Glossary of commercial 
real estate terms

A smaller, defined geographic area within a larger real estate market, characterized by shared economic, demographic, or property type trends, often used to analyze localized real estate performance.

Loans with lower repayment priority than senior debt, often used to complete a capital stack.

Real estate development, investment, or management practices that prioritize environmental, social, and economic sustainability by reducing resource consumption, minimizing environmental impact, and promoting long-term resilience and efficiency.

A temporary alliance formed by professionals to handle a large transaction that would be impossible to execute individually. By forming a syndicate, members can pool their resources together, and share in both the risks and the potential for attractive returns. This individual or company is in charge of finding, acquiring, and managing the real estate. They have a history of real estate experience and the ability to underwrite and do due diligence on the real estate.

Freddie Mac’s product that requires a percentage of units to be affordable between 60- 80% of AMI or less as adjusted for family size.

The executive department of the federal government that administers federal housing and urban development laws.

From Walker & Dunlop insights to timely industry news, this monthly LinkedIn newsletter offers a mix of the latest trends and information in commercial real estate and finance. The WorD features thought leadership articles, news links, analysis reports, and a calendar of upcoming events and Walker Webcasts.

The difference between Treasury bond yields and a property loan or bond yield, reflecting relative risk.

A prestigious property, usually in a prime location with strong underlying fundamentals, which is in high demand.

High Yield Notes, Initial Public Offerings, Institutional Term Loans, Investment Grade Notes, Joint Venture Financing, Minority Investments, Primary and Secondary Equity Offerings, Private Debt & Equity Placements, Project Financing, Public & Non-Traded REITs, and Strategic Investor Sourcing.

The internal rate of return calculated without considering the impact of debt financing.

A global nonprofit organization dedicated to promoting responsible land use and sustainable community building.

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The percentage of unoccupied rentable space in a property or market, calculated by dividing the vacant space by the total available space, used to measure supply and demand dynamics in real estate.

Real estate valuation is a process of using three methods (sales comparison, cost, and income approaches) to determine the current value of a potential real estate investment. A property’s estimated value takes into consideration a variety of key data points, in addition to current market conditions and political and social trends.

Real estate valuations for financial reporting purposes are conducted quarterly or annually.

A commercial real estate strategy focused on acquiring properties with potential for increased value through renovations, operational improvements, or market repositioning. These investments carry moderate risk but offer higher returns compared to core investments.

A measure comparing median home values to household income used to assess affordability in a market.

A measure of how friendly an area is to walk, especially as it relates to student housing proximity to campus, retail, dining, and public transit. Higher walkability typically correlates with increased student demand, higher occupancy rates, and stronger rent growth, making it a valuable metric in student housing investment strategies.

Part of W&D Affordable Housing, W&D Affordable Debt Financing experts provide specialized and innovative financing solutions, executing transactions using the full range of debt financing options including Fannie Mae, Freddie Mac, FHA/HUD, and Capital Markets.

W&D’s team is committed to improving our nation’s affordable housing stock and ensuring people have access to stable, quality, and safe housing by providing affordable capital advisory and investment sales services, Low Income Housing Tax Credit (LIHTC) equity, debt financing, as well as affordable housing and preservation investment opportunities.

Part of W&D Affordable Housing, W&D Affordable Investment Sales represent the nation’s premier multifamily owners, developers, and operators, guiding them through any situation, including disposition, refinancing, partnership dissolution, partnership buyout, asset repositioning, and resyndication.

Formerly known as Alliant Strategic Investments (ASI), our preservation business focuses on the preservation of affordable housing by investing in affordable assets with the goal of maintaining the affordability status while improving the lives of the residents through physical property improvements, property optimization, and resident services.

An annual report with a thought leadership perspective on ESG trends and directions in the Affordable Housing Market.

W&D’s investment banking team that offers comprehensive M&A advisory services and capital markets solutions to our corporate and investor clients, their boards, and special committees.

W&D’s investment management team that raises and deploys capital for commercial real estate.