← All glossary terms

Finance, Valuation, and Incentives

Development spread

Development spread is the difference between yield on cost and market cap rate. A positive spread suggests development value creation, but only if cost, schedule, leasing, and power assumptions are credible.

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Cold aisle

Cold aisle is the aisle supplying cooled intake air to IT equipment. Cold-aisle management matters because server inlet temperature, airflow, and containment drive reliability and cooling efficiency.

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Due diligence period

Due diligence period is the time when a buyer or tenant investigates the property before becoming fully committed. For data centers, diligence should include power, title, survey, environmental, zoning, water, fiber, geotech, tax, and political risk.

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Mitigation

Mitigation in environmental permitting generally means avoiding, minimizing, and compensating for impacts. For wetlands and streams, remaining unavoidable impacts may require credits, restoration, preservation, or other compensation.

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