Terraces are accessible outdoor spaces above a building's entrance level and below its roof, which are not stacked over each other and which are open to the sky above. They are distinguished from balconies, which are normally smaller and generally sheltered by the balcony or roof above.

A terrace is situated on a building setback or on a large cantilevered projection. The only shelter it may have is a canopy or awning.

Like balconies, terraces can be listed for a building even when they are only accessible from some private units. They are most often considered a unit feature rather than a shared amenity. Very often they are only present on premium units, such as penthouses.

Large decks on top of podiums and parking structures do not count as terraces. Open rooftops can only count as terraces if usable floors rise to a higher level beside them; in other words, terraces must be on setbacks rather than main roofs or upper roofs.