Commercial Mortgage Terms Glossary H - Ocean Capital Lending

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Commercial Mortgage Terms Glossary H

Heavy utility needs
In reference to location-decision considerations made in relation to the energy or power requirements of a firm/user in the assessment of the feasibility of a location to support a given activity.

Hedging
Protecting oneself against negative outcomes.

High order good
A good or service requiring a high threshold population before it is offered to a market. Such a good or service requires a large number of consumers to support its business and requires a larger trade area than a low order good. Also see lower order good.

High-tech
Economic sectors and activities oriented toward the creation and production of high technology products and the use of advanced designs, techniques, or devices in fields like electronics, optics, lasers, aerospace, computers, semiconductors, and telecommunications.

Highest and best use
The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. [Appraisal Institute]
Highest and best use (financial) analysis A determination of the highest and best use of one or more sites (either vacant or as though vacant) or properties as improved by examining the profitability of all possible use
scenarios (including renovation, rehabilitation, demolition, and  replacement).

Household
A housing unit or residence at a given location that is occupied by one or more persons (that is, a social unit comprised of one or more individuals living together in the same dwelling or place).

Household population
The total number of households in a given geographic market or submarket as defined by specific demographic and socio-economic characteristics.

Housing demand
The total number of housing units demanded in a given market, defined as occupied household units divided by one minus the vacancy allowance for that market (where demand is affected by the rate at which new households are being added to the market, allowing for a normal level of vacancy).