Face Rental Rate
The "asking" rental rate published by the landlord.
Fair Market Value
The sale price at which a property would change hands between a willing
buyer and willing seller, neither being under any compulsion to buy
or sell and both having reasonable knowledge of the relevant facts.
Also known as FMV.
Finance Charge
The amount paid for the privilege deferring payment of goods or services
purchased, including any charges payable by the purchaser as a
condition of the loan.
First Generation Space
Generally refers to new space that is currently available for lease
and has never before been occupied by a tenant. See also "Second
Generation Space".
First Mortgage
The senior mortgage which, by reason of its position, has priority
over all junior encumbrances. The holder of the first or senior
mortgage has a priority right to payment in the event of default.
First Refusal Right or Right of
First Refusal (Purchase)
A lease clause giving a tenant the first opportunity to buy a
property at the same price and on the same terms and conditions as
those contained in a third party offer that the owner has expressed
a willingness to accept.
First Refusal Right or Right o
First Refusal (Adjacent Space)
A lease clause giving a tenant the first opportunity to lease
additional space that might become available in a property at the
same price and on the same terms and conditions as those contained
in a third party offer that the owner has expressed a willingness to
accept. This right is often restricted to specific areas of the
building such as adjacent suites or other suites on the same floor.
Fixed Costs
Costs, such as rent, which do not fluctuate in proportion to the
level of sales or production.
Flex Space
A building providing its occupants the flexibility of utilizing the
space. Usually provides a configuration allowing a flexible amount
of office or showroom space in combination with manufacturing,
laboratory, warehouse distribution etc. Typically also provides the
flexibility to relocate overhead doors. Generally constructed with
little or no common areas, load-bearing floors, loading dock
facilities and high ceilings.
Floor Area Ration
(FAR) The ratio of the gross square footage of a building to the
land on which it is situated. Calculated by dividing the total
square footage in the building by the square footage of land area.
Force Majeure
A force that cannot be controlled by the parties to a contract and
prevents said parties from complying with the provisions of the
contract. This includes acts of G-d such as a flood or a hurricane
or, acts of man such as a strike, fire or war.
Foreclosure
A procedure by which the mortgagee (lender) either takes title or
forces the sale of the mortgagor's (borrower) property in
satisfaction of a debt. See also "Deed in Lieu of Foreclosure".
Full Recourse
A loan on which an endorser or guarantor is liable in the event of
default by the borrower.
Full Service Rent
An all-inclusive rental rate that includes operating expenses and
real estate taxes for the first year. The tenant is generally still
responsible for any increase in operating expenses over the base
year amount. See also "Pass Throughs".
Future Proposed Space
Space in a proposed commercial development which is not yet under
construction or where no construction start date has been set.
Future proposed projects include all those projects waiting for a
lead tenant, financing, zoning, approvals or any other event
necessary to begin construction. Also may refer to the future phases
of a multi-phase project not yet built.
