Glossary of commercial 
real estate terms

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.

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 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 property sale that occurs privately without public listing or marketing.

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 fee charged by a lender to process a new mortgage loan, usually a percentage of the loan amount. It may be paid upfront or rolled into the loan.

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 large-scale residential development built with integrated land use planning, including homes, amenities, infrastructure, and often commercial elements.

Insurance that protects lenders against default on loans with low down payments, typically those with LTV ratios above 80%. Borrowers pay it monthly or upfront.

A collection of commercial real estate investments and 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.

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.