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Copyright
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Dictionary
Abatement. Is a reduction or decrease. Usually referred to in terms of rent or other increases.
Above Building Standard. Typically refers to items not included in the building’s construction work letter. The work letter indicates what the ownership of the building will include in a standard office build-out for their building.
Absorbed Space. Represents the net change of the amount of office space in a given period of time..
Absorption. An amount of an item either taken away from or added to something in order to show a net gain or net loss of the whole.
Absorption Period. The amount of time given to lease or sell a given amount of space.
Absorption Rate. The percentage of space in a market either taken off the market or added back into the pool of existing office space. Typically a gain in market absorption represents space that is now leased, that was not previously leased, or in a negative absorbed market, space that was leased that’s now vacant.
A Cargo De. In charge of or managing of an item such as a property.
Access. The right to enter.
Accrual. The act of adding acceding to or following the property to another. The act of growing or being added to.
Acquisition. A purchase of an item.
Acquisitions & Mergers. A clause commonly found in leases which explains the tenant’s and landlord’s rights if the property is acquired or the landlord merges with another entity.
ADA. See Americans with Disabilities Act.
Added Square Footage. The amount of space added onto the usable square footage to determine the rentable or leasable square footage which is the amount of square footage your rent will be most likely based on.
Addendum. A document containing any additions or changes negotiated in the original lease. This document is always attached to the signed lease as part of the lease. Items addressed in an addendum supersede the item being replaced in the lease.
Additional Rent. Rent that is adjusted by adding other factors such as operating expenses, operating expense overages (full service lease) , Common area maintenance charges, taxes etal.
Add-On Factor. Also referred to as a loss factor, common area factor or core factor. The areas of a structure that are common to all tenants in the building, i.e. restrooms, corridors, storage rooms, electrical rooms, janitorial closets, lobbies.
Adjustment. A modification, fluctuation or correction made to a document.
Administrative Fees. A charge passed on by the landlord to the tenant for any work that may have to been by their administrative staff regarding the tenant’s tenancy. i.e. some leases call for the charging of administrative fees when a tenant subleases or assigns their space to another party.
Ad Valorem. A term typically used when referring to property taxes they are based according to the government’s valuation of the property. “ According to Value”.
After Hours Usage. Tenant’s need for additional working hours beyond the normal operating hours for the building as set forth in the lease. Typically if tenant requires after hour utility usage, he will pay an additional agreed upon fee.
Air Conditioning. Also referred to as HVAC. The state of temperature and humidity produced by an air conditioner. A air cooling machine.
Air Rights. Control of the skies above a property.
Allowance Over Building Shell. This usually occurs during the pre-construction phase of a building it’s purpose is to control or caps the Landlord’s exposure at a fixed amount of dollars over the negotiated price of the base shell space of the building.
Alteration. To change something.
Amenities. Attractive features of a property such as a coffee shop, health facility, conference rooms, covered parking, etc.
Amendment. A document negotiated after the original lease is in affect, changing or adding items to the original lease. This document is to be attached to the signed original lease and now becomes part of the lease. Items addressed in an amendment supersede the item being replaced in the original lease document.
Americans with Disabilities Act (ADA). This is Federal legislation that was passed in 1990 requiring employees and business owners to make “reasonable accommodations” to facilitate the employment of the disabled.
Amortization. Represents periodic payments of principal and interest to be paid back over the term of a loan
Anchor Tenant. The main Tenant of the building. i.e A Bank, an Insurance Company, a “Fortune Five Hundred Firm.” I n many cases it would be the Tenant who is given naming/signage rights to the building.
Annual Bumps. Slang for annual increases is such items as rent or operating expense increases.
Annual Fixed Rent. Rent does not change from year to year.
Annual Operating Expense Increase/Overages. A charge passed on to the tenant representing the tenant’s proportionate share of building operating expense costs greater than the amount agreed upon in the original lease; (referred to in lease as Expense Stop, or Base Year Expenses) When the owner refers to the building’s expense stop as $4.50, this simply means that the first $4.50 of building operating expenses are being paid by the building. If the building operates at a higher rate, let’s say $5.00 per square foot, you will pay the difference between the $5.00 and the $4.50, or an additional 50 cents per square foot. When an owner quotes you on the Base Year basis, he is saying that you will pay the difference between the amount the building operated at in the base year addressed in your lease and the current operating expense cost. An example would be “Base Year of 1995,” let’s say the building operated at $6.00 per square foot, in 1995 and operates at $6.50 in 1996, you would pay the difference of 50 cents per square foot in 1996.
Annual Percentage Rate or APR. Reflects the annual cost of a loan. It includes the interest, loan origination fees, discount points and other costs that will be paid to the lender.
Annual Rental Rate. The cost per square foot that the landlord is quoting or receiving in rent. i.e. $14 per square foot. Sometimes quoted in annual dollar amounts i.e. $14,000 per year.
Anticipatory Breach. A breach of contract committed prior to the time of required performance.
Appurtenant. A right, privilege or a property that is considered incident to the principal property for purposes such as passage of title, conveyance or inheritance.
Applicable. Something that is relevant or appropriate.
Appraisal. The estimation of an opinion of value given on a property.. An appraisal of property is to be based on factual information given by a qualified professional appraiser.
Appreciation. An increase in the value of the property.
Approximate Operating Expenses. The expenses that have been estimated prior to the true figure being made available.
Approximate Square Footage. An estimated amount of space being stated.
Approximately. An estimate, somewhere near the correct figure or statement.
Arbitrate. To act between parties with a view to reconciling differences.
Arbitrator. A person chosen to settle the issue between parties engaged in a dispute. One having the ability or power to make authoritative decisions..
Arbitration. The process by which the parties to a dispute submit their differences to the judgment of an impartial person or group appointed by mutual consent or statutory provision..
Arbitration Bond. A bond which is generally entered into by parties wishing to submit their differences to arbitration.
Architect. Someone who creates plans to be used to build something, such as buildings.
Arms Length Transaction. A transaction in which the buyer and seller act independently of each other and have no relationship to each other.
Asbestos. Chemical resistant fibrous mineral forms or pure magnesium silicate, used for fireproofing, electrical insulation, building materials, brake linings and chemical filters. Inhaling fibers can cause asbestosis or lung cancer.
Asbestos Dangers. When asbestos is in good condition it is not an immediate risk (but should be monitored).
Asbestos particles are dangerous when asbestos becomes “friable,” (meaning that it can be easily broken apart by hand ) then the microscopic particles become airborne and can enter the lungs. Because of their size and shape, the particles remain airborne for a long time and are easily ingested into the lungs or stomach. Therefore older fraying asbestos, or damaged asbestos is particularly dangerous.
As-built Term used for the blueprints or original plans for a particular building or something that was built according to a given set of plans.
As-Is Condition. The buyer or lessee will accept the space or property in its current condition, with no improvements, including all defects.
Asking Rent The lease cost per month or per year of the space that is being quoted by the owner.
Assessment. The estimated value of property in order for a governmental fee to be imposed such as taxes or area improvements.
Asset Management. Another term used for property management.
Assignment of Lease. Is the transfer of all responsibilities and liabilities of the lease from one party to another.
Atrium. An opening in the center of a building, often containing plants, fountains, skylights and other features.
Attachment. Is a legal solution to collecting a debt. The court will sometimes issue a “Writ of Seizure,” on a property owned by the alleged debtor in order to secure the property in case a judgment is rendered against the debtor so the property may be sold to satisfy the amount of money called for by the court’s judgment.
Attorney. A person legally appointed by another to act as his or her agent in legal transactions specifically one qualified and licensed to act on behalf of plaintiffs and defendants. Attorney’s are licensed to give legal advice as well as draw up legal documents, agreements etc.
Atonement. The turning over of things of value such as money or property to a new owner.
Audit. The inspection of records to assure accuracy.
B
Balance Sheet. A statement of business or institution that lists the assets, debts and owner’s investment as of a specific date.
Bankrupt. Having been legally declared financially insolvent. Financially ruined impoverished. Depleted of valuable qualities or characteristics.
Bankruptcy. This is when a Federal court under Federal Bankruptcy statutes relieves the debtor, who has been declared bankrupt, of overwhelming debt. under federal guidelines the debtors properties, with certain exceptions, would be distributed to its creditors as full satisfaction of their debt.
Base Rent. Is the rate at commencement of the lease. It is subject to annual increases unless otherwise negotiated in the lease or Addendum or an attached amendment. This phrase has more than one meaning. To some landlords, and in some markets it refers to the rental rate minus operating expenses., i.e. $14 per square foot quoted rate, the building operates at $6.50 (operating expense cost); therefore, the base rate (net rent) is $7.50.
Base Year. The year a Tenant’s Base Expenses Increases are set on.
Base Year Operating Expenses. The cost the owner is paying to cover the cost of operating the building in a given year. i.e. Base Year 2006 expenses would reflect the cost to operate the subject building in 2006. In subsequent years you would pay the difference in the amount it costs to operate the building, based on the percentage of the building you occupy.
Base Year Stop. The amount set by the Landlord, that the Tenant’s Base expenses will begin at.
Bedroom Community A residential area
Bay Depth. Represents the distance from the building’s corridor wall to the outside window of the building.
Big Box. Retail terminology which generally refers to a large space tenant.
B.O.M.A. Refers to The Building Owners and Manager’s Association. An International Organization made up of Building Owners, Building Managers and suppliers of the same. Because of its size and influence the organization establishes a variety of recommended guidelines, such as the B.O.M.A. method of measurement.
B.O.M.A. Method of Measurement. Is generally accepted throughout the office building industry as the standard and fair method of measuring office space. Some landlords use other methods, including their own. To determine the Usable area of your space, you must measure from the inside finished surface of the corridor wall and the dominant portion of other permanent walls (dominant portion of exterior walls, i.e. could be glass) to the center of the wall that separates your office from the adjoining office. Columns and interior walls should not be deducted from the measurement. To determine the Rentable area of your space, you must first determine the rentable area of your floor. This would be accomplished by measuring the inside finished surfaces of the outer building (might be outer glass to outer glass that makes up the exterior walls of the floor). Remember it’s length times width equals square footage. When measuring, exclude any “vertical penetrations” such as stairwells elevator shafts, flues, vertical ducting etc. before you determine the Usable area of that floor. This would be accomplished by taking the rentable measurement and subtracting areas of common use to the tenant, i.e. corridors, restrooms, utility closets, janitorial closets and building amenities located on that floor, such as a common conference room. To determine your rentable area, usable area and common area factors apply the following conversion formulas:
Rentable area divided by Usable area = Rentable/Usable Ratio.
Usable area times Rentable/Usable Ratio = Rentable Area.
Rentable Area divided by Rentable/Usable Ratio = Usable Area
Bond. A document given to assure the recipient against loss from non-payment of a debt.. See Surety Bond.
Breach of Warranty. Occurs when the owner of the property (seller) fails to convey title of ownership of the property as expressed in the contract.
Broker. One who acts as an agent for others as in negotiating contracts, or sales in return for a fee or commission.
Brokerage Commission. A pre-determined fee paid to the broker for services rendered.
Buffer. An items i.e. wall, shrubs, fences or a strip of land set up between properties to establish property differential or property lines.
Building Amenities.. Features of the building that add to the comfort of the tenant while in occupancy. i.e., coffee shop, health facility, covered parking, break rooms, conference rooms, Fed Ex Machines, UPS Machine, etc.
Building Classifications. Building classification are in the eye of the beholder or the community. There are times when a properties deemed “Class A” in one market would not be, “Class A” in another. Example; a major developer uses a very high quality floor plan to design a building for a major market, it’s a class A in that market. Now he takes the same plan and eliminates some of the high end amenities while building a similar building in a smaller market, it’s now a “Class A” building in the smaller market but it may not be considered a Class “A” when put up against the Original with all the “Bells and Whistles.” Please see “Class A”, “Class B”, “Class C” and “Class D” buildings.
Building Codes. A set of laws enacted by the local governmental authorities, regulate the operation of buildings within their jurisdiction.
Building Data. Tenancy information on a particular building or property
Building Engineer. An individual usually qualified to oversee all of the day to day physical challenges of the Building, its equipment and its Tenants.
Building Improvements. Any improvements being made to the overall appearance or comfort of the building. i.e. new carpeting, painting, upgrade of elevator cabs, etc.
Building Leasing Agent. This person could either be an employee of the Building Owner or a Broker with an outside Brokerage firm charged with leasing the Property and keeping it full at the highest market price.
Building Manager. An individual hired by ownership to oversee the day to day operation of the Property. Sometimes they will be onsite sometimes not.
Building Maintenance. Could be a qualified building engineer or just an individual handy man charged with keeping the physical and mechanical aspects of the property going.
Building Operating Hours. The normal hours of operation for the building, as set forth in the lease.
Building/Owner’s Representative. A leasing agent that either works directly for the owner or who works for a third party hired by the owner to lease and negotiate lease transactions in order to fill the building with tenants at the highest market price possible.
Building Permit An official certificate of permission to build issued by the local governing body.
Building Rules & Regulations. A list of Do’s and Don’ts for the Tenants of a property. These are usually attached to the lease as an Amendment (At the back). It’s important that you review them thoroughly before signing a lease to insure that you or your business can comply with them, if not you may find yourself unintentionally in default of your lease.
Building Site A lot on which there are no permanent buildings.
Building Standard. Refers to the items covered in the building’s construction work letter, defining the items necessary to create a standard office space.
Build-out. Refers to the construction of the tenant’s proposed space, to make it ready for occupancy, or to comply with tenant’s construction needs according to the terms and conditions of the lease. Also referred to as T.I. (Tenant Improvements)
Build-out Time. The amount of time it takes from commencement of construction until the space is ready for the tenant to occupy.
Build to Suit. Is the build-out of space according to the tenant’s established guidelines.
Burn-down. A property that has experienced a devastating fire and most likely will not be salvaged.
Business Broker. A broker or Agent who specializes the purchase and sale of businesses. Not always the real estate.
Business Park. A location where a number of company offices and light industrial structures are erected.
Buy Out. The ability to pay money or something of value in order to be released from the obligations of a lease.
C
CAM. A Commercial Real Estate Designation denoting that a Property Manager has the certification of “Certified Asset Manager”.
C.A.M. See Common Area Maintenance Fees.
CAM STOP. An amount usually stated in dollars that the Landlord will pay up to for Common area maintenance. Once this amount has been exceeded payment of the overage will become the responsibility of the Tenant.
Capital Assets. Costs that are incurred in the acquisition or improvement of property or that are otherwise chargeable to a capital account.
Capital Budget A statement of proposed financial expenditures to build a facility, it often includes a plan for financing.
Capital Expenditure. An amount paid out that creates a long term benefit. These are not deductible for income tax purposes. They are generally added to the property’s basis.
Capital Gains. The amount by which proceeds from the sale of a capital asset exceed the original cost.
Capital Gains Tax. A tax applicable to the gains realized from the sale of capital assets. The capital gains tax rate and the holding period requirements are periodically changed by Congress. A favorable tax rate is generally applied to realized gains on assets that are sold following a holding period of over one (1) year. Realized capital gains on assets held a year or less do not generally receive favorable tax treatment.
Capital Improvement An upgrade to a given structure or piece of property.
Capital Improvement Program A multi year plan proposing upgrades to a building or an area.
Capitalization. This is a method of determining the value of a property by taking the building’s annual net income and dividing it by the value of the property.
Capitalization Rate/Cap Rate. According to the Appraisal Institute, it is the method used to convert an estimate of a single year’s income expectancy into an indication of value in one direct step, by dividing the income estimate by an appropriate rate. V = I/R I = V x R R = I/V The rate used to convert income into a present value lump sum. For example, a capitalization rate of 10% and an income of $5,000 annually provide a present value of $5000/0.1, or $50,000.
Cash Flow. The amount of money the Landlord will receive from the lease, after the deduction of operating expenses, taxes and insurance.
CCIM. Certified Commercial Investment Member A commercial designation that can be earned by taking a series of courses and qualifying for the designation by achieving certain goals set forth by CCIM Leadership.
Ceiling Heights. The distance between the floor and the ceiling of a given property
Certificate of Occupancy. A document issued by the local governmental authorities, stating that the building of office space is in the proper condition to be occupied. Change Order. A document that should be signed by the tenant when making a revision to the original build-out plans. It represents the tenant’s authorization to revise and usually indicates the tenant’s willingness to pay for the revision.
City/County Code A set of standards set forth and enforced by local government agencies for the protection or public safety or health of the general public.
Claim. A basis for demanding something.
Class A Building. A term commonly used when referring to the highest quality buildings. Building classification may rate how the building is generally accepted in the market, or could be a personal classification by the individual referring to that structure.
Class B Building. A term commonly used to describe an average building. Building classification may rate how the building is generally accepted in the market, or could be a personal classification by the individual referring to that structure.
Class C Building. A term commonly used to describe a below average building. Building classification may rate how the building is generally accepted in the market, or could be a personal classification by the individual referring to that structure.
Class D Building. A term used to describe a property that might be a low cost alternative or of lower quality than what is normally found in the market. Usually a property with a lot of potential or existing problems. Co-Brokerage Agreement. A document agreed to and signed by two brokerage entities agreeing to work together on a project and spelling out the responsibilities of both parties and when the transaction is successfully completed who gets how much of the commission, when and how it will be divided.
Coinsure. To insure jointly with another or others.
Coinsurer. An insured who is liable to bare part of a loss under a provision in an insurance policy.
Collateral Loan. See Non-Recourse Loan.
Commencement Date. Date the lease takes affect. Usually from the landlord’s perspective the day the tenant starts paying rent on the occupied space.
Commercial Concentration Levy A tax placed on a developer or a property to deter or control the amount of industrial or commercial construction being done in a given area.. See Impact Fee
Commercial Leasing Broker/Agent. One who acts as an intermediary between landlord and prospective tenant. A Broker/agent could be acting on behalf of the tenant (Tenant Representative) or the building owner (Owner’s Representative). The broker/agent is generally paid by the landlord unless other financial arrangements have been made or the broker/agent’s registration of the tenant with the building has been rejected by the owner.
Commercial Real Estate Agent. One who is licensed in a given state, usually as a salesman or broker/salesman and works within the commercial real estate industry. This person usually specializes in a particular product or a particular area of the market.
Commercial Real Estate Broker. An individual who is licensed to do business as a real estate broker in a given state. A middleman in a real estate transaction.
Commercial Real Estate Sales Brokerage. A company that deals primarily with commercial real estate transactions tending to assist clients in buying, selling, leasing or managing commercial properties.
Commission. A fee generally paid to a Real Estate Broker, or other properly licensed individual for acting as the procuring cause of the transaction.
Commissionable Broker. A broker who has earned a commission.
Commission Agreement. An agreement between two parties detailing how and when compensation will be paid for services rendered.
Commission Invoice. A bill sent by the broker to someone requesting payment of the commission due them.
Commission Paid over the Term. A commission that would be paid as payments are received from the tenant until the term of occupancy has concluded.
Commission Referral. A percentage of the agent’s commission to be paid to a person or another agent who has referred a client to once the transaction has been successfully concluded and the commission has been paid.
Commission Structure. Defines how a commission will be paid and who gets what percentage of it.
Common Area Factor. Any space in a building affording common use for all tenants, with the exception of vertical penetrations. Translation - Lobbies, corridors, restrooms, building break-rooms, building conference room, health facility, janitorial closets and storage rooms. It does not include the stairwells or the elevator shafts, flues or vertical ducting.
Common Area Maintenance Fees (CAM Recovery). In retail it’s a fee charged to tenants to maintain the outward and overall appearance of the property. In the office building industry it’s generally inter-changeable with overage of operating expenses.
Community Shopping Center. Shopping centers of usually 200,000 sq ft and up that service the surrounding community of several miles. Usually the anchor tenant might be a grocery chain.
Comparables. Properties similar to a particular property used as a comparison to determine a fair market value.
Competitive Space. Also referred to as a “Multi-Tenant Property”. This occurs when a property is intended to be occupied by multiple tenants as opposed to a single entity. Leases in space like this usually run from one to ten years.
Concession. Is an item given up during negotiations. Coming from the landlord it could be in the form of free rent or other reduction. From a tenant it would be backing off a demand.
Condemnation. The act of condemning (As land forfeited for public use) or judging to be unfit for use.
Conditions of Premises. Current physical condition of the leased space
Condominium. A building or property in which individual units or lots are owned individuals.
Condominium Association. A group of individuals or property owners that have formed an association to set and enforce rules and regulations for the condominium property and to arrange communal maintenance of the property and/or its common areas.
Condominium Office. An office in a complex that is owned by an individual rather than a building owner.
Condominium Parking. A parking lot or garage in which the individual parking spaces are owned separately.
Confidentiality Agreement. An agreement signed by a party, promising not to disclose or share the information they are about to receive with anyone else.
Configuration. A structural arrangement. The way things are set up.
Consent. To give assent to the proposal of another. To be of the same mind.
Construction Manager. One who oversees or supervises the construction of a property or the build-out of space in a property.
Conservation. Preservation or restoration from loss, damage or neglect. Also used to define the protection, preservation, management or restoration of wildlife, and natural resources such as forests soil and water.
Consumer Price Index, (CPI). This is commonly used in some leases as a basis for adjusting annual rent increases and sometimes annual operating expense or common area maintenance increases. It is also referred to as a Cost of Living Index. The is the Federal Government’s Index that measures the change in cost of variety of goods. It is used as an indicator to reflect future pricing as an adjustment for inflation.
Contiguous Space. Refers to the space next door, or adjoining the tenant’s occupied space.
Contract Documents. Also referred to as “Working Drawings”. These are the final plans, approved by all parties, Landlord, Tenant and Governmental authorities, which are used to build-out the Tenant’s Space. Contract Rent. The actual rent paid under the terms of the lease.
Conveyance. Is the transfer of title or ownership from one party to another.
Core. The central or innermost part. The most important part, the essence of something.
Core Factor. See Common Area Factor.
Corporate Guaranty. This occurs when an officer of a corporation signs an agreement as part of that corporation. The signature obligates the corporation to take responsibility for this debt.
Cost. An amount paid or required for a purchase. The price.
Cost Approach. The method used for appraising a property. In this method the appraiser uses today’s prices to determine the replacement cost or value of a property.
Cost of Living Index. See Consumer Price Index.
Cost Per Square Foot. The basis generally used for figuring out how much rent will be due either on an annual or monthly basis. See leasable square feet., usable square foot and Common Area/Load Factor.
Counter. A statement or action made to oppose, refute or nullify another statement of action.
Counter offer. An offer or proposal that is made to offset an earlier offer or proposal that was made.
Counterpart. One that has the same function or characteristic as another. A corresponding person.
Covenant. Is a promise or assurance given by one party to another. Another definition is a legal restriction of property.
Covered Parking. A space under cover in which to park vehicles.
CPI. See Consumer Price Index.
CPM An advanced and coveted designation that can be earned by property managers, Certified Property Manager.
Credit. Reputation for solvency and integrity entitling a person or business to be trusted in buying or borrowing.
Credit Bureau. An organization to which business firms apply for credit information on prospective customers.
Credit Report. A detailed report of an individual or company’s credit history prepared by a credit bureau and used to determine a prospective buyer or tenant’s creditworthiness.
Credit Tenant. A tenant that has a strong track record of financial success, and a good credit or financial statement.
Credit Worthy. An individual or company that deserves to be extended credit.
CREW. Commercial Real Estate Women’s Association
Cubicle A small space or compartment, partitioned off.
Cumulative Pertains to interest or dividends, that if not paid when due, becomes a prior claim for payment in the future.
D
Date of Lease. Is the date the lease has been executed by both the tenant and the landlord.
Debt Service. Cash required over a period of time for repayment of interest and principal on a debt.. The monthly mortgage payment.
Deed. A document conveying ownership.
Deed In Lieu of Foreclosure. Occurs when a property owner turns over the deed to the property to the lender or lien-holder to avoid foreclosure proceedings.
Deed of Trust. When a property is placed under control of a Trustee as opposed to the actual owner. Could be done under the provisions of a loan or court order. The property’s deed usually reverts back to the owner once the debt is paid.
Default. Non-performance under the terms of the lease.
Defeasance A clause within a contract providing for annulment. To make null or void.
Defect. An imperfection or lack of something necessary for completion
Delivered Building. Completion of construction of a building and it’s ready for Tenants.
Demised Premises. A portion of an entire property which is leased to a Tenant.
Demising. Splitting a parcel of real estate by erecting a wall or a line.
Demising Wall. A common wall that separates two tenants or separates a tenant from the common areas of the building.
Demographics. The characteristics of human populations and population segments ,especially when used to identify consumer markets.
Density. Thickness of consistency, impenetrability. complexity of structure or content.
Depreciation. A decrease in property value.
Detention Area a dry bottom area of land which provides for the temporary storage of storm-water runoff.
Detention Pond a body of water designated by design to catch storm water runoff.
Developer. A person who develops real estate, especially by preparing a site for residential or commercial use..
Direct Enforcement. The ability to look directly to the party to insure performance or satisfaction of an agreement i.e. personal guaranty.
Discrimination. Treatment or consideration based on class or category rather than individual merit; partiality or prejudice.
Distress Sale. The act of selling a property under undesirable conditions, usually financial difficulties.
Distribution. The act of dispersing or allotting.
Distribution Center. An area or location from which products are dispersed.
Distribution Facility. See distribution center.
Dock. A platform at which trucks or trains unload material
Dock High. A raised platform
Dominant Portion. A feature that makes up more than 50% of the inside surface of a permanent wall.
Due Diligence. The process of investigation usually carried on by a disinterested third party on behalf of a party contemplating a business transaction, i.e. a corporate acquisition or merger, loan of finances, or a purchase of property.
E
Earned Commission. The amount of money paid to a licensed broker or real estate agent for completion of a sale, lease or other real estate transaction.
Earnest Money. This is also referred to as “Good Faith Money,” its purpose is to make an agreement a binding document.
Easement. The right given to another party to either use a portion of or to cross the property freely.
Ecology. The study of the detrimental effects of modern civilization on the environment, with a view toward prevention or reversal through conservation.
Economic Feasibility. Does the property make sense in terms of income and use.
Economic Rent. An analysis used to determine the property’s market rent.
Effective Rate/Rent. Would be the overall average of your rate, taken through the entire term of occupancy. This would take into affect annual increases. i.e A rate quoted at $14 per square foot, on a five year deal with annual increases of 4% would be effectively a $15.17 deal.
Efficiency. A term used when describing the building’s common area factor, sometimes used to describe how well the building is being run as reflected in lower operating expenses.
Efficiency rate an indicator which reflects how well a building is being run. Another term used to indicate the common or load factor of a building. Egress. The act of going out. An exit.
Electrical Closet. A small room in which electrical equipment is stored.
Electrical or Utilities. When referred to in a lease, it reflects a cost that is either being paid separately by the tenant under a net or triple net lease, or a cost that is included under the full service or gross lease.
Eminent Domain. A method used by the government to acquire property, by condemnation without having to get the owner’s consent. The owner is compensated for the property.
Encroachment. Refers typically to a property use or structure extending over someone else’s property line.
Encumbrance. A burden or impediment. A lien filed against a property.
Enforcement. The act of insuring observance or obedience.
Enforceability. To compel or impose obedience to Engineer. One who applies engineering skills to solve problems. Usually works in conjunction with an architect and planner on buildings and other commercial properties.
Entity. Something that exists as a particular or discreet unit. Persons and corporations are equivalent entities und the law. The existence of something considered apart from its properties.
Entitlement. To assign or appropriate as by giving a title. To give a claim or a right to.
Environmental. Relating to or being concerned with the ecological impact altering the environment.
Environmental Impact Study. Usually a study done to indicate what kind of environmental effect the project or property will have on the immediate surrounding area.
Environmental Laws. Laws enacted for the purpose of protecting the environment.
Equity. The residual value of a business or property beyond any mortgage thereon and liability therein.
Equity Participation. The participation by the lender in an active ownership position with the property.
Escalation Clause. The clause in the lease that addresses the increases to be passed on to the tenant during the life of the lease.
Escrow Agreement. An agreement between Buyer and Seller indicating that a deposit for the purchase of a property will be placed in an escrow account, sometimes with an attorney or a Broker it also defines the terms and conditions of how this money will be held and ultimately distributed if property does close or does not close.
Estoppel Certificate. Is a document signed by the tenant stating the current condition of the lease and any other agreements between the landlord and tenant as true.
Ethics. A set of principles of right conduct. A theory or system of moral values
Evict. To put out by legal process.
Eviction. See evict.
Exchange. To give in return for something received.
Exclusive Agreement. An agreement between and owner and a brokerage firm which states the broker will be the sole representative in marketing the property for sale or lease or to manage this property. In return the owner promises to compensate the broker by paying a commission or a fee, according to the terms and conditions of this agreement.
Execute. To make valid by signing.
Executed Agreement. An agreement that has been signed.
Exempt. To free or permit to be free from any service charge, burden, tax, duty, requisition or evil to which others are subject.
Exhibit. Is an attachment to the lease. |
