A conceptual development is a new real estate property development that has been discussed or even announced but the building plans have not been approved and/or a building permit has not been issued.
This is an important concept in real estate analytics, as projects that are in their conceptual phase have not officially entered into the “pipeline” of projects that are being developed.
Only once a project has had its plans approved and/or has been issued a building permit does it enter the pipeline, and can be included in market analysis as so.
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.
