What Does Cre Stand for in Business

This glossary was created by CoreNet Global and defines or explains a set of definitions of terms and acronyms commonly used in the commercial real estate profession (CRE). CRE has its own jargon, and understanding the language of CRE can help you communicate more effectively with the experts you work with. Refers to the alignment of the company`s resources with the core business strategy that covers the entire value creation network as the portfolio lines of interconnected business partners become blurred, with the aim of reducing costs and improving efficiency. a country that does not serve or support existing improvement; Land that is not necessary to accommodate the highest and best main use of the site. Could remain empty with plans for future expansion or have its own highest and best use. Ability of a property or building to be useful and perform its intended function in accordance with current market tastes and standards. Efficiency of the use of a building in terms of architectural style, design and layout, circulation patterns, size and type of spaces. See also Obsolescence / Obsolete for comparison. Commercial real estate refers to properties that house the commercial activities of an organization that owns or leases and manages real estate related to its core business, which is not real estate. Commercial real estate can be compared to commercial real estate where the business is real estate.

The goal of commercial real estate is to generate a return and the goal of commercial real estate is to support the business. The real estate life cycle refers to the period during which the space is held (owned or leased) by the organization. The life cycle begins with the acquisition of space, continues throughout the period of ownership, and ends with the availability of space. Real estate lifecycle management requires the application of portfolio management principles and processes, aligning the portfolio with the company`s strategic drivers and priorities while maintaining the flexibility to respond to external or internal business changes. Corporate leadership does not mean real estate as an end in itself, but as a catalyst for business success. The direction of the company relies on a centralized approach to the management of the organization`s real estate rather than the review of real estate by business unit or location. Note that so far, the COVID-19 pandemic hasn`t really caused property values to drop significantly, and real estate values have remained stable or even increased, as has the stock market through the fall of 2020. This is a key difference between the economic consequences in 2020 and what happened a decade earlier. Commercial real estate (CRE) is real estate that is used exclusively for commercial purposes or to provide a work area and not as housing that would rather represent residential real estate.

Most often, commercial properties are leased to tenants to carry out income-generating activities. This vast category of real estate can include anything from a single storefront to a huge mall. A CRE loan can be sought by small businesses looking to buy, expand or renovate their locations. CRE loans are typically granted to investors such as corporations, developers, partnerships, funds, trusts and real estate investment trusts or REITs. Commercial real estate loans are intended to finance real estate used exclusively for commercial purposes and to generate income. A commercial home loan is a mortgage that is secured by a lien on commercial real estate as opposed to residential property. Commercial real estate (CRE) refers to all income-generating real estate used for commercial purposes; For example, offices, retail, hotels and apartments. “Achieve business success in a way that respects ethical values and respects people, communities and the natural environment. While there is no single, generally accepted definition of CSR, it can be explained as a concept in which companies integrate social and environmental concerns into their business operations and interaction with their stakeholders on a voluntary basis. Source: Business for Social Responsibility Value of property under certain property rights – refers to what physically exists and is permitted by law. Excludes all assumptions regarding hypothetical market conditions or a possible zoning change. This glossary is provided for informational purposes.

While this glossary contains many commonly used terms, acronyms, and definitions, it does not include all terms, acronyms, and definitions related to ERC. This glossary is intended only as a resource and guide for practitioners and professionals in the field of CRE. Place multiple potentially different business units or components in a single facility for greater synergies, cost reductions, or other business benefits. Refers to the approach used by companies to provide property management and facilities management services to the end customer (e.g. B the internal commercial customer). It is usually a combination of internal and external resources. There is no one-size-fits-all approach to organizing corporate real estate functions. Common organizational models include: functional, geographic, process and customer models. The functional model has real estate capabilities within each function that yield up to one global lead. The geographic model has a global lead with global control; that global leadership is supported by regional or national leaders, et cetera.

The process model includes structuring the real estate team around the provision of real estate services. A customer model assigns account managers to manage business demand from different industries, and then subject matter experts manage the supply. Measure of value frequently sought in bankruptcy proceedings. Real estate is analyzed either as a forced liquidation or as an orderly liquidation and the proceeds come from a seller who is forced to sell after a shorter exposure period than the market period. Process for assessing progress towards strategic objectives. Examines investments in labour, business process improvement (inputs, outputs, quality of procedures) and productivity. In other words, business units created for the specific purpose of owning and operating commercial real estate. .