Commercial Real Estate Market Research Key Terms

Enhance your knowledge of commercial real estate transactions by learning market research key terms

Commercial real estate market research is a highly specialized field demanding insight into the numerous factors that affect market trends. Most commercial real estate research is done to predict future performances in certain segments of the industry. For example, investors who want to know whether to channel their money into industrial properties rely upon researchers to interpret results from sales of these properties in past quarters. Navigating your way through commercial real estate market research is easier when you learn some key terms beforehand.

 

Master lease options

In commercial real estate market research, master lease options consist of the different options available to investors when they are purchasing property.
Try: Check out the four steps describing the master lease options strategy at Scribd.

Commercial real estate leading indicator

Researchers depend on the commercial real estate leading indicator to track highs and lows in the commercial market.
Try: At Realtor you'll learn where to find quarterly data on commercial real estate market research that has been published since 1990. You'll also gain access to studies demonstrating the methodology of using the indicator in market research.

Commercial real estate index

Market watchers rely on the commercial real estate index to pinpoint the strengths and weaknesses in the U.S. market that is reported in quarterly installments.
Try: At Research Recap, you'll discover how commercial real estate market researchers read the data on the real estate index. For example, the data can indicate whether multi-family housing remains in demand or whether the sales of certain property types continue to report growth over the last quarter.

Industrial properties

When commercial real estate market researchers focus on industrial properties, they are looking at properties usually purchased by organizations for manufacturing, warehousing, shipping or supplying.
Try: Prudential explains the uses for industrial properties and how they are usually categorized so you can interpret commercial real estate market research studies based on this main property type.

Forecasting

The term forecasting in commercial real estate market research refers to the ability to project future trends based largely on current and historical data.
Try: Cushman Wakefield, leaders in commercial real estate, explains the benefits of forecasting to market research in this field. Find out why investors' growth plans usually depend on accurate commercial forecasting.

REIT

Commercial market research reports frequently mention "REIT" as an indicator of market trends at any given time. "REIT" stands for "Real Estate Investment Trusts," a type of investor of commercial real estate.
Try: Learn more about the most common types of REIT at the SEC website. Then go to REIT.com to view a graph displaying REIT market capitalization data that is key to understanding industry performance.

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