Appraisal
A professional estimate of a property’s fair market value is typically conducted by a licensed appraiser. Lenders require appraisals to ensure the loan amount is justified by the property’s worth.
Contingency
A condition in a contract that must be met for the deal to move forward. Think of it as a safety net for buyers and sellers!
Escrow
Escrow is a neutral third-party service that holds funds or documents until all conditions of a real estate transaction are met. It ensures that both the buyer and seller fulfill their obligations before the deal is finalized.
Shell Space
A building space that has an unfinished interior and requires improvements. These properties are still leased, and the tenant will customize it to their specific
Punch List
A final checklist of work that needs to be completed before the end of construction. It also identifies key milestones as part of the closeout portion of the construction process. The contractor prepares an additional document that lists work that has or has not been completed correctly.
Rentable Square Feet
Rentable Square Footage or RSF is the total square footage that equals the Usable Square Footage plus the tenant’s pro rata share of the Building’s Common Areas, such as lobbies, public corridors, hallways, restrooms, etc.
Tenant
A person, business, or group that pays rent to an owner or landlord for the right to use/occupy a property or space.
2nd Generation Space
Space that has had a prior tenant and therefore has modifications (such as walls, doors, ceiling, treatments, etc.) that can often be used by a subsequent tenant
Tenant Representation
When a broker represents a tenant in a typical lease transaction between a tenant and an owner/landlord.
Sublease
A lease that was initially signed and executed by the current lessee who is listed as the tenant on their lease. The lessee turns around and becomes the lessor or landlord.
Tenant Improvement
As a general practice, a tenant improvement allowance is a negotiated amount of money a landlord is willing to spend to improve or customize commercial office space for the needs of a particular tenant.
Closing Costs
Fees and expenses paid by the buyer and seller to finalize the real estate transaction. These can include things like appraisal fees, title insurance, and loan origination fees.
