CRE Basics
Typically refers to a building designed and constructed in advance of any specific tenant. Variations include Warm Lit Shell, Cold, Dark Shell, etc.
What is Core + Shell
This person may be a developer, end user, investment fund, etc. They typically create a unique LLC for each asset.
Who is the Owner
The entity renting or leasing the property
Who is the Lessor
Developed the standard method of measurement for commercial office buildings
BOMA (Building Owners and Managers Association)
Formal request for interested parties to provide related qualifications in pursuit of a project. Often precedes a “short-list” of teams for the next step in the project process.
What is Request for Qualifications
Building designed in conjunction with a known tenant. Can be a Headquarters, Corporate Campus, etc.
What is a Build to Suit
Oversees the design, construction, management, and leasing of commercial real estate. These projects are usually built on spec and for profit.
Who is the Lessee
Oversees the design, construction, management, and leasing of commercial real estate. These projects are usually built on spec and for profit.
Who is the Developer
The physical measurement of actual occupied or leased space on any given floor
What is USF (Useable Square Feet)
A call for firms to submit teams, fees and other requested items related to specific projects. Select teams usually move forward the to interview round.
What is a Request for Proposal
Highly coveted buildings located in a central location. These buildings possess top-notch materials, qualities and infrastructure that demand higher rent.
What is a Class A Office
Commercial Real Estate Broker who represents the tenant in their search for space. Have good knowledge of the market, and trends and can be especially valuable when evaluating proposed lease agreements.
Who is a Tenant Broker
Oversees multiple properties on behalf on an owner. Typically responsible for capital improvements, brand, tenant experience, etc.
Who is the Portfolio Manager
This is a Zoning Term. The total area of a building divided by the total area of the site. The higher the this, the denser the development.
Floor Area Ratio (FAR)
Money earned as a percentage of the total value of investment (Income - Cost) / Cost
What is a Return on Investment
May refer to the design of the tenant fit-out package or terms within the lease indicating any allowances the lessor will pay toward tenant construction costs.
What is Tenant Improvement
Team that oversees day to day operations and maintenance of a building. May be part of ownership or a third party entity
Who is the Asset Managers
Project investors. Financial investment may come from venture capital, angel investors, corporations, REIT’s, hedge funds, private equity, insurance companies, etc.
Capital Partner
The sum of the Usable Office Areas and Floor Common multiplied by the Building and Floor Ratios.
What is Rentable Square Feet (RSF)
Signed document outlining the basic details of a lease, transaction or investment
What is a Letter of Intent
Unofficial Class of buildings that are highly regarded by industry leaders. Prestigious buildings with prestigious addresses and often highly amenitized.
What is Trophy Offices
Works on behalf of an Owner to manage the design and construction process. Typically, does not have an ownership stake and is paid a fee for their efforts.
Who is the Fee Developer
Represents the tenant in their search for space. Have good knowledge of the market, and trends and can be especially valuable when evaluating proposed lease agreements.
Who is a Leasing Broker
This is not an actual BOMA term but Brokers and developers will use this ratio to discuss the efficiency of a floor plate in general terms.
What is Core Factor
Operating income after expenses are deducted but before taxes
What is Net Operating Income