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Glossary
Perfect market
A market in which the products are homogenous, there is complete information, and no buyers or sellers may influence the market.
Physical depreciation or deterioration
A form or source of accrued depreciation considered in the cost approach to market value. The physical decay or deterioration of a property that may result from breakage, deferred maintenance, effects of age on construction material, and normal wear and tear. (Barron’s Dictionary of Real Estate Terms)
Physical limitations
Limitations imposed by the physical size, shape, or characteristics of a property or its level of development.
Pipeline information
Information (substantiated and rumored) regarding new inventory that is in the process of being added to the market by a specified forecast period.
Planned additional inventory
In reference to commercial real estate, it is the supply or stock of a specific type of commercial unit or the amount of space that will be available in an upcoming forecast period from expansions, conversions (in), and new construction.
Planned removed inventory
In reference to commercial real estate, it is the supply or stock of a specific type of commercial unit or the amount of space that will not be available in an upcoming forecast period due to demolitions and conversions (out).
PMT
See payment.
Population/expenditure approach
An approach to estimating the trade area (and sales/revenue potential) for a given retail establishment or center based on the minimum area (or threshold population) that would be required to sustain a business, by calculating the population necessary to support total square footage of both existing and proposed space for a specific-use and determining/mapping the extent of the trade area based on population density.
Population growth
The rate at which a given population base in a given geographic area is growing (positive or negative) in relation to the forces of internal growth, in-migration, and out-migration; a factor that is widely acknowledged as having the greatest impact on the demand for housing.
Population migration
The movement and relocation of people from one place of residence to another in response to social and economic factors and forces; a long-term trend that can be expected to affect local economies and real estate values.
Portfolio income
Income from interest, dividends, royalties, or the disposition of property held for investment.
Positive leverage
Borrowed funds are invested at a rate of return higher than the cost of the funds to the borrower.