Building Types
A facility primarily used for the storage or distribution or both of materials, goods and merchandise.
What is a warehouse?
A building or site that involves teardown and rebuilding of most—if not all—structures on that site. 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.
What is a redevelopment?
Relationship between the total square footage of a building and the total square footage of the parcel on which the building is located. It is typically calculated by dividing the total square footage of the building by the land area in square feet.
What is a floor area ratio (FAR)?
Value equal to one-hundredth of one percentage point. For example, 100 (?) points = 1 percentage point.
What is a basis point (BP)?
A structure used primarily for manufacturing, research and development, production, maintenance, and storage or distribution of goods or both. It can include some office space. These types of buildings are divided into three primary classifications: Manufacturing, warehouse or distribution, and flex.
What is an industrial building?
A door through which trucks, forklifts, and other machinery or vehicles can enter and exit without a change in elevation.
What is a drive-in-door?
The percentage of total square feet in an industrial building that is built for use as office space. When an office is built above space that would otherwise be an industrial work area, this additional square footage is not counted in the total square footage of the building.
What is office percentage?
Improvements (as opposed to repairs) to a fixed asset that will increase the value or useful life of that asset. A (?) is typically amortized or depreciated over the useful life of the asset, as opposed to a repair, which is expensed in the year incurred.
What are capital expenses (CapEx)?
An industrial property type that enables goods to be efficiently moved or transported from a warehouse directly to a consumer.
What is a fulfillment center?
A building that is designed and tailored for a specific tenant, often because the tenant is unable to find suitable space in the marketplace. Projects can include specific design features not commonly found in the marketplace, which may be why the tenant asks to have a special facility built. Generally, these projects become single-tenant buildings upon completion and remain under ownership of the builder.
What is build-to-suit?
The total number of buildings that broke ground (commenced construction) over a given period. The starts are typically measured in number of buildings and square feet.
What are construction starts?
Unlevered initial return from the acquisition of a real estate asset calculated by dividing net operating income (NOI) by the property sales price. For example, a property’s (?) is 10 percent if it is purchased for $10 million and produces $1 million in NOI during one year. The (?) is typically calculated using the NOI generated in the first year of ownership so investors can normalize and compare potential returns among competing investment properties.
What is capitalization rate (cap rate)?
An industrial building designed to be used in a variety of ways. It is usually located in an industrial park setting. Specialized buildings can include service centers, showrooms, offices, warehouses and more.
What is a flex building?
The distance between posts or vertical supporting beams in a building.
What is column spacing?
A lease in which the tenant pays a share of operating expenses in addition to the stipulated rent. Disclosure of the specific expenses to be paid directly by the tenant is required.
What is a net lease?
NOI / purchase price (or initial return).
What is the capitalization rate (cap rate)?