Glossary of Commercial Real Estate Terms
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Welcome to the new Glossary of Commercial Real Estate Terms on A.CRE. This will be an ever growing list of commercial real estate terms and definitions and we hope it will become a valuable resource for our readers. We want to give a huge thank you to Matthew de Klerk for donating his time to jump start this initiative on the site.
If you don’t see a term here that you are looking for, please feel free to contact us with the terms or definitions you would like to see and we will add it to our list.
- Absorption
- Acre
- Acuity Spectrum
- Adaptive Reuse
- Add Alternate
- Adjusted Funds from Operations (AFFO)
- ADR
- Adverse Possession
- Average Daily Rate
- Average Rate of Return
- Axonometric
- Balance Sheet Investing
- Balloon Payment
- Base Year Stop
- Bid and Award Process
- BOMA
- Breakeven Occupancy
- Breakup Fee
- Bridge Loan
- Building Core
- Building Owners and Managers Association
- Buildup Rate
- Common Area Maintenance (CAM)
- Cap Rate
- Capital Expenditure
- Capital Expenditure
- Car Stacker
- Promote
- Cash-on-Cash Return
- Cash-Out Refinance
- Cash Sweep
- Catch Up Provision
- CCIM
- Clawback Provision
- Cold Shell
- Conceptual Design
- Concessions
- Construction Documents
- Construction Financing
- Construction-Perm Loan
- Contingency Cost
- Continuing Care Retirement Communities (CCRC’s)
- Contract Rent
- Contractor Controlled Insurance Program (CCIP)
- Core
- Core Plus
- Cost Plus Contract
- Curtailment
- DCF
- Debt Covenants
- Debt Service Coverage Ratio
- Debt Yield
- Deed in Lieu of Foreclosure
- Defeasance
- Delaware Statutory Trust
- Design Development
- Development Spread
- Development Yield
- Discount Rate
- Discounted Cash Flow
- DSCR
- DST
- Earn-Out
- Earnest Money Deposit
- Stabilized Pro Forma
- Economic Vacancy
- Effective Gross Revenue
- Elevation
- Entitlement Process
- Equity Multiple
- Expansion Rights
- Expense Stop
- FAR
- FF&E
- Financing Memorandum
- Fixed Costs
- Floor Area Ratio
- Floor to Ceiling Height
- Floor to Floor Height
- Floor Plan
- Floor Plate
- Forward Sale
- Free and Clear Return
- Full Service Gross Lease
- Full Service Hotel
- Funds from Operations (FFO)
- Furniture, Fixtures, and Equipment
- Future Value Factor
- General Contractor
- General Vacancy and Credit Loss
- Good News Money
- Gross Asset Value
- Guarantee of Non-Recourse Carve-Outs
- Guaranteed Maximum Price (GMP)
- Hangout and Hangout Risk
- Hard Costs
- Hectare
- Hold/Sell Analysis
- Hotel "Flag"
- HUD Home
- In arrears
- In-place Rent
- Institutional Investor
- Interest Reserve
- Internal Rate of Return
- Jingle Mail
- Joint Tenenacy
- Key Money
- Key Performance Indicator
- Land Assemblage
- Land Use Restriction Agreements (LURA)
- Lease Depth
- Leasing Commissions
- Lessee
- Lessor
- Levered Cash Flow
- Limited Partner
- Limited Service Hotel
- Load Factor
- Loan Amortization
- Loan to Value
- Loan to Cost
- Loan Workout
- Lock Out
- Lock Out Period
- Loss-to-Lease
- Lump Sum Contract
- Make Ready Costs
- Market Rent
- Master Tenant
- Metropolitan Statistical Area
- Mezzanine Debt
- Millage Rate
- MOIC
- Mortgage Constant
- MSA
- Multiple on Invested Capital
- Net Effective Rent
- Net Lease
- Net Operating Income
- NOI
- Non-Disclosure State
- Non-Recourse Carve-Outs
- Occupancy Cost
- Offering Memorandum (OM)
- Operating Supplies and Equipment
- Opportunistic
- Option Agreement
- OS&E
- Other Income
- Owner Controlled Insurance Program (OCIP)
- Paid in arrears
- Pari Passu
- Parking Income
- Crystallization
- Permanent Financing
- Preferred Return
- Premier Suburb
- Present Value
- Present Value Factor
- Project Buyout
- PSA
- Purchase and Sale Agreement
- Ratio Utility Billing System (RUBS)
- Real Estate Investment Trust (REIT)
- Real Estate Private Equity (REPE)
- Recourse
- Renewal Option
- Rent Control
- Rent Roll
- Rentable Area
- Replacement Cost
- Residual Land Value Analysis
- Residual Pro Forma
- Retention
- REVPAR (Revenue Per Available Room)
- RevPAR
- Right of First Refusal
- ROFR
- Sale Leaseback
- Schematic Design
- Short Sale
- Soft Costs
- Sources and Uses
- Special Servicer
- Special Servicer
- Specific Performance
- Specifications Manual (Spec Book)
- Sponsor
- Springing Recourse
- Stacking Plan
- Storage Income
- Structured Parking
- Subcontractor
- Takeout Loan
- Tax Increment Financing
- Temporary Certificate of Occupancy
- Tenancy By The Entirety
- Tenant
- Tenant Estoppel Certificate
- Tenant Improvements
- Tenant Rollover Risk
- Tenants in Common (TIC)
- The Income Approach
- Time Value of Money
- Title Insurance
- Total RevPAR
- Trailing Twelve Months
- Transfer Tax
- Trended Rents
- TRevPAR
- Trophy Asset
- Under Water
- Unlevered Cash Flow
- Urban Infill
- Usable Area
- Valet Trash
- Value Add
- Variable Costs
- Vertical Expansion Option
- Walkability
- Wall Street Prime Rate
- War Room
- Warm Shell
- Wrap Up Insurance
- Yield-on-Cost