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Keyword Real Estate is simply using a authoritative domain with a static subpage to boost your websites backlinks and spider crawlage. The reason this helps your websites ranking is because you are getting backlinks from a trusted website. This could be automated to help you rank for some very competitive terms.

Here are some examples of keyword real estate pages:
www.digg.com/keyword
www.squidoo.com/keyword
www.wordpress.com/keyword
www.blogger.com/keyword
www.mahalo.com/keyword
technorati.com/profile/keyword
del.icio.us/keyword

Those are the main ones I use in order. However you can get creative and find websites within the niche your targeting to get some keyword real estate pages.

How does it work?
What you are basically doing is using a trusted site such as digg.com and creating static page such as digg.com/keyword. On that page you will create links with your anchor text and the website you are promoting, preferable without nofollow. What happens is the google bots spider digg.com and find your static page, and then crawl your site using your anchor text. That will give you a backlink and help you rank for the niche you are promoting.