Participation mortgage
A loan secured by real property, with a stated interest rate that also provides for a share to the lender in annual net cash flow, gain on sale, or proceeds from refinancing the property. (Real Estate Information Standards)
Partially amortized mortgage loan
The payments do not repay the loan over its term and thus a lump sum (balloon) is required to repay the loan.
Oversupply
In reference to commercial real estate, oversupply is a stock or supply of a given commercial property type that is greater than that which can be cleared under prevailing prices levels and market conditions (for example, excess supply). Also...
Outlet center
A retail property type usually located in rural or occasionally in tourist locations, outlet centers consist mostly of manufacturers’ outlet stores selling their own brands at a discount. These centers are typically not anchored. A strip co...
Out-migration
The process by which a given geographic area expels or loses individuals/households to locations outside that area (an outflux of individuals/households from a given area).
Original basis
The total amount paid for a property, including equity capital and the amount of debt incurred.
Opportunity cost
The cost of selecting one alternative is the benefit foregone from the next best alternative. Also see discount rate.