Often and commonly referred to
as free rent or early occupancy
and may occur outside or in addition to the primary term of the
lease.
Above Building Standard
Upgraded finishes and
specialized designs
necessary to accommodate a tenant's requirements.
Absorption
The net change in space
available for lease between two dates, typically expressed as a
percentage of the total square footage.
Ad Valorem
According to value. This is a
tax imposed on the value of property (references a general property
tax), which is typically based on the local government's valuation
of the property.
Add-On Factor
Often referred to as the "loss
factor or rentable/usable (R/U) factor", it represents the tenant's
pro-rata share of the building common areas, such as lobbies, public
corridors and restrooms. It is usually expressed as a percentage
which can then be applied to the usable square footage to determine
the rentable square footage upon which the tenant will pay rent.
ALC
ALC stands for Accredited Land
Consultant and is a professional designation awarded by the
REALTORS® Land Institute, one of nine affiliated groups of the
National Association of Realtors. Members who complete a
comprehensive program including required Land University courses,
experience in the field, and who have displayed involvement and
service to the institute, are awarded the Accredited Land Consultant
(ALC) designation.
Allowance over Building Shell
Most often used in a yet-to-be
constructed property, the tenant has a blank canvas upon which to
customize the interior finishes to their specifications. This
arrangement caps the landlord's expenditure at a fixed dollar amount
over the negotiated price of the base building shell. This
arrangement is most successful when both parties agree on a detailed
definition of what construction is included and at what price.
AMO
AMO stands for Accredited
Management Organization and is a designation awarded by
the Institute of Real Estate Management (IREM) to property
management firms that
have met IREM's standards in the areas of education, experience,
integrity, insurance
and financial stability.
Anchor Tenant
The major or prime tenant in a
shopping center, building, etc.
Annual Percentage Rate (APR)
The actual cost of borrowing
money, expressed in the form of an annual interest rate. It may be
higher than the note rate because it represents full disclosure of
the interest rate, loan origination fees, loan discount points and
other credit costs paid to the lender.
Appraisal
An estimate of opinion
and value based upon a factual analysis of a property by a qualified
professional.
Appreciation
The increased value of
an asset.
ARM
ARM stands for
Accredited Residential Manager (ARM). It is a professional
designation of the Institute of Real Estate Management (IREM) and is
awarded to residential property managers who demonstrate proven
experience, education and ethical conduct.
"As-Is" Condition
The acceptance by the tenant
of the existing condition of the premises at the time the lease is
consummated. This would include any physical defects.
Assessment
A fee imposed on
property, usually to pay for public improvements such as water,
sewers, street, improvement districts, etc.
Assignment
A transfer by lessee of
lessee's entire estate in the property. Distinguishable from a
sublease where the sublessee acquires something less than the
lessee's entire interest.
Attorn
To turn over or transfer
to another money or goods. To agree to recognize a new owner of a
property and to pay him/her rent. In a lease, when the tenant agrees
to attorn to the purchased, the landlord is given the power to
subordinate tenant's interest to any first mortgage or deed of trust
lien subsequently placed upon the leased premises.
