Types of Commercial Real Estate
This asset class includes skyscrapers and professional buildings.
What are office buildings.
This is the additional rent charged to a tenant to maintain the common areas.
What are CAM (Common Area Maintenance) fees?
Tenant pays a flat fee and landlord pays for everything including insurance, taxes, repairs and utilities.
What is a Full Service or Gross Lease?
Revenue minus all operating costs.
What is Net Operating Income (NOI)?
Any building/rentable area that consists only of a unimproved/bare interior.
What is a Cold Shell?
This asset class includes shopping malls, restaurants, and stores.
What is retail property?
The actual costs associated with running a property.
What are Operating Expenses?
Tenant and landlord split certain expenses.
What is a Modified Gross Lease?
Financial category that includes base rent, parking income, and service fees.
What is income or revenue?
Entity that allows large and small investors to participate in large real estate ventures.
What is a Real Estate Investment Trust (REIT)?
This asset class includes warehouses, garages, and distribution centers.
What is industrial property?
A lease clause giving the tenant the right to extend the term of a lease at a predetermined rate.
What is a renewal option?
Tenant pays for everything (rent, taxes, insurance, operating expenses), while landlord only pays the mortgage.
What is a Triple Net Lease (NNN)?
Financial category that includes repairs and maintenance, utilities, and cleaning expenses.
What are Operating Expenses?
Crowdfunding for real estate.
What is Real Estate Syndication?
This asset class includes apartment buildings with 4 or more units.
What is commercial multifamily?
The percentage of physically vacant space divided by the total amount of existing inventory.
What is the Vacancy Rate?
Legally binding written agreement between the property owner and tenant.
What is a Lease?
Financial Category that includes management fees, insurance, and general & administrative expenses.
What are Non-Operating Expenses?
Highest designation in Commercial Real Estate (CRE).
What is CCIM (Certified Commercial Investment Member)?
This asset class includes apartments above and retail below.
What is mixed-use property?
The term used to describe the reasonable return on investment, also known as "free and clear return."
What is Capitalization Rate (Cap Rate)?
Right to be the only business that sells a certain product or provides a specific service.
What is an Exclusive Right clause?
Financial category that includes leasing, commissions, tenant improvements, and big ticket repairs/improvements.
What are Capital Improvements?
The person you call for all your commercial real estate needs.
Who is Mona Hall McKenzie?