Leasing Lingo
What is the legal agreement between a landlord and a tenant?
A Lease
What type of commercial property is designed for office work and administrative functions?
Office
What term describes the percentage of vacant space in a property or market?
Vacancy Rate
What are local rules that govern how land can be used?
Zoning
What is a period of economic growth in the real estate market?
A seller's market or a bull market
What type of lease requires the tenant to pay base rent plus a percentage of their sales?
A percentage lease
What type of commercial property is designed for retail sales and customer service?
Retail
What is the process of thoroughly investigating a property before purchase?
Due diligence
What type of zoning is typically designated for retail and commercial businesses?
Commercial zoning
What is a period of economic decline in the real estate market?
A buyer's market or a bear market
What does "NNN" stand for in a lease agreement?
Triple Net
What type of commercial property is used for manufacturing and storage?
Industrial
What is the formula for calculating Net Operating Income (NOI)?
Revenue - operating expenses
What is the process of changing the permitted use of a property?
Rezoning
What is the term for the process of renovating and improving older properties?
Redevelopment
What term describes the period when a tenant can occupy a property without paying rent?
Rent abatement or free rent period
What type of commercial property is designed for short term lodging?
Hospitality
What financial document forecasts a property's income and expenses?
Pro Forma
What is a variance in zoning?
Exception to zoning rules
What is the term for the trend of businesses and residential properties going back into the city centers?
Urbanization
What clause in a lease allows a tenant to extend their lease term?
Option to renew
What term describes a building that combines uses, such as retail and residential?
Mixed-use
What is the formula for calculating the Capitalization Rate (Cap Rate)?
NOI / property value
What are building codes?
Regulations governing building construction and safety
What is the term for the trend of businesses moving out of central business districts to suburban areas?
Sub-urbanization