Real Estate Glossary

Net Absorption is the net change in physically occupied space between the current measurement period and the last measurement period taking into consideration office space vacated and newly constructed office space in the same area during the same period. See also: "Gross Absorption". Net absorption can be either positive or negative. Pre-leasing activity is NOT included in net absorption calculations because pre-leasing does not involve any change in occupancy. Net absorption is calculated when the pre-leasing tenant moves into its new space (positive absorption) and vacates its former space (negative absorption). The calculation of net absorption includes transactions that occur in sublease space as well as direct lease space.

A lease in which the tenant pays, in addition to rent, certain costs associated with a leased property, including property taxes, insurance premiums, repairs, utilities, and maintenance. There are also "net-net" (double net) and "net-net-net" (triple net) leases, depending upon the degree to which the tenant is responsible for operating costs. See Also: Gross Lease

Floor area of a building less any vertical penetrations of the floors. No deductions are made for necessary columns and projections of the building. (BOMA Standard)

Space in office buildings which contain or are intended to contain one office occupant so that the space is rarely if ever available for lease or subleases

A loan which does not allow for a deficiency judgment against a borrower in the event of default. The borrower cannot be held personally liable. The lender's only available recourse in the event of default is the collateral or property.

A property sale by a trustee under a deed of trust, or a mortgage under a power of sale of a mortgage.