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Common area maintenance
Property improvements that cannot be expensed as a current operating expense for tax purposes. Examples include a new roof, tenant improvements, or a parking lot—such items are added to the basis of the property and then can be depreciated over the holding period. Distinguished from cash outflows for expense items such as new paint or plumbing repairs (operating expenses) that can be expensed in the year they occur. Also see operating expenses.
Or Cap Rate. The rate of return an owner can expect to generate. To calculate this, a tenant will examine the ratio of the net operating income compared to the current market value of the property. This helps potential tenants predict whether investing into the purchase of a commercial property is worthwhile.
The segment of sales in a real estate market sold by one project.
a unit of carbon dioxide equivalent that is reduced, avoided, or sequestered to compensate for emissions occurring elsewhere
a fluid, containing hydrocarbons, that absorbs heat from a reservoir at low temperatures and rejects heat a higher temperatures. When emitted into the atmosphere, CFCs cause depletion of the stratospheric ozone layer
A circular economy is an alternative to a traditional linear economy (make, use, dispose) in which we keep resources in use for as long as possible, extract the maximum value from them whilst in use, then recover and regenerate products and materials at the end of each service life (completing a circle).
The application of one material over another to provide a skin or layer. In construction, cladding is used to provide a degree of thermal insulation and weather resistance, and to improve the appearance of buildings.
The most prestigious buildings with the most amenities in the best locations. They generally are the most attractive buildings built with the highest quality materials and construction methods. Additionally, these buildings usually have a professional manager, good access, and are typically located in highly visible areas on high traffic streets. Due to their exceptional quality, Class A Buildings are usually leased to reputable tenants at the highest rental rates in the market
These buildings are a grade below Class A. Generally, they are slightly older buildings with good management and quality tenants. It is not uncommon for value-added investors to target these buildings with the intention of renovating them back into Class A buildings. Class B buildings are well maintained overall and quite functional. Class B office buildings commonly have an acceptable curtain wall finish, adequate (but not state of the art) mechanical, electrical and safety and security systems, and a mid-quality level of interior finish. Class B buildings compete for a wide range of users at average rental rates for their market area.
This is the lowest grade for useable office buildings. These office buildings are generally older and may be located on less desirable streets in older sections of the city, for example. Many of these buildings usually have higher than average vacancy rates for their market. Older, less desirable architecture, limited infrastructure and antiquated technology define these buildings. For these reasons, Class C buildings offer lower rental rates and can be more difficult to lease. Many times these buildings are targeted for re-development. The curtain walls and the mechanical, electrical and safety and security systems of Class C building are generally dated, and the quality of finish is often below average. These buildings attract tenants who sign short-term leases for functional space at below average rental rates.
glass that is transparent and allows a view through the fenestration.
Co-owners are two or more owners of the one business that is leasing the same space. All co-owners of a lease must sign the lease as landlords.
Any building or land used by a commercial business and is zoned ‘commercial’ for the purpose of making a profit
the process of verifying and documenting that a building and all of its systems and assemblies are planned, designed, installed, tested, operated, and maintained to meet the owner’s project requirements.
For lease purposes, the areas of a building (and its site) that are available for the nonexclusive use of all its tenants, such as lobbies, corridors, and parking lots.
(a.k.a. strip centre): These centres are basically a cluster of attached retail units that can be open-air and/or enclosed with significant off-street paved parking surrounding the building that can be accessed in most cases from two or more sides. They could be outdoor developments with walkways or enclosed developments with connecting corridors.
Properties that are similar to the one being sold or appraised – commonly referred to as “comparbales” in the real estate industry
the act of providing information, analysis, and recommendations for a proposed real estate decision.
a substance, element, or compound that may harm humans or other forms of life if released into the environment. Refers to concentrations that are above acceptable levels and or are in a location where they should not be found.
Usually between 10,000 and 39,999 square feet (Gross Leasable Area or GLA) where tenants provide a narrow mix of goods and personal services to a very limited trade area, including walk-in traffic. A typical anchor would be a convenience store such as 7-Eleven, Mac’s Convenience, Couche-Tard or other mini-mart. Open canopies may connect the store fronts, but a convenience centre does not have enclosed walkways linking the stores.
Cotenants are two or more people or entities leasing the same space. Each cotenant must be named in the lease and each must sign the lease.
Consumer Price Index
narrow opening between the ground and the underside of a structure, not tall enough to permit standing but sufficient to give access as needed to wiring, plumbing, and other utilities.