Glossary

Total employee compensation and related benefits such as social security, Medicare, unemployment insurance, workmen_s compensation insurance, disability insurance, retirement plans.

Commonly used for large retail stores. Rent payments include a minimum or base rent" plus a percentage of the gross sales "overage." Percentages generally vary from 1% to 6% of the gross sales depending on the type of store and sales volume."

The term generally applies to commercial retail leases. In addition to, or sometimes in lieu of, the fixed rent payment, the tenant pays a percentage of its sales in excess of a pre-established base.

A Loan secured by a mortgage on real estate generally with a term of at least 5 years or more. A permanent loan can be self-amortizing which means that the loan will be fully repaid by the required debt service payments during the term of the loan or it could be a balloon loan where there is a balance due at the end of the term of the loan.

Personal Property is generally defined as any assets other than real estate.

An assessment and report prepared by a professional environmental consultant who reviews the property _ both land and improvements _ to ascertain the presence or potential presence of environmental hazards at the property, such as underground water contamination, PCB_s, abandoned disposal of paints and other chemicals, asbestos and a wide range of other potentially damaging materials. This Environmental Site Assessment (ESA) provides a review and makes a recommendation as to whether further investigation is warranted (a Phase II Environmental Site Assessment). This latter report would confirm or disavow the presence of an environmental hazard and, should one be found, will recommend additional review and/or mitigation efforts that should be undertaken.

Each point is equal to 1% of the total amount of a mortgage.

Gross income of a building if fully rented.

To obtain lease commitments in a building or complex prior to its being available for occupancy.

A written report issued by a title company, preliminary to issuing title insurance, which shows the recorded condition of title of the property in question.

These are provisions generally found in commercial mortgage loans which provide extra protection against loss of expected income to the lender if a loan is paid off before its maturity date. A prepayment penalty generally takes the form of a fee or points, measured as a percentage of the remaining loan balance at the time of prepayment, to be paid to the lender (e.g. 1%).

The process of determining how much a prospective real estate buyer might be eligible to borrow before applying for a loan; not a guarantee of approval.

Interest rate which is charged to business borrowers having the highest credit ratings, for short term borrowing. As published daily in the Wall Street Journal, it is the basis for rates to other lenders.

1. The amount of debt, not including interest, left on a loan. 2. The face amount of the mortgage.

(From Latin pro forma, according to form"). financial statements showing what is expected to occur."

Person in broker's employ who is responsible for updating and renewing a property listing, if it is different from the contact name.

A stratification of property type that is indicative of the property_s ability to command rental rates.

A property description that provides additional information to the lender.

Taxes based on the market value of a property. Property taxes vary from state to state.