Glossary

A business loan that is generally secured by the machinery and equipment of the borrower. These loans are used for the purchase or refinance of machinery and equipment for a business.

(Also called Super Regional Center) an enclosed shopping center with three or more major department stores which draws from a large trade area of 12 or more miles.

1. The cost of professional property management. The fee is typically set at a fixed percentage of total rental income generated by the property managed. 2. The agreed-upon compensation paid to a property management company for managing a real estate project. The fee is usually based on a percentage of effective gross income.

(Also called Heavy Industrial) auto making, textiles, steel, chemicals, and food processing are typical uses of such properties. Typically zero to five percent office space.

The amount that is added to an index rate to determine the total interest rate.

Fair Market Value can be defined as the estimated price for property that a knowledgeable, willing, and unpressured buyer would pay to a knowledgeable, willing, and unpressured seller.

Expenses accrued to market commercial properties.

Monthly Average Treasury

The date on which a loan becomes due.

The amount of available connected square feet.

The highest asking lease rate.

A legal claim securing priority of payment for work contracted for a performed and material furnished by a mechanic or other person for the construction or repair of a building. The lien attaches to the land as well as any buildings and improvements. The landowner does not own clear title until the debt is paid.

An office space which offers medical services.

A loan secured by a mortgage or trust deed, in which the lien is junior, or secondary, to another mortgage or trust deed.

A commonly used expression referring to an office building, that is high enough to require stairs, but too low to require an elevator.

A clause included in a lease of residential property, which allows the tenant to terminate the lease without penalty if and when the tenant is transferred to another location.

The lowest lease rate available.

The smallest amount of available square feet.

A real estate development that contains two or more different uses all intended to be harmonious and complementary. An example would include a high-rise building with retail shops on the first two floors, office space on floors three through ten, apartments on the next ten floors, and a restaurant on the top floor.

A parcel of land zoned and developed for use by occupants of mobile homes.

The market for short-term debt instruments.

An instrument giving legal title to secure the repayment of a loan made by the mortgagee (lender). In legal contemplation there are two types: (1) title theory--operates as a transfer of the legal title of the property to the mortgagee, and (2) lien theory--creates a lien upon the property in favor of the mortgagee.

Properties are above average in terms of design, construction and finish; command the highest rental rates; have a superior location, in terms of desirability and/or accessibility; generally are professionally managed by national or large regional management companies.

Properties frequently do not possess design and finish reflective of current standards and preferences; construction is adequate; command average rental rates; generally are well maintained by national or regional management companies; unit sizes are usually larger than current standards.

Properties provide functional housing; exhibit some level of deferred maintenance; command below average rental rates; usually located in less desirable areas; generally managed by smaller, local property management companies; tenants provide a less stable income stream to property owners than Class A and B tenants.