CRE Word Bank
Like many industries commercial real estate has a language all its own that can be confusing for newcomers and, sometimes, even veteran brokers and developers. Here we will break down the crazy and headache-inducing CRE terminology for you to use whenever your brain could use a little extra CRE TLC.
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A/C Abbreviation for Air Conditioning - only used if buildings are completely air conditioned.
Abatement Zone Used in conjunction with the Downtown Revitalization Act passed to assist in filling commercial buildings that were built prior to 1975. Tenants that lease space in these buildings are eligible for tax and energy expense discounts. Owners that convert their buildings to residential use are also eligible for tax incentives. Available in New York City only.
Absorption Refers to the change in occupancy over a given time period. Lease renewals are not factored into absorption unless the renewal includes the occupancy of additional space. (In that case, the additional space would be counted in absorption.) Pre-leasing of space in non-existing buildings (e.g., Proposed, Under Construction, Under Renovation) is not counted in absorption until the actual move-in date.
See also: Positive Absorption, Negative Absorption, Gross Absorption, Net Absorption.
Adaptive Reuse A building converted to a different use in order to meet contemporary demand. Examples would include a factory converted to a retail use or an office building converted to a school.
Air Lines Compressed air lines for operating machinery, such as pneumatic tools. See also: Features
Amps The basic flow of electrons in a conductor is called current. The basic unit of electrical current is measured in Amperes, often referred to as Amps. Any service rated over 400 amps is typically commercial service although 200-400 amps are generally seen in flex buildings and 800+ for heavy industrial buildings. Amps fields allow a range from low to accommodate different sources of power.
Anchor Tenant Tenants that are considered "credit worthy" and attract or generate traffic for a retail facility (e.g. a supermarket in a neighborhood shopping center, a major chain or department store in a regional mall).
Asking Rent AKA Face Rent, this represents the dollar amount the lessor is asking for in order to lease their building/space/land. It is represented as an annual or monthly amount depending on the area where the property is located. Most markets reflect an annual amount while some western markets use a monthly amount.
Assessed Value For commercial real estate it's a value assigned by the local tax assessor on land and/or structures for purposes of taxation only.
Asset Manager The company or contact that handles all the financial transactions for the subject property insuring the loans, appraisals, and management requirements are in order and operating correctly. Asset Managers usually handle portfolios of properties, which the subject property may be one of.
Atrium A lobby with a high, vaulted ceiling or a grand, central court that separates two halves of a large building. An atrium will decrease the amount of rentable area in a building but increase the amount of high value space by incorporating more windowed offices into the building design and adding aesthetic value. See also: Amenities
Auditorium A large room used to accommodate an audience for large meetings or performances.
Auto Dealership Retail secondary type. New or used car dealership facility with substantial amount of building improvements that includes some or all of the following: showroom, offices, parts dept., auto repair/service dept., body shop.
Auto Mall A group of retail stores clustered together involved in sales, service, repair, and/or parts for automobiles.
Auto Repair Retail secondary type. Commercially zoned single and/or multi-tenant buildings featuring service/work bays for wide ranges of auto repair and auto care services.
Available Floors The floors that are available, identified by the floor number or name such as "MEZZ" (Mezzanine), "BSMT" (Basement), "CNCR" (Concierge).
Available Space The total amount of space that is currently being marketed as available for lease or sale in a given time period. It includes any space that is available, regardless of whether the space is vacant, occupied, available for sublease, or available at a future date.
Average Rent Average rent is the weighted average rent for a building or market. Rents are weighted based on the total square footage available at a rental rate. If the rental rate is zero, TBD (to be determined) or negotiable; it is not counted in the average rent. Average rent is calculated from suite-by-suite detail. However, average rent can be reconstituted by multiplying the listed average by the listed space available. See Weighted Average Rent
Banking An on-site branch or ATM is located in the building or building park.
Bar Retail secondary type. This property use includes all types of drinking/entertainment uses such as bars, cocktail lounges, taverns, and nightclub/dancing establishments. May have limited kitchen facilities and food menu.
Base Year Expense Stop When a tenant is responsible for paying a portion of the operating expenses as part of a lease agreement. Typically, the "base year" is the tenant's first year of occupancy. The expense amount for that first year becomes the owner's "base year expense stop". That is the maximum amount of expenses the owner will pay over the life of the lease per year. Any expenses in future years, which exceed the stop, are "passed through" to the tenant in addition to the rent. Passthroughs are also formally known as Recovered or Recaptured Expenses.
Big Box Store A large stand-alone store that specializes in a single line of products, such as home improvements, toys, or office supplies; no-frills discount stores that sell in volume and category killers are often big box stores.
Biotech / Lab Space A building or space that has been built-out for extensive laboratory use. Such space may have, but is not limited to, extensive steel frame with concrete floors to handle additional floor loading, extremely high floor separations allowing extensive mechanical equipment "runs" above the suspended ceiling and below the floor structure above, high speed data access, heavy duty HVAC, higher roof loading capacity to support heavy air handling equipment, and enhanced environmental control technology. This space may also be designated a "clean room" for handling materials with high tolerances and contamination requirements.
See also: Amenities, Secondary Type
Block & Lot Block and Lot refers to the system of identifying property on a jurisdiction's tax map for assessment purposes. City blocks comprised of individual, unique lots. It also identifies a type of legal description typically used in urban areas.
BOMA Standard Building Owners and Managers Association Standard. Since 1915, the BOMA Standard has been the only floor measurement method for commercial real estate approved by the American National Standards Institute (ANSI). These Standards present a calculation methodology in an effort to insure accurate comparisons between buildings. They are, however, only guidelines and not a law or enforceable regimen, as is commonly thought. A must for building owners, managers, facilities managers, tenants, appraisers, architects, leasing professionals, lending institutions and others when calculating leases, allocating building expenses to cost centers, or comparing occupancy.
Build-To-Suit Indicates whether or not the property was developed specifically for a company to occupy. The opposite of a build-to-suit is a spec property that speculates future tenant occupancy.
Building Material-Comps Indicates what types of materials were used to construct the frame of the building. The construction types are: Brick & Block, Brick & Glass, Brick & Steel, Brick & Timber, Concrete, Concrete Brick, Poured in Place, Pre-Cast, Reinforced Concrete, Reinforced Mason, Split-Face Block, Steel, Steel & Concrete, Steel & Glass, Steel & Concrete Slabs, Tilt-Up, Wood Frame.
Building Available The total square footage of space that is available for lease or sale within a building, regardless of space type or use.
Building Class - Office The office building class designation is a way of differentiating buildings of the same building type into different categories of quality. These classes represent a combination of a subjective and objective quality rating of buildings that indicates the competitive ability of each building to attract similar types of tenants. Assigning class codes allows us to compare individual buildings within a market as well as across markets, and also to compare office market conditions between areas in peer groups. The options are generally Class A, B, C, or F, with assignment depending on a variety of building characteristics, such as total rentable area, age, building finishes and materials, mechanical systems standards and efficiencies, developer, architect, building features, location/accessibility, property manager, design/tenant layout, and much more. Once assigned, a building's class reflects not only characteristics and attributes evaluated objectively, but also the subjective evaluations of finishes and amenities.
Building Expenses Typically the fixed, variable or operating, and reserve expenses for the normal operation of the property.
Building Park Name The name of the complex in which the building is located.
Building Sign Co./Agent When the leasing representatives for the property are recognized by a sign in-front of the building, the company information is entered in this field, along with the primary company field. Building signage is gathered and confirmed by CoStar's field research efforts.
Building Size See Gross Building Area, Usable Area, Common Area, and Rentable Building Area.
Buss Ducts Electricity conducting copper bars that run along the ceilings for efficiently hooking up machinery. Each section can have multiple connections and can be shut off.
CAM Common Area Maintenance: A potential lease expense, in addition to contractual rent, passed on to the tenant(s) for cleaning and/or maintenance of the building's common areas. For retail properties, this may include advertising and other associated expenses.
Cap Rate See Overall or Total Cap Rate
Card Key Access Security system that controls building access via an electronic card reading system. This type of system will typically record and store the time and identity of the user. See also: Amenities
Category Killer A large national chain store specializing in one line of products, such as hardware and home improvements, office supplies, or toys, that can overwhelm both smaller and more diverse competitors because of its size, variety of merchandise, and prices.
CBD Central Business District- the center or core downtown area where many different types of major uses are concentrated such as retail, office, and/or residential.
CBSA There are two types of CBSA areas: metropolitan and micropolitan statistical areas. Metropolitan statistical areas have an urban core of at least 50,000 and account for 83% of the U.S. population. Micropolitan statistical areas have an urban core between 10,000 and 49,999 and account for 10% of the U.S. population. Both areas are conglomerations of whole counties (or equivalents). Both areas con be combined to form Combined Statistical Areas (CSAs).
Ceiling Height The distance on an industrial building from the top of the finished floor to the lowest bottom edge of the roof structure. These heights may vary in some buildings. It is used to measure the vertical capacity of a building for storage and/or placement of equipment. See Truss Height.
Cement/Gravel Plant Industrial secondary type. A facility that processes and transfers rock materials. May also manufacture cement. Usually located in fenced area with large cranes and belt movers to move the material from place to place.
Chemical/Oil Refinery Industrial secondary type. A property used for the purpose of processing, refining, and storage of chemicals, oil and petroleum based products.
Class A Office In general, a class A building is an extremely desirable investment-grade property with the highest quality construction and workmanship, materials and systems, significant architectural features, the highest quality/expensive finish and trim, abundant amenities, first rate maintenance and management; usually occupied by prestigious tenants with above average rental rates and in an excellent location with exceptional accessibility. They are most eagerly sought by international and national investors willing to pay a premium for quality and are often designed by architects whose names are immediately recognizable. A building meeting this criteria is often considered to be a landmark, either historical, architectural or both. It may have been built within the last 5-10 years, but if it is older, it has been renovated to maintain its status and provide it many amenities. Buildings of this stature can be one-of-a-kind with unique shape and floor plans, notable architectural design, excellent and possibly outstanding location and a definite market presence.
Class B Office In general, a class B building offers more utilitarian space without special attractions. It will typically have ordinary architectural design and structural features, with average interior finish, systems, and floor plans, adequate systems and overall condition. It will typically not have the abundant amenities and location that a class A building will have. This is generally considered to be more of a speculative investment. The maintenance, management and tenants are average to good, although, Class B buildings are less appealing to tenants and may be deficient in a number of respects including floor plans, condition and facilities. They therefore attract a wide range of users with average rents. They lack prestige and must depend chiefly on lower price to attract tenants and investors. Typical investors are some national but mostly local.
Class C Office In general, a class C building is a no-frills, older building that offers basic space. The property has below-average maintenance and management, a mixed or low tenant prestige, and inferior elevators and mechanical/electrical systems. As with Class B buildings, they lack prestige and must depend chiefly on lower price to attract tenants and investors.
Class F Office A functionally or economically obsolete building is one that does not offer a viable alternative for space and does not "compete" with others of similar type for occupancy by businesses seeking a location for operations. These buildings will usually have externally visible physical or structural features as well as internal ones that render it undesirable to be leased and therefore not competitive with any other properties in the market. The property may even be tagged as "Condemned" by the local authorities.
Close Date The date that the purchase contract between a buyer and seller is completed and signed. This reflects the seller delivering the title and the buyer making full payment. AKA the date the ownership transfers from the seller to the buyer or the Contract Date.
Column Spacing The minimum width and depth between columns found within an industrial building. A building that is "clear of columns' does not have any columns within the building.
Commercial Leasing Co. Indicates whether or not the tenant is involved in the commercial real estate industry.
Common Area According to BOMA, it entails the areas on a floor such as washrooms, janitorial closets, electrical rooms, telephone rooms, mechanical rooms, elevator lobbies, and public corridors which are available primarily for the use of tenants on that floor. It does not include major vertical penetrations such as elevator shafts, stairways, equipment runs, etc.
Community Center Typically offers a wider range of apparel and other soft goods than neighborhood centers. Among the more common anchors are supermarkets, super drugstores, and discount department stores. Community center tenants sometimes contain value-oriented big-box category dominant retailers selling such items as apparel, home improvement/ furnishings, toys, electronics or sporting goods. The center is usually configured in a straight line as a strip, or may be laid out in an L or U shape, depending on the site and design. Of all the center types, community centers encompass the widest range of formats. For example, certain centers that are anchored by a large discount department store often have a discount focus. Others with a high percentage of square footage allocated to off-price retailers can be termed as off-price centers. The size of such a center ranges from 100,000 to 350,000 square feet.
Commuter Rail Direct access to or, if in the suburbs, within reasonable walking distance of a commuter rail stop.
COMPS Property Type There are 10 property types used be CoStar COMPS; Apartment, Office, Retail, Industrial, Hotel/Motel, Mobile Home Parks, Specialty, Industrial Land, Residential Land, and Commercial Land.
Concierge A lobby attendant provided by the building owner to assist tenants of the building with special requests such as getting tickets to the theater, ordering flowers or calling taxis, to name a few. Concierges are usually only found in buildings that are Class A.
Condominium A type of ownership of single units (residential, industrial, office, or retail) or possibly multiple units in a multi-unit structure, combined with joint ownership of commonly used property (land areas, recreational facilities, garages, parking areas, sidewalks, hallways, stairs, lobbies, etc.). Any property type can be built or converted to this ownership arrangement. In most cases, individual unit owners hold title to the interior walls of their property. They also are members of the condominium association, which collectively owns the exterior walls of the structure, as well as the ground the structure sits on. Typically, each unit owner has to pay a regular fee to the association (called the "condo fee" or "assessment") which is then used to maintain common areas, pay common utility bills, maintain landscaping, remove trash, etc.
Conferencing Facility A common meeting facility that may be used by all of the building tenants. See also: Amenities
Construction Materials Indicates what types of materials were used to construct the frame of the building. The construction types are: Masonry, Metal, Reinforced Concrete, Steel, and Wood Frame.
Contiguous Space In a building: The largest block of vertically contiguous space in a building that a perspective tenant may lease within that building. This includes all space on one floor and adjoining floors that are either above or below. Space is considered contiguous if it is a full floor that is connected to another full floor or at least a half of a floor that is above or below. A floor may be skipped in between as long as the next floor is a full floor. May also be used to indicate space in a contiguous building.
On a floor: Two or more spaces on the same floor that are actually touching (adjacent), which can be combined for a prospective lessee.
Convenience Center An open shopping center with fewer than half-a-dozen stores offering day-to-day necessities, such as basic groceries, dry cleaners, liquor store, video rentals, etc.
Convenience Store Indicates there is a convenience store in the building.
Cooler A refrigerated storage area for perishable items.
Core Space AKA Common Area - The areas on floor such as washrooms, janitorial closets, electrical rooms, telephone rooms, mechanical rooms, elevator lobbies, and public corridors which are available for the use of all tenants on that floor. It does not include major vertical penetrations such as elevator shafts stairways, equipment runs, etc. (Identified as a percentage of rentable area.)
Courtyard A landscaped exterior area enclosed by walls or an adjoining building.
Coverage Floorplate area of the ground floor (Footprint) divided by the land area
Crane Machinery used for loading, unloading and moving heavy loads through an industrial building. It runs along a track located on the ceiling of the building. There are also cab cranes that are located on the ceiling, and an operator can sit in the cab to operate the crane. The two crane types can run in tandem for heavier loads. The crane hook height is measured by the distance from the floor to the bottom of the hook when the hook is all the way up. Crane tonnage is the amount of weight the crane can handle, measured in tons ranging from low to high.
Cross Docks Typically found on Truck Terminals. To have cross docks the building needs to be very narrow, (between 60 to 80 feet wide) and essentially the building is all cross-docks with no columns. Companies like FedEx/DHL or national trucking companies typically occupy buildings with cross docks because of the volume of inventory that is simultaneously incoming & outgoing, i.e., U.S. Mail comes in one side, sorts in the middle and is loaded to go out on the other side. Buildings with cross-docks are typically column free and not heated. See also: Loading Docks, Drive-Ins
CSA A Combined Statistical Area consists of at least two contiguous Core Based Statistical Areas (CBSA). CSAs are the government replacement of CMSAs
Data Center/Telecom Hotel A building designed as a centralized repository for the storage, management, and dissemination of data and information. The primary characteristic of these facilities is that they have very few, if any, offices, because they principally house electronic equipment. A data center is owned or leased to one company and a telecom hotel leased to numerous companies. See also: Amenities
Date of Growth Question The date on which the tenant was asked about their growth status.
Day Care Center Retail secondary type. Single or multi-tenant building that offers child day care and/or pre-school services. Usually includes a playground area, may be divided into classrooms and have kitchen facilities.
Day-Care Facility Indicates that there is a day-care facility in the building or on-site in the building park.
Debt Service The annual sum of monthly payments made on a mortgage or trust deed. Depending on the type of the loan, payments are typically applied to the principal and the interest, or just interest-only.
Delivery Assumption A user-entered variable for projecting vacancy rates. This assumption variable is for net deliveries and can be entered as a fixed or variable rate. See also: Forecast, Absorption Assumption
Demolished A building status identifying buildings that have been destroyed (torn down, burned, earthquake, natural disaster, etc.) or were converted to a building type (e.g., an office converted into a college). A building that has been converted from office to industrial or vice versa is also considered demolished.
Developer One who transforms raw land to improved property by use of labor, capital, and entrepreneur efforts.
Direct Space Space that is being offered for lease directly from the landlord or owner of a building, as opposed to space being offered in a building by another tenant (or broker of a tenant) trying to sublet a space that has already been leased. See also: Space Type
Divisible Space The smallest amount of square feet to which the total unit of space may be divided.
DMA Designated Marketing Area is an A.C. Neilson, Inc. geographic area based on measurable television viewing patterns. DMA's consist of all Zip Codes whose largest viewing share is given to stations of that same market area. All continental U.S., Hawaii and parts of Alaska are covered by non-overlapping DMA's.
Docks See Loading Docks, Cross Docks, Drive-Ins, Levelators
Docks/Loading Docks Platforms, located either on the exterior or interior of a building that are level with a truck to allow for loading/unloading of inventory from a truck. "None" means there are no docks "Yes" means there are docks. A number indicates how many docks. "Int" indicates "Internal" and "Ext" means "External". Other terms used to describe this may be "dock high" door, "tailgate", or "tailboard".
Document Number The reference number that corresponds to the grant deed, warranty deed or conveying instrument at a county recorder's office.
Double Net (NN) In context of lease service types, an arrangement where lessee may pay for two of the building expenses as determined by the landlord and lessee. See also: Services
Drive-Ins An entrance that enables trucks to drive right in to the building. This type of door usually indicates manufacturing use. Field values may include: a numeric value indicating the number of drive-ins that exist, "Yes" indicating drive-ins exist, "None" indicating no drive-ins exist, and a measurement indicating the height and width of the drive-in.
See also: Loading Docks, Cross Docks
Drug Store Retail secondary type. Drug store buildings are usually located within a shopping center or along older commercial strips. They typically range in size from 12,000 to 20,000sf.
Dry Cleaner Indicates that the building has a dry cleaner.
Effective Rent The average rent paid over the term by a tenant adjusted downward for concessions paid for by the landlord (such as free rent, moving expenses, or other allowances), and upward for costs that are the responsibility of the tenant (such as operating expense pass throughs).
Example: Effective Rent is the rental rate net of financial concessions such as periods of abated rent and includes escalations. Although there are technically several correct methods to calculate effective rental rates, the most common method employed is a simple straight-line method. For example, assuming no escalations, if a tenant signs a two-year lease at a nominal rental rate of $1.00 per square foot per month in year 1 and receives three months of abated rent inside the lease term (the tenant pays rent during only 21 of the 24 months), the effective rental rate is computed as follows: $1.00 x 21/24 = $0.88 If the abated rent is received outside the lease term (the tenant pays rent for all 24 months, but an additional three-month rent abatement period is added to the lease term), the effective rental rate is computed as follows: $1.00 x 24/27 = $0.89
See also: Asking Rent, Average Weighted Rent, Estimated Rent, Estimated Gross Rent, Services
Efficiency Ratio The ratio between the rentable area and the gross building area. This indicates a percentage of the building that can be leased, which can be compared to competing properties: Example - Rentable Area 11,500 SF / Gross Building Area 13,000 SF = .8846.
Elevators If there is/are elevators, and how many.
Employees at Location The number of employees the tenant has at this location.
Empowerment Zone An area designated by the U.S. government where financial incentives (such as corporate income tax credits) are provided for economic development purposes. The Empowerment Zone Employment Credit (EZ Wage Credit) give businesses an incentive to retain or hire individuals who both live and work in an Empowerment Zone (EZ). For example, individuals who work within the boundaries of the DC Enterprise Zone are eligible for a home address within the limits of the District of Columbia. The most common benefit for operations within designated zones are eligible businesses can claim a wage credit for "qualified wages" to eligible employees for operations within designated zones.
Enclosed mall A shopping center entirely inside a roofed structure, so that entrance to the mall is controlled by a limited number of entrances and most stores are accessible only via interior corridors.
End Cap The ends of a strip center, whether the configuration is linear, L-shaped, U-shaped, or other.
Entertainment complex A shopping center that features theaters, restaurants, amusements and related retail stores.
Escalation Increases to rent over the term of the lease, usually at a certain time period such as annual. Additionally, as an example, escalations could be semi-annual or mid-term.
Escalator Clause A clause in a contract (lease) permitting an adjustment of certain payments (rent) either up or down over the term of the lease.
Estimated Rent The estimated amount the tenant pays in rent per square foot per year (or month). Based on the asking rent of building at the time the tenant moved into the current building or location.
Estimated Spread/SF Spread/SF is the difference between the building's asking rent/SF and the tenant's rent/SF paid. Spread/SF = (Current Asking Rate) - (Estimated Rate paid). A positive value denotes a favorable dollar differential for the tenant. A negative value denotes an unfavorable dollar differential for the tenant.
Evaporative Cooled Term relating to a type of climate conditioning in a warehouse environment. Produced by a type of equipment that turns air into moist, cool air by saturating it with water vapor. It does not cool air by use of a refrigeration unit. This type of equipment is commonly used in warm, dry climates. Common in the Phoenix market.
Exchange Also known as a tax deferred exchange, the Internal Revenue Code Section 1031 provides that no gain or loss will be recognized (taxed) on the exchange of any type of business use or investment property for any other business use or investment property. Buyers and sellers must work with a qualified intermediary who specializes in section 1031 tax deferred exchanges to insure strict compliance with IRS regulations.
Exercise Facility Indicates that a health club or exercise facility is located in the building or in the building park. The facility may be public or for the exclusive use of tenants.
Existing Inventory Existing inventory refers to the total square footage of buildings that have received a certificate of occupancy and are able to be occupied by tenants. It does not include space that is either planned, under construction or under renovation.
Expense Stop A per square foot dollar amount at which the owner stops covering operating expenses and passes them on to the tenant. Almost always applies to Full Service Gross or Modified Gross office building leases.
Expiration or Expires The date the tenant's current lease expires.
Face Rent See Asking Rent.
Fashion Mall A shopping center featuring stores that offer stylish clothing, posh merchandise, and quality consumer goods.
Fast Food Restaurant A restaurant that provides drive-thru and/or walk-up window service and may also have sit-down dining. Example: McDonald's, Burger King, Taco Bell, KFC, Boston Market, etc.
Features A list of additional characteristics of the building.
Fee Simple Absolute ownership of real property. The owner has the right of disposition without limitation for the duration of their life. After death, the property then passes to the owner-designated heirs.
Also referred to as "Fee Absolute" or "Fee Simple Absolute" or "Fee Simple Estate".
Fenced Lot An exterior storage area surrounded by a security fence.
Festival Marketplace An urban entertainment and shopping center associated with a place of historic or cultural interest, such as the Baltimore Inner Harbor and Boston's Faneuil Hall
FIPS Code Created by the U.S. Census Bureau, the FIPS (Federal Identification Processing Standards) Code assigns each county in the U.S. with a unique five-digit number. For example, San Diego county California is 06073 – where 06 represents the state code and 073 represents the county code.
First Verified The date the name, address, primary contact, and occupancy status was confirmed for a tenant.
Fixed Stop An arbitrary expense amount chosen by a property owner (Lessor). This amount will be the Lessor's stop or the maximum amount the Lessor will pay each year on a particular lease. Any expenses for that tenant over the stop level are paid (passed through) by the lessee.
Flat Lease No escalations - the monthly rent does not increase over the life of the lease.
Flex Building A type of building(s) designed to be versatile, which may be used in combination with office (corporate headquarters), research and development, quasi-retail sales, and including but not limited to industrial, warehouse, and distribution uses. At least half of the rentable area of the building must be used as office space. Flex buildings typically have ceiling heights under 18', with light industrial zoning. Flex buildings have also been called Incubator, Tech and Showroom buildings in markets throughout the country.
Flex Space This type of space is only found in Flex buildings. It can be used as office, medical, industrial, warehouse, distribution, quasi-retail, or research and development space.
Floor Area Ratio (FAR) The relationship between the above-ground floor area of a building, and the land area it stands on, which is often expressed as a decimal, e.g., a ratio of 2.0 indicates that the floor area is twice the total land area.
Floor Drain For example a 2-3" deep trench that runs the length of the building; at the end of the floor drain is a grease trap. The floor of a building with drains is typically pitched 1/8" per foot. Different manufacturing processes require different types of drains. This is listed as an amenity for industrial and flex building types.
Foil A protective metal barrier that is placed between bays and in the ceiling of a building to contain harmful chemicals.
Food Court Typically characterized by a number of fast food restaurants in proximity, within a larger building, all sharing common seating. Specifically, in enclosed malls, an area devoted to permanent vendor stalls offering a range of prepared foods for on-premise consumption and served by a common seating area.
Food Processing Industrial secondary type. A facility used for the processing of and packaging of food products. These buildings normally have cold storage and/or freezer space. This could also be used for a facility that processes and packages beverages. These buildings may or may not have any cold storage/refrigerated space. Typically uses include: bottling plants (soft drinks, fruit juices), breweries, dairies.
Food Service Typically a cafeteria facility located in an office building usually for the primary tenant.
Foreign Trade Zone Foreign Trade Zones (FTZs) were created in the United States to provide special customs procedures to U.S. plants engaged in international trade-related activities. Duty-free treatment is accorded items that are processed in FTZs and then reexported, and duty payment is deferred on items until they are brought out of the FTZ for sale in the U.S. market. This helps to offset customs advantages available to overseas producers who compete with domestic industry. The Foreign-Trade Zones (FTZ) Board (composed of representatives from the U.S. Departments of Commerce and Treasury) has its operational staff in the International Trade Administration's Import Administration.
Freezer An area with an insulated freezer for storing perishable items.
Full Service Lease Rate AKA Gross or Full Service Gross - a rental rate that includes normal building standard services which are provided and paid by the landlord.
Future Company Growth Future company growth rate: The options include: Stable, Growing, Growing Rapidly, or Downsizing.
Geocodes Latitude and longitude coordinates that describes in either degrees or time the location of a property. Coordinates can be obtained from software that reference geocode data or graphic information.
Geographical Scope Represents the boundaries in which a tenant conducts business: International, National, Regional or Local.
Golf Course The property may be adjacent or near to a golf course. In some cases tenants in a building may have rights to play at a particular golf course. For a Proposed Building it may indicate that a golf course has been incorporated into the building park design.
Government The body with the power to make and/or enforce laws for a country, land area, people, or organization. This could be on a local, county, state, or Federal level.
Graduate Rental Lease Also known as a stepped or step-up lease. A lease in which the annual rent is increased to certain pre-set levels.
Green Roof A roofing system that utilizes vegetation to absorb rain water and reduce heat reflection.
Greyfields A dying shopping center, specifically (according to Price-Waterhouse-Coopers) a center in which annual sales are less than $150 per square foot of retail space
Gross Absorption For existing buildings, the measure of total square feet leased (indicated as a Move-In) over a given period of time with no consideration for space vacated during the same time period. Sublet space and lease renewals are not factored into gross absorption. However, in a lease renewal that includes the leasing of additional space, that additional space is counted in gross absorption. Preleasing of space in non-existing buildings (Planned, Under Construction or Under Renovation) is not counted in gross absorption until actual move in, which by definition may not be any earlier than the delivery date.
Gross Building Area All space in a building, AKA the Whole Building.
Gross Income Multiplier AKA GIM - The ratio of sale price to gross scheduled income plus other income at time of sale, or projected GSI for the first year of ownership. Calculated by dividing the sale price by the gross scheduled income plus other income.
Gross Leasable Area (AKA GLA) Expressed in square feet. It is the total floor area designed for the occupancy and exclusive use of tenants, including basements and mezzanines. It is the standard measure for determining the size of retail spaces, specifically shopping centers, where rent is calculated based on GLA occupied. There is no real difference between RBA (Rentable Building Area) and GLA except that GLA is used when referring to retail properties while RBA is used for other commercial properties.
Gross Rent Multiplier AKA GRM - The ratio of sale price to gross scheduled income only, at time of sale, or projected GSI for the first year of ownership. Calculated by dividing the sale price by the gross scheduled income. If you have Other Income in addition to Gross Scheduled Income, see Gross Income Multiplier.
Gross Scheduled Income (GSI) The total annualized scheduled rents for an investment property at time of sale or projected for the first year of ownership, assuming full occupancy.
Ground Lease A lease agreement where the land owner (lessor) agrees to lease their land for a set period of time. Depending on the contents of the agreement, the lessor can stipulate what the lessee can and can not do with the property. The lease term is typically 20 years or more, with many being 99 years in length. The lessee pays the lessor a monthly, quarterly or annual rent payment. The lessee often constructs a building on the site and operates it or leases it as if they owned the ground in fee. At the expiration of the lease agreement, the lessor gains control of whatever is constructed on the land, unless the lease is renewed.
Heating "Gas Fired" are heated coils with blowers. Other types are: Electric, Oil Fired and Oil Steam. "Yes" means there is heat, but the type has yet to be confirmed. "None" means there is no heat.
High Speed Internet Indicates that the building is wired specifically for Internet use, to avoid the typical on-line traffic associated with use of dial up services.
Hospitality This type of property includes all types of lodging facilities including hotels and motels. Hotels are facilities that offer lodging accommodations and a wide range of other services, e.g., restaurants, casinos, convention facilities, meeting rooms, recreational facilities, and commercial shops. These facilities can be labeled Resort, Mixed Use, Luxury, Full Service, Extended Stay, Convention, Apartment, All Suite, etc.
Motels are single buildings or group of buildings typically located on or near a highway and are designed to serve the needs of travelers by offering lodging and parking; may also provide other services and amenities, e.g., telephones, food and beverages, meeting and banquet rooms, recreational areas, swimming pool, shops.
Hotel Identifies a property as a Hospitality facility, or indicates that a mixed-use building or a building park contains a Hospitality facility.
HQ/Branch Indicates whether this is the tenant's main headquarters ("Main Headquarters'), a branch office ("Branch Office") or it is a franchise ("Franchise").
Improvement Ratio Stated as a percentage - this is the ratio of the tax assessor's opinion of the assessed value of the improvements divided by the assessed value of the whole property.
In-line Store A retail outlet placed contiguous to neighboring retailers such that their frontages are in a straight line and behind what is considered the lease line. Tenants operating in the common area are not considered in-line.
Index Lease A provision in a lease agreement that requires escalations in rent based on a published index, such as LIBOR, T-bills, or a cost of living index such as CPI.
Indoor Air Quality (IAQ) The quality of air that affects the health and well-being of building occupants.
Industrial Gross Rent A type of Modified Gross lease where the tenant pays one or more of the expenses in addition to the rent. Exact details must be confirmed for each lease.
Industrial Property A type of building(s) adapted for a combination of uses such as assemblage, processing, and/or manufacturing products from raw materials or fabricated parts. Additional uses include warehousing, distribution, and maintenance facilities.
Insurance Company In general, an organization chartered to operate as an insurer.
Jogging Trail The building or building park is situated near a jogging trail
Kiosk A small free-standing retail outlet located within the common area of a mall or center. These usually consist of a small island or moveable cart stocked with items for sale by the individual retailer. These may be permanent or temporary tenants
Laboratory The building or suite contains some type of laboratory space. This may be a "clean room" or a complete "wet lab".
Land Area The total area of a land parcel, which may be expressed in square feet or acres.
Landmark Identifies a building that is registered as a city, state or federal landmark, or considered by the public to be a landmark. These buildings usually receive this designation due to architectural or historical significance. Examples include New York's Empire State Building, the Sears Tower in Chicago, or Washington, D.C.'s Union Station.
Latitude The angular distance measured north or south from the earth's equator.
Lease Commenced The date the tenant's current lease began.
Lease Expiration Date The date the tenant's current lease expires.
Lease Term Refers to length of the term, in years, or may be "TBD" (to be determined).
Leased Fee Interest The Lessor's interest or position in a lease. Primarily a combination of a lessor's/landlord's reversionary interest and the right to receive rent for the lease period.
Leased Space Leased space refers to all the space that currently has a financial lease obligation on it. It includes all leased space, regardless of whether the space is currently occupied or not. For example, a sublease opportunity, where the company has moved out of the space but is still paying rent on it, is counted in the leased space totals.
Leasehold Interest The lessee's interest or position in a lease. Essentially consists of the lessee's use and enjoyment of a property or space for the term of the lease, as long as they pay the rent.
Leasing Activity Leasing activity refers to the volume of square footage that is committed to and actually signed in a given period of time. It includes direct leases, subleases and renewals of existing leases. It also includes any pre-leasing activity in under construction, planned buildings or under renovation buildings.
LEED The Leadership in Energy and Environmental Design (LEED) Green Building Rating System™ encourages and accelerates global adoption of sustainable green building and development practices through the creation and implementation of universally understood and accepted tools and performance criteria. See http://www.usgbc.org/
Legal Description Every parcel of land that is sold, leased or mortgaged must be properly identified or described. These descriptions are often referred to as legal descriptions. A good legal description is considered to be one that describes no other piece of property but the one in question, in such a way that the land can be positively identified. There are three general methods of describing property: (1) Metes and Bounds; (2) U.S. Government Survey AKA Public Land Survey System; and (3) Lot and Block system.
Levelators Also known as Levelors. Steel plates that are moved by auto-hydraulic lifts to level a loading dock with a truck bed. A fully loaded truck may sit 4" to 6" lower than a standard 48" high loading dock, versus an empty truck sitting 4" to 6" higher. The device is used to account for the difference so a forklift can be driven into and out of a truck. A building equipped with multiple loading docks may not have a levelator for each spot.
Lien An encumbrance against real property, typically used to secure payment for a debt, taxes, legal judgment or mortgage. The lien can be made against a specific property or against an owner, making it apply to all properties owned. The lien is a legal document that forces the owner to pay off debts. A lien is most often filed by banks and lenders for mortgage purposes. The property cannot be sold without the lien being removed by the person or organization that placed it. A bank or mortgage lender will file a "certificate of satisfaction" when the mortgage is paid in-full, which removes the lien. Other liens include a "mechanic's lien" which is filed by a contractor or repairman to guarantee payment for services rendered, a "utility lien" which is filed by a utility company (like water/sewer authorities) when their bills are not paid on-time, a "tax lien" which is filed by the local government when taxes are not paid or in the case of apartment buildings, a "wrongful housing lien" which is filed by a government housing authority when the owner fails to maintain the property according to the local housing code. Liens "cloud the title" to a property, making them unattractive to investors or potential buyers. In order to sell the property, all the liens must be removed; thus making the title "free and clear". If they are not removed, the property cannot be legally sold without the debts being paid off first. All liens are arranged in order by the date they were placed. This is called "position". A mortgage, mechanics lien and tax lien would be in first, second and third position, respectively. If the liens are not removed and a property is sold, the proceeds from the sale are applied to all liens. Any remaining money is then given to the seller. Most often, liens are resolved by the owner prior to sale.
Lifestyle Center An upscale, specialty retail, mainstreet concept shopping center. An open center, usually without anchors, about 300,000 SF GLA or larger, located near affluent neighborhoods, includes upscale retail, trendy restaurants and entertainment retail. Nicely landscaped with convenient parking located close to the stores.
Listed The amount of time, in weeks or months, the listing has been on the market.
Listing Available The total amount of space available (in square feet) in the listing.
Listing Counts Any space for lease or property for sale.
Load Factor Common Area Allocation: Percentage of the building that is common area allocated to the tenants to increase their usable area to rentable area. A load factor of 10% means that 900 usable square feet would be 990 rentable square feet.
Loading Docks See Docks.
Loft Pre-World War II era, multi-story, industrial type building(s), constructed in an urban setting with an open floor design that was used for small, light manufacturing businesses or warehousing. They have floor-to-ceiling windows and typically a minimum of 12-foot high ceilings. Although renovations in these types of properties may convert the space use from manufacturing/warehousing to office or residential, the building will still maintain the loft style exterior appearance despite the particular use.
Longitude The angular distance measured east or west of the prime meridian.
Mail Room Indicates that the building has a mail room.
Manufacturing A sub-type of an industrial building primarily used for manufacturing products. May also include warehousing or distribution areas.
Map Book Coordinates Local map book coordinates are assigned for buildings in markets where this reference source is available and heavily used by the real estate industry.
Marketing Suite The leasing agent and/or owner have set up an on-site marketing suite to aid leasing efforts. The leasing agent may tour the vacant space with prospective tenants and then meet in the suite to discuss or view other details such as the typical suite finishes.
Medical Indicates space that is used exclusively for medical tenants. The build-out of the space has been configured especially for medical tenants. It will contain a greater number of wet stacks and have special power requirements for doctor's offices. Generally only leased to medical users.
Medical Building Special purpose multi- or single-tenant facilities with more than 50% of the demised space suitable for medical uses such as general practice, dental, surgical or other practices utilizing interior improvements not generally found in business support facilities are known as medical properties. Prominent physical characteristics include a greater number of wet stacks and special power requirements used for laboratory testing and other medical procedures common in doctors' offices. A notably high parking ratio usually accompanies the space. This sub-type of office property is generally leased to medical users only.
Metal Halide A type of reflective light fixture used to maximize lighting. Metal halide lighting provides the highest performance in terms of energy, efficiency, light quality, light output and lamp life. Metal halide is commonly used to retrofit incandescent, fluorescent and high pressure sodium lighting systems. Without the heat associated with incandescent light, metal halide lamps produce light three to five times more efficiently than incandescent lamps. For an equivalent amount of energy, metal halide produces five times the amount of light. They emit a natural white light, rather than the yellow light of high pressure sodium. These lights are typically found in all types of Industrial and Commercial structures.
Metro/Subway Indicates the building has access to a Metro or subway stop. In urban areas such as Manhattan or downtown Washington, direct access must be available (across the street from a stop does not qualify). In suburban areas, the stop must be within reasonable walking distance.
Mezzanine A section of the building where an additional level has been created, usually for office use.
Mixed-Use Buildings that incorporate multiple uses within a single structure. The range of uses may include two or more of the following: office, hotel, retail (a major retail center, not just an office building with first floor retail space), residential and recreational/cultural.
Modified Gross Modified Gross is a general type of lease rate where typically the tenant will be responsible for their proportional share of one or more of the expenses. The Lessor (landlord) will pay the remaining expenses. For example: Plus Electric means the tenant pays rent plus their own electric expense, or Plus Janitorial means the tenant pays the rent plus their own janitorial expense. Both of these are types of Modified Gross Leases, which may vary from tenant to tenant.
Month/Year Built Identifies the month and year the structure was completed.
MSA Metropolitan Statistical Area. A geographic area with a large population nucleus and includes adjacent counties which have a high degree of economic and social integration with that nucleus. A MSA with a population of more than one million, may qualify to be classified as a Primary Metropolitan Statistical Area (PMSA).
Multi-Tenant Any type of building designed to accommodate two or more tenants.
Negotiable (Lease Rate) Indicates that the Lessor is willing to discuss the rental rate amount.
Neighborhood Center Provides for the sales of convenience goods (food, drugs, etc.) and personal services (laundry, dry cleaning, etc.) for day-to-day living needs of the immediate neighborhood with a supermarket being the principal tenant. In theory, the typical GLA is 50,000 square feet. In practice, the GLA may range from 30,000 to 100,000 square feet.
Net Absorption For existing buildings, the measure of total square feet leased (indicated as a Move-In) less the total space vacated (indicated as a Move-Out) over a given period of time. Sublet space and lease renewals are not factored into net absorption. However, in a lease renewal that includes the leasing of additional space, that additional space is counted in net absorption. Pre-leasing of space in non-existing buildings (Planned, Under Construction or Under Renovation) is not counted in net absorption until actual move in, which by definition may not be any earlier than the delivery date.
New (or Shell) Space Space that has never been occupied or built out.
Non-Arms Length-Comps A non-arms length sale is between related parties - Comps does not publish sales between related parties, i.e., spouses, families, companies, etc. Typically, a non-arms length sale does not reflect market value.
Occupancy Status The occupancy status of the tenant. The options are as follows: Leased: Tenant leases currently occupied space. Subleased: Tenant subleases currently occupied space. Month-to-Month: Tenant occupies current space on a month-to-month basis. Owned: Tenant owns currently occupied space. Pending: The tenant is in the process of renegotiating their lease and the status is pending.
Occupied Space Occupied space is defined as the square footage of space that is physically occupied by a tenant. It does not include space that is under a lease obligation, where the tenant does not actually occupy the space.
Office Property The primary intended use of an office building is to house employees of companies that produce a product or service primarily for support services such as administration, accounting, marketing, information processing and dissemination, consulting, human resources management, financial and insurance services, educational and medical services, and other professional services. Office buildings are characterized by work efficient floor plans, work areas, comfortable heating and cooling, cabling for phones and computers, and other conveniences that allow people conduct business. The interior finish and the structural design of the building supports the activities of the employees. Office buildings are typically configured for high density use, with a ratio of people to square footage in the 150 to 300 or more range and less than 25% of the demised floor space allocated to industrial or retail use. Some physical characteristics of a building may assist in classifying the property as "office" if the property's use is not apparent.
Offsites Any improvements to a site outside of the property's boundaries. Examples are: streets, curbs, gutters, sidewalks, street lights, utilities (water, sewer, gas, electric) grading, and landscaping.
On-Site Management Indicates the property manager's office is in the building or building park.
Out Parcel (also known as a Pad) ICSC defines out parcels as unused portions of a shopping center's site that constitute the perimeter areas, not including the center facility or parking lot, and that may be used or developed for similar or non-similar purposes. Out parcels are often developed to provide banking, fuel, and/or eating services as a compliment to the main center's existing tenant mix.
Overage Relates to Retail Overage Rent where typically a new retailer, without a history of gross sales, is charged a base rent on the space occupied with a provision in the lease that when the gross sales reach a certain level, the base rent will stop and the rent will be based on a percentage of the gross sales.
Overall or Total Cap Rate The income rate of return for a total property that reflects the relationship between one year's net operating income expectancy and the total price or value. Calculated by dividing the net operating income by the sale price or value.
Owner Occupied The building's owner must occupy at least 75% of the rentable space in the building to be considered owner occupied.
Parcel Number A Parcel Number or an Assessor's Parcel Number (APN) is an identifying set of numbers and or letters for a parcel of land, which is assigned by the controlling government authority, typically a county. A parcel may consist of one legal lot, a portion of a legal lot, or many lots. APNs are unique for each parcel and are important reference numbers to gain assessment and map information for a property. APNs have different names in different counties, i.e., Folio number, Tax acct number, PIN number, etc., and can vary from a few digits up to 25 characters. They are for tax assessment purposes only and should not be confused with Legal Descriptions.
Park A large tract that has been or will be developed by a single entity with common infrastructure (i.e. surface streets, landscaping, lighting, signage, etc.) All projects within a park usually have complementary/similar uses and complementary zoning. Projects within the boundaries of the park are usually governed by restrictive covenants designed to create an overall synergy within the park.
Parking Ratio The parking ratio indicates how many parking spaces the building has per 1,000 square feet: (# of spaces x 1,000)/rentable building area.
Pass Through Used to define those cases where a landlord passes certain expenses onto the tenant in addition to the rent. Typically, it applies to a full service gross lease where the tenant and the owner have agreed to an expense stop. The stop is the maximum amount the owner will pay each year and any expenses over the stop amount will be passed through to the tenant in addition to the rent.
Pension Fund A fund established by an employer to facilitate and organize the investment of employees' retirement funds contributed by the employer and employees.
Percent Leased The percentage of space in a specific building that has been leased or pre-leased. This applies to buildings that are under construction or proposed, as well as existing buildings Percent Leased = (Total Space Leased / Rentable Building Area) x 100
Percentage Lease A lease with rent based on a percentage of the monthly or annual gross sales made on the premises. There may be no minimum rent, but most specify a guaranteed minimum rent with the percentage, or graduated percentage rent payable on sales that exceed a specific level. The percentage can be fixed throughout the life of the lease or it can be a graduated percentage that increases based on lease specifications. It appeals to tenants in that, if sales performance is poor, they benefit from having a reduced rent. In a sense the property owner shares in the business risk as well as the upside. Percentage leases are common with large retail stores, especially in shopping centers. The underlying concept of the percentage lease is that both the landlord and the tenant should share in the location advantages of the leased property.
Phase Phase is the splitting of volts, with the term 'wire' being how many splits. Single Phase service is typically residential or small commercial. Three Phase will be used with higher voltage capacity needs. Normally described as 3 Phase, 4 Wire (with the 4th being the ground).
Planned / Proposed Space Planned / Proposed space refers to space that has been announced for future development, but has not yet started the construction phase of development (that is, has not broken ground yet).
Plat Maps Plat maps are assessor parcel maps that are drawn for every piece of property within a county. These maps are prepared by a registered civil engineer or licensed land surveyor, showing the location of streets and property lines. Each parcel has an assessor's parcel number, and shows its location, as well as its relationship to surrounding surveys. Plat maps also contain the legal information that describes a property. The maps can be purchased from the county or from secondary data sources.
Plus All Utilities A type of Modified Gross Lease where the tenant is responsible for their proportional share of utilities in addition to the rent.
Plus Cleaning A type of Modified Gross Lease where the tenant is responsible for their proportional share of cleaning in addition to the rent.
Plus Electric A type of Modified Gross Lease where the tenant is responsible for their proportional share of the electrical cost in addition to the rent.
Plus Electric & Cleaning A type of Modified Gross Lease where the tenant is responsible for their proportional share of the electrical and cleaning cost in addition to the rent.
Plus Utilities and Char A type of Modified Gross Lease where the tenant is responsible for their proportional share of the utilities and cleaning cost in addition to the rent.
Pond In some regions, developers may incorporate decorative ponds in the design of suburban office/industrial/flex parks, for aesthetic value. These are not to be confused with retention ponds used for storm drainage control.
Porter Wage without Fringe Porter wage increase (or a percentage of the increase) is passed along to the tenant.
Porter Wage with Fringe Porter wage and benefits increase (or a percentage of the increase) is passed along to the tenant.
Power An industrial building that has service of 800 amps or greater is considered to have Heavy Power. Amps fields allow a range from low to high due to the fact that buildings may have different sources of power. Volts fields also allow a range of low to high. The low to high range accommodates a facility that has a transformer enabling the power to be stepped up or down. Phase is the splitting of the volts and it's counterpart, wire, is how many splits, i.e. 3 phase 3 wire, 3 phase 4 wire (the 4th being the ground). Generally 200-400 amps for flex buildings, 800+ for heavy industrial buildings. 480 volts needed to run machinery, 220 for lights. The Power field will contain data such as "Heavy", the number of amps (i.e., "1000a" or "1200a") or the number of volts.
Preleased Space Preleased space refers to the amount of space in a building that has been leased prior to its construction completion, or its certificate of occupancy.
Previous Address The address of the previous building where the tenant occupied space.
Previous Area The submarket of the previous building where the tenant occupied space.
Price Per Acre (Land) The sale price divided by the total acres of land area.
Price Per SF Net Example: 5000 SF of land sold for $1,000,000 and the assessed improvement ratio (supplied by the assessment office) is 80%. Take the inverse of the Improvement ratio to generate a land ratio of 20%. Calculate the value of the land when using the land ratio against the sales price. ($1,000,000 X 20%=$200,000) That value is then divided by the land area to come up with a Net $/SF for land. (e.g., $200,000/5000 = $40 Price per SF Net)
Price Per Square Foot (Improved Properties) The sale price divided by the rentable square feet of the building.
Primary Contact The highest-ranking officer for a tenant at this location.
Property Type Designations to group properties into groups based on the presence of improvements, structural characteristics of those improvements, and on the tenant use or intended use of the improvements. When properties and tenants are logically grouped by these categories, users can more efficiently search for data that meets their business needs, statistics can be generated and compared, and analysts can report on past trends and forecast future growth and decline patterns.
Rail Line / Rail Spots This indicates the rail line servicing the building. For a building to have rail line service, the building must have areas for train cars to pull up at one time for loading and unloading. "None", means there is no rail service. If there is rail service, the number of exterior and interior rail spots is indicated under Rail Spots.
Rail Served Industrial buildings are said to be rail served when rail cars can be directly pulled up to the building at dock designed for loading and unloading of goods to and from the cars. A property can have multiple rail loading docks that can be either exterior or interior.
Raised Computer Floor Indicates that the floor is raised so computer wiring may run beneath the floor.
Recorded Owner The buyer's name on the deed. Could be an individual, individuals, or company.
Recording Date The date the grant deed, warranty deed or other conveying instrument was recorded at the County Recorder's office.
Recoverable Expenses Expenses paid by the tenant over and above the rent - see Pass throughs
Regional Center Provides shopping goods, general merchandise, apparel, and furniture , and home furnishings in full depth and variety. It is built around the full-line department store with a minimum GLA of 100,000 square feet, as the major drawing power. For even greater comparative shopping, two, three, or more department stores may be included. In theory a regional center has a GLA of 400,000 square feet, and may range from 300,000 to more than 1,000,000 square feet. Regional centers in excess of 750,000 square feet GLA with three or more department stores are considered Super Regional.
REIT Real Estate Investment Trust. A real estate mutual fund, allowed by income tax laws to avoid corporate income tax. It sells share of ownership and must invest in real estate or mortgages. It must meet certain other requirements, including number of shareholders, widely dispersed ownership, asset and income tests. If it distributes 95% of its income to shareholders, it is not taxed on that income, but shareholders must include their share of REIT's income in their personal tax returns.
Relet Space that was previously built out or occupied, but the lease has expired and the building owner is releasing it.
Remaining The amount of time left on the tenant's current lease, in months or years.
Renovated A building that has been completely restored so that the existing space becomes "new" space again. The date of the last major renovation is tracked. Minor renovations, such as the improvement of a building's lobby or exterior are not considered full building renovations. They may be noted as remodeled (cosmetically change), rehabbed (necessary repairs made or updated building materials), or restored (restored a building to its original condition at a certain date.
Rent Asking or Face Rent. This represents the amount for which the landlord is offering their space per square foot, per year for lease for a listing. The amount for which the tenant will be responsible is negotiated between the tenant and landlord. Rents will vary depending upon the services provided. For example, full service rents are significantly higher than triple net (see Services).
Rentable Building Area (AKA RBA) Expressed in square feet, this area includes the usable area and its associated share of the common areas. Typically rents are based on this area. It is the space the tenant will occupy in addition to the associated common areas of the building such as the lobby, hallways, bathrooms, equipment rooms, etc. There is no real difference between RBA and GLA (Gross Leasable Area) except that GLA is used when referring to retail properties while RBA is used for other commercial properties.
Rental Rates Rental rates are defined as the annual rental costs for a particular space quoted on a per square foot basis. Rental rates are based on the rentable square footage of a property. They are calculated by taking the annual rental obligation of a particular space divided by the rentable square footage of that space. Rental rate totals are calculated on a weighted average of the size of the space. That is, the bigger the square footage of a particular space, the more heavily that space's rental rate will factor into the overall rental rate calculation.
Restaurant Indicates the building contains a restaurant.
Retail Property A Retail property's primary intended use is to promote, distribute or sell products and services to the general public. It will often be in high traffic or easily accessible areas. Retail buildings are configured for the display of merchandise or the interaction of company sales personnel with others.
Retail buildings can be used for various sales opportunities, including, but not limited to, stand-alone (convenience stores to department stores), store fronts, strip centers (no anchors), neighborhood, community, regional, and super-regional malls, power centers, factory outlet centers, and fashion or specialty centers.
Rooftop Terrace Common area that may be used by tenants for lunch, breaks, receptions or meetings.
SCIF (Secured Compartmental Information Facility or Sensitive Compartmented Information Facility) Highly secure space containing such features as soundproofing, no windows, special hatches instead of doors, etc. Required by firms that deal in sensitive industries such as defense contractors or law firms, and government entities (FBI, CIA, NSA).
Secondary Contact The second highest-ranking officer for the tenant or the highest-ranking officer on a national level.
Service A secondary type of industrial building where trucks, forklifts, or other types of vehicles are serviced or maintained.
- Double Net: Lessee pays for two of the building expenses; the landlord and lessee determine these.
- Full Service: A rental rate that includes normal building standard services as provided by the landlord within a base year rental.
- Industrial Gross: A type of Modified Gross lease where the tenant pays one or more of the expenses in addition to the rent. Exact details must be confirmed for each lease.
- Modified Gross: Modified Gross is a general type of lease rate where typically the tenant will be responsible for their proportional share of one or more of the expenses. The Lessor (landlord) will pay the remaining expenses. For example: Plus Electric means the tenant pays rent plus their own electric expense, or Plus Janitorial means the tenant pays the rent plus their own janitorial expense. Both of these are types of Modified Gross Leases, which may vary from tenant to tenant.
- Negotiable: Used when the leasing contact does not provide the service type.
- Plus All Utilities: A type of Modified Gross Lease where the tenant is responsible for their proportional share of utilities in addition to the rent.
- Plus Cleaning: A type of Modified Gross Lease where the tenant is responsible for their proportional share of cleaning in addition to the rent.
- Plus Electric: A type of Modified Gross Lease where the tenant is responsible for their proportional share of the electrical cost in addition to the rent.
- Plus Electric & Cleaning: A type of Modified Gross Lease where the tenant is responsible for their proportional share of the electrical and cleaning cost in addition to the rent.
- Plus Utilities and Char.: A type of Modified Gross Lease where the tenant is responsible for their proportional share of the utilities and cleaning cost in addition to the rent.
- TBD: To be determined; used for buildings for which no services are known because the buildings are not yet built.
- Tenant Electric: Lessor pays for all services and Lessee is responsible for their usage of lights and electrical outlets in the space they occupy.
- Triple Net (NNN): A lease in which the tenant is responsible for all expenses associated with their proportional share of occupancy of the building.
SF Occupied The total square feet occupied by the tenant.
SF Transaction Each time a tenant changes the amount of space they occupy, it is called a "transaction". SF Transaction is the square footage involved in the change. For example, if a tenant's original lease is for 10,000 square feet, the SF Transaction is 10,000 and the square footage actually occupied by the tenant (SF Occupied) is 10,000 square feet; if, at a later point in time, they expand by 3,000 square feet to now occupy a total of 13,000 square feet, the SF Transaction for this change will show 3,000 and the SF Occupied will show 13,000.
SF/Employee The average number of square feet per employee based on the total square feet occupied divided by the number of employees at this location. This does not apply to tenants in industrial buildings.
Showroom A building area specifically designed for merchandise display. Examples would be furniture, or clothing and apparel.
Shuttle to Train Some building owners provide shuttle-bus service to public transportation nodes to offset a fringe location.
SIC Code/Description The four-digit Standard Industrial Classification (SIC) code and description of the four-digit SIC.
Signed Date The date the tenant's lease was signed.
Single Tenant A building occupied by one tenant only. If an entire building is available for lease with a future availability date, or if one company leases a vacant building, then it is single-tenanted.
Site Plan Approved Applies to proposed buildings only. This indicates to prospective tenants that construction plans have been approved by local governing agencies and that construction can begin when a prelease is signed (pending financing). When a proposed building goes under construction, this amenity is "unselected."
Skylights Primarily used in Industrial or "Big Box" buildings in roofs/ceilings to allow natural light into interior spaces. Can be used in other types of structures as well.
Space Type The options are as follows:
- Direct: This is the same as "Relet" - used in the NY region.
- New: Space that has never been occupied or built out
- Relet: Space that was previously built out or occupied, but the lease has expired and the building owner is releasing it.
- Sublet: Space that is currently leased, but that the lessee wishes to sublease. This is an important distinction, since sublease space is already occupied and therefore it is not counted in the vacancy rate
Space Use How the current tenant uses the occupied space. The options are as follows: Office: This space is used for office purposes. Industrial: Space used exclusively for industrial purposes. Retail: Space is used for retail purposes. Medical: Space is used exclusively or primarily for medical offices. Medical offices require special services, laboratory support, etc. They also require a large number of visitors' parking space. Medical space is considered a subset of office space and is counted as such. Flex: the type of space is only found in Flex buildings. It can be used as office, warehouse storage space, for quasi-retail or research and development. Warehouse: A subset of Industrial and Flex space, warehouse space is used exclusively for storage.
Sprinkler This indicates whether the building has a sprinkler system and if so, what type it has. A "Wet" system means the pipes are fully charged with water. A "Dry" system indicates that water is not in the pipes; a shut-off valve with a pump regulator controls the water pressure. If a fire starts and at a certain temperature, the solder melts away and releases water into the pipes. "None" means the building does not have sprinkler system. "ESFR" is an early suppression fast response system that will concentrate releasing water only where it senses a fire. "Yes" means there is a sprinkler system, but its type is has yet to be confirmed (wet, dry, ESFR).
Status The options include:
- Demolished: Land where a building did exist, but it has been torn down.
- Existing: Buildings that are completed and ready for occupancy.
- Proposed: Buildings with complete site and architectural plans, and that have a specific completion date set, but that are not yet under construction.
- Under Construction: Buildings in a state of construction, up until they receive their certificate of occupancy.
- Under Renovation: Buildings which current are unoccupied because they are in a state of renovation. Either they are waiting for building certificates or are currently under reconstruction.
Stories The number of floors in the building above grade.
Sublet Space Space that is being marketed or vacated by a tenant whose lease with the building owner has not yet expired. The tenant will attempt to find a subtenant to resume the remaining term of the lease.
Submarket Submarkets are divisions of the primary market that are generally recognizable to the real estate industry and the business community by the names given to the areas. Submarkets are defined by specific geographic boundaries that serve to delineate core areas that are competitive with each other and constitute a generally accepted primary competitive set of areas. Submarkets are building type-specific and are non-overlapping, contiguous geographic designations having a cumulative sum that matches the boundaries of the entire market. They contain a number of properties sufficient to provide meaningful information for aggregate statistics.
Suite No. The tenant's main suite number within the building.
Super Regional Center Provides for an extensive variety of general merchandise. It is built around three or more major department stores. In theory, a super regional center has a GLA of 750,000 square feet; and in practice, this ranges upwards of 1,000,000 square feet. The major anchor department stores generally have a square footage of 100,000 square feet each.
Tenant Electric Lessor pays for all services and Lessee is responsible for their usage of lights and electrical outlets.
Term The length of the lease. "TBD" (To be determined), a time span (such as "3-5 yrs") or a date (such as "thru Apr 2002").
Total Rentable All space in a building that may be leased and occupied regardless of the type of building or the space use.
Trading Floor A trading floor/trading room is usually a large open central area used to trade various items which include, but are not limited to stocks, bonds, commodities futures, currency futures, precious metals, etc. These areas may be wired as full data centers, many with battery and generator back-up systems. Additionally, high quality tenant improvements, which may include constant velocity air handlers, and/or specialized air conditioning systems may also be available. After build-out, these areas provide a junction point for quotes/info, order flow, and info between brokers. When finished, they may be improved with numerous computers (e.g., data walls, electronic tickers, and work stations) and large arrays of flat screens, and other high resolution/plasma displays (e.g., pricing boards). Often times telecommunication conference rooms are available for private strategy sessions.
Trailer Parking An open parking area, typically for industrial buildings, where long-haul trucks can park their trailers.
Transfer Tax -Full Value The documentary transfer tax affixed to the deed is computed on the full value of the property conveyed.
Transfer-Partial Value The documentary transfer tax affixed to the deed is computed on the full value of the property conveyed less the value of liens and encumbrances remaining at time of sale.
Travel Agency Convenient for companies that require extensive travel or for employees who need to make personal travel plans.
Triple Net (NNN) A lease in which a tenant is responsible for all expenses associated with their proportional share of occupancy of the building.
Truck Terminal A secondary type of industrial building that is long and narrow with multiple cross-docks that facilitate simultaneous incoming and outgoing inventory. If an industrial building has many cross-docks, it may be a truck terminal.
Truck Well A slope that brings the level of a truck bed to a dock high loading platform. Capacity is defined as the number of trucks that can simultaneously load or unload cargo.
True Owner The True Owner is the individual(s), company, or entity that is behind the Recorded Owner. If an individual takes title to a property in his own name, then the Recorded Owner and True Owner will be the same. Often times True Owners will not use their actual name on the deed for liability and/or privacy reasons. For example, John Smith, the True Owner, takes title as 123 LLC (Limited Liability Corporation). Therefore, John Smith is the True Owner and 123 LLC is the Recorded Owner. Also see Recorded Owner.
Truss Height The bottom height of the trusses (roof beams), measured from the floor. See Ceiling Height.
Type Condo: Office/ Medical/Retail/ Industrial condos are suites of space that may be purchased by the tenants or investors (who lease them). It is necessary to consider each condo building individually; just because they are individually owned does not make them a condo. Condos are typically 2-3 story buildings that resemble residential townhomes. However, if a condo looks like a typical office building. Industrial condos are usually labeled as industrial buildings while office condos are labeled as condos. Flex: The building is designed to be versatile. Flex space may be used for office, quasi-retail, warehouse, industrial or research & design. There is a fairly even amount of office space to warehouse space. A characteristic of this type of space is that its use is not exclusively for office or warehouse, but it will combine the uses. Industrial: Industrial buildings are designed and built for bulk warehousing, distribution, mechanical storage and repair, and heavy manufacturing. Ceiling heights are generally in excess of 18", with heavy industrial zoning. Manufacturing buildings may include ductwork, air lines, buss ducts, exhaust systems, floor drains and storage tanks. Warehouse buildings will contain open space for storage such as a building with no columns and will have high ceilings. It may include humidity and cooling controls. Industrial building types are: Manufacturing, Service, Truck Terminal and Warehouse. Loft: Pre-World War II era, multi-story industrial buildings that were constructed in urban settings. They have floor-to-ceiling windows and a minimum of 12" ceilings. Renovations in these buildings creatively convert the space use from manufacturing to office. However, the building will maintain the loft-style appearance despite it space use. Office: A building designed exclusively for office space use. It may have some retail space, such as banks, restaurants and ground floor shops. Retail: Space designed exclusively for retail use such as a standalone department store, regional mall or strip mall.
Typical Floor Identifies the size of the floor area that occurs most often in the building. Expressed as square feet.
Under Construction Under construction refers to the total square footage of buildings that are being constructed. Under Construction is defined as the time from pouring the foundation until the Certificate of Occupancy is received. Under construction space is considered new space (as opposed to relet space).
Under Renovation Buildings that are currently unoccupied because they are in a state of renovation. Either they are waiting for building certificates or are currently under reconstruction. A building, which has been completely restored so that the existing space becomes "new" space again, is considered Renovated. This is the date of the last major renovation. Minor renovations, such as the improvement of a building's lobby or exterior are not considered a full building renovation, and they may be counted as remodeled (cosmetic change), rehabbed (make necessary repairs or updating building materials) or restored (restores a building to its original condition or condition at a certain date).
Unimproved Property-Land Potential site for development. No plans have been made to develop the land, but it is for sale to someone who would develop it for industrial, retail, or commercial use.
Unpublished Comps Properties that have sold but information regarding the transaction are still being confirmed/researched.
Usable Building Area This consists of the space that the tenant will actually occupy in a building. The usable area on a single floor may vary depending upon corridor configurations, whether the floor is a single tenant or multiple tenant occupancy, etc. It is the rentable area minus the common areas of the floor such as lobbies, hallways, and bathrooms.
Vacancy Rate Expressed as a percentage - it identifies the amount of New/Relet/Sublet space vacant divided by the existing RBA. Can be used for buildings or markets.
Vacant Space Vacant space refers to all space not currently occupied by a tenant, regardless of any lease obligation that may be on the space. Vacant space could be space that is either available or not available. For example, sublease space that is currently being paid for by a tenant but not occupied by that tenant, would be considered vacant space. Likewise, space that has been leased but not yet occupied because of finish work being done would also be considered vacant space. Vacant space could also be quoted in one of three ways, as new, relet or sublet. New space, sometimes called first generation space, refers to space that has never been occupied by a tenant before. Relet space, sometimes called second generation space, refers to space that has previously been occupied by another tenant. Sublet space refers to space that has been leased by another tenant, is still under a lease obligation by that tenant, but is being offered for lease back to the market by the tenant with the lease obligation.
Volts Voltage is an electrical force whose basic unit is the Volt. Volts fields allow a range of low to high to accommodate a facility that has a transformer enabling the power to be stepped up or down. Typical voltages for commercial services are 120/208 (for lights) or 277/480 (for machinery). Both require a Three Phase (see definition for Phase) service as opposed to a Single Phase service that is residential or small commercial.
Warehouse A secondary type of industrial building generally used for storage and/or distribution.
Waterfront Building must be located on the water (water views do not qualify).
Weighted Average Rent The average rental rate for all spaces within a building or a market, with the average being skewed, or weighted, according to the size of the space available (the larger the space, the more that particular rental rate counts in the average). The weighted average is calculated by multiplying the square footage of each unit by its asking rental rate to obtain the total asking rent for each space, then totaling the rents for each space and dividing that sum by the total square footage for all units. Negotiable rental rates and rental rates of zero are excluded in this calculation.
Example: (20,000 sf x $20/sf = $400,000) + (12,000 sf x $10/sf = $120,000) = $520,000 /32,000 sf= $16.25/sf
See also: Asking Rent, Effective Rent, Estimated Rent, Estimated Gross Rent, Services
Year Built The year an existing building was completed. For "Under Construction" and "Proposed" buildings, this is the scheduled completion date.
Year Established The year that the tenant began operations in the region.
Year Renovated The year a building's last renovation was completed.
Years at this location The number of years that the tenant has occupied space in the current building.
Years in Business Represents the number of years that the tenant has been in operation in this region.
Zoning The division of a city or county by legislative regulations into zones specifying allowable uses of land and controlling the construction of improvements. Common designations are "C" for commercial (retail and office), "M" or "I" for industrial and "R" for residential (R1 single family, R2 low density multi- family, R3 & R4 higher density multi-family).
1031 Exchange Also known as a tax deferred exchange, the Internal Revenue Code Section 1031 provides that no gain or loss will be recognized (taxed) on the exchange of any type of business use or investment property for any other business use or investment property. Buyers and sellers must work with a qualified intermediary who specializes in section 1031 tax deferred exchanges to insure strict compliance with IRS regulations.