Dictionary of Business Terms: speculative building
speculative building
land development or construction with no formal commitment from the end users of the finished product. Contrast with custom building, where the builder is under contract to produce a specific structure. The speculative builder anticipates that a demand exists or will form for the product when it is put on the market.
Dictionary of Real Estate Terms: speculative building
speculative building
land development or construction with no formal commitment from the end users of the finished product. Contrast with custom building, where the builder is under contract to produce a specific structure. The speculative builder anticipates that a demand exists or will form for the product when it is put on the market.
Examples:
- A developer subdivides a tract and markets the lots.
- A builder produces houses and puts them up for sale.
- A developer converts a building into condominiums and looks for buyers.
- A builder constructs a shopping center and leases space.
