Glossary of commercial 
real estate terms

A type of loan where the lender can only take the collateral (property) in the event of a default. Fannie Mae, Freddie Mac, and FHA offer non-recourse loans.

An acronym for Not In My Back Yard (NIMBY). It refers to opposition by residents to proposed developments in their local area.

The number of units currently occupied or rented in a multifamily building or complex.

A property sale that occurs privately without public listing or marketing.

A key legal document used in the private placement of commercial real estate. The OM provides buyers with information about the property and the offering, protects the Sponsor from potential liability, and serves as a tool for winnowing down the pool of bidders. The OM describes the objectives of the investment, details some of the potential risks associated with the placement, and the terms and conditions of the commercial real estate private placement.

An asset class that encompasses all types of structures providing environments conducive to the performance of management and administrative activities, accounting, marketing, information processing, consulting, human resources management, financial and insurance services, educational and medical services, and other professional services.

A high-risk, high-reward commercial real estate strategy involving properties that require significant improvements, development, or repositioning. These investments typically offer high potential returns but involve greater complexity, leverage, and market uncertainty.

A fund that invests in designated Opportunity Zones, providing tax incentives and supporting economic development.

A periodic examination and evaluation of real estate to evaluate the viability of the real estate to continue serving its intended purpose into the future

A collection of commercial real estate investments and assets.

The rate at which beds or units in student housing properties are leased prior to the start of the academic year. High pre-leasing velocity signals strong demand and operational efficiency, often influencing underwriting, valuation, and investor interest in purpose-built student housing assets.

When an investor provides money to a property owner in exchange for an ownership stake. Preferred equity investors have certain privileges or preferences over other types of investors, such as common equity investors. It is commonly referred to as Pref Equity.

A legal and marketing book that WDIP creates to send to potential investors when WDIP is raising a fund. It details the investment strategy and provides an overview of the manager and track record, terms of the fund, and risks associated with investing in the fund.

A financial projection in commercial real estate that outlines expected income, expenses, and cash flow for a property, helping investors evaluate its potential profitability.

• Rental assistance is tied to specific properties or developments.
• Assistance is provided directly to the property owner or landlord.
• Eligible units within the property are designated for low-income individuals or families, usually earning no more than 30% of AMI.
• Rent is typically set at an affordable level based on the tenant’s income, with a portion subsidized by HUD. Rent is typically set at a market level based on submarket rent surveys. The tenant pays a calculated portion of their income, and the delta to the calculated rent is subsidized by HUD.
• Tenants must live in the designated units to receive the rental assistance.
• If ownership can demonstrate a good faith effort has been made to lease a vacant HAP unit, ownership may request reimbursement from HUD for the lost income.

Oversight of residential, commercial, and industrial properties, including maintenance and day-to-day operations.

Technology solutions aimed at improving real estate operations, financing, and transactions.

An acquisition accounting process of assigning a fair value to all of the acquired assets and liabilities assumed by the target company.

A Freddie Mac product which is a mortgage-backed security issued by Freddie that is backed by collateral not originally underwritten by Freddie.

A location within an economically distressed community. These investments may be eligible for tax deferment or preferential tax treatment.

A company that owns, operates, or finances income-producing real estate and allows investors to earn returns through property investments without directly owning or managing the properties.

A nonprofit association addressing national policy issues that affect the commercial real estate industry.

A partnership model pooling funds from multiple investors to acquire or develop real estate.

A type of loan where the lender can pursue assets beyond the loan’s collateral if the borrower defaults. If a borrower defaults on a loan and the collateral used to secure the loan is not enough to cover the total that is still owed to the lender at the time, then the lender can have the right to seek additional personal collateral from the borrower to cover the difference.

Replacing an existing mortgage or loan with a new loan, often to take advantage of better interest rates, more favorable terms, to get cash out of an existing loan or when existing debt matures.