Glossary   

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A
AAA Tenant
A well-known business tenant with a very high credit rating, or one whose national or local name will lend prestige to a shopping center or office project.

Absorption Rate
An estimate of the rate at which a particular classification of space-such as new office space, new housing or new condominium units-will be sold or occupied over a measured period of time. Positive absorption occurs when there is less space available and negative reflects the converse. A prediction of this rate is often involved in a feasibility study or an appraisal in connection with a request for financing.

Actual Cost Formula
The formula used to determine a property's taxes and operating expenses for escalation.

Add On Factor
A formula that translates a tenant's usable square footage to a landlord's rentable square footage. The formula is the common area divided by the usable area. The add on factor value is usually between 5% and 20%.

Agency
The practice of representing either the buyer or the seller.

Air Rights
The right to use the space above a specific property. These rights can be leased, sold or donated.

Amortization
The paying off of a debt by periodic installments over a specific period of time.

Appraisal
An estimate or opinion of value of a property. Also, the act of estimating value.

Assessed Value
The value of real property established for the purpose of computing real property taxes.

Assignment
The transfer of the right, title and interest in the property or lease of one person or entity (assignor), to another (assignee). There are assignments of, among other things, mortgages, sales contracts, deeds, leases and options.

Attornment
The agreement of a party to recognize a third party as a permissible successor party to a contract; most often, the agreement of a tenant to pay rent to a new landlord, especially a mortgagee who has foreclosed.

Availability
The specific date that a property will be ready for occupancy.