What is build-up approach?
Constructing a real estate discount rate by starting from a risk-free rate and adding premiums for real estate risk, illiquidity, property-specific risk, lease risk, development risk, and capital-market exposure.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.