What is built-up method?
A required unlevered return assembled from a benchmark risk-free rate (often the 10-year Treasury) plus premiums for real estate risk, illiquidity, management burden, and property-specific factors. Conceptually useful but subjective, so cross-check against market evidence.
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.