What does the term 'bricks and mortar' costs refer to?

The term 'bricks and mortar' costs specifically refers to expenses that are incurred for the physical construction of a building or structure. This includes costs associated with the materials (like bricks, concrete, steel, etc.) and labor required to erect a physical property. In real estate development, understanding these costs is crucial because they form a significant part of the overall budget for any development project.

This term is often used to distinguish between tangible expenses involved in creating the physical aspect of a building, as opposed to other costs that might be related to operation, land acquisition, or marketing. In contrast, operational costs for property management typically cover ongoing expenses needed to maintain and run the building after construction is completed, while land acquisition costs are associated with purchasing the geographical site for development. Marketing expenses focus on promoting the property to prospective buyers or tenants, which is a different area altogether. Thus, option B accurately encapsulates the essence of what 'bricks and mortar' costs signify in the context of real estate development.