{"id":893,"count":1,"description":"Jump to:\r\nWhat is deficit?<\/a>\r\nWhat is an operating deficit?<\/a>\r\n\r\nWhat is deficit?\r\n\r\nDeficit is often used in finance to refer to a difference between a cash inflow and outflow \u2013 the deficit is the amount by which outflow exceeds inflow, or by which expenses exceed income over a period of time (\u201cannual operating deficit\u201d).\r\n\r\nWhat is an operating deficit?\r\n\r\nIn real estate development, payments for operating expenses and property taxes usually begin before rent collection from tenants can begin, so it is required that funds be allocated towards these expenses, known as \u201coperating deficit\u201d.\r\n\r\nThis is one of the \u201chidden costs\u201d of real estate development, along with Capitalized Financing fees and the Origination Costs of Debt.\r\n\r\nYou might also be interested in:\r\n\r\nWhat is a real estate broker?<\/a>\r\nWhat is a REALTOR\u00ae?<\/a>\r\n\r\nSearch other terms\r\n\r\nA<\/a>\r\nB<\/a>\r\nC<\/a>\r\nD<\/a>\r\n\r\nE<\/a>\r\nF<\/a>\r\nG<\/a>\r\nH<\/a>\r\n\r\nI<\/a>\r\nJ<\/a>\r\nK<\/a>\r\nL<\/a>\r\n\r\nM<\/a>\r\nN<\/a>\r\nO<\/a>\r\nP<\/a>\r\n\r\nQ<\/a>\r\nR<\/a>\r\nS<\/a>\r\nT<\/a>\r\n\r\nU<\/a>\r\nV<\/a>\r\nW<\/a>\r\nX<\/a>\r\n\r\nY<\/a>\r\nZ<\/a>\r\n\r\nPopular terms\r\n\r\nAmortization<\/a>\r\n\r\nEquity <\/a>\r\n\r\nNotary Public <\/a>\r\n\r\nProgression\/Regression<\/a>\r\n\r\nAcquisition <\/a>\r\n\r\nAnnuity <\/a>\r\n\r\nAsset <\/a>\r\n\r\nFiduciary <\/a>\r\n\r\nInflation <\/a>\r\n\r\nContingency <\/a>\r\n\r\nEscrow<\/a>\r\n\r\nPower of attorney <\/a>\r\n\r\nReal Estate Agent <\/a>\r\n\r\nEminent Domain <\/a>\r\n\r\nLiability <\/a>\r\n\r\nStatute of Limitations<\/a>\r\n\r\nValid <\/a>\r\n\r\nVariance<\/a>\r\n\r\nContiguous <\/a>\r\n\r\nDeficit<\/a>","link":"https:\/\/www.commercialcafe.com\/blog\/tag\/cre-term-deficit\/","name":"Deficit","slug":"cre-term-deficit","taxonomy":"post_tag","meta":[],"yoast_head":"\nWhat is Deficit? - Commercial Real Estate Dictionary<\/title>\n<meta name=\"description\" content=\"Deficit is often used in finance to refer to a difference between a cash inflow and outflow \u2013 the deficit is the amount by which outflow exceeds inflow, or by which expenses exceed income over a period of time (\u201cannual operating deficit\u201d).\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialcafe.com\/blog\/tag\/cre-term-deficit\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Deficit Archives\" \/>\n<meta property=\"og:description\" content=\"Deficit is often used in finance to refer to a difference between a cash inflow and outflow \u2013 the deficit is the amount by which outflow exceeds inflow, or by which expenses exceed income over a period of time (\u201cannual operating deficit\u201d).\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialcafe.com\/blog\/tag\/cre-term-deficit\/\" \/>\n<meta property=\"og:site_name\" content=\"CommercialCafe\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"CollectionPage\",\"@id\":\"https:\/\/www.commercialcafe.com\/blog\/tag\/cre-term-deficit\/\",\"url\":\"https:\/\/www.commercialcafe.com\/blog\/tag\/cre-term-deficit\/\",\"name\":\"What is Deficit? - Commercial Real Estate Dictionary\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialcafe.com\/blog\/#website\"},\"description\":\"Deficit is often used in finance to refer to a difference between a cash inflow and outflow \u2013 the deficit is the amount by which outflow exceeds inflow, or by which expenses exceed income over a period of time (\u201cannual operating deficit\u201d).\",\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialcafe.com\/blog\/tag\/cre-term-deficit\/#breadcrumb\"},\"inLanguage\":\"en-US\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.commercialcafe.com\/blog\/tag\/cre-term-deficit\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.commercialcafe.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Deficit\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.commercialcafe.com\/blog\/#website\",\"url\":\"https:\/\/www.commercialcafe.com\/blog\/\",\"name\":\"CommercialCafe\",\"description\":\"Your Commercial Real Estate Blog\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.commercialcafe.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"What is Deficit? - Commercial Real Estate Dictionary","description":"Deficit is often used in finance to refer to a difference between a cash inflow and outflow \u2013 the deficit is the amount by which outflow exceeds inflow, or by which expenses exceed income over a period of time (\u201cannual operating deficit\u201d).","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.commercialcafe.com\/blog\/tag\/cre-term-deficit\/","og_locale":"en_US","og_type":"article","og_title":"Deficit Archives","og_description":"Deficit is often used in finance to refer to a difference between a cash inflow and outflow \u2013 the deficit is the amount by which outflow exceeds inflow, or by which expenses exceed income over a period of time (\u201cannual operating deficit\u201d).","og_url":"https:\/\/www.commercialcafe.com\/blog\/tag\/cre-term-deficit\/","og_site_name":"CommercialCafe","twitter_card":"summary_large_image","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"CollectionPage","@id":"https:\/\/www.commercialcafe.com\/blog\/tag\/cre-term-deficit\/","url":"https:\/\/www.commercialcafe.com\/blog\/tag\/cre-term-deficit\/","name":"What is Deficit? - Commercial Real Estate Dictionary","isPartOf":{"@id":"https:\/\/www.commercialcafe.com\/blog\/#website"},"description":"Deficit is often used in finance to refer to a difference between a cash inflow and outflow \u2013 the deficit is the amount by which outflow exceeds inflow, or by which expenses exceed income over a period of time (\u201cannual operating deficit\u201d).","breadcrumb":{"@id":"https:\/\/www.commercialcafe.com\/blog\/tag\/cre-term-deficit\/#breadcrumb"},"inLanguage":"en-US"},{"@type":"BreadcrumbList","@id":"https:\/\/www.commercialcafe.com\/blog\/tag\/cre-term-deficit\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.commercialcafe.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Deficit"}]},{"@type":"WebSite","@id":"https:\/\/www.commercialcafe.com\/blog\/#website","url":"https:\/\/www.commercialcafe.com\/blog\/","name":"CommercialCafe","description":"Your Commercial Real Estate Blog","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.commercialcafe.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"}]}},"_links":{"self":[{"href":"https:\/\/www.commercialcafe.com\/blog\/wp-json\/wp\/v2\/tags\/893","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.commercialcafe.com\/blog\/wp-json\/wp\/v2\/tags"}],"about":[{"href":"https:\/\/www.commercialcafe.com\/blog\/wp-json\/wp\/v2\/taxonomies\/post_tag"}],"wp:post_type":[{"href":"https:\/\/www.commercialcafe.com\/blog\/wp-json\/wp\/v2\/posts?tags=893"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}