Key PropTech Terms Explained
Essential terminology you need to understand PropTech news. Each term is explained in plain language with context for how it appears in current reporting.
PropTech
Property technology applied across real estate operations including transaction platforms, asset management software, lease automation, brokerage tooling, and analytics infrastructure
iBuyer
Algorithmic instant-offer platform that purchases residential properties directly from sellers using automated valuation models, then resells through marketplace inventory
Smart Building
Commercial structure equipped with integrated Internet-of-Things sensors monitoring energy consumption, occupancy, security perimeters, indoor environmental quality, and predictive maintenance triggers
Real Estate Tokenization
Fractional ownership structure dividing physical property equity into blockchain-based digital tokens; enables liquidity, fractional investment, and programmable distributions
BIM Building Information Modeling
Digital three-dimensional representation of physical building characteristics encompassing geometry, spatial relationships, geographic context, quantities, and material properties; foundational dataset across architecture, engineering, construction
AVM Automated Valuation Model
Statistical or machine-learning system producing instant property value estimates from comparables, transaction history, neighborhood signals, and structural attributes
MLS Multiple Listing Service
Cooperative database where licensed brokers share active property listings; foundational infrastructure for residential transaction discovery in North America
CRE Commercial Real Estate
Income-producing properties — office, retail, industrial, multifamily, hospitality, healthcare, data center, self-storage, life science — leased to operators or tenants
REIT Real Estate Investment Trust
Publicly traded or private vehicle holding income-producing real estate; passes substantial cash flow to shareholders via mandated distributions
LIHTC Low Income Housing Tax Credit
Federal program providing equity-side financing for affordable rental housing development through allocated tax credits
Cap Rate
Capitalization rate measuring annual net operating income as percentage of property purchase price; primary commercial real estate yield metric
NOI Net Operating Income
Annual property income minus operating expenses, before debt service and capital expenditure; core profitability measure for commercial assets
LTV Loan-to-Value Ratio
Mortgage debt amount expressed as percentage of appraised property value; key underwriting risk gauge for residential and commercial lenders
DSCR Debt Service Coverage Ratio
Annual property cash flow divided by annual debt service obligations; lender-required threshold for commercial loan qualification
Modular Construction
Off-site fabrication of structural building modules transported and assembled on-site; reduces schedule duration, weather dependency, and labor demand
Prefabrication
Industrial production of building components such as wall panels, bathroom pods, mechanical systems, or façade units before site delivery
Coliving
Shared residential model offering private bedrooms within communal apartments featuring bundled amenities, services, and community programming
Coworking
Shared commercial workplace providing flexible memberships, hot-desking, conference facilities, and ancillary services to small businesses, freelancers, and remote teams
Asset Class
Categorization grouping investment property types — multifamily, office, industrial, retail, hospitality, niche — by demand drivers, risk characteristics, and operational complexity
Cap-Ex Capital Expenditure
Investment spending on physical asset improvements, renovations, system replacements, or repositioning works distinct from routine operating expenses
1031 Exchange
Internal Revenue Code Section 1031 like-kind property swap deferring capital gains taxation when reinvesting sale proceeds into qualifying replacement real estate
Tenant Improvement Allowance
Landlord contribution toward customizing leased space for incoming tenant; commonly negotiated component of commercial leases
Pro Forma Analysis
Forward-looking financial projection modeling future income, expenses, financing, and resale assumptions for a proposed property transaction
Yield on Cost
Stabilized net operating income divided by total all-in development or repositioning cost; metric comparing development returns to acquisition cap rates
Lease-Up Velocity
Speed at which newly constructed or repositioned space achieves stabilized occupancy; principal early-stage operating risk indicator
How These Terms Appear in Our Coverage
Our editorial process surfaces these terms in context across daily intelligence briefs. Our automated pipeline classifies topics, identifies entities, and assesses sentiment using a controlled vocabulary aligned with this glossary. Multi-source verification links each story to its original source articles, and quality control checks ensure accurate framing before publication. See our methodology page for full detail on how we select, score, and verify reporting across PropTech.
Source diversity is essential: we monitor MLS feeds, public deed records, brokerage data feeds, government statistical bureaus, equity research, primary corporate communications, and industry trade publications. Each story shows the source count so readers can assess reliability independently. Stories tagged with single-source reporting are clearly marked. Our intelligence pipeline favors corroborated coverage over single-outlet claims, prioritizing items with broad attestation across independent reporting outlets.
Stay Informed
These terms appear frequently in PropTech reporting. Bookmark this page as a quick reference when reading our latest intelligence briefs.
Terms are sourced from stories that clear our classification pipeline at a minimum 35 percent relevance threshold. According to that methodology, reviewed July 2026, this follows multi-source corroboration standards recommended by journalism research bodies such as the Reuters Institute for the Study of Journalism.