Glossary of commercial 
real estate terms

The most probable price which a property should bring in a competitive and open market under a) conditions requisite to a fair sale, b) the buyer and seller each acting prudently and knowledgeably, and c) assuming the price is not affected by undue stimulus.

Housing where rents are based on existing market demand, without government subsidies.

When a hybrid debt issue is subordinate to another debt issue from the same issuer. Mezzanine debt bridges the gap between debt and equity financing and is often used during mergers and acquisitions or leveraged buyouts. It is commonly referred to as Mezz Debt.

Subordinated debt that combines features of debt and equity, often used for real estate projects with higher risk.

The use of investments by foundations as tools to achieve their philanthropic goals. Mission Investments (also called Impact Investments) describe investments by mission- based organizations that are designed to generate both a social and a financial return. Mission-Related Investments (MRIs) are market-rate investments that support the mission of the foundation by generating a positive social or environmental impact, while generating reasonably competitive rates of financial return.

A property that includes both residential and commercial space such as retail or office space, fully integrated into one project.

A loan secured by real estate.

Replacing an existing loan with a new loan, typically to secure better terms, lower rates, or access equity.

Handling the day-to-day tasks involved with a mortgage. A mortgage servicer may do a number of things, including servicing assets such as the following: handling monthly payments (and the statements associated with them), managing mortgage insurance fees, allocating principal and interest in mortgage payments, managing property taxes and escrow funds, and etc.

Loan servicers charge mortgage servicing fees to process loan or mortgage paperwork.In addition, they’ll charge for any services not considered routine, or as a penalty for late payments. After a loan is closed, mortgage loans move into the servicing phase during which the monthly payment is collected until the loan is paid off. It’s the responsibility of the servicer to forward principal and interest payments to the investor in the loan, usually someone in the bond market.

Mortgage servicing rights surface when the original mortgage lender sells the right to service a mortgage to another party.

The financing - providing loans to multifamily owners using all capital sources, e.g., Agencies – FHA and Government-sponsored enterprises (GSEs - Fannie Mae & Freddie Mac), Capital Markets, and WDIP.

Any residential property that contains more than five housing units, including apartment complexes, manufactured home communities, and single-family rental properties.

Credit scores are an estimate of the likelihood for a consumer to default on a debt repayment. WDSuite’s Multifamily Tenant Credit History benchmarks tenant credit scores relative to the neighborhood and market.

The ratio of investment distributions and residual value over the paid-in capital.

A group supporting real estate investment managers by providing education, benchmarking, and best practices.

NH&RA is a professional association of affordable housing and multifamily owners, developers, and professionals.

National Investment Center for Seniors Housing and Care (NIC) is an organization providing the analytics and insights that enable access and choice by providing data, analytics, and connections that bring together investors and providers.

The leadership of the apartment industry, bringing together the prominent owners, managers, and developers who help create thriving communities by providing apartment homes. NMHC provides a forum for insight, advocacy, and action that enables both members and the communities they help build to thrive.

A WDSuite feature that evaluates area school ratings and access to essential services like supermarkets, restaurants, parks, and childcare facilities to measure neighborhood convenience and appeal.

A visualization tool within WDSuite that displays neighborhood ratings and underlying neighborhood statistics.

Census block groups clustered according to similar demographics, housing indicators, and amenity density.

The total change in occupied space within a market or property over a specific period, calculated as the total space leased minus the total space vacated. It indicates market demand and leasing activity.

A property’s gross operating income minus its operating expenses. e.g., Gross operating income is $100,000. Property generated an additional $20,000 in miscellaneous income. Total income is $120,000. Operating expenses are around $55,000. Net operating income would be $65,000.

A metric used to determine client experience and satisfaction. W&D is proud to have an NPS of 88+, which puts us in the top 100th percentile of our industry.