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Commercial Real Estate Glossary

Rail Line/Rail Spots
This indicates the rail line servicing the building. For a building to have rail line service, the building must have areas for train cars to pull up at one time for loading and unloading. "None", means there is no rail service. If there is rail service, the number of exterior and interior rail spots is indicated under Rail Spots. If there is no data, CoStar Group has not yet researched this field for this particular building.
Rail Served
Industrial buildings are said to be rail served when rail cars can be directly pulled up to the building at dock designed for loading and unloading of goods to and from the cars. A property can have multiple rail loading docks that can be either exterior or interior
Raised Computer Floor
Indicates that the floor is raised so computer wiring may run beneath the floor.
Recapitalization
A term used when the owner is attempting to refinance his position by selling part of his equity in order to liquidate part of his equity position. This may not be a 100% interest transfer or a voluntary process.
Recorded Owner
The buyer's name on the deed. Could be an individual, individuals, or company.
Recording Date
The date the grant deed, warranty deed or other conveying instrument was recorded at the County Recorder's office.
Recoverable Expenses
Expenses paid by the tenant over and above the rent - see Pass throughs
Redevelopment
Redevelopment is the process of converting a property to its Highest and Best Use. This may require the demolition of the existing improvements and construction of new improvements on the site. For example, an older three-story brick office building may be replaced with a new 10-story office building. Sometimes the new use may be different from the original use. For example, a manufactured housing community may be removed and replaced with a high-rise hotel.
Redevelopment Agency Sale
See "Development Authority Sale"
Redevelopment Project
The sale of property that is within a redevelopment project. Typically the redevelopment agency is either the buyer or seller. Often these sales do not reflect market value, and may be non-market.
Refinance
Also "Refi." Involves restructuring the existing loan or obtaining a new loan. The owner remains the same and there is no transfer of title. This is not a sale.
Regional Center
Provides shopping goods, general merchandise, apparel, and furniture , and home furnishings in full depth and variety. It is built around the full-line department store with a minimum GLA of 100,000 square feet, as the major drawing power. For even greater comparative shopping, two, three, or more department stores may be included. In theory a regional center has a GLA of 400,000 square feet, and may range from 300,000 to more than 1,000,000 square feet. Regional centers in excess of 750,000 square feet GLA with three or more department stores are considered Super Regional.
Regional Mall
Provides shopping goods, general merchandise, apparel, and furniture, and home furnishings in full depth and variety. It is built around the full-line department store with a minimum GLA of 100,000 square feet, as the major drawing power. For even greater comparative shopping, two, three, or more department stores may be included. In theory a regional center has a GLA of 400,000 square feet, and may range from 300,000 to more than 1,000,000 square feet. Regional centers in excess of 750,000 square feet GLA with three or more department stores are considered Super Regional.
REIT
Real Estate Investment Trust. A real estate mutual fund, allowed by income tax laws to avoid corporate income tax. It sells share of ownership and must invest in real estate or mortgages. It must meet certain other requirements, including number of shareholders, widely dispersed ownership, asset and income tests. If it distributes 95% of its income to shareholders, it is not taxed on that income, but shareholders must include their share of REIT's income in their personal tax returns.
Release of Co-Signer
Many times an additional party is required on the loan by the lender due to a credit weakness of one of the parties. When the lender no longer needs the additional party, they're released from any further financial obligation. This is not a sale.
Relet
Space that was previously built out or occupied, but the lease has expired and the building owner is releasing it.
Religious Facility
A property designed and built specifically as a place of worship and may include churches, mosques, synagogues, etc. They may also include residences, classrooms,
meeting halls, kitchen facilities, and other miscellaneous uses.
Remaining
The amount of time left on the tenant's current lease, in months or years.
Renovated
A building that has been completely restored so that the existing space becomes "new" space again. The date of the last major renovation is tracked. Minor renovations, such as the improvement of a building's lobby or exterior are not considered full building renovations. They may be noted as remodeled (cosmetically change), rehabbed (necessary repairs made or updated building materials), or restored (restored a building to its original condition at a certain date.
Renovation Bldg Status
A building that is currently unoccupied because it is in a state of renovation. Such a building is either waiting for building certificates or are currently under reconstruction. After renovation is completed, the existing space becomes "new" space again. Note: minor renovations, such as the improvement of a building's lobby or exterior are not considered a full building renovation, and they may be counted as remodeled (cosmetic change), rehabbed (make necessary repairs or updating building materials) or restored (restores a building to its original condition or condition at a certain date). Abbreviated UR.
Rent
Asking or Face Rent. This represents the amount for which the landlord is offering their space per square foot, per year for lease for a listing. The amount for which the tenant will be responsible is negotiated between the tenant and landlord. Rents will vary depending upon the services provided. For example, full service rents are significantly higher than triple net (see Services).
Rentable Building Area
(AKA RBA) Expressed in square feet, this area includes the usable area and its associated share of the common areas. Typically rents are based on this area. It is the space the tenant will occupy in addition to the associated common areas of the building such as the lobby, hallways, bathrooms, equipment rooms, etc. There is no real difference between RBA and GLA (Gross Leasable Area) except that GLA is used when referring to retail properties while RBA is used for other commercial properties.
Rental Rates
Rental rates are defined as the annual rental costs for a particular space quoted on a per square foot basis. Rental rates are based on the rentable square footage of a property. They are calculated by taking the annual rental obligation of a particular space divided by the rentable square footage of that space. Rental rate totals are calculated on a weighted average of the size of the space. That is, the bigger the square footage of a particular space, the more heavily that space's rental rate will factor into the overall rental rate calculation.
Rental Terms
Escalation: A clause in a contract (lease) which increases rent over the term of the lease, usually on an annual basis. The most frequently used types of escalations are Fixed Percent (3%), Monetary ($1.00/sf), and Index (CPI 3%). Most leases with a term longer than one year will have an escalation. Additionally, escalations could be semi-annual, or mid-term.

Flat Rent: A level rent that continues throughout the duration of the lease. Some ground leases and leases from government entities may offer this; however, starting contract rent is typically higher than market rent.

Graduated Rent: Provide for specified changes (escalations) in the amount of rent at one or more points during the lease term. Typically percentage or monetary increases.

Revaluation: Provide for periodic rent adjustments based on revaluation of the real estate under prevailing market conditions at a specified point in time. Combination of revaluation and step-up.

Index: Escalations that provide for periodic rent adjustment based on the change in a specific index such as a nationally published, cost-of-living index, or Producers Price Index. (CPI or PPI)

Concessions: In a slow market in order to attract tenants, a landlord will sometimes grant concessions. These most often take the form of free rent, but may also include lease buyouts, moving allowances, and/or above standard tenant improvements.

Excess Rent: The amount by which the contract rent exceeds market rent -- typically not considered past the original term of the lease.

Expense Stop: A clause in a lease that limits the landlord's expense obligation, because the lessee assumes any expenses above an established level.

Fixed Stop: An arbitrary amount fixed by the lessor as the maximum amount of expenses paid during each year of the lease.

Base Year Stop: This is typically the first year of a tenant's lease, which is used to establish the owner's stop level for the remaining years in the lease. Any expenses over the base year amount are "passed through" and are paid by the lessee. (AKA Recaptured or Recovered Expenses)
REO
Real Estate Owned. A sale in which a lender, either institutional or private is selling a property that they had taken back through foreclosure.
Restaurant
Indicates the building contains a restaurant.
Retail Overage Rent
The percentage rent paid over and above the guaranteed minimum rent or base rent; calculated as a percentage of sales in excess of a specified break-even sales volume.
Retail Percentage Rent
Some or all of the rent charged is based on a specified percentage of the volume of business, productivity, or use achieved by the tenant. Most frequently used for retail properties. There may be no minimum rent, but most specific a guaranteed minimum rent with the percentage, or graduated percentage, rent payable on sales that exceed a specified level.
Retail Property
A Retail property's primary intended use is to promote, distribute or sell products and services to the general public. It will often be in high traffic or easily accessible areas. Retail buildings are configured for the display of merchandise or the interaction of company sales personnel with others.

Retail buildings can be used for various sales opportunities, including, but not limited to, stand-alone (convenience stores to department stores), store fronts, strip centers (no anchors), neighborhood, community, regional, and super-regional malls, power centers, factory outlet centers, and fashion or specialty centers.
Rolling Option/Takedown
A rolling option is a contractual agreement whereby the optionee may purchase portions of a property from time to time. A takedown is the act of exercising a rolling option. This occurs most often with the sale of residential lots in a subdivision. Typically a home builder will enter into a rolling option and contract with the developer to purchase a specified number of lots at an agreed upon price or prices with the condition that they can purchase the lots in increments over a period of time. A takedown occurs each time a group of lots are deeded to the buyer. It is important to find out when and how the price was established and if there was any interest or carrying charges involved.
Rooftop Terrace
Common area that may be used by tenants for lunch, breaks, receptions or meetings.