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Exam 4
Ch 22
| Term | Definition |
|---|---|
| Anchor tenant | The large and generally well known retailers who draw the majority of customers to a shopping center |
| Base rent | Amount paid by retail tenants in percentage leases regardless of the level of the sales generated by the tenant's business |
| Cancelation option | Lease clause that gives the tenant or the owner the right, but not the obligation, to cancel the lease before expiration |
| common area maintenanct (CAM) | Expenses associated with a commercial property typically include maintenance and repair costs, the cost of security personal and alarm systems, as well as fees for the management of the common area |
| Concessions | Leases clauses, such as free rent, that reduce the cost of the lease to the tenant and therefore provide tenants with an incentive to lease the space from the owner |
| Condominium | An ownership form that combines a fee simple estate for ownership of individual units and tenancy in common for ownership of common areas describes an ownership form not a type of construction |
| Effective rent | the fixed monthly payment that has the same present value as the actual lease payments after concessions or expenses reimbursement revenue over the same term |
| Expansion option | lease clause that obligates the property owner to find space for the tenant to expand the size of their leased space |
| Expense stop | a clause often found in commercial leases that requires landlords to pay property operating expenses up to a specified amount and tenants to pay the expenses beyond that amount. |
| Flat rent | describes a lease where the rental rate is fixed for the entire term |
| Flex space | industrial space that is often built without fancy lobbies or fixtures that can be used for storage or for simple offices and that can be converted from one use to another relatively inexpensively |
| Garden apartments | these developments have a relatively low density of development and are located in suburban and nonurban areas where land is less expensive than in urban areas |
| Graduated rent | describes a lease that calls for prespecified increases in the contract rental rate |
| Gross floor area | the gross floor area of a shopping center is equal to the total gross leasable area, plus the square footage of the common areas |
| Gross leasable area (GLA) | the standard for measuring retail space, the __ is simply the sum of the space occupied by the tenant, and is therefore similar to the usable area of office tenants |
| Gross lease | lease in which the landlord pays all operating expenses of the property |
| High rise apartment buildings | building of at least 10 - 15 stories |
| Indexed lease | rent increases are tied to changes in a regularly reported index |
| Interlease risk | the risk associated with the replacement of a tenant's first lease with another lease of uncertain terms and conditions |
| Load factor | another name for the ratio of rentable to usable area in an office building. The factor is multiplied by the tenant's usable area to determine rentable area |
| Midrise apartment buildings | apartment buildings that range in height from four to nine stories |
| Neighborhood shopping center | located for the convenience of a nearby resident population, this type of center contains retail establishments offering mostly convenience goods. typically anchored by a super market |
| Net lease | Lease in which the tenant pays some or all of the operating expenses of the property in addition to rent |
| Operating expense escalation clause | a commercial lease clause in which increases in one or more operating expenses, relative to a base year, become the financial responsibility of the tenant |
| Outlet center | a variation of specialty shopping centers that generally sell name-brand goods at lower prices |
| Percentage rent | the amount of rent paid by a retail a retail tenant in addition to the base rent. It generally is a percentage of tenant store sales above a prespecified threshold level |
| Power shopping center | these centers typically contain three or more giants in hard goods retailing. the dominating feature of a power center is the high ratio of anchor tenants to smaller tenants |
| Quiet enjoyment | in leasing, once the owner has conveyed possession of the property to the tenant, the owner must provide the tenant with uninterrupted use of the property without leasehold interest in the property |
| Regional shopping center | these centers are focused on apparel and discretionary merchandise, and have at least two anchor tenants that are major department stores |
| relocation option | generally, a lease clause that gives the property owner the option to relocate a tenant within a shopping center or office building, provided the new space is of similar size and quality and provided the owner agrees to pay all reasonable moving cost |
| renewal options | lease clause that gives the tenant the right, but not the obligation, to renew the lease |
| rentable area | the office tenant's usable area, plus his or her prorated share of the common areas |
| rentable/usable ratio | the ratio of total rentable area to total usable area. Will be greater than 1 in office buildings |
| right of first refusal | Commercial lease clause that grants the tenant first choice to lease space in a property should it become available |
| specialty shopping center | These centers are characterized by a dominant theme or image and many are located in downtown areas or rehabilitated historic stuctures. Outlet centers area variation of this theme |
| statement of condition | A document signed by the tenant of a residential property before moving in that lists any prior damage to the unit |
| sublease | occurs when the original tenant transfers a subset of his or her right under the lease to another tenant, although the original tenant continues to be obligated for payments |
| superregional malls | These shopping centers have as many as five to six major tenants and hundreds of minor tenants |
| tenant improvement allowance | The amount of funding the owner of commercial property must provide toward the cost of refurbishing the space to meet the tenant's needs |
| trade fixtures | Personal property usually paid for by the tenant that may be removed by the tenant at lease expiration |
| usable area | The are of an office building that is in the sole possession of the tenant |
| warehouses | the provision by commercial banks of short-term funds to mortgage banking companies to enable them to originate and fund mortgage loans until they can be sold in the secondary market |
Created by:
drewmad5
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