Glossary of commercial 
real estate terms

Increase in costs related to land prep, entitlement, infrastructure, and construction. It directly impacts project feasibility and return thresholds in land development.

The number of buildable housing units or lots that can be developed on a parcel of land, typically expressed as a total count or as units per acre. It reflects how efficiently the land can be utilized for residential construction after accounting for zoning, infrastructure, topography, easements, and other constraints.

A version of development yield that compares stabilized NOI to total project costs, including land and construction. It’s a key profitability benchmark used in underwriting and investment analysis.

A metric of the breadth of change across data points, typically using a scale where 50 indicates neutrality. In homecenters, it can be used to assess product-level or store-level performance shifts.

A valuation method used to estimate the present value of a property by projecting its future cash flows and discounting them using a required rate of return. It helps investors assess a property's profitability and investment potential.

The amount of money households have left after taxes, available for spending or saving. It affects consumption patterns and is a key driver of housing demand, renovation activity, and durable goods purchases.

The act of selling, subleasing, or conducting a lease buyout of commercial real estate property. It’s often done to monetize assets to reallocate funds into the company or pay off debt.

The initial upfront cash amount a borrower contributes toward a home purchase, typically expressed as a percentage of the total purchase price. It affects loan-to-value (LTV) ratios and plays a key role in mortgage approval, interest rates, and private mortgage insurance (PMI) requirements.

Allows borrowers to lock in the interest rate early in the loan origination process.

A legal right for a third party to access or use a portion of land for a specific purpose, such as utilities or shared driveways. Easements can impact land value, development layout, and buildable area.

A weighted average of the increase in rent collected after accounting for concessions and vacancies. It provides a true picture of revenue performance and leasing health across portfolios.

The difference between a property’s market value and the remaining mortgage balance. In mortgage finance, it represents the homeowner’s financial stake and can be leveraged for refinancing or cash-out loans.

Provides the capital that WDIP uses to finance properties through one of its equity funds.

Homebuilding, building products, apartments, demographics, homecenters, macro housing, mortgage finance, real estate services, and single-family rental.

A financial model that determines how profits from an investment are distributed among stakeholders, typically prioritizing returns to investors based on predefined tiers, such as preferred returns, return of capital, and profit-sharing splits.

The annual rate of return on an investor's equity in a real estate investment, calculated based on the cash flow received relative to the initial equity investment. It reflects the profitability of the equity portion of the investment.

A financial arrangement where a neutral third party holds funds or documents during a real estate transaction until all conditions are met. Escrow is also used post-closing for paying property taxes and insurance.

The Federal National Mortgage Association, chartered by Congress to provide a reliable source of affordable mortgage financing across the U.S.

Fannie Mae Small Mortgage Loan is a streamlined lending program geared toward smaller rental properties offering fixed-and-variable-rate mortgage loans up to $9 million nationwide.

A division of HUD which insures loans by approved lenders for single-family homes, multifamily properties, residential care facilities, and hospitals in the U.S.

The FHFA is responsible for the supervision and oversight of Fannie Mae, Freddie Mac, and the Federal Home Loan Bank Systems.

The Federal Housing Finance Agency (FHFA) is responsible for the supervision and oversight of Fannie Mae, Freddie Mac, and the Federal Home Loan Bank Systems.

W&D’s team that finances new construction, refinances, and substantial rehabilitation of the nation’s workforce and affordable housing.

A loan backed by the federal government – the Federal Housing Authority (FHA) - which is part of the US Dept. of Housing and Urban Development (HUD).

A financial agreement that allows a borrower in commercial real estate to lock in an interest rate for a future loan or refinancing, protecting against interest rate fluctuations during the lock period and providing cost predictability.