods by means of the influx of more affluent residents. This is a common and controversial topic in politics and in urban planning.
types of residential development
single-family detatched homes
single-family attached homes
or zero-lot line house, is very similar to the detached house except that construction is from lot line to lot line
similar to the old row house. Each unit has its own front door that opens to the outdoors, but it shares one or both side walls with adjacent houses.
shares the characteristics of the town house and the single-family detached house. Each building in a plex contains two or more units, each with its own outside entrance.
dwelling that is manufactured in a factory and then moved to a particular site.
a single dwelling is sold to a number of buyers, each of whom receives exclusive ownership of the dwelling for a specified time period each year.
gross leasable area
the total floor area designed for the tenant's use
controlled, parklike developments designed to accommodate specific types of industry and providing all necessary utilities
method of city growth where open spaces between structures are filled in with new structures.
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