NOI is the total income a property generates after operating expenses, excluding financing costs and taxes.

Capitalization Rate is a measure used to calculate the return on investment, determined by dividing NOI by the property’s current market value.

This is the cash income earned on the cash invested in a property, calculated as cash income divided by the amount of cash invested.

GRM is a property’s market value divided by its annual gross rental income, used to compare properties and assess value.

Properties are classified into Class A, B, or C based on location, age, and condition, indicating quality and investment potential.

Improvements made to rental premises by or for a tenant. Also known as tenant improvements (TI).

A lease agreement where the tenant agrees to pay all operating expenses, including property taxes, insurance, and maintenance.

The percentage of all available units in a rental property that are vacant or unoccupied at a given time.

The rate at which rentable space is filled. Negative absorption indicates more space becoming vacant.

A comprehensive appraisal of a property to evaluate its commercial potential, including legal, financial, and physical conditions.

A secondary loan that fills the gap between the primary loan and the total amount needed. It is often secured by the stock of the company owning the property, not the real estate itself.

A large, well-known commercial tenant that serves as the main draw to a property, often in retail spaces.

A clause in a lease that allows the landlord to increase rent at set future dates or based on specified conditions.

A lease in which the landlord pays for all the building’s operating expenses, including utilities, property management fees, and maintenance.

A long-term lease of land on which the tenant can build a property. The tenant owns the buildings but not the land.