Common area in commercial real estate (CRE) is also known, more technically, as common facilities (and sometimes standard facilities). Common areas is less seldom called common space. It is normally…

A lease regear is another word for the renegotiation of a lease’s terms during the course of the lease. A lease agreement is made up of many terms, and runs…

Floor area ratio (or FAR) is the same as floor space ratio (FSR), floor space index (FSI), site ratio or plot ratio. Used in zoning regulations, it restricts how much…

Turnover rent, or turnover-based rent, is a rental model where the landlord gets a fluctuating amount of rent – normally as a percentage of the tenant’s revenue. This rental alternative…

Net operating income (NOI) – a commercial real estate (CRE) term – is also known as annual net income (ANI). This is the final number in a property’s “income statement”…

Building grade is also known as building class, building rating, property grade. Grade or class is the commercial real estate industry’s means of categorising properties by the same building type,…

Revised framework for net absorption rate Net absorption is defined as the change in a market’s occupied stock during a particular time period. Net absorption and the net absorption rate…

Net absorption is a measure of the change in occupied stock within a specific commercial real estate market, for a specific period. Where net absorption is positive,  it means that…

Beneficial occupation, or beneficial occupancy, or BO, is that window of time between a) when a tenant can first occupy the premises, and b) final completion. The BO window is…

In CRE, “operating costs“, a.k.a ops costs, a.k.a operational costs, is an umbrella term for a basket of property expenses allocated by the landlord to the tenant. Ops costs are…