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# 1 Commercial Real Estate Information Company

Commercial Real Estate Glossary

Occupancy Status
The occupancy status of the tenant. The options are as follows: Leased: Tenant leases currently occupied space. Subleased: Tenant subleases currently occupied space. Month-to-Month: Tenant occupies current space on a month-to-month basis. Owned: Tenant owns currently occupied space. Pending: The tenant is in the process of renegotiating their lease and the status is pending.
Occupied Space
Occupied space is defined as the square footage of space that is physically occupied by a tenant. It does not include space that is under a lease obligation, where the tenant does not actually occupy the space.
Office Property
The primary intended use of an office building is to house employees of companies that produce a product or service primarily for support services such as administration, accounting, marketing, information processing and dissemination, consulting, human resources management, financial and insurance services, educational and medical services, and other professional services. Office buildings are characterized by work efficient floor plans, work areas, comfortable heating and cooling, cabling for phones and computers, and other conveniences that allow people conduct business. The interior finish and the structural design of the building supports the activities of the employees. Office buildings are typically configured for high density use, with a ratio of people to square footage in the 150 to 300 or more range and less than 25% of the demised floor space allocated to industrial or retail use. Some physical characteristics of a building may assist in classifying the property as "office" if the property's use is not apparent.
Offsites
Any improvements to a site outside of the property's boundaries. Examples are: streets, curbs, gutters, sidewalks, street lights, utilities (water, sewer, gas, electric) grading, and landscaping.
On-Site Management
Indicates the property manager's office is in the building or building park.
Operating Expense & Taxes
The market divides these into three areas: Fixed, which are costs that generally do not vary due to occupancy such as property taxes or insurance.

Variable or Operating, which are costs that may vary depending on occupancy and market conditions, such as utilities and maintenance.

Reserves, which are reserves for short-lived items typically for apartments, i.e., carpet, drapes, appliances, painting, etc.

CoStar reflects the total amount of expenses only separating Property Taxes from the total Expenses, because Taxes are computed in different ways depending on the city, county, or state.
Other Income
Any additional sources of revenue not from renting space; such as parking, laundry or vending machines. This section of the cash flow analysis may also include any charges passed thru to the tenant, known informally as "pass-throughs" or formally as recaptured or recovered expenses.
Out Parcel
(also known as a Pad) ICSC defines out parcels as unused portions of a shopping center's site that constitute the perimeter areas, not including the center facility or parking lot, and that may be used or developed for similar or non-similar purposes. Out parcels are often developed to provide banking, fuel, and/or eating services as a compliment to the main center's existing tenant mix.
Outlet Center
Usually located in a rural or occasionally in a tourist location, an Outlet Center consists of manufacturer's outlet stores selling their own brands at a discount. 50,000 -- 500,000 SF. An Outlet Center does not have to be anchored. A strip configuration is most common, although some are enclosed malls and others can be arranged in a village cluster.
Overage
Relates to Retail Overage Rent where typically a new retailer, without a history of gross sales, is charged a base rent on the space occupied with a provision in the lease that when the gross sales reach a certain level, the base rent will stop and the rent will be based on a percentage of the gross sales.
Overall or Total Cap Rate
The income rate of return for a total property that reflects the relationship between one year's net operating income expectancy and the total price or value. Calculated by dividing the net operating income by the sale price or value.
Owner Occupied
The building's owner must occupy at least 75% of the rentable space in the building to be considered owner occupied.