A real estate development project is completed (reached completion) when it has a certificate of occupancy or passed final inspection under the building permit.
This is another term that is crucial in understanding the real estate development pipeline, which is the total stock that is yet to be completed of a specific real estate asset class in a defined geographic area (although the full explanation is more complicated.
When a development project reaches completion, it exits the pipeline and enters the actual supply of real estate, or the total stock.
There are other useful terms to consider when exploring the dynamics of a real estate market. Vacant space, nominal vacancy rate, structural vacancy rate, shadow space, expanded vacant space, delivery, on hold, stalled development, abandoned development and pipeline entries. These are all important concepts that form the makeup of real estate supply and demand.
