Space within a property that is currently not built out. These typically include items. A blend and extend lease is a type of renewal that allows tenants to blend their existing lease into a new and longer lease. The size of the parking area in relation to the size of the building. The amount asked by landlords for available space, expressed in dollars per square foot per year in most parts of the country (and per month in areas of California and other selected markets). Same as Fully Serviced Lease. In 2005, many leading advertisers announced plans to increase use of online advertising and to decrease the amount of advertising dollars spent in traditional print media, such as newspapers. This term can also be extended to include the cost of maintaining parking areas, sidewalks, landscaped areas, public washrooms, loading facilities and often form part of the tenant's pro-rata share of the buildings operating expenses. The return on the portion of an investment financed by equity capital. Typically used in a sales organization where the salespeople are given portable computers, modems, and cellular phones in return for having their offices taken away. Improvements made by the landlord or owner of building or site that potentially increases the value of the asset. Those concessions most often take the form of free rent but may also include lease buyouts, moving allowances and above-market tenant improvement allowances. The leased area of the tenants premises divided by the total gross lease able area for the premises, the resulting fraction being used to compute the tenant's share of operating expenses, taxes, common.

A lien can halt the sale of a property. b. May or may not be included in the terms of lease, such as early occupancy. A lease that requires the tenant to pay all expenses of the property being leased in addition to rent. The relation of space currently rented within a property in relation. An improvement that increases property value as distinguished from repairs or replacements that simply maintain value. Examples include a factor converted to retail use or an office building converted to a school. Explain why a financial investor in stocks cannot earn high capital gains simply by buying companies with a demonstrated record of high profits. A building that has completed construction (i.e. Modernization of building systems such as heating, ventilation and air conditioning (HVAC); security; fire alarms; and energy management.

A lease clause that gives a tenant the right to purchase the building if certain previously agreed to conditions within the lease agreement are met. Such. The uncertainty associated with the possible profit outcomes of a business venture. The construction or improvements of the interior of a commercial space, including walls, flooring, plumbing, electrical, paint, etc. A set dollar amount provided by the Landlord under a lease to be used by the Tenant for a specific purpose. Examples include failure to pay rent, using the premises for purposes not agreed upon in the lease or failure to perform any one of the agreed upon terms. Transit score is a number between 0 and 100 that measures the relative usefulness of nearby routes. Multiple suites or spaces on either the same floor or the adjoining floor(s) in the same building.

For example, M5W 1E6 is a valid postal code.) Using a diagram, show what effect this will have on the equilibrium interest rate for a given money supply.

Examples include allowances for tenant improvements, moving expenses design fees, etc. The rate typically used to calculate or make an estimate on the underlying value of a property based on the Net Income derived from the property. This change typically occurs in sought-after areas that are usually well located, where buildings have become unattractive or obsolete or where there is a demand for different uses. The point at which there is a recognizable shift of expenditure allocations away from owner occupied, Property improvements that cannot be expensed as a current operating expense for tax, Taxable income derived from the sale of a capital asset. How does the government collect revenue, and on what is that revenue spent? Costs that do not change with a building's occupancy rate. The build-to-suit project is usually contracted with a developer who owns and operates the completed facility occupied by the tenant. The difference between a property's current market value and the debt, mortgages and liens against it.

For example: If your are measuring an office and one of the walls has a window that occupies more than half of the surface of the wall, you measure to the surface of the glass.

The rental rate stated in the formal lease agreement without factoring in inducements or concessions. LEED (Leadership in Energy and Environmental Design). The possible change in an investment's ability to return principal and income. The concession may be provided to move a tenant in or out of a location. The term requiring that mortgage holder honor the terms of a lease agreement in the case of a foreclosure, provided all terms and conditions of the agreement are being met, The clause that establishes the time frame and method each party. These smaller divisions or boundaries are generally recognized and accepted by the real estate industry and the business community in a market and region. The rudimentary components of any production process or system consisting of: land and, The amount at which the asset (or liability) could be bought (or incurred) or sold (or, The process of evaluating a proposed project to determine if that project will satisfy the. The Social Security system provides income for people over age 65. An agreed continuation of occupancy under the same conditions, as opposed to a renewal, which implies new terms or conditions. The minimum rent due to the landlord. The division of a city, town or municipality into districts in which construction and use is limited to a stated type of building and land usage, in accordance with legislative act. The construction of an office or industrial building to meet the specific requirements of a large tenant or purchaser. A provision within a lease stating the preset rate increases in operating costs increase over the term of the lease. A payout (by a tenant or a landlord) to the other party, therefore relieving both parties of all obligations to each other in the lease. Right of First Offer or First Opportunity.

The intent is to protect both parties in the transaction until the transaction is executed. Considerations made in the site selection process which assist in the evaluation of site, A region delineated in terms of linkages or economic interactions that are typically, The amount to which money grows over a designated period of time at a specified rate of, An evaluation of the difference in the demand and supply of space (measured in terms of, A gap analysis that is carried out for a city or several cities (simultaneously) to identity one, Commercial space that can be used for a variety of purposes, such as multiple-use office. Common concessions include free rent, lower rent, cash, cash for improvement work, moving expenses and any other item agreeable to both parties. This letter requests certain conditions to be allowed by the parties before entering into any formal agreements. (Synonym: add-on factor). Income from salary, wages, tips, commissions, and activities in which the taxpayer, The ratio of rentable to useable square feet. How does the reduction in benefits associated with higher earnings affect peoples incentive to work past age 65?

Certificate levels are as follows: Certified, Silver, Gold or Platinum. They include property taxes. Partitions or walls that separate one tenant's space from the buildings common areas, or from another tenant's space in a commercial, office, or industrial or retail property. Thus, a tenant would agree to pay a certain net rental rate plus their portion of taxes, maintenance costs (CAM) and operating. (Building Owners and Management Association) A national. Space that is flexible in terms of what it can be used for (for example, space that could be, A region identified by political jurisdiction or on the basis of the presence or absence of one. Net rent is often equated with triple net leasing: as most elements, taxes, common area maintenance and operating costs are subject to escalation and therefore netted out. Chapter 2 explains the difference between positive analysis and normative analysis. $100 b.$200 c. $300 d.$400. The possibility or probability that a real estate investment will increase in value during the, The value of real property established by the tax assessor for the purpose of levying real. Factors which determine how a location or site functions. (Synonym: face rate). A commitment by a bank or other person that the issuer will honor drafts or other demands for payment upon full compliance with the conditions specified in the letter of credit. Founded in Canada in 1996, Green Globes is a green building guidance and assessment program that offers a way to advance the overall environmental performance and sustainability of commercial buildings. It is calculated by dividing the. A formal document that creates an agreement between a landlord and tenant for a specified property. May also be used in describing space that is on a floor either directly above or directly below the vacant space in an office or industrial complex. Breaking any section of the terms contained within a lease document. The generally accessible areas found on each floor of an office building such as washrooms, janitorial closets, electrical rooms, telephone rooms, mechanical rooms, elevator lobbies and public corridors that are available for use by all tenants on that floor. A historical term used to refer to the commercial, civic or geographic center of a community. If a property owner fails to pay a creditor, for example, the creditor can place a lien on the property. This is office space that is built out prior to being leased to a particular tenant. What percentage end with 1E6? Lease requiring tenant to pay in addition to base rent all costs associated with the operation, repair and maintenance of the building, all real estate taxes, and utilities including repair and maintenance of the building's structure and rood. Broker Knorr advertised in the newspaper that anyone who bought a property listed with the broker would receive a free microwave oven valued at $500. The cost associated with providing such services are included in the base rent. A right granted to a party to enter into a contractual arrangement on terms identical to those offered by some third party. The rental rates stipulated in an executed lease agreement. The leasing of a real estate property before construction is completed. It is typically calculated by dividing the total square footage of the building by the land area in square feet. Excludes those areas within the industrial and office space that the tenant pays rent on but effectively cannot use such as columns and sharply angled spaces. Usually the land is leased for a relatively long period of time to a, In reference to the patterns of urban or population growth in a geographic market, an. Also known as. The percentage of net rentable square feet of a building devoted to common areas, such as hallways, washrooms, lobbies, etc. The total number of buildings that broke ground (commenced construction) over a given period. The cost for property taxes, common area maintenance (CAM), insurance, salaries, utilities, and similar items paid in connection with the operation of a commercial , office, industrial or warehouse property by the landlord. For example, a broker preparing to show available space to a tenant may identify five properties to be toured on the basis of location, square footage available, class, asking rent, parking ration, etc. A special clause in the lease agreement giving one of the parties (usually the tenant or lessee) the right to cancel the lease. The tenant remains in the building, and the building use and square footage do not change. "Usefulness" is typically measured by a weighted algorithm of characteristics such as a distance to the nearest stop; mode of the route such as a bus, ferry or rail; and frequency of service. The income that remains for an investment property after the monthly operating income is reduced by the monthly housing expense, which includes principal, interest, taxes, and insurance (PITI) for the mortgage, homeowners' association dues, leasehold payments, and subordinate financing payments. A building or site that involves tear down and rebuilding of most - if not all - structures on that site. What is given greatest weight in calculating the FICO credit score. (Synonym: base rent). Today, the term is associated with retail and has come tot be known as a robust retail cluster with civic or open spaces in proximity to a variety of uses such as residential, office, retail and hotel. If sublet space is excluded from the calculation, the term "direct available space" is recommended. Infill is the development of one or more buildings on underutilized land situated between existing buildings. d. There are many people who need to be trained to qualify for job openings. The state of California requires a special blend of gasoline that meets stricter environmental standards than other regions in the country. (See also "Commencement Date"). Find the probabilities of the following events. c. Many states use gasoline taxes to help fund highway construction and maintenance. The percentage of total employees (at the firm or industry level) that are office space users. An informal offer to lease or purchase. How does the provision of Social Security affect peoples incentive to save while working? Also known as loss factor or core factor or gross up. Core area is typically expressed as a percentage of net rentable area. The stage at which an investment produces an income that is just sufficient to cover, The sales threshold over which percentage rent is due.

Letters of credit are often used in place of cash deposited with the landlord in satisfying the security deposit provisions of a lease. Space that is adjacent to another space or series of spaces. The amount of rent to be paid by the tenant excluding operating costs maintenance, insurance, hydro etc. The starts are typically measured in number of buildings and square feet. Also excludes common areas of the building (ie. Also known as base, A method of determining the market value of a property by evaluating the costs of creating, The current cost to construct a reproduction of, or replacement for, the existing structure, Expenditures that are required to assume and maintain occupancy of a space. Free rent provided by the landlord to the tenant.

A lease in which the lessee pays a fixed rental amount for the duration of the lease. Upgrading and modernizing common areas in a building such as lobbies, bathrooms, parking areas, etc. This broad term can be defined or measured a number of ways and is often defined relative to urban and exurban areas. The object in escrow is released to a designated entity upon completion of some specific occurrence. Unless there is a letter of termination from either party, every month the term renews for an additional month. To impose or assess a tax on a person or property. In commercial real estate (CRE), this term generally means the practice of developing, redeveloping and operating CRE in ways that cause zero, minimal or improved environmental impact. How many Canadian postal codes are possible? c. In June, many graduating students spend several months looking for a job. A tenants right to lease additional space that is often adjacent. Often the tenant is directly responsible both for all such costs and for the active handling of the items themselves. The actual rent per square foot or amount received by a landlord after deducting free rent (or other cash incentives such as moving allowances, furniture allowances, etc). An amount after a base amount has been adjusted for concessions, allowances, and costs. A subset of total inventory that enables one to isolate anc compare buildings on the basis of similar characteristics rather than simply by location. While LOIs may not be binding, provisions of them can be, e.g., non-disclosure and exclusivity. A building that has received zoning approval but has not yet started construction. The tenant, as it pertains to a lease agreement. LEED is a third-party certificate program under the U.S. Green Building Council (USGBC). The adjustment for this factor would be called a: A contractor with unpaid bills must file their lien notices within what time period? Unlike under a Right of First Refusal, the owner is not required to have a legitimate offer which the tenant can then match or refuse. If an existing building is gutted extensively (i.e., elevators and bathrooms do not function and it can, therefore, not be occupied by a tenant), then the building should be removed from inventory and redelivered when the occupancy permit is issued.

These charges are shared by the tenants on a pro-rata basis (ie. The use of borrowed funds to acquire an investment. Sale-leaseback deals offer the original owner freed-up capital and tax breaks and the investor a guaranteed return and appreciation. Zoning regulations have the greatest impact on which right? An investment sales or finance broker may generate a competitive set of buildings according to access to transit, year built, percentage leased, etc., to help estimate the value of an asset to be bought, sold or refinanced. It is equal to the sales price less. An office that moves with the person. An approach to estimating the retail trade area (and sales/revenue potential) for a given, The amount or degree to which data points in a series are spread or dispersed about their, Ratio of net operating income to annual debt service. Wording found in deeds that limits/restricts the use to which a property may be put (e.g., no bars). Unless specifically stated otherwise in the lease, it is the date on which the tenant takes possession of its leased premises. a. Submarkets are geographic boundaries that delineate core areas that are competitive with one another, and together they constitute a generally accepted secondary set of competitive areas. Such action is: What are the two types of estates in land. The provision in a lease naming a guarantor who is held personally responsible for the payment of all the amounts for rent and additional rent and other terms as set out in the lease. Opposite of Net Lease. The process of paying off a debt together with interest, usually with equal payments at regular intervals over a period of time. A brokers license was involuntary inactive for two years and one month. The total floor area designed for tenant occupancy and exclusive use, including basements, A lease in which all expenses associated with owning and operating the property are paid by, The total income generated by the operations of a property before payment of operating, A method investors may use to determine market value.