An anchor tenant plays a pivotal role in the context of real estate development, specifically within shopping centers and office buildings. It usually refers to a prominent, well-known business that leases a significant portion of the property, thereby attracting other tenants and customers.
A business office is a physical location devoted to the conduct of business activities. It is dedicated to promoting a particular business and is considered a necessary cost of doing business.
The Cap Rate, or Capitalization Rate, is a fundamental metric used in real estate to determine the rate of return on an investment property based on the income it is expected to generate.
Gross Leasable Area (GLA) is the total floor area of a building available for rental to tenants, usually measured from the outside walls without deducting for hallways, lobbies, or other common areas.
A ground lease involves leasing land, usually on a long-term basis, to allow the lessee to develop property on that land.
Hangout refers to the remaining balance of a loan when the term of a loan exceeds the term of the lease of the property securing the loan.
A Hundred-Percent Location, also known as a One-Hundred-Percent Location, refers to a prime area in a city or a town that garners the highest market values and foot traffic. These locations are in high demand due to their strategic positioning, offering businesses substantial visibility and profitability prospects.
A leasehold mortgage is a type of lien placed on the tenant's interest in real estate, which is generally subordinate to other liens on the property.
The value of a tenant's interest in real estate, particularly under a long-term lease at below-market rental rates.
An MAI Appraisal refers to a real estate appraisal conducted by a person who holds the MAI designation, granted by the Appraisal Institute, signifying a high level of experience and expertise in commercial real estate valuation.
A mall is a public area that connects individual stores within a shopping center, generally enclosed for a convenient and climate-controlled shopping experience.
In commercial real estate, Net Leasable Area (NLA) refers to the portion of a building or project that can be leased to tenants, excluding common areas and spaces dedicated to building operations.
Net Leasable Area (NLA) refers to the portion of a commercial building that is available for lease to tenants. It excludes common areas such as lobbies, restrooms, and utility rooms.
A structure used primarily for the conduct of business, such as administration, clerical services, and consultation with clients and associates. Such buildings can be large or small, and may house one or more business concerns.
A planned development designed especially for office buildings and supportive facilities, catering to specific tenant requirements such as research parks or medical services parks.
Percentage Rent is a component of a rental agreement, specifically under a percentage lease, where rent is partially determined by the income or sales generated by the tenant's business operating within the leased property.
A regional shopping center is a substantial retail complex featuring 300,000 to 900,000 square feet of shopping space, anchored by at least one major department store. It is larger than strip, neighborhood, and community shopping centers but smaller than a super-regional center.
Rentable area refers to the total space a tenant can lease in a commercial property, including both usable space and a proportion of common areas like lobbies, restrooms, and hallways.
A shopping center is a collection of retail stores organized around a common parking area and often featuring key large stores, such as department stores, discount stores, or food stores. This term can also include enclosed malls or walkways.
A step-up lease, also known as a graduated lease, is a type of lease agreement where the rental rate increases at specified intervals throughout the term of the lease.
A Tenant Finish-Out Allowance refers to the monetary compensation provided to retail or office tenants to accommodate their unique requirements for setting up their leased space, including modifications such as walls, partitions, and lighting installations. This allowance is typically provided by the landlord and is expressed in dollars per square foot.
Tenant improvements (TIs) refer to changes or alterations made to office, retail, or industrial properties to meet the specific requirements of a tenant. These improvements can include the installation or relocation of interior walls or partitions, flooring, shelves, windows, and other fixtures.
Tenant reimbursements are payments made by a tenant to a landlord for the tenant's share of property-related expenses. These are commonly encountered in net leases and leases with stop clauses, especially in shopping centers and office buildings.
Property placed on or annexed to rented real estate by a tenant for the purpose of conducting a trade or business. The law makes provisions for, and leases often expressly permit (or require), the tenant's removal of such fixtures at the end of their tenancy.
A Triple-A Tenant refers to a tenant with an excellent credit record, typically used in commercial real estate to indicate high financial stability and reliability.
A Triple-Net Lease (NNN) is a commercial real estate lease agreement in which the tenant agrees to pay all operating expenses related to the property, in addition to the rent paid to the landlord.
Vacant land refers to land not currently being used for developed purposes. It might have utilities and off-site improvements but lacks significant buildings or structures.
