COCIE Terms & Definitions
Active No Availability – Listing status for leases are generally active, expired, leased or off the market. You would put on an active no availability listing on a fully occupied building when you represent an entire portfolio.
Base Rent – The amount of money being asked for the whole space available, not per square foot.
Base Year – The first calendar year (or fiscal year) of the lease. Generally it is used to set the base level of expenses to be paid by the landlord, with the tenant picking up costs in excess of those incurred in the Base Year
CAM Charges – Common Area Maintenance Charges passed on to the tenant, usually on a square foot basis, for maintaining common areas such as hallways, elevators, parking lots and plazas. Also know as Pass Through Costs.
Cap Rate – Capitalization Rate – The return on investment in the first year of ownership. The rate at which the income stream is capitalized. It’s calculated by dividing the NOI (Net Operating income) by the purchase price and expressed as a percentage
Common Area Factor – The percentage of common areas in a building. It is often used to calculate rentable square footage to usable square footage. Also known as Core Factor, Load Factor or Loss Factor.
Effective Gross Income (EGI) – This is the income generated by a property. It is calculated by subtracting the vacancy allowance from the income. It does not include Operating Expenses.
Expense Stop – A level of expenses to be paid by the landlord. The tenant will be responsible for paying anything over that amount.
Full Service Gross – (FSG) The landlord is responsible for paying all expenses on a lease
Gross – Landlord covers all base year expenses except Janitorial, Utilities and outside trash removal.
Gross Multiplier – The price of the property divided by the Scheduled Gross Income. Also known as Rent Multiplier and commonly used in Multi Unit Housing (MUH) properties.
Lease Type – Describes the expenses involved with a lease (N, NN or FSG for example.)
Lease Rate/SF – The amount of money asked for per square foot on a listing
Listing Type – Indicates whether the listing is Sublease or Direct.
Modified Gross – (MG) Also knows as Industrial Gross. Landlord covers base year taxes and insurance.
Net – The tenant pays taxes. The landlord pays everything else.
NN – (Double net) – The Tenant pays taxes and insurance. The Landlord pays everything else.
NNN – (Triple Net)– Tenant pays for all expenses (typically everything but Roof & Structure maintenance)
NOI - Net Operating Income – The annual operating income of a property. It is calculated by taking the Scheduled Gross Income and subtracting the total expenses and loss in rent due to vacancy.
New/Existing – Indicates whether the space available is new construction or second generation space.
NOI Method – The type of income used when calculating investment data (i.e.: Current or past rents and expenses, projected rents, Proforma)
Operating Expenses/SF – The amount a tenant will pay on a per-square-foot basis for anything other than a FSG lease
Percentage Rents – Lease agreement in which the rental obligation is based upon the revenue generated by the retail tenant’s business.
Pro Forma - a presentation of data, typically financial statements, where the data reflect the world on an 'as if' basis. Typically demonstrating a start up budget for a property, this is an estimate of future performance not a history.
Replacement Allowance – An allowance that provides for the periodic replacement of building components that wear out quicker than the building itself
Scheduled Gross Income – The total amount of revenue generated by a property if all space were leased at quoted rates
Taxes/SF – Amount of money spent on taxes by either the landlord or tenant
TI Allowance – A Tenant Improvement allowance, often quoted on a square foot basis, to be used to improve space, generally expressed as a range.
Vacancy Allowance – For the purposes of calculating the EGI, this is an estimate of the average amount of vacancy in a property over a given time. It is calculated by taking the Scheduled Gross Income and subtracting the total expenses and loss in rent due to vacancy.
Zoning Class – Refers to the general type of zoning, such as Industrial, Office or MUH.
Zoning Code – Refers to the specific zoning for a property, such as M or C-4.