Real Estate Investing
Property Depreciation
Definition
What is Property Depreciation?
A decline in a propertyLand and buildings held for use, rent, development, or capital appreciation.'s economic value, or an accounting allocation of building cost depending on context.
Example in practice
How This Looks in Practice
Poor maintenance causes the market valueThe price at which an asset could trade in the market at a given time. to fall.
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Related Terms
Real Estate Investing
Real Estate
Land and buildings held for use, rental income, development, or appreciation.
Real Estate InvestingResidential Property
Property designed mainly for people to live in.
Real Estate InvestingCommercial Property
Property used for business purposes, such as offices, shops, or warehouses.
REIT MetricsFunds from Operations
A REIT performance measure that adjusts net income for real-estate depreciation and certain property-sale gains.