Commercial real estate, defined.

The net change in occupied space over a period. Positive absorption means tenants took more space than they gave back; negative means the reverse. It is the truest read on whether demand is keeping pace with supply.

The schedule by which a loan's principal is paid down over its term. Early payments are mostly interest; later payments mostly principal. It governs how fast an owner builds equity.

In a full-service gross lease, the year of operating expenses the landlord builds into the rate. The tenant pays its share of increases above that base in later years, which is why base-year resets are negotiated closely.

The second round of a marketed sale, when the strongest bidders are invited to sharpen price and terms, often with proof of funds. It is where structured competition does its work for the seller.

A broker's market-facing estimate of what a property would sell for today, built from comparable evidence and current buyer behavior. Unlike an appraisal, it is a pricing and strategy view, not a licensed valuation for lending.

A written acquisition mandate: the markets, asset types, size range, and return thresholds a buyer will consider. Every deal that reaches the principal has already passed it; everything else never takes an hour.

Capitalization rate: net operating income divided by price, expressed as a percentage. It is the market's going-in yield on an asset, and the shorthand every pricing conversation runs on.

CAM: the shared operating costs of a property, such as landscaping, cleaning, and repairs, that a triple-net tenant pays alongside taxes and insurance. Reconciliations of estimated versus actual CAM are a common source of dispute.

A comp: a recent sale or lease of a similar property used as evidence for pricing. Comparables are adjusted for differences in location, condition, size, and timing before they mean anything.

Value a landlord gives up to win a tenant: free rent, a tenant improvement allowance, or a moving credit. Concessions lower the effective rent below the quoted rate without changing the headline number.

A CA or NDA signed before a buyer sees a property's private financials. It protects the tenancy and terms while the market looks, and it gates the data room in a marketed sale.

The buyer's inspection window under a purchase contract, commonly thirty to sixty days, when title, physical condition, and income are verified. It runs as parallel workstreams, each with a deadline inside the contract clock.

Net effective rent, or NER: the true rent after free rent, allowances, and every other concession are spread across the term. Lenders and buyers value a building on this number, not the face rate.

A tenant-signed certificate confirming the key terms of its lease: rent, term, and any defaults. Buyers and lenders require estoppels so the rent roll they underwrite is verified by the tenants themselves.

A tax-deferred exchange under IRC Section 1031, letting an investor roll gains from a sold property into a replacement. Two federal clocks start at closing: forty-five days to identify, one hundred eighty to close.

The quoted, headline rate on a lease before concessions. It serves marketing and comparables, but it overstates what the tenant actually pays and the landlord actually earns.

A lease structure where one all-in rate covers rent and operating costs, so the landlord carries taxes, insurance, and maintenance. Common in office, and compared to net leases only after normalizing for what each side pays.

The moment a buyer's earnest money deposit becomes non-refundable, when due diligence and contingencies expire. Where that line sits is one of the most negotiated terms in a purchase.

An LOI: a short, generally non-binding statement of the key deal terms that precedes the binding contract. It sets the shape of a deal; the purchase and sale agreement makes it enforceable.

A lease structure between net and full-service, where landlord and tenant split operating costs by negotiation. The exact line of who pays what is the thing to read closely.

NOI: a property's income after operating expenses but before debt service and capital items. It is the number a price stands on, and the input the cap rate divides.

The OM: the full marketing presentation of an asset for sale, covering location, financials, and comparables. A weak offering memorandum costs more than any negotiation can recover.

An environmental site assessment reviewing a property's history for contamination risk. A Phase II follows only if recognized environmental conditions surface. Standard in most acquisitions.

A forward model of a property's income and expenses under a buyer's ownership. Its value lies in stating assumptions plainly enough that they can be challenged.

The schedule of every lease in a property: tenant, suite, rent, and term. It is the asset's income itemized, and the starting point for underwriting.

A TI allowance: the landlord's contribution to a tenant's buildout, quoted per square foot. Economically it is a rent reduction, and it is negotiated like one.

NNN: a lease where the tenant pays base rent plus taxes, insurance, and common area maintenance. Common in retail and industrial, and not comparable to a gross lease until the operating costs are added back.

WALT: the average remaining lease term across a rent roll, weighted by income. Longer WALT means steadier income and less rollover risk, and buyers price it accordingly.

The lease exhibit defining exactly what the landlord builds and what the tenant builds. It turns a buildout promise into a commitment with a scope.