Glossary

These facilities are generally used in high technology markets and are broadly defined to include wide variations in markets across the country. R & D properties could have lab facilities, offices, warehouse facilities, or services such as carpentry or machine repair. Typically, each property allows a variable combination of office and other uses. The percentage of office space ranges from 20 to 100 percent, depending on the market and individual needs of the user.

Whether the building is served by railroad.

Land devoted to raising livestock under range conditions with forage grass as main source of feed.

An index used to adjust the interest rate of an adjustable mortgage loan (e.g., the change in U.S. Treasury securities (T-Bills) with 1-year maturity. The weekly average yield on said securities, adjusted to a constant maturity of 1 year, which is the result of weekly sales, may be obtained weekly from the Federal Reserve Statistical Release H.15 (519). This change in interest rates is the index" for the change in a specific Adjustable Mortgage Loan)."

A government levy based on the assessed value of real estate.

Generally defined to mean land, together with the buildings and improvements permanently constructed on or affixed to the land.

The transferring of a title back to its previous owner. Most commonly used upon payment in full of a Trust Deed. Also called a Deed of Reconveyance or release.

The act of entering in a book of public records instruments affecting the title to real property. Recording in this manner gives notice to the world of facts recorded.

Personal liability.

Land devoted to commercial outdoor sporting activity and relaxation.

An existing mortgage loan is paid off with a new mortgage loan for the same borrower on the same property. A common reason for refinancing a property is to secure a lower interest rate.

A shopping center with one or two department stores and a variety of smaller stores. It is larger than 300,000 square feet and draws from an eight mile radius or more.

A list of tenants leasing a property, which details terms of lease, area leased, and the amount of rent being paid.

A lease agreement in which the rent increases every period for a fixed amount of time or for the life of the lease.

In a building or project, floor space that may be rented to tenants. The area upon which rental payments are based. Generally excludes common areas and space devoted to the heating, cooling, and other equipment of a building.

An amount set aside or escrowed with a lender to cover the anticipated costs of repairs and maintenance of the property owned by the business borrower and pledged as collateral for the loan.

Generally this is the work necessary to return or maintain an asset in good operating condition.

An amount set aside or escrowed with a lender to cover the anticipated costs of replacing obsolete or damaged business property.

An amount set aside from net operating income to pay for the eventual wearing out of short-lived assets. Monthly deposits that a lender may require a borrower to a reserve in an account, along with principal and interest payments for future capital improvements of major building systems; i.e., HVAC, parking lot, carpets, roof, etc.

In CMBS, portion of the bond proceeds that are retained to cover losses on the mortgage pool. A form of credit enhancement (also referred to as reserve accounts")."

A valuation of Residential Real Estate based upon the professional opinion of an authorized person. In order to be a valid appraisal, the authorized person will have a designation from a regulatory body governing the jurisdiction the appraiser operates within.

A property type which sells goods to consumers.

An amount set aside from Net Operating Income to pay for anticipated costs of replacing commercial tenants such as brokerage commissions and tenant improvements.

The value of property at the expiration of a certain time period. In transportation, recreational vehicle.