Real Estate Glossary

The total floor area in an office building measured in square feet or square meters that is associated with that building's use as office building. The area extends to the outer surface of exterior walls and windows and includes office area, retail area, and other rentable areas such as vending machine space and storage area, but excludes parking and roof space.

A lease that provides that that the landlord shall pay all expenses of the leased property, such as taxes, insurance, maintenance, utilities, etc.

A lease covering the use of land only, with the lease sometimes secured by improvements installed by the tenant. Also called a "Land Lease."

Rent paid for vacant unimproved property. If the property is improved, ground rent is that portion of the total earnings attributable to the land only.

One who makes a guaranty. See Also: Guaranty

Agreement whereby the guarantor agrees to pay the debt or perform the obligation of another who fails to do so. Differs from a surety agreement in that there must be a failure to pay or perform before the guaranty can be in effect.

The actual cash proceeds from a loan that are given to the seller. See Also: Soft Dollars

The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four criteria "highest and best use" must meet are: legal permissibility, physical possibility, financial feasibility, and maximum profitability.

A tenant who retains possession after the expiration of a lease.

The acronym for Heating Ventilating and Air-Conditioning. Refers to the equipment used to heat and cool a building.

An appraisal term that encompasses the total value of land and improvements rather than the separate values of each.

Generally, the term refers to buildings, but may include any permanent structure or other development, such as a street, utilities, etc. Also "On-Site Improvements."

Development costs other than direct material or direct labor costs, including administrative and office expenses, financing costs and property taxes.

When referring to a market of office or industrial space, the total amount of rentable square feet of existing and delivered space in a given category, for example, prime office space. Inventory refers to all space within a certain proscribed market without regard to its availability or condition, and can include both office and flex warehouse space.

An involuntary transfer of real property without the consent of the owner, such as by a divorce decree, condemnation, etc.