A terrace in a phylogenetic tree space is a region where all trees contain the same set of subtrees, due to certain patterns of missing data among the taxa sampled, resulting in an identical optimality score for a given data set. This was first investigated in the context of phylogenetic tree estimation from sequence alignments using maximum likelihood (ML) and maximum parsimony (MP). It was later extended to the species tree inference problem from a collection of gene trees, where a set of equally optimal species trees was referred to as a ''pseudo'' species tree terrace which does not consider the topological proximity of the trees in terms of the induced subtrees resulting from certain patterns of missing data. In this study, we mathematically characterize species tree terraces and investigate the mathematical properties and conditions that lead multiple species trees to induce/display an identical set of locus-specific subtrees owing to missing data. We report that species tree terraces are agnostic to gene tree heterogeneity. Therefore, we introduce and characterize a special type of gene tree topology-aware terrace which we call ''peak terrace''. Moreover, we empirically investigated various challenges and opportunities related to species tree terraces through extensive empirical studies using simulated and real biological data. We demonstrate the prevalence of species tree terraces and the resulting ambiguity created for tree search algorithms. Remarkably, our findings indicate that the identification of terraces and the trees within them can substantially enhance the accuracy of summary methods and provide reasonably accurate branch support.