This Glossary provides definitions of terms related to property and property investing.
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Term and Definition
Ecological footprint or 'footprint'

This is a measure of how much biologically productive land and water an individual, population or activity requires to produce all the resources it consumes, and to absorb the waste it generates using prevailing technology and resource management practices.

Economic rent

This is the necessary rent required in order for a development be economically viable.

Effective rent

This term is generally used in markets which have leasing incentives and inflated face rents. In these markets it can be useful to analyse what the real, or effective rent would be. The Face rent stripped of the effect of incentives is known as the effective rent.

Energy audit

An examination and analysis of a building’s elements and environmental support systems. e.g. Heating, ventilating, air-conditioning systems (HVAC) and lighting, fuel consumption records, operation and use patterns, and building code compliance.

Energy efficiency

The minimisation of energy usage from gas and electricity whilst maintaining occupant comfort and building services.

Energy Management System (EMS)

The control system that monitors the environment and energy usage in a building and alters equipment operation to conserve energy whilst providing occupant comfort.

Englobo

An undeveloped parcel of land zoned to allow for, and capable of, significant subdivision into smaller parcels under existing land use provisions.

Environmental impact assessment

A multi-disciplinary study which considers the positive and negative environmental impacts that a proposed project may have on an area or region. The study covers natural, social and economic aspects.

Environmental Management Plan (EMP)

A tool used to manage environmental risks and issues on a project. It is a management and communication process designed to enable the range of environmental aspects and impacts of a given activity (whether a design process, a project, a consultancy or a corporate operation) to be systematically considered, addressed, monitored and reviewed. The aim is to ensure compliance with regulatory, project and organisational environmental requirements, policies and objectives.

Equity IRR (Internal Rate of Return)

The IRR is the interest rate (also known as the discount rate) that will bring a series of cash flows (positive and negative) to a net present value (NPV) of zero (or to the current value of cash invested). Using IRR to obtain net present value is known as the discounted cash flow method of financial analysis. IRR can be used as a comparable metric for the analysis of similar property transactions having comparable income patterns.

Equivalent Yield / Market Yield

The yield used to capitalise assessed market rental value, making allowances for rental reversions and short-term capital adjustments. See also Capitalisation Rate.

Ethical investment

Ethical investment is an approach to investing that considers both the profit potential and the investment's impact on society and the environment.

External valuation

External valuation is the valuation of an asset by a valuer who has no material links with the property owner and meets the specific requirements of independence which are applied by regulation or by law. Note: Accounting standards encourage, but do not require, fund managers to determine the fair value on the basis of an external valuation.

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