Once a lease has begun, the building owner will agree to pay the tenant's base year expenses. They will continue to pay the same amount in the succeeding years while the tenant will pay any increase in cost in the subsequent...
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Gross real estate investment value
This is the market value of investments in real estate that are held within a portfolio with no consideration to debt. This is equal to the complete amount of investments in real estate shown on a statement of liabilities and...
Blend and Extend
This type of lease renewal permits tenants to combine their current lease with a new and longer lease. This type of arrangement lowers the current rental rate, which is beneficial to a tenant who is paying rent that is above the...
Highest And Best Use (Financial) Analysis
This measures highest and the best use of one or more properties that are either as though vacant, vacant, or properties as improved by inspecting the possible profitability scenarios. Those scenarios include replacement...
First-loss position
This position will suffer the first economic loss if there is an event that leads to the underlying assets to lose their value or if they are forced to foreclose on. The first-loss position typically has a higher risk as well as...
Competitive Set
This refers to a subset of a full inventory that allows an individual to compare and isolate buildings on the reasoning of their similar characteristics as opposed to their locations alone.
Deed in Lieu of Foreclosure
This is the optional transfer of a deed or title by the borrower or homeowner to the lender in order to satisfy a mortgage debt or defaulting loan. It allows one to avoid foreclosure proceedings.
Deferred maintenance account
This is a type of account that a borrower is obliged to fund as it provides for the repairs and maintenance of a property or facility. Those repairs are needed in order to keep assets functioning at a reasonable capacity level.
ERISA (Employee Retirement Income Security Act)
Passed in 1974, ERISA is a federal law administered by the Department of Labor. It controls the investment activities of corporate and union pension plans. The purpose of this is to protect retirement assets by implementing rules...
Gordon Growth Model
The (GGM) Gordon Growth Model can be utilized to discover the inherent value of a certain stock established on a future series of dividends that constantly grow. The calculation of the Gordon Growth Model is as follows: divide...
