Real Estate Glossary

Land in its natural state. Land that has not been subdivided into lots, does not have water, sewers, streets, utilities, or other improvements necessary before a structure can be constructed.

(i) Land and anything permanently affixed to the land, such as buildings, fences, and those things attached to the buildings, such as light fixtures, plumbing and heating fixtures, or other items which would be personal property if not attached. (ii) May refer to rights in real property as well as the property itself.

That portion of the gain from the sale of real estate that is taxed at ordinary income tax rates. Calculated as the difference between the accelerated depreciation taken and the straight-line depreciation that would have been allowed.

The right of a lender or holder of a note secured by a mortgage to look to the personal assets of the borrower or endorser for payment should the borrower default, not just to the property.

A building undergoing extensive renovation in order to cure obsolescence. Some rehab projects are so extensive that tenants may not be in the building during the work period.

The right of a tenant to renew (i.e., extend the term of) a lease for a stated period of time and rent at an amount that can be determined.

Consideration paid for the occupancy and use of real property. A general term covering any consideration (not only money).

The date on which a tenant begins paying rent. Depending upon the nature of the marketplace, it may coincide with the lease commencement date or it may be several months after. It will never begin before the lease commencement date.

The period of time following construction of a new building when tenants are actively sought and the project is approaching stabilized occupancy.

Usable square feet plus a percentage (the core factor) of the common areas on the floor, including hallways, bathrooms and telephone closets. (And sometimes main lobbies.) Rentable square footage is the number of square feet on which a tenant's rent is based.

The number resulting from dividing the Total Rentable Area in a building by the Usable Area. The inverse of this ratio describes the proportion of space that an occupant can expect to utilize.

See Also: Abatement

All real estate directly owned by a lender, including real estate taken to satisfy a debt. Includes real estate acquired by lenders through foreclosure; or in settlement of any other obligation to the lender.

See Also: First Refusal Right