{"license":"CC BY 4.0","attribution":"Class A Atlas (https://classa.info)","count":255,"rows":[{"slug":"class-a","term":"Class A","category":"Asset class","region_scope":"Global","short_definition":"Top-tier classification of office space, distinguished by quality, location, age, and amenitisation.","long_definition":"Class A is a market-determined classification — not a regulatory standard. Buildings are typically Class A if they were recently built (or recently repositioned), in the most prestigious submarkets, with institutional-grade systems, MEP, and ESG credentials. The classification is locally calibrated: a Class A building in Mumbai is a different specification from a Class A building in Manhattan, but both occupy the top tier of their respective markets.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"class-b","term":"Class B","category":"Asset class","region_scope":"Global","short_definition":"Mid-tier office space — older or less prestigious than Class A, typically at lower rents.","long_definition":"Class B office is functional, often older or in secondary submarkets, with mid-grade MEP and amenities. Rents typically run 30-60% below Class A in the same submarket. Class B has been the most repriced segment of this cycle as flight-to-quality has accelerated.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"class-c","term":"Class C","category":"Asset class","region_scope":"Global","short_definition":"Lower-tier office space — older, deferred maintenance, often functionally obsolete.","long_definition":"Class C buildings are typically older with significant deferred capex and dated systems. Often candidates for repositioning or change of use (residential conversion). The widening Class A/Class C spread is a defining feature of post-2020 office markets.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"trophy-asset","term":"Trophy asset","category":"Asset class","region_scope":"Global","short_definition":"The top sub-tier of Class A — defined by address, architecture, amenitisation, ESG, and tenancy.","long_definition":"Trophy is a market-determined sub-tier within Class A. The five-axis test: address (the most prestigious sub-block), architecture (signature design or reposition), amenitisation (full tenant amenity floor), ESG (LEED Platinum / BREEAM Outstanding equivalent), and tenancy (investment-grade anchor roster). Trophy assets typically command a 30-60% rent premium over the broader Class A index in the same submarket.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"rentable-square-feet","term":"Rentable square feet (RSF)","category":"Measurement","region_scope":"US","short_definition":"The measured area on which rent is calculated — includes a share of common areas.","long_definition":"RSF is the rentable area of a tenant's premises plus an allocated share of building common areas (lobbies, corridors, restrooms, mechanical rooms). The difference between RSF and usable square feet is the loss factor. Always calculate occupancy cost on RSF for direct comparability with quoted rents.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"usable-square-feet","term":"Usable square feet (USF)","category":"Measurement","region_scope":"US","short_definition":"The actual interior area a tenant can occupy.","long_definition":"USF excludes building common areas and is the figure used for space planning. A 30,000 RSF floor with a 25% loss factor delivers 22,500 USF. USF is the right denominator for headcount-density calculations.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"loss-factor","term":"Loss factor","category":"Measurement","region_scope":"US|Global","short_definition":"The percentage difference between rentable and usable square feet.","long_definition":"Also called add-on factor or core factor. A 25% loss factor means the tenant pays rent on 25% more area than they can use. Loss factors vary materially: trophy Manhattan often runs 28-32%; modern London Class A around 12-15%; Singapore Grade A around 10-15%. A 5% difference in loss factor is real money.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"boma","term":"BOMA standard","category":"Measurement","region_scope":"US","short_definition":"The Building Owners and Managers Association measurement standard for US office.","long_definition":"BOMA standards (most recently the 2017 ANSI/BOMA Office Standard) define how rentable and usable square feet are measured. Different BOMA standards (1996, 2010, 2017) yield materially different numbers — always confirm which standard a quoted measurement uses.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"ipms","term":"IPMS","category":"Measurement","region_scope":"Global","short_definition":"International Property Measurement Standards — the global counterpart to BOMA.","long_definition":"IPMS provides international measurement standards across asset classes. IPMS 3 - Office is the principal office standard. Adoption is uneven; major institutional landlords increasingly publish both BOMA and IPMS measurements.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"net-internal-area","term":"Net internal area (NIA)","category":"Measurement","region_scope":"UK","short_definition":"UK measurement standard for tenant-usable office area.","long_definition":"NIA is the principal UK office measurement — broadly equivalent to USF in the US. Excludes structural elements, lifts, stairs, plant, and common circulation. Quoted UK office rents are typically per sqft NIA.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"modified-gross-lease","term":"Modified gross lease","category":"Lease structure","region_scope":"US","short_definition":"The dominant US lease structure — base rent includes operating expenses up to a base year.","long_definition":"Under a modified-gross structure, the tenant pays a fixed base rent that includes operating expenses calculated for a base year (typically the first full calendar year of the lease). In subsequent years, the tenant pays escalations equal to the increase in operating expenses over the base year. This shields the tenant from year-one operating expense volatility while passing through subsequent inflation.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"triple-net-lease","term":"Triple net lease (NNN)","category":"Lease structure","region_scope":"US","short_definition":"A lease where the tenant pays base rent plus all operating expenses, taxes, and insurance.","long_definition":"Triple net is rare for multi-tenant Class A office (more common for industrial, retail, and single-tenant office). The tenant pays the landlord a base rent and separately reimburses real-estate taxes, insurance, and operating expenses on a fully-loaded basis.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"fri-lease","term":"FRI (Full Repairing and Insuring)","category":"Lease structure","region_scope":"UK","short_definition":"The dominant UK commercial lease structure.","long_definition":"Under an FRI lease, the tenant takes responsibility for the cost of internal repair, reimburses the landlord's building insurance, and pays a proportional service charge. For multi-tenant buildings, repair obligations typically extend only to the demised premises. A Schedule of Condition can cap the repair obligation to the recorded standard at lease commencement.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"base-year","term":"Base year","category":"Lease structure","region_scope":"US","short_definition":"The reference year for operating expense escalations under a modified-gross lease.","long_definition":"The base year is typically the first full calendar year of the lease term. Escalations in subsequent years are calculated as the difference between current-year operating expenses and the base-year operating expenses. Negotiate the base year explicitly — a partial first year as the base year produces inflated escalations.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"operating-expenses","term":"Operating expenses (op-ex)","category":"Lease economics","region_scope":"Global","short_definition":"The cost of running the building — utilities, maintenance, security, management.","long_definition":"Op-ex includes utilities, building maintenance, cleaning, security, management fees, insurance, and minor capital items. For a Class A US office, op-ex typically runs $12-$20/RSF/year. In London the equivalent is the service charge — typically £8-£18/sqft. Op-ex is the most common source of post-lease disputes; insist on annual reconciliation rights and audit access.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"service-charge","term":"Service charge","category":"Lease economics","region_scope":"UK|EU","short_definition":"The UK / European equivalent of operating expenses — recharged to tenants.","long_definition":"Service charge in EMEA covers building maintenance, cleaning, security, utilities for common areas, management fees, and insurance. For a London Class A building, service charge typically runs £8-£18/sqft/year. Tenants have statutory and contractual rights to reasonable management; insist on RICS Service Charge Code compliance.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"rateable-value","term":"Rateable value","category":"Tax / regulatory","region_scope":"UK","short_definition":"The Valuation Office Agency's valuation of a UK property — the basis for business rates.","long_definition":"Rateable value is set by the VOA and revalued (as of 2026) every three years. Business rates are then levied at approximately 50% of rateable value annually. Rateable value can be appealed; rates can be mitigated via reliefs and structuring. Critically, business rates are statutory and not part of the service charge — model them as a separate line.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"rent-free-period","term":"Rent-free period","category":"Lease economics","region_scope":"Global","short_definition":"Months of zero base rent at the start of (or layered into) a lease term.","long_definition":"Rent-free is the most flexible concession — landlords prefer it to face-rent reductions because it preserves the headline rent and the implied valuation. Typical rent-free on a 10-year US Class A deal is 12-18 months; in London 18-24 months on a 10-year FRI; in Sydney 30+ months. Always model effective rent (face minus PV of concessions), not the headline.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"tenant-improvement-allowance","term":"Tenant improvement allowance (TI / TIA)","category":"Lease economics","region_scope":"US","short_definition":"Landlord-funded contribution toward the tenant's fit-out.","long_definition":"TI is the largest contractual subsidy in any office lease. Current US Class A market is $130-$200/sqft on a 10-year deal; trophy lease-ups can push past $250. TI is typically reimbursed against tenant invoices or paid directly to the contractor. Over-allowance spend is amortised into rent at a stated interest rate — negotiate that rate explicitly.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"face-rent","term":"Face rent","category":"Lease economics","region_scope":"Global|APAC","short_definition":"The headline base rent before concessions.","long_definition":"Face rent is the figure on the brochure. It is rarely the figure that determines economics. In Australia in particular, face rent and effective rent diverge by 30-40% — only the latter is meaningful.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"effective-rent","term":"Effective rent","category":"Lease economics","region_scope":"Global","short_definition":"Face rent minus the present value of all concessions, expressed per square foot per year.","long_definition":"Effective rent is the only meaningful number for cross-deal comparison. A 10-year deal at $150/sqft face with 18 months free has an effective rent of approximately $130/sqft. The same effective rent can be achieved with $135 face and 6 months free. Always model effective.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"dilapidations","term":"Dilapidations","category":"Lease economics","region_scope":"UK","short_definition":"The tenant's contractual obligation to return the premises to the lease-specified condition.","long_definition":"On lease end, the landlord serves a Schedule of Dilapidations claiming the cost of returning the premises to the standard required by the lease. For a high-end Cat B fit-out in London, plan for £35-£75/sqft. Dilapidations are typically negotiated below the schedule total, but the high end should be provisioned from year one. A Schedule of Condition on lease commencement is the strongest defence.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"reinstatement","term":"Reinstatement","category":"Lease economics","region_scope":"APAC","short_definition":"The tenant's contractual obligation to return the premises to bare-shell or original condition at lease end.","long_definition":"Common in APAC markets. Singapore, Hong Kong, Tokyo, and Shanghai all default to substantial reinstatement obligations. Costs range from SGD 30-60/sqft (Singapore) to JPY 30-60k/sqm (Tokyo) on a high-end fit-out. Some tenants negotiate to leave the existing fit-out — landlords may agree where the spec is broadly reusable.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"schedule-of-condition","term":"Schedule of Condition","category":"Lease structure","region_scope":"UK","short_definition":"A photographic and written record of the premises' condition at lease commencement.","long_definition":"Appended to the lease, the Schedule of Condition caps the tenant's repair and dilapidations obligations to the standard recorded. Essential on older buildings. Commission a chartered building surveyor — do not rely on photos alone.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"break-clause","term":"Break clause","category":"Lease structure","region_scope":"UK|EU","short_definition":"A contractual right to terminate the lease before its expiry, on stated conditions.","long_definition":"Standard UK structure: a 10-year FRI lease with a tenant break at year 5. Conditions typically include vacant possession, no material breach, all rent paid, and 6 months' written notice in a specified form. Vacant possession is the most-litigated condition. Engage solicitors on the break notice 12 months before exercise.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"rent-review","term":"Rent review","category":"Lease economics","region_scope":"UK|EU","short_definition":"A scheduled review of base rent during the term, typically to open-market rent.","long_definition":"Standard UK office leases include a five-yearly upward-only open-market rent review. Negotiate collared and capped reviews to fix a minimum and maximum movement. Continental European leases more commonly use CPI indexation.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"indexation","term":"Indexation","category":"Lease economics","region_scope":"EU","short_definition":"Annual rent escalation tied to a published price index.","long_definition":"Continental European leases commonly index rent to a CPI variant (Verbraucherpreisindex in Germany, ILAT in France, ISTAT in Italy). Caps are negotiable. Annual indexation is also standard in Dubai (typically 5% fixed escalation).","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"cap-rate","term":"Cap rate","category":"Capital markets","region_scope":"Global","short_definition":"The yield at which an asset is valued — net operating income divided by capital value.","long_definition":"Prime cap rates for Class A office in 2026 range from approximately 3.0% (Tokyo) to 7.5% (Dubai, Mumbai). Cap rate movement is the single largest driver of capital values. Tenants rarely model cap rates directly but should understand that landlord behaviour (concessions, capex, retention) is shaped by them.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"yield","term":"Prime yield","category":"Capital markets","region_scope":"Global","short_definition":"The cap rate (yield) for the most prestigious assets in a given submarket.","long_definition":"Prime yields are the benchmark for trophy asset valuations. Lower yield = higher valuation. Prime yield movement is the leading indicator for landlord concession appetite and capex programs.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"core-and-shell","term":"Core and shell","category":"Construction","region_scope":"US","short_definition":"The base building delivered without interior fit-out — structure, exterior, MEP risers, lobby.","long_definition":"A landlord delivers core-and-shell; the tenant builds the interior. The opposite extreme is a fully-fitted suite. Most US Class A is delivered core-and-shell with a TI allowance to fund tenant interior construction. UK markets typically deliver Cat A (see Cat A).","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"cat-a","term":"Cat A","category":"Construction","region_scope":"UK","short_definition":"UK landlord delivery standard — base building plus raised floor, ceilings, basic MEP fit-out.","long_definition":"A Cat A handover provides the tenant with a workable shell — raised floor, suspended ceiling, basic lighting, finished perimeter heating/cooling. The tenant then completes Cat B (partitions, finishes, furniture).","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"cat-b","term":"Cat B","category":"Construction","region_scope":"UK","short_definition":"Tenant-funded interior fit-out — partitions, finishes, furniture, AV.","long_definition":"Cat B is the tenant's interior build — workplace strategy, partitions, finishes, joinery, AV, security, and furniture. Per-sqft Cat B budgets in 2026 range from £80 (basic) to £400+ (trophy) in London Class A.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"fit-out","term":"Fit-out","category":"Construction","region_scope":"Global","short_definition":"The construction work to make a leased premises occupiable for the tenant's use.","long_definition":"Fit-out scope ranges from light refresh (paint, carpet, furniture) to full demolition and reconstruction. Major fit-outs typically take 16-28 weeks for an office of 10,000-30,000 sqft, plus an additional 4-8 weeks of pre-construction (design, permits).","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"lease-commencement","term":"Lease commencement date","category":"Lease structure","region_scope":"Global","short_definition":"The contractual start date of the lease term.","long_definition":"Distinct from the rent commencement date. The lease may commence on signing while rent does not start until construction completion. On heavy fit-outs, structure rent commencement to the later of (a) lease execution + agreed window, or (b) substantial completion.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"substantial-completion","term":"Substantial completion","category":"Construction","region_scope":"US|Global","short_definition":"Construction milestone at which the premises is functionally ready for occupancy.","long_definition":"Substantial completion is typically the point at which the architect or contractor certifies that the work is sufficiently complete that the tenant can occupy and use the premises. Final punch-list items may remain. Often the trigger for rent commencement on heavily fit-out deals.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"good-guy-guarantee","term":"Good Guy Guarantee","category":"Lease structure","region_scope":"US","short_definition":"A limited personal guarantee common in NYC commercial leases.","long_definition":"A Good Guy Guarantee makes an individual personally liable for rent only until the tenant vacates and surrenders the premises. It does not cover unpaid rent obligations after vacancy. Standard in smaller NYC suite leases; uncommon at institutional tenant scale.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"personal-guarantee","term":"Personal guarantee","category":"Lease structure","region_scope":"Global","short_definition":"A guarantee by an individual of the tenant's lease obligations.","long_definition":"Full personal guarantees are uncommon at institutional tenant scale. Limited guarantees (e.g., Good Guy in NYC) or capped guarantees are more common for smaller covenants.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"letter-of-credit","term":"Letter of credit (LOC)","category":"Lease structure","region_scope":"US","short_definition":"Bank-issued security for the tenant's lease obligations.","long_definition":"A standby letter of credit is a common security mechanism in US institutional leases. Typical sizing: 6-12 months of base rent for a non-investment-grade tenant. The LOC reduces in step with the tenant's covenant maturing or via burn-down provisions.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"rent-deposit","term":"Rent deposit","category":"Lease structure","region_scope":"UK|EU|APAC","short_definition":"Cash security held by the landlord for the tenant's lease obligations.","long_definition":"Common in UK and continental European leases. Typical sizing: 3-6 months of rent in the UK, 3-6 months in Germany (Cautio), 3-6 months in France. Usually held in a segregated account.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"bank-guarantee","term":"Bank guarantee","category":"Lease structure","region_scope":"APAC","short_definition":"An on-demand bank guarantee issued in favour of the landlord.","long_definition":"Common in APAC leases. Typical sizing: 3-6 months of rent. Functions similarly to a US letter of credit but is governed by local banking practice. Singapore and Hong Kong landlords routinely require bank guarantees.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"sublease","term":"Sublease","category":"Lease structure","region_scope":"Global","short_definition":"A grant of occupancy from the prime tenant to a sub-tenant.","long_definition":"Under a sublease, the prime tenant remains contractually liable to the landlord. Sublease typically requires landlord consent. Sublease economics in soft markets typically clear at a 25-40% discount to direct space.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"assignment","term":"Assignment","category":"Lease structure","region_scope":"Global","short_definition":"A full transfer of all lease obligations from the prime tenant to a new tenant.","long_definition":"Assignment fully releases the prime tenant (or retains them as guarantor). Harder to negotiate landlord consent for than a sublease. Standard in M&A contexts.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"consent-to-sublet","term":"Consent to sublet","category":"Lease structure","region_scope":"Global","short_definition":"The landlord's required approval of a proposed sublease or assignment.","long_definition":"Most institutional leases require landlord consent for sublease or assignment, with the landlord's consent 'not to be unreasonably withheld'. The reasonableness standard is fact-specific and frequently litigated. Negotiate the standard explicitly in the LOI.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"recapture-right","term":"Recapture right","category":"Lease structure","region_scope":"US","short_definition":"Landlord's right to terminate the lease instead of consenting to a sublease or assignment.","long_definition":"Most institutional leases give the landlord a recapture right. Negotiate it narrowly: limit to subleases of more than X% of the premises and exclude affiliates / corporate restructurings.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"right-of-first-offer","term":"Right of first offer (ROFO)","category":"Lease structure","region_scope":"Global","short_definition":"Tenant right to be offered adjacent space before the landlord markets it.","long_definition":"A ROFO requires the landlord to offer specified space (typically a contiguous floor or block) to the tenant on the same terms as it intends to offer to the market, before doing so. Less restrictive than a hard expansion right.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"right-of-first-refusal","term":"Right of first refusal (ROFR)","category":"Lease structure","region_scope":"Global","short_definition":"Tenant right to match a third-party offer on adjacent space.","long_definition":"A ROFR allows the tenant to match an offer the landlord receives from a third party. More tenant-favorable than a ROFO. Negotiate the response window carefully — typically 10-15 business days.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"expansion-right","term":"Expansion right","category":"Lease structure","region_scope":"Global","short_definition":"Hard contractual right to lease specified additional space at a stated trigger date.","long_definition":"A hard expansion right gives the tenant the contractual right to take additional space at one or more pre-defined trigger dates, at pre-agreed (or formula-driven) economics. The most valuable and most expensive contractual right; negotiate early in the LOI.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"contraction-right","term":"Contraction right","category":"Lease structure","region_scope":"Global","short_definition":"Tenant right to surrender a portion of the premises at a stated trigger date.","long_definition":"A contraction right allows the tenant to surrender a defined portion (typically 10-25%) of the premises at a stated date, often subject to a fee equivalent to the unamortised TI and free rent allocable to the surrendered space.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"termination-option","term":"Termination option","category":"Lease structure","region_scope":"US","short_definition":"Tenant right to terminate the entire lease at a stated trigger date, often subject to a fee.","long_definition":"A termination option (sometimes 'kick-out') gives the tenant the contractual right to end the lease at a stated date, subject to a termination fee equal to the unamortised TI, free rent, and brokerage. Standard on long-term US leases for risk management.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"leed","term":"LEED","category":"ESG","region_scope":"Global","short_definition":"US Green Building Council's environmental rating system.","long_definition":"Leadership in Energy and Environmental Design — tiers Certified, Silver, Gold, Platinum. Trophy benchmark is Platinum. LEED BD+C is the new-construction family; LEED O+M is the operations family. Operational rating is the meaningful measure for tenants — design rating tells you intent, operations rating tells you reality.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"breeam","term":"BREEAM","category":"ESG","region_scope":"UK|EU","short_definition":"UK and global environmental rating system from BRE Group.","long_definition":"Building Research Establishment Environmental Assessment Method — tiers Pass, Good, Very Good, Excellent, Outstanding. Trophy benchmark is Excellent or Outstanding. The dominant rating system in the UK and widely used across continental Europe.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"nabers","term":"NABERS","category":"ESG","region_scope":"APAC","short_definition":"Australia's National Australian Built Environment Rating System.","long_definition":"Government-backed rating from 1 to 6 stars on energy, water, indoor environment quality, and waste. Mandatory disclosure for buildings over 1,000 sqm at lease and sale. Trophy benchmark is NABERS Energy 5.5+. The most rigorous operational rating regime globally.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"bca-green-mark","term":"BCA Green Mark","category":"ESG","region_scope":"APAC","short_definition":"Singapore's mandatory green building rating.","long_definition":"Tiers Certified, Gold, Gold Plus, Platinum. Mandatory for new construction in Singapore. Trophy benchmark is Platinum. Tuned for tropical climate — relatively heavier weighting on cooling efficiency than LEED.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"well-certification","term":"WELL certification","category":"ESG","region_scope":"Global","short_definition":"Health and wellbeing-focused building rating from the International WELL Building Institute.","long_definition":"Tiers Bronze, Silver, Gold, Platinum. Focus on air quality, water quality, lighting, acoustics, materials, and policies that promote occupant wellbeing. Increasingly paired with LEED on trophy delivery.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"fitwel","term":"Fitwel","category":"ESG","region_scope":"US|Global","short_definition":"Health and wellbeing rating system, lighter touch than WELL.","long_definition":"Originally developed by the US CDC and GSA. Tiers 1-3 stars. Lower cost and lighter implementation than WELL. Common in the US for portfolio-wide rollout.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"epc","term":"EPC (Energy Performance Certificate)","category":"Tax / regulatory","region_scope":"UK","short_definition":"UK statutory energy rating, A-G scale.","long_definition":"Statutory in the UK at lease and sale. Since 2023, commercial property cannot be let with an EPC rating below E (extending to C in 2027 and B in 2030 — subject to confirmation). EPC ratings now drive a measurable rent premium and a hard market exit for non-compliant assets.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"dec","term":"DEC (Display Energy Certificate)","category":"Tax / regulatory","region_scope":"UK","short_definition":"UK operational energy rating for public buildings — A-G scale.","long_definition":"Operational counterpart to the EPC, focused on actual measured energy use rather than design intent. Required to be displayed in public buildings over 250 sqm.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"flex-space","term":"Flex space / coworking","category":"Lease structure","region_scope":"Global","short_definition":"Office space rented on short-term, fully-managed contracts from a flex provider.","long_definition":"Flex space (WeWork, IWG, Industrious, The Office Group) is rented per seat per month or per office on contracts ranging from one month to 36 months. Includes the lease, the build-out, the furniture, the tech, and the management. Structurally cheaper at small headcounts and short horizons; a traditional lease wins above ~75 seats and ~5 years.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"managed-office","term":"Managed office","category":"Lease structure","region_scope":"Global","short_definition":"Bespoke fitted office delivered and managed by a third party — between flex and traditional.","long_definition":"A managed office is fitted to the tenant's brief and managed (cleaning, IT, reception) by a third party — typically on a 2-5 year term. Sits between pure flex and a traditional lease in cost, customisation, and term length.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"turnkey","term":"Turnkey","category":"Construction","region_scope":"Global","short_definition":"A fully-fitted suite delivered ready for occupancy by the landlord.","long_definition":"Common in trophy buildings as a marketing tool — landlord delivers a fully-built suite (including furniture in some cases) and adjusts the rent to amortise the investment. Faster occupancy, less tenant capital deployed.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"pre-built-suite","term":"Pre-built suite","category":"Construction","region_scope":"US","short_definition":"A landlord-built office in a Class A building, delivered fitted but typically minimally customised.","long_definition":"Landlords build pre-built suites speculatively in trophy buildings to address smaller tenant demand efficiently. Typical size 2,500-7,500 sqft. Tenant takes on shorter notice, less customisation.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"loi","term":"LOI (Letter of Intent)","category":"Lease structure","region_scope":"Global","short_definition":"Non-binding written summary of agreed deal terms — the basis for lease negotiation.","long_definition":"The LOI is the most important pre-lease document. Once an LOI is countersigned, deviating from its terms in the lease draft is a meaningful negotiating challenge. Insist on a thorough LOI — every economic term, every option, every key carve-out should be captured.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"heads-of-terms","term":"Heads of terms (HOT)","category":"Lease structure","region_scope":"UK|EU","short_definition":"UK / EU equivalent of the Letter of Intent.","long_definition":"Heads of terms are the agreed (typically non-binding) summary of deal terms. Forms the basis for solicitor-drafted lease documentation. Same negotiating principle as the US LOI: the document carries weight in subsequent drafting.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"psf","term":"Per square foot (PSF)","category":"Measurement","region_scope":"US","short_definition":"Standard US unit for quoting rent and other office economics.","long_definition":"Per square foot per year is the standard US convention. Per square foot per month is the standard in Hong Kong, India. PSF figures should always be qualified by RSF or USF basis — they are not interchangeable.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"psm","term":"Per square metre (PSM)","category":"Measurement","region_scope":"EU|APAC","short_definition":"Standard EMEA / APAC unit for quoting rent.","long_definition":"Per square metre per year is the standard EMEA convention. Tokyo uses tsubo (3.3 sqm). Convert to per-seat per-month USD for cross-market comparison.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"net-absorption","term":"Net absorption","category":"Market metric","region_scope":"Global","short_definition":"The change in occupied office space over a period — positive or negative.","long_definition":"Net absorption equals leased space less vacated space less newly delivered vacant space. The cleanest measure of underlying tenant demand. Positive net absorption signals a tightening market; negative signals a softening market.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"vacancy-rate","term":"Vacancy rate","category":"Market metric","region_scope":"Global","short_definition":"The share of office space currently available for lease in a market.","long_definition":"Includes both directly available space (landlord vacant) and sublease space. The headline vacancy rate masks important distinctions: trophy vacancy is currently structurally tighter than broader Class A vacancy in most markets.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"availability-rate","term":"Availability rate","category":"Market metric","region_scope":"US","short_definition":"Vacancy rate plus space currently leased but available for sublease.","long_definition":"Availability is a more honest measure of true market supply than headline vacancy. The gap between vacancy and availability widens during downcycles as tenants attempt to offload underused space.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"stamp-duty","term":"Stamp duty / SDLT","category":"Tax / regulatory","region_scope":"UK|APAC","short_definition":"A tax on lease execution.","long_definition":"Stamp duty applies on lease execution in the UK (SDLT — Stamp Duty Land Tax), Hong Kong, Singapore, India, and several other jurisdictions. UK SDLT on leases is calculated on the net present value of the rent over the term. Plan for it in the closing budget.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"business-rates","term":"Business rates","category":"Tax / regulatory","region_scope":"UK","short_definition":"UK statutory tax on commercial property occupation.","long_definition":"Business rates are levied at approximately 50% of the property's rateable value per year. Payable directly by the tenant to the local authority. Distinct from rent and service charge.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"commercial-rent-tax","term":"Commercial Rent Tax (CRT)","category":"Tax / regulatory","region_scope":"US","short_definition":"NYC tax on commercial tenants below 96th Street.","long_definition":"Levied at 6% on base rent above $250,000 annually for tenants in Manhattan south of 96th Street, with credits that effectively reduce the rate to about 3.9%. Model it explicitly as a line item in NYC occupancy budgets.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"subdivision-cost","term":"Subdivision cost","category":"Construction","region_scope":"US","short_definition":"Capex required to subdivide a single floor for multiple tenants.","long_definition":"When a landlord subdivides a full floor for multiple tenants, additional capex is required (corridors, demising walls, separated MEP, restrooms). Often passed through to the tenant as part of the TI calculation or absorbed by the landlord depending on covenant strength.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"base-building","term":"Base building","category":"Construction","region_scope":"Global","short_definition":"The structural and core-services condition of a building before tenant fit-out.","long_definition":"Includes the structure, exterior, MEP risers, lobby, common areas, and core services (elevators, restrooms). Tenant fit-out begins where base building ends.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"workplace-strategy","term":"Workplace strategy","category":"Construction","region_scope":"Global","short_definition":"The discipline of designing how a workforce uses physical space.","long_definition":"Includes density planning, work-style modelling (cell vs open vs activity-based), neighbourhood planning, and amenity programming. Should precede architect engagement on any meaningful fit-out.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"density","term":"Density","category":"Workplace","region_scope":"Global","short_definition":"The ratio of usable square feet per seat in a workplace.","long_definition":"Class A global default is 120 USF per seat. Executive-heavy floors index 150. Activity-based floors with full hot-desking can index 70-90. Density assumption shapes lease economics materially: a 30% density variation flips per-seat-month USD by 30%.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"end-of-trip","term":"End-of-trip facilities","category":"Amenities","region_scope":"Global","short_definition":"Building-provided showers, lockers, and bicycle storage for cycle and run commuters.","long_definition":"Standard amenity in trophy assets. Materially supports active commuting and is often part of NABERS / WELL / LEED scoring.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"amenitisation","term":"Amenitisation","category":"Amenities","region_scope":"Global","short_definition":"The bundle of building-provided amenity space and services.","long_definition":"Includes tenant amenity floor (food, conferencing, fitness), end-of-trip facilities, concierge, building events, outdoor space, hospitality programming. A defining axis of trophy versus Class A classification.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"smart-building","term":"Smart building","category":"ESG","region_scope":"Global","short_definition":"A building with integrated IoT, sensor, and analytics infrastructure.","long_definition":"Sensors capture occupancy, indoor air quality, energy use, equipment performance. Modern trophy delivery is uniformly smart-enabled. Tenant value depends on data access — negotiate it explicitly in the lease.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"teiki-shakuya","term":"Teiki shakuya (定期借家)","category":"Lease structure","region_scope":"APAC","short_definition":"Japanese fixed-term lease — ends on the contract date with no renewal right.","long_definition":"The dominant lease form for new trophy delivery in Tokyo. Distinct from the historical futsu shakuya (ordinary lease), which gives the tenant strong renewal rights regardless of landlord preference. Foreign tenants should expect teiki shakuya in modern trophy assets.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"futsu-shakuya","term":"Futsu shakuya (普通借家)","category":"Lease structure","region_scope":"APAC","short_definition":"Japanese ordinary lease — strong tenant renewal rights.","long_definition":"Historic Japanese lease form that gives the tenant strong statutory renewal rights. Less common in new trophy delivery, where teiki shakuya dominates.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"genjo-kaifuku","term":"Genjo kaifuku (原状回復)","category":"Lease economics","region_scope":"APAC","short_definition":"Japanese contractual obligation to restore the leased premises to original condition.","long_definition":"Tokyo lease norm. For Grade A office, commonly costs JPY 30-60k per square metre. Budget it as a known cost from year one.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"ejari","term":"Ejari","category":"Tax / regulatory","region_scope":"Global","short_definition":"Dubai's mandatory lease registration system.","long_definition":"Operated by Dubai's Real Estate Regulatory Agency. All tenancy contracts must be registered. Small administrative fee. Required for visa processing, utility connections, and trade-licence applications.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"difc","term":"DIFC","category":"Tax / regulatory","region_scope":"EU","short_definition":"Dubai International Financial Centre — an English-common-law free zone.","long_definition":"Dubai's financial free zone. English common law, an independent regulator (DFSA), separate court system. Most international banks, asset managers, and law firms in Dubai operate from DIFC. Distinct legal and regulatory regime from onshore Dubai.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"adgm","term":"ADGM","category":"Tax / regulatory","region_scope":"EU","short_definition":"Abu Dhabi Global Market — English-common-law free zone.","long_definition":"Abu Dhabi's financial free zone, equivalent in legal architecture to Dubai's DIFC. English common law, independent regulator (FSRA), separate court system.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"vcc","term":"VCC","category":"Tax / regulatory","region_scope":"APAC","short_definition":"Singapore Variable Capital Company — flexible fund-management vehicle.","long_definition":"A Singapore corporate structure designed for collective investment schemes. Tax-efficient, regulator-friendly, increasingly the default vehicle for new funds set up in Singapore. Often part of the rationale for an HQ relocation.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"decret-tertiaire","term":"Décret tertiaire","category":"Tax / regulatory","region_scope":"EU","short_definition":"France's Tertiary Sector Decree mandating progressive office energy reductions.","long_definition":"Mandates 40% energy reduction by 2030, 50% by 2040, 60% by 2050 (versus a 2010 baseline) for buildings over 1,000 sqm. Non-compliant assets face a real and rising market risk.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"ilat","term":"ILAT (Indice des Loyers des Activités Tertiaires)","category":"Lease economics","region_scope":"EU","short_definition":"French rent index for tertiary leases.","long_definition":"Office leases in France typically index annually to the ILAT. Caps are negotiable. Replaced ICC (Indice du Coût de la Construction) for tertiary leases in 2014.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"dgnb","term":"DGNB","category":"ESG","region_scope":"EU","short_definition":"German Sustainable Building Council certification.","long_definition":"The dominant German green-building rating. Tiers Bronze, Silver, Gold, Platinum. Trophy benchmark is Platinum. Often paired with LEED on internationally-positioned assets.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"nia-uk","term":"Net Internal Area (NIA UK)","category":"Measurement","region_scope":"UK","short_definition":"UK measurement standard for office area excluding common areas.","long_definition":"Defined under the RICS Code of Measuring Practice. The basis for most quoted UK office rents. Gradually being supplemented by IPMS 3 - Office.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"rics","term":"RICS","category":"Tax / regulatory","region_scope":"UK","short_definition":"Royal Institution of Chartered Surveyors — UK professional body for surveyors and valuers.","long_definition":"Sets the dominant UK valuation, measurement, and service-charge standards. RICS Red Book is the standard for valuation; RICS Service Charge Code governs service-charge management.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"trad-vs-flex","term":"Traditional vs flexible occupancy","category":"Lease structure","region_scope":"Global","short_definition":"The strategic choice between a direct landlord lease and a flex-provider contract.","long_definition":"The dominant 2026 enterprise pattern is HQ on a traditional lease + satellite presence on flex. Flex wins below 30 seats and under 18-month horizons; traditional wins above 75 seats and 5+ year horizons.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"ti-amortisation","term":"TI amortisation","category":"Leasing","region_scope":"US|UK|EU|APAC","short_definition":"Recovering tenant-improvement spend through a rent uplift over the lease term.","long_definition":"Where a tenant-improvement allowance is exhausted, the landlord may agree to fund excess fit-out and amortise the cost into the rent at an agreed interest rate (typically 6–8%). Amortised TI is contractually rent — it must be paid even on early termination unless explicitly carved out.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"free-rent-abatement","term":"Free rent abatement","category":"Leasing","region_scope":"Global","short_definition":"Months of zero base rent at the start of a lease, as concession.","long_definition":"Free rent (rent abatement) is the most common landlord concession. In US Class A markets it typically runs 1–1.5 months per lease year; in EMEA it is often quoted as 'months free' on a 5- or 10-year term. Abated rent typically excludes opex/service charge.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"expansion-option","term":"Expansion option","category":"Leasing","region_scope":"Global","short_definition":"Tenant's contractual right to lease additional contiguous space.","long_definition":"Expansion options range from a soft right of first offer (ROFO) to a hard expansion right with a fixed price and timeline. Hard rights are the most valuable to growing tenants and the most expensive to landlords — negotiate them in the LOI, not the lease.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"sublease-rights","term":"Sublease rights","category":"Leasing","region_scope":"Global","short_definition":"Tenant's right to sublet space, usually subject to landlord consent.","long_definition":"Standard Class A leases require landlord consent to sublease, 'not to be unreasonably withheld'. Negotiate explicit consent timelines (15–30 business days), profit-split mechanics (typically 50/50 above pass-through), and pre-approved permitted transferees (affiliates, group companies).","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"assignment-rights","term":"Assignment rights","category":"Leasing","region_scope":"Global","short_definition":"Tenant's right to transfer the lease to another entity.","long_definition":"Assignment passes the lease to a new tenant; sublease retains the original tenant. Most leases require landlord consent for assignment with carve-outs for affiliate transfers and corporate reorganisations.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"good-guy-guaranty","term":"Good-guy guaranty","category":"Legal","region_scope":"US","short_definition":"Personal guaranty limited to the period the tenant occupies.","long_definition":"A US-market personal guaranty limited to the rent owed up to the date the tenant fully vacates and surrenders the premises in good condition. Caps the founder's exposure on a startup lease.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"personal-guaranty","term":"Personal guaranty","category":"Legal","region_scope":"US|UK","short_definition":"An individual's personal financial guarantee of lease obligations.","long_definition":"Common where the tenant entity has limited covenant. Negotiate burn-down (guaranty reduces over the term), cap (limited to a fixed dollar amount), and carve-outs (only base rent, not opex).","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"rent-deposit-deed","term":"Rent deposit deed","category":"Legal","region_scope":"UK","short_definition":"UK security mechanism — cash held by the landlord against breach.","long_definition":"UK equivalent of a US security deposit. Typically 6 months' rent + service charge + VAT, held in a designated account. Releases on lease expiry minus any landlord claim.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"service-charge-cap","term":"Service charge cap","category":"Leasing","region_scope":"UK|EU","short_definition":"Contractual cap on annual service-charge increases.","long_definition":"UK/EU equivalent of a US opex cap. Typical structures: fixed cap (e.g., £15/sf), CPI-linked, or year-on-year cap (e.g., 5% per annum). Always exclude utilities and insurance from the cap or it becomes meaningless.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"opex-cap","term":"Operating expense cap","category":"Leasing","region_scope":"US|EU","short_definition":"Annual cap on the tenant's share of building operating expenses.","long_definition":"Caps prevent runaway opex pass-throughs in inflationary environments. Most aggressive structure: cumulative compound cap (e.g., 4% per annum, compounded). Most landlord-friendly: non-cumulative annual cap.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"gross-up-provision","term":"Gross-up provision","category":"Leasing","region_scope":"US","short_definition":"Adjusts opex as if the building were 95–100% occupied.","long_definition":"Without gross-up, a half-empty building shows artificially low opex in the base year, then a sharp increase as occupancy rises. Always insist on gross-up at 95–100% in the base year for variable expenses (cleaning, utilities, repairs).","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"warm-shell","term":"Warm shell","category":"Construction","region_scope":"US","short_definition":"Core and shell plus base HVAC, lighting, and floor.","long_definition":"An intermediate delivery condition: more than core and shell (HVAC trunk lines and base lighting are in), less than turn-key. Common for spec suites and pre-built inventory.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"cold-shell","term":"Cold shell","category":"Construction","region_scope":"US","short_definition":"Bare core and shell with no MEP at the floor.","long_definition":"Tenant inherits the bare structure and façade. The tenant designs and installs all MEP from the riser. Highest tenant capex; highest design freedom.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"turn-key","term":"Turn-key build-out","category":"Construction","region_scope":"US","short_definition":"Landlord delivers the space fully fit out per tenant spec.","long_definition":"Landlord designs, permits, and constructs the entire fit-out, then hands keys to the tenant. The tenant's TI allowance becomes a build-out cap; overruns are tenant's cost.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"spec-suite","term":"Spec suite","category":"Leasing","region_scope":"US|UK","short_definition":"Pre-built tenant suite delivered turn-key by the landlord.","long_definition":"Landlord-funded pre-built suites — usually 3,000–10,000 sf — designed for fast occupancy. Common for sub-floor Class A leasing where time-to-occupy is the deciding factor.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"wiredscore","term":"WiredScore","category":"Certifications","region_scope":"Global","short_definition":"Independent rating of building digital connectivity infrastructure.","long_definition":"Certifies fibre redundancy, in-building cellular, riser capacity, and resilience. Platinum tier requires multiple diverse fibre entries and full DAS coverage. Now standard on Class A new builds.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"smartscore","term":"SmartScore","category":"Certifications","region_scope":"Global","short_definition":"Certification of building IoT/smart-systems maturity.","long_definition":"Sister rating to WiredScore, focused on operational technology rather than connectivity. Measures user experience, sustainability impact, and BMS integration. Distinguishes 'wired' from 'truly intelligent'.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"leed-platinum","term":"LEED Platinum","category":"Certifications","region_scope":"US|Global","short_definition":"Highest tier of US Green Building Council's LEED certification.","long_definition":"Platinum requires 80+ points across location, water, energy, materials, air quality, and innovation. Class A trophy assets typically target LEED Platinum at building level and LEED CI Gold/Platinum for tenant fit-out.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"breeam-outstanding","term":"BREEAM Outstanding","category":"Certifications","region_scope":"UK|EU","short_definition":"Highest tier of UK BREEAM environmental certification.","long_definition":"Outstanding requires 85%+ score and post-construction review. UK / European Class A trophy specification target — particularly required for institutional pension fund tenants.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"energy-star","term":"ENERGY STAR rating","category":"Certifications","region_scope":"US","short_definition":"US EPA building energy-performance benchmark, scored 1–100.","long_definition":"Score of 75 or higher qualifies for ENERGY STAR certification. Increasingly mandatory for institutional landlords and tenants with corporate ESG mandates. Many US cities (NYC, DC, Chicago, Seattle) require annual benchmark disclosure.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"epc-rating","term":"EPC rating","category":"Certifications","region_scope":"UK","short_definition":"UK/EU Energy Performance Certificate rating, A (best) to G.","long_definition":"EPC is statutorily required on all UK lettings. The 2023 MEES regulations made it unlawful to let buildings rated below E; the bar rises to C in 2027 and B in 2030. Structural risk for any landlord with sub-B Class A stock.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"minimum-energy-efficiency-standards","term":"Minimum Energy Efficiency Standards (MEES)","category":"Regulations","region_scope":"UK","short_definition":"UK regulation banning the letting of energy-inefficient buildings.","long_definition":"Phased: E required from 2018, C required from 2027 (proposed), B required from 2030. Sub-standard buildings face six-figure fines and a marketing ban. Reshaping every UK Class A capex programme.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"gresb","term":"GRESB","category":"Certifications","region_scope":"Global","short_definition":"Global ESG benchmark for real estate funds and assets.","long_definition":"Annual ESG benchmark used by institutional investors. Class A landlords aiming for institutional capital typically target a 4-star GRESB rating minimum. Drives sustainability capex sequencing across the entire portfolio.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"csrd","term":"Corporate Sustainability Reporting Directive (CSRD)","category":"Regulations","region_scope":"EU","short_definition":"EU rule requiring detailed ESG reporting for large companies.","long_definition":"Phased rollout 2024–2028. All large EU companies and EU-listed firms must report on environmental, social, and governance metrics under European Sustainability Reporting Standards (ESRS). Major impact on tenant due-diligence on landlord buildings.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"scope-1-emissions","term":"Scope 1 emissions","category":"ESG","region_scope":"Global","short_definition":"Direct emissions from sources owned or controlled by the entity.","long_definition":"On-site combustion, owned-fleet vehicles, refrigerants. For an office building: gas heating and on-site generators. The first emissions to attack in any net-zero plan because they sit on the landlord's own balance sheet.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"scope-2-emissions","term":"Scope 2 emissions","category":"ESG","region_scope":"Global","short_definition":"Indirect emissions from purchased electricity, heat, and cooling.","long_definition":"Largely a function of the local grid mix. The fastest decarbonisation lever for an office building: switch to renewable-backed electricity contracts and report on a market basis.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"scope-3-emissions","term":"Scope 3 emissions","category":"ESG","region_scope":"Global","short_definition":"All other indirect emissions in the value chain.","long_definition":"For real estate: embodied carbon in materials, tenant fit-out, employee commute, procurement, and downstream tenant operations. The hardest to measure and the largest in magnitude — typically 70–90% of a Class A building's lifecycle emissions.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"embodied-carbon","term":"Embodied carbon","category":"ESG","region_scope":"UK|EU","short_definition":"Lifecycle carbon emissions from construction materials and processes.","long_definition":"Concrete, steel, glass, aluminium dominate. RICS WLCA, LETI, and the GLA Whole Life Carbon framework now require Class A new builds to report embodied carbon at planning stage in the UK. Drives material substitution (CLT, low-carbon concrete) and reuse.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"operational-carbon","term":"Operational carbon","category":"ESG","region_scope":"Global","short_definition":"Carbon emitted by a building's day-to-day operations.","long_definition":"Energy use for heating, cooling, lighting, equipment. Falls quickly with grid decarbonisation, electrification, and fabric upgrades. Typically 30–50% of lifecycle emissions of a new Class A building.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"ppa-power-purchase-agreement","term":"Power purchase agreement (PPA)","category":"ESG","region_scope":"Global","short_definition":"Long-term contract to buy renewable electricity from a specific generator.","long_definition":"Class A landlords with portfolio-scale demand sign 10–15 year PPAs with utility-scale solar/wind projects to hedge electricity prices and book Scope 2 reductions on a market basis.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"renewable-energy-certificate","term":"Renewable Energy Certificate (REC)","category":"ESG","region_scope":"US","short_definition":"Tradable certificate proving 1 MWh of renewable generation.","long_definition":"Allows a landlord/tenant to claim renewable-electricity consumption when the local grid is fossil-heavy. Bundled and unbundled markets exist; transparency varies by jurisdiction.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"guarantees-of-origin","term":"Guarantees of Origin (GO)","category":"ESG","region_scope":"EU","short_definition":"European equivalent of US RECs.","long_definition":"Tradable certificates issued under EU Renewable Energy Directive proving that 1 MWh of energy was produced from a renewable source. Required to substantiate any 'green electricity' claim under CSRD/ESRS.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"psf-rentable","term":"PSF rentable (rent psf, RSF basis)","category":"Measurement","region_scope":"US","short_definition":"Rent quoted per rentable square foot.","long_definition":"US default. Rentable area includes the tenant's pro-rata share of building common space (lobbies, restrooms, mechanical rooms). Always confirm the loss factor before comparing buildings on RSF rent.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"psf-usable","term":"PSF usable (USF basis)","category":"Measurement","region_scope":"US","short_definition":"Rent allocated to the actual demised space.","long_definition":"Useful for normalising across buildings with different loss factors. Convert RSF rent to USF: USF rent = RSF rent / (1 - loss factor). A 25% loss factor turns USD 100 RSF into USD 133 USF.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"boma-standard","term":"BOMA measurement standard","category":"Measurement","region_scope":"US","short_definition":"US trade-body standard for measuring office floor areas.","long_definition":"BOMA 2017 Office Standard governs how rentable, usable, and gross areas are calculated. The reference standard for almost all Class A US Class A leases. Verify the BOMA version in the lease — older versions favour landlords.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"carpet-area","term":"Carpet area","category":"Measurement","region_scope":"APAC","short_definition":"India-market measure of internal usable space within walls.","long_definition":"Default measure in Indian Class A leases. Carpet excludes external walls, lift cores, and common areas. Loss factors of 30–35% are typical when converting from carpet to chargeable area.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"tsubo","term":"Tsubo","category":"Measurement","region_scope":"APAC","short_definition":"Japanese unit of floor area, ~3.305 m².","long_definition":"Default unit for office leases in Japan. Quoted rent is typically per tsubo per month. 1 tsubo = 2 tatami mats. Convert rent: USD/m²/month × 3.305 = USD/tsubo/month.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"ping","term":"Ping","category":"Measurement","region_scope":"APAC","short_definition":"Taiwanese unit of floor area, ~3.306 m².","long_definition":"Equivalent to a tsubo. Taiwanese Class A office rents are typically quoted in NTD per ping per month plus management fee.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"yardstick-rent","term":"Yardstick rent","category":"Leasing","region_scope":"UK","short_definition":"Notional rent used in service-charge gross-ups.","long_definition":"Where a building has substantial vacant space, the landlord uses a notional 'yardstick' rent to allocate certain expenses. Mostly UK practice. Check the definition — landlords sometimes use yardsticks above market.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"stepped-rent","term":"Stepped rent","category":"Leasing","region_scope":"Global","short_definition":"Pre-agreed rent increases at fixed dates over the lease term.","long_definition":"Common in Asian markets and growing in US Class A: rent rises in stepped increments (e.g., +3% in years 3, 6, 9). Compare against fixed escalators or CPI-linked terms in the side-by-side TCO.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"cpi-linked-rent","term":"CPI-linked rent","category":"Leasing","region_scope":"EU|APAC","short_definition":"Rent indexed to a published consumer-price index.","long_definition":"Standard escalation in EU and Indian leases. Carries inflation risk for the tenant — negotiate caps (e.g., max 4% per annum) and floors (e.g., min 0%).","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"upwards-only-rent-review","term":"Upwards-only rent review","category":"Leasing","region_scope":"UK","short_definition":"UK rent review mechanism that prohibits rent decreases.","long_definition":"Almost universal in UK Class A. At review, the rent rises to market or stays the same — never falls. Tenants negotiate (rarely successfully) for collar-and-cap structures. Major asset-value driver for UK landlords.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"stamp-duty-land-tax","term":"Stamp duty land tax (SDLT)","category":"Tax","region_scope":"UK","short_definition":"UK transaction tax on lease grants and assignments.","long_definition":"Calculated on the net present value of the lease rent. Long Class A leases attract material SDLT — typically 1% on the NPV above a threshold. Front-loaded relative to occupancy cost.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"registration-charges-india","term":"Registration charges (India)","category":"Tax","region_scope":"APAC","short_definition":"Indian state-level fee for lease registration.","long_definition":"Indian leases above 12 months must be registered with the sub-registrar. Charges range 5–8% of total rent over the lease term, varying by state. Maharashtra is the most expensive; SEZ leases often qualify for waivers.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"vat-on-rent","term":"VAT on rent","category":"Tax","region_scope":"UK|EU","short_definition":"EU value-added tax applied to commercial rent at landlord's election.","long_definition":"EU landlords typically opt to charge VAT (20% UK, 19–25% EU) so they can recover input VAT on building costs. VAT is recoverable for most tenants but is a real cost for VAT-exempt occupiers (banks, insurance, healthcare).","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"gst-on-rent","term":"GST on rent","category":"Tax","region_scope":"APAC","short_definition":"Goods-and-services tax on commercial rent in APAC markets.","long_definition":"GST on commercial rent: 18% India, 9% Singapore (rising to 9% from 2024), 10% Australia. Recoverable input tax for GST-registered tenants; cost for SEZ-export-only tenants in some structures.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"tenant-occupier-tax","term":"Tenant occupier tax","category":"Tax","region_scope":"UK|EU|APAC","short_definition":"Property tax assessed on the occupier rather than the owner.","long_definition":"Common in UK (business rates), France (taxe foncière reimbursed), Hong Kong (rates), Singapore (property tax). Distinct from rent and may not be capped — model independently.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"taxe-fonciere","term":"Taxe foncière","category":"Tax","region_scope":"EU","short_definition":"French local property tax, paid by owner but typically reimbursed by tenant.","long_definition":"Levied annually by communes on the cadastral rental value. Lease typically requires the tenant to reimburse — confirm in the bail.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"property-rates-hk","term":"Property rates (HK)","category":"Tax","region_scope":"APAC","short_definition":"Hong Kong occupier tax of 5% of estimated rental value.","long_definition":"Levied quarterly by the Rating and Valuation Department. Borne by the tenant in most Hong Kong Class A leases.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"property-tax-singapore","term":"Property tax (Singapore)","category":"Tax","region_scope":"APAC","short_definition":"Singapore annual tax of 10% of annual value for non-residential.","long_definition":"Calculated on annual value (estimated rent) at 10% for non-residential. Borne by the landlord but typically passed through in service charge.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"land-appreciation-tax","term":"Land appreciation tax (China)","category":"Tax","region_scope":"APAC","short_definition":"Chinese capital-gains-style tax on real-property disposals.","long_definition":"Progressive rate (30–60%) on the appreciation between purchase and sale. Major friction on Chinese Class A asset trades. Paid by seller; affects net yield assumptions for foreign buyers.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"yield-on-cost","term":"Yield on cost","category":"Investment","region_scope":"Global","short_definition":"Annual NOI divided by total acquisition + capex cost.","long_definition":"Used to assess development and reposition projects. Class A trophy targets typically 5.5–7.0% YoC at year-3 stabilisation in the US; 4.5–6.0% in EMEA gateway cities.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"irr","term":"Internal rate of return (IRR)","category":"Investment","region_scope":"Global","short_definition":"Annualised return on a multi-year investment cash flow.","long_definition":"Standard metric for closed-end value-add and opportunistic real-estate funds. Class A core funds target 7–9% IRR; core-plus 9–12%; value-add 13–17%; opportunistic 17%+.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"noi","term":"Net operating income (NOI)","category":"Investment","region_scope":"Global","short_definition":"Effective gross income less operating expenses, before debt and capex.","long_definition":"The fundamental cash-flow metric for income-producing real estate. NOI / asset price = cap rate. Tenant rent reductions, opex inflation, and concessions all flow through NOI.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"headline-rent","term":"Headline rent","category":"Leasing","region_scope":"Global","short_definition":"Quoted face rent, before concessions.","long_definition":"What appears in the press release. Almost never the price the tenant actually pays once free rent and TI are netted out. Real-estate data services that publish headline rent overstate market price by 10–25%.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"net-effective-rent","term":"Net effective rent","category":"Leasing","region_scope":"US","short_definition":"US-market effective rent: face rent net of free rent and TI amortisation.","long_definition":"Calculated as (face rent × paid months) - (TI not amortised) divided by total months. Always confirm whether TI amortisation is included; data providers vary.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"concession-package","term":"Concession package","category":"Leasing","region_scope":"US","short_definition":"Sum of free rent + TI + other landlord giveaways.","long_definition":"In current US Class A markets, concession packages run 25–40% of total contract value. Stabilised-occupancy buildings give less; lease-up buildings give more.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"blend-and-extend","term":"Blend and extend","category":"Leasing","region_scope":"US","short_definition":"Renegotiating rent down in exchange for extending the term.","long_definition":"Tenant-friendly renegotiation tool: extend the lease (giving the landlord term certainty) in exchange for a rent reduction or holiday. Most common when current market rent is below the existing rent and the lease has 2+ years to run.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"early-renewal","term":"Early renewal","category":"Leasing","region_scope":"Global","short_definition":"Renegotiating an extension before the lease expires.","long_definition":"Often signed 12–24 months before expiry to lock in incumbent tenant and avoid a relet risk. Landlord typically offers a small concession; tenant gets early certainty on rent and TI.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"operating-covenants","term":"Operating covenants","category":"Legal","region_scope":"Global","short_definition":"Tenant promises about how the space will be used.","long_definition":"Use clause, hours of operation, signage rights, parking allocations, after-hours HVAC. Negotiate explicit rights, not landlord 'reasonable' approvals.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"co-tenancy","term":"Co-tenancy clause","category":"Leasing","region_scope":"US","short_definition":"Right to abate rent if anchor tenants leave.","long_definition":"Common in retail, increasingly in mixed-use Class A. If the named anchor leaves, tenant may pay reduced rent (often 50%) until a replacement of equivalent stature is signed.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"bumps-and-resets","term":"Bumps and resets","category":"Leasing","region_scope":"US|UK","short_definition":"Stepped rent (bump) plus periodic market reset.","long_definition":"Hybrid escalation: small annual stepped increases plus a market reset every 5 years. Common in trophy assets where landlords want both predictability and inflation protection.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"fair-market-rent","term":"Fair market rent (FMR)","category":"Leasing","region_scope":"US","short_definition":"Negotiated definition of market rent for renewal options.","long_definition":"Drafted into renewal options to govern rent at exercise. Definition typically references comparable buildings in the same submarket, in similar condition, with landlord concession packages. The exact comparable set is the most-fought clause.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"appraisal-clause","term":"Appraisal clause","category":"Legal","region_scope":"US|UK","short_definition":"Mechanism for setting renewal rent via independent appraisal.","long_definition":"If the parties cannot agree on FMR, each appoints an MAI/MRICS appraiser; if those two cannot agree, they appoint a third, and the median wins. Slow and expensive — used as a backstop, not a first resort.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"loss-payee","term":"Loss payee endorsement","category":"Legal","region_scope":"US","short_definition":"Insurance clause naming the landlord on the tenant's policy.","long_definition":"Standard requirement: tenant's commercial general liability and property insurance must name the landlord and lender as additional insured / loss payees. Confirm policy limits annually.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"casualty-clause","term":"Casualty clause","category":"Legal","region_scope":"Global","short_definition":"Lease terms governing damage and rebuild after a fire/disaster.","long_definition":"Specifies whether the landlord must rebuild, how long abated rent runs, and when either party may terminate. Highly negotiated in Class A; tenant wants a hard 12-month terminate-if-not-rebuilt right.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"condemnation-clause","term":"Condemnation clause","category":"Legal","region_scope":"US","short_definition":"Lease terms governing partial or total taking by eminent domain.","long_definition":"Total taking: lease ends. Partial taking: tenant typically can terminate if more than 25% of premises is taken or if access is materially impaired. Condemnation award allocation is the contested issue.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"estoppel-certificate","term":"Estoppel certificate","category":"Legal","region_scope":"US","short_definition":"Tenant statement confirming lease terms, often required for landlord financing or sale.","long_definition":"Lender or buyer requires a tenant estoppel — a sworn statement of the lease facts (rent paid, no defaults, etc). Standard turnaround 10–20 business days. Protect against off-spec landlord requests.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"snda","term":"Subordination, non-disturbance, and attornment (SNDA)","category":"Legal","region_scope":"US","short_definition":"Tri-party agreement protecting the tenant if the lender forecloses.","long_definition":"Essential on every Class A US lease. The tenant subordinates to the lender's mortgage in exchange for a non-disturbance promise: if the landlord defaults and the lender forecloses, the lease survives.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"subordination","term":"Subordination","category":"Legal","region_scope":"US","short_definition":"Tenant lease ranks below the landlord's mortgage in the title hierarchy.","long_definition":"Subordination without an SNDA is dangerous: a foreclosure could wipe out the lease. Always negotiate SNDA at lease signing — not when the loan refinances.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"non-disturbance","term":"Non-disturbance","category":"Legal","region_scope":"US","short_definition":"Lender's promise not to terminate the lease on landlord default.","long_definition":"Critical protection: the tenant gets to keep the lease on its existing terms if the lender forecloses, provided the tenant is not in material default. The 'ND' in SNDA.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"attornment","term":"Attornment","category":"Legal","region_scope":"US","short_definition":"Tenant's promise to recognise a successor landlord (e.g., the lender).","long_definition":"Tenant agrees to treat the foreclosing lender as the landlord and pay rent to it. Standard mutual obligation alongside non-disturbance.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"cap-on-tax-pass-through","term":"Cap on tax pass-through","category":"Leasing","region_scope":"US","short_definition":"Cap on the tenant's share of real-estate-tax escalations.","long_definition":"Negotiated separately from the opex cap. Critical in jurisdictions with rapidly rising real-estate taxes (NYC, San Francisco). Common structure: cumulative compound 5–6% per annum.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"ti-allowance","term":"Tenant improvement allowance (TI)","category":"Leasing","region_scope":"Global","short_definition":"Landlord-funded build-out budget for the tenant fit-out.","long_definition":"Typical Class A TI allowances: USD 80–150/sf in US gateway cities, GBP 60–110/sf in central London, EUR 800–1,500/m² in Paris. Higher for longer terms and stronger covenants.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"fit-out-overrun","term":"Fit-out overrun","category":"Construction","region_scope":"Global","short_definition":"Cost above the TI allowance, paid by the tenant or amortised.","long_definition":"Standard practice: tenant funds overrun in cash, or amortises into rent at landlord's cost of capital plus 200–300 bps. Negotiate the amortisation rate at signing.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"permitting-risk","term":"Permitting risk","category":"Construction","region_scope":"US","short_definition":"Risk that fit-out construction permits delay occupancy.","long_definition":"Major US cities (NYC DOB, SF DBI, LA LADBS) routinely run 6–12 weeks for office permits. Build into the schedule and confirm rent commencement is post-CO, not post-tender.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"certificate-of-occupancy","term":"Certificate of occupancy (CO)","category":"Legal","region_scope":"Global","short_definition":"Local-authority sign-off that the space may be occupied.","long_definition":"Required for legal tenant occupancy in most jurisdictions. Common rent-commencement trigger: earlier of CO issued or tenant moving in.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"demising-walls","term":"Demising walls","category":"Construction","region_scope":"Global","short_definition":"Walls separating one tenant's space from another's or common area.","long_definition":"Landlord typically delivers demised in core-and-shell condition. Modifications during fit-out often require landlord consent due to fire-code and structural impact.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"raised-access-floor","term":"Raised access floor","category":"MEP","region_scope":"Global","short_definition":"Floor system with removable panels covering MEP services.","long_definition":"Standard in Class A trophy: 6–18\" floor cavity housing power, data, and HVAC supply. Enables flexible reconfiguration at the cost of slab-to-slab heights.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"vav-system","term":"VAV system","category":"MEP","region_scope":"Global","short_definition":"Variable Air Volume HVAC — adjusts airflow per zone.","long_definition":"Standard in modern Class A. Provides per-zone temperature control via VAV boxes connected to a central air handler. Modern installations integrate with BMS for occupancy-based ventilation.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"chilled-beam","term":"Chilled beam","category":"MEP","region_scope":"EU","short_definition":"Energy-efficient HVAC using chilled water rather than circulated air.","long_definition":"Common in EU Class A. Reduces ductwork (good for floor-to-floor heights) and uses less fan energy. Less common in US due to humidity-control limitations.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"vrf-system","term":"VRF system","category":"MEP","region_scope":"APAC","short_definition":"Variable Refrigerant Flow — multi-zone heat pump cooling/heating.","long_definition":"Common in mid-size Class A and APAC trophy buildings. Highly efficient zonal control; lower infrastructure cost than chilled water systems. Maintenance complexity increases at scale.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"primary-power","term":"Primary power feed","category":"MEP","region_scope":"Global","short_definition":"First-line electrical service from the utility to the building.","long_definition":"Class A trophy typically has dual-fed primary power from separate utility substations to provide N+1 utility redundancy. Critical for finance and tech tenants with uptime SLAs.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"n-plus-1","term":"N+1 redundancy","category":"MEP","region_scope":"Global","short_definition":"One spare unit beyond the minimum required (N).","long_definition":"Standard for Class A trophy critical infrastructure: HVAC chillers, generators, UPS, primary power feeds. N+1 means the building can lose any one unit without service interruption.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"tier-iii-data","term":"Tier III equivalent (data)","category":"MEP","region_scope":"Global","short_definition":"99.982% uptime data infrastructure target.","long_definition":"Borrowed from Uptime Institute data-centre tiering. Many tenant fit-outs (especially for finance, AI, and platform tech) target Tier III equivalent for in-floor IDFs/MDFs: dual-fed power, N+1 cooling, dual fibre paths.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"loading-dock-access","term":"Loading dock access","category":"Operations","region_scope":"Global","short_definition":"Tenant rights to use the building loading dock.","long_definition":"Often shared and time-restricted. Negotiate guaranteed dock windows for inbound shipments and after-hours move access. Critical for trading floors and labs with frequent equipment movement.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"freight-elevator","term":"Freight elevator access","category":"Operations","region_scope":"Global","short_definition":"Right to schedule the freight elevator for moves and deliveries.","long_definition":"Standard Class A buildings have at least one freight elevator, often time-shared by tenants. Most leases require 24–72 hours' notice for non-emergency use.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"after-hours-hvac","term":"After-hours HVAC","category":"Operations","region_scope":"Global","short_definition":"HVAC service outside building standard hours, typically billed hourly.","long_definition":"Standard hours typically 8 a.m. – 6 p.m. weekdays. Off-hours service billed USD 75–250/hour per zone in US Class A. Negotiate explicit blocks for tenants running 24/7 ops.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"amenity-floor","term":"Amenity floor","category":"Architecture","region_scope":"Global","short_definition":"Dedicated tenant-amenity floor in trophy Class A buildings.","long_definition":"Modern trophy buildings include a tenant-amenity floor with conference, lounge, food, fitness, and event space. Trophy benchmark: Hudson Yards, 22 Bishopsgate, Mori JP Tower.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"end-of-trip-facilities","term":"End-of-trip facilities","category":"Architecture","region_scope":"EU|APAC","short_definition":"Showers, lockers, bike storage for cycling commuters.","long_definition":"Australian planning code originally; now standard in EU and APAC Class A. Increasingly required by tenant ESG mandates. Trophy buildings provide secure indoor parking for 50+ bikes.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"biophilic-design","term":"Biophilic design","category":"Architecture","region_scope":"Global","short_definition":"Architectural design using nature, daylight, and natural materials.","long_definition":"Wellness-driven design philosophy emphasising daylight access, planting, water features, and natural materials. Now baseline for WELL Gold and trophy architecture.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"podium-tower","term":"Podium-and-tower typology","category":"Architecture","region_scope":"APAC","short_definition":"Building typology with a wide low-rise podium and a slim residential/office tower above.","long_definition":"Common in dense Asian markets (Hong Kong, Singapore). Podium hosts retail and amenities; tower contains office floors. Drives shared-tenant elevator design and amenity layouts.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"ground-floor-activation","term":"Ground-floor activation","category":"Architecture","region_scope":"Global","short_definition":"Retail, food, and public realm at the building base.","long_definition":"Increasingly required by major-city zoning codes (NYC, London, Singapore, Sydney). Drives building value through tenant attraction (lunchtime food, post-work amenities) and public-realm credit.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"sky-lobby","term":"Sky lobby","category":"Architecture","region_scope":"Global","short_definition":"Mid-building elevator-transfer floor in supertall Class A buildings.","long_definition":"Used in supertall (1,000 ft+) towers to break the elevator banks into multiple express segments. Examples: 22 Bishopsgate, One Vanderbilt, Marina Bay Sands.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"destination-elevators","term":"Destination-dispatch elevators","category":"MEP","region_scope":"Global","short_definition":"Elevator system grouping passengers by floor for efficiency.","long_definition":"Tenant enters destination at lobby; system assigns the optimal elevator. Reduces wait time 25–30% in busy trophy lobbies. Standard on all new trophy Class A; common retrofit during repositions.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"facade-replacement","term":"Façade replacement","category":"Construction","region_scope":"Global","short_definition":"Major capex programme replacing the building envelope.","long_definition":"Triggered by glazing failure, ESG retrofit, or repositioning. Cost USD 100–250/sf of facade depending on complexity. Rarely a tenant disturbance issue if scaffold-and-swing methodology is used.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"deep-retrofit","term":"Deep retrofit","category":"Construction","region_scope":"Global","short_definition":"Whole-building reposition including facade, MEP, and core upgrades.","long_definition":"Common Class A reposition strategy in mature markets (London City, Tokyo Marunouchi). Typically delivers a 'new-build equivalent' product at 60–70% of new-build cost, with embodied-carbon advantage.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"asset-management-plan","term":"Asset management plan","category":"Investment","region_scope":"Global","short_definition":"Owner's roadmap for capex, leasing, and exit on a Class A asset.","long_definition":"Defines hold period, target IRR, capex roadmap (façade, MEP, amenities), leasing strategy, and exit (sale, refi, recap). Reviewed annually, presented to investment committee.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"yield-shift","term":"Yield shift","category":"Investment","region_scope":"Global","short_definition":"Change in market cap rates; the largest valuation driver.","long_definition":"A 50 bps cap-rate shift on a 5% yield asset is a 10% value swing. Yield shift drove most of the 2022–24 valuation volatility in global Class A.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"rental-growth-assumption","term":"Rental growth assumption","category":"Investment","region_scope":"Global","short_definition":"Projected annual rental-rate change in a DCF.","long_definition":"Critical input in any 5–10 year DCF. Conservative gateway-city assumptions: 1–2% real, 3–4% nominal. Trophy assets in supply-constrained markets: 4–5% nominal.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"tenant-retention-rate","term":"Tenant retention rate","category":"Operations","region_scope":"Global","short_definition":"Percentage of expiring leases renewed in place.","long_definition":"A core leasing-team KPI. Trophy buildings typically retain 70–80% of expiring leases. Below 50% suggests product issue (building, amenities, location); above 90% may indicate underpriced rent.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"downtime-assumption","term":"Downtime assumption","category":"Investment","region_scope":"Global","short_definition":"Months of vacancy assumed between tenant departure and replacement.","long_definition":"Standard underwriting assumption: 6–9 months downtime in gateway-city Class A. Lengthens to 12–18 months in lease-up buildings or markets with high vacancy.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"core-fund","term":"Core open-end fund","category":"Investment","region_scope":"Global","short_definition":"Stabilised real-estate fund with quarterly liquidity.","long_definition":"Targets Class A income returns with low leverage (30–40% LTV). Pension-fund and sovereign-wealth allocator default. Examples: ODCE funds (US), pan-EU core funds.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"value-add-fund","term":"Value-add fund","category":"Investment","region_scope":"Global","short_definition":"Closed-end fund targeting reposition and lease-up returns.","long_definition":"Buys Class B/B+ assets, repositions to Class A, leases up, and exits. Target IRR 13–17% net. Higher leverage (50–65% LTV) than core.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"opportunistic-fund","term":"Opportunistic fund","category":"Investment","region_scope":"Global","short_definition":"Highest-risk closed-end fund targeting development and distressed.","long_definition":"Ground-up development, complex repositions, distressed acquisitions. Target IRR 17%+ net; leverage 60–75% LTV. Tightest LP base; longest lock-ups.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"open-end-fund","term":"Open-end fund","category":"Investment","region_scope":"Global","short_definition":"Real-estate fund with periodic subscription/redemption windows.","long_definition":"Quarterly or monthly liquidity for LPs. Best-known structure for institutional Class A core. Subject to gating during stress (2020, 2023).","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"closed-end-fund","term":"Closed-end fund","category":"Investment","region_scope":"Global","short_definition":"Fund with a fixed term — capital is called and returned over the life.","long_definition":"Standard structure for value-add and opportunistic strategies. 7–10 year life with 2–3 year extension options. No mid-life liquidity.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"joint-venture","term":"Joint venture (JV)","category":"Investment","region_scope":"Global","short_definition":"Partnership structure between an operator and a capital partner.","long_definition":"Standard structure for large Class A acquisitions and developments. Operator (sponsor) co-invests 5–10%, raises 90–95% from LP. Promote (carried interest) on returns above hurdle.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"promote","term":"Promote (carry)","category":"Investment","region_scope":"Global","short_definition":"Sponsor's share of profits above the hurdle rate.","long_definition":"Typical structure: 8% pref to LP, then 50/50 split to a return hurdle, then 30/70 above. Promote is the operator's economic engine; structure carefully.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"preferred-return","term":"Preferred return","category":"Investment","region_scope":"Global","short_definition":"Hurdle return paid to LPs before promote kicks in.","long_definition":"Typical Class A core JV: 8% pref. Value-add: 9–10% pref. Until pref is fully paid, the GP takes only management fees, no promote.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"management-fee","term":"Management fee","category":"Investment","region_scope":"Global","short_definition":"GP's annual fee for managing the fund or JV.","long_definition":"Standard Class A core JV: 1.0–1.5% of committed equity per annum during investment, 1.0% on invested equity post-investment. Subject to LP-friendly definitions.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"acquisition-fee","term":"Acquisition fee","category":"Investment","region_scope":"Global","short_definition":"GP fee charged at acquisition of an asset.","long_definition":"Typical 0.5–1.0% of purchase price. Often partially or fully credited against the management fee to align incentives.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"disposition-fee","term":"Disposition fee","category":"Investment","region_scope":"Global","short_definition":"GP fee at sale of an asset.","long_definition":"Typical 0.25–0.5% of gross sale price. Often capped at the broker fee to avoid double-charging the LP.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"drawdown","term":"Capital drawdown","category":"Investment","region_scope":"Global","short_definition":"Calling committed equity from LPs to fund acquisitions or capex.","long_definition":"Standard 10-business-day notice period in Class A funds. Failure to fund triggers significant penalties (loss of pro-rata share, dilution).","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"j-curve","term":"J-curve","category":"Investment","region_scope":"Global","short_definition":"Early negative returns followed by positive returns in a closed-end fund.","long_definition":"Caused by management fees and acquisition costs hitting before NOI ramps. Standard in years 1–2 of value-add funds. Recovers in years 3–5 as repositions stabilise.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"vintage-year","term":"Vintage year","category":"Investment","region_scope":"Global","short_definition":"Year a fund first deploys capital — the key benchmark for performance.","long_definition":"Class A fund returns are highly vintage-dependent: 2009–11 vintages (post-GFC) outperformed; 2020–22 vintages (cap-rate compression peak) underperformed.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"core-plus-fund","term":"Core-plus fund","category":"Investment","region_scope":"Global","short_definition":"Income-focused fund with light value-add overlay.","long_definition":"Targets stabilised assets with one or two upside levers: lease-up, mark-to-market, or light reposition. Target IRR 9–12%; leverage 40–55% LTV.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"non-recourse-loan","term":"Non-recourse loan","category":"Finance","region_scope":"US","short_definition":"Loan secured only by the asset, with no personal/sponsor guarantee.","long_definition":"Standard for stabilised Class A. Lender has no recourse to sponsor equity beyond the property; carve-outs for fraud, environmental, and bankruptcy ('bad-boy carve-outs').","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"recourse-loan","term":"Recourse loan","category":"Finance","region_scope":"US","short_definition":"Loan with full personal/sponsor guarantee.","long_definition":"Common for construction loans and value-add reposition. Burns down on stabilisation milestones (e.g., LTV below 65%, DSCR above 1.30x).","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"ltv-loan-to-value","term":"Loan-to-value (LTV)","category":"Finance","region_scope":"Global","short_definition":"Loan amount divided by asset value.","long_definition":"Class A core debt: 50–55% LTV. Core-plus: 55–65%. Value-add: 60–70%. Construction: 60–70% LTC. LTV constraints tightened materially post-2022.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"dscr","term":"Debt service coverage ratio (DSCR)","category":"Finance","region_scope":"Global","short_definition":"NOI divided by annual debt service.","long_definition":"Lender minimum: 1.20x for stabilised Class A; 1.40x for core. Drives cap-rate-vs-coupon math during rate-up cycles. Many 2024 Class A refis required equity injections to meet DSCR.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"debt-yield","term":"Debt yield","category":"Finance","region_scope":"US","short_definition":"NOI divided by loan amount — lender risk metric independent of cap rate.","long_definition":"Class A core minimum: 8–9% debt yield. Stricter than DSCR in low-rate environments (a hot cap-rate doesn't help if NOI is thin).","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"interest-only-period","term":"Interest-only (IO) period","category":"Finance","region_scope":"US","short_definition":"Loan period with no principal amortisation.","long_definition":"Standard 2–5 year IO at the front of a 10-year Class A loan. Improves DSCR coverage and equity yield. Refis often face IO-to-amortising transitions.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"cmbs","term":"Commercial mortgage-backed securities (CMBS)","category":"Finance","region_scope":"US","short_definition":"Pooled commercial loans securitised into bonds.","long_definition":"Standard non-bank financing source for Class A US assets. Tranched by credit rating (AAA to unrated). Servicing is highly procedural; modifications require special-servicer involvement.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"agency-debt","term":"Agency debt","category":"Finance","region_scope":"US","short_definition":"Loans by Fannie/Freddie/HUD on multifamily assets.","long_definition":"Not typically applicable to office Class A — included for cross-sector context. Lowest-cost capital available for stabilised multifamily Class A.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"preferred-equity","term":"Preferred equity","category":"Finance","region_scope":"Global","short_definition":"Equity tranche paid before common equity, after debt.","long_definition":"Common in value-add Class A capital stacks. Typical 10–14% pref; sized to fill the gap between senior debt and common equity.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"mezzanine-debt","term":"Mezzanine debt","category":"Finance","region_scope":"Global","short_definition":"Subordinated loan tranche between senior debt and equity.","long_definition":"Secured by pledges of equity interests rather than direct mortgage liens. Typical 8–12% rate; loan-to-value-stack of 70–85%.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"build-to-suit","term":"Build-to-suit (BTS)","category":"Construction","region_scope":"Global","short_definition":"Custom-built premises designed for a specific tenant.","long_definition":"Landlord (often institutional capital partner) develops to a tenant's specification, then leases on a long term (15–25 years). Standard for HQ deals above 200,000 sf.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"sale-leaseback","term":"Sale-leaseback","category":"Investment","region_scope":"Global","short_definition":"Owner-occupier sells the building and leases it back from the buyer.","long_definition":"Releases capital trapped in real estate while preserving operational use. Common for large corporate occupiers seeking to optimise balance-sheet capital allocation. Cap rate typically reflects covenant strength.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"ground-lease","term":"Ground lease","category":"Leasing","region_scope":"Global","short_definition":"Long-term lease of land where tenant owns improvements.","long_definition":"Typical 75–99 year terms. Tenant owns the building, pays ground rent, and reverts the building to landowner at expiry. Common in NYC, London leasehold tracts, and Singapore JTC industrial estates.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"leasehold-vs-freehold","term":"Leasehold vs freehold","category":"Investment","region_scope":"UK|APAC","short_definition":"Long-term lease ownership vs absolute title to land.","long_definition":"London and Singapore office stock includes substantial leasehold (often 99-, 125-, or 999-year terms). Investors discount short residual leaseholds; below 80 years residual triggers institutional pricing penalties.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"ahold-and-occupy","term":"Hold and occupy strategy","category":"Strategy","region_scope":"Global","short_definition":"Owner-occupier strategy retaining real estate as strategic asset.","long_definition":"Counter to sale-leaseback. Used when occupier wants control of long-term costs, brand-defining HQ, or special-use facilities (R&D labs, trading floors).","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"real-estate-as-a-service","term":"Real estate as a service (REaaS)","category":"Strategy","region_scope":"Global","short_definition":"Flex/serviced model bundling space, services, and amenity into one fee.","long_definition":"WeWork, Industrious, IWG. Increasingly offered by traditional Class A landlords as a tenant-attraction layer (e.g., JLL Flex). All-in pricing typically 20–40% above conventional Class A on a per-seat basis.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"hub-and-spoke","term":"Hub-and-spoke portfolio","category":"Strategy","region_scope":"US","short_definition":"Central HQ with smaller satellite offices in the metro.","long_definition":"Hybrid-work-era response: 70% of seats in a Class A HQ, 30% in commute-friendly satellites. Common in finance, professional services, and tech with metro-area workforce dispersion.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"neighborhood-of-choice","term":"Neighborhood of choice","category":"Strategy","region_scope":"Global","short_definition":"Submarket selection driven by talent commute economics.","long_definition":"Modern site selection optimises for the median commute of the target hire, not the founder's preferred address. Maps onto talent isochrones; underweight transit-poor submarkets.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"transit-isochrone","term":"Transit isochrone","category":"Strategy","region_scope":"Global","short_definition":"Map of areas reachable within X minutes by public transit.","long_definition":"Standard site-selection tool. 30-, 45-, and 60-minute isochrones around candidate buildings, overlaid with workforce home addresses. Best Class A sites maximise the workforce-overlap percentage.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"tenant-rep-broker","term":"Tenant representation broker","category":"Advisory","region_scope":"US","short_definition":"Commercial broker who exclusively represents the tenant.","long_definition":"Paid out of the landlord's commission pool — effectively free to the tenant. Critical conflict-of-interest distinction: a tenant-only broker is structurally aligned with the tenant, unlike a dual-rep broker.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"agency-broker","term":"Agency broker","category":"Advisory","region_scope":"US","short_definition":"Broker who exclusively represents landlords.","long_definition":"Markets vacant space, negotiates against tenant reps, and collects the leasing commission. Increasingly siloed from tenant-rep practice in major US firms to manage conflicts.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"stalking-horse","term":"Stalking-horse offer","category":"Investment","region_scope":"US","short_definition":"Initial bid that sets a floor in a competitive sale process.","long_definition":"Used in distressed Class A asset sales (often court-supervised). Sets minimum bid plus a break-up fee paid to the stalking horse if outbid. Standard tool in 2023–24 distressed Class A trades.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"broken-deal-cost","term":"Broken-deal cost","category":"Investment","region_scope":"Global","short_definition":"Costs incurred on an investment that fails to close.","long_definition":"Legal, due-diligence, environmental, and engineering fees not recovered. Standard Class A institutional buyer absorbs as part of pipeline cost; some funds pass to LPs.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"physical-due-diligence","term":"Physical due diligence","category":"Investment","region_scope":"Global","short_definition":"Engineering survey of the building during acquisition.","long_definition":"Roof, façade, MEP, fire/life-safety, structural, environmental. Identifies near-term capex requirements that adjust the bid. Standard 3–4 week DD window in Class A acquisitions.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"phase-i-environmental","term":"Phase I environmental site assessment","category":"Investment","region_scope":"US","short_definition":"Standard environmental review at acquisition.","long_definition":"ASTM-standard records review and site walk. Identifies recognised environmental conditions (RECs) requiring Phase II testing. Required by all institutional lenders.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"anchor-tenant","term":"Anchor tenant","category":"Leasing","region_scope":"Global","short_definition":"Largest, longest-term, highest-credit tenant in a building.","long_definition":"Drives building branding, financing terms, and adjacent leasing. Trophy lease-up commonly anchors with a top-tier law firm, bank, or global tech HQ at 25–40% of building NRA.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"lease-up-period","term":"Lease-up period","category":"Leasing","region_scope":"Global","short_definition":"Time from CO to stabilised occupancy.","long_definition":"Typical Class A new-build lease-up: 24–36 months. Trophy assets in supply-constrained markets compress to 12–18 months; mid-tier in oversupplied markets stretch to 48+ months.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"stabilised-occupancy","term":"Stabilised occupancy","category":"Investment","region_scope":"Global","short_definition":"The occupancy level a building targets long-term, typically 90–95%.","long_definition":"Used as the milestone for refinancing covenants, fund hold reviews, and asset valuations. Trophy buildings often define stabilisation at 92%; commodity Class A at 88%.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"submarket-rent-index","term":"Submarket rent index","category":"Market data","region_scope":"Global","short_definition":"Average asking or transacted rent across a defined submarket.","long_definition":"Published quarterly by major brokers (CBRE, JLL, Cushman, Newmark, Savills). Useful as a comparable but always check if it is asking vs. transacting and whether it is gross or net.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"absorption","term":"Net absorption","category":"Market data","region_scope":"Global","short_definition":"Change in occupied space over a period.","long_definition":"Quarterly net absorption is the standard demand metric. Positive absorption suggests demand outpacing supply; negative absorption signals contraction.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"construction-pipeline","term":"Construction pipeline","category":"Market data","region_scope":"Global","short_definition":"Square footage under construction or fully approved for delivery.","long_definition":"Forward supply indicator. High-pipeline submarkets carry rent-growth risk; low-pipeline supply-constrained submarkets favour landlords on renewals.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"submarket-tier","term":"Submarket tier (trophy / prime / established / emerging)","category":"Market data","region_scope":"Global","short_definition":"Quality-tier classification of submarkets within a city.","long_definition":"Class A Atlas standard taxonomy: Trophy (top-tier address with full amenitisation), Prime (high-end Class A), Established (institutional Class A), Emerging (gentrifying Class A). Drives rent benchmarks and tenant filtering.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"rent-roll","term":"Rent roll","category":"Investment","region_scope":"Global","short_definition":"Schedule of all leases at an asset, by tenant, suite, term, and rent.","long_definition":"Standard institutional underwriting input. Captures tenant name, suite, NRA, lease commencement, expiry, base rent, escalations, options, and security. The rent roll plus the tenant credit summary are the core leasing-side acquisition diligence outputs.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"weighted-average-lease-term","term":"Weighted average lease term (WALT/WAULT)","category":"Investment","region_scope":"Global","short_definition":"Average remaining lease term, weighted by rent.","long_definition":"Standard portfolio metric. Long WALT (>7 years) signals income certainty and supports tighter cap rates. Short WALT signals near-term re-leasing risk. UK uses WAULT (weighted average unexpired lease term); US uses WALT.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"tenant-credit-rating","term":"Tenant credit rating","category":"Investment","region_scope":"Global","short_definition":"External or internal credit grade applied to anchor tenants.","long_definition":"Investment-grade tenants (S&P BBB- or higher) attract tighter cap rates and better debt terms than sub-investment-grade. Many lenders price loans against the weighted-average tenant credit grade across the rent roll.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"lease-incentive-amortisation","term":"Lease-incentive amortisation","category":"Accounting","region_scope":"Global","short_definition":"Accounting treatment of TI and free rent under IFRS 16 / ASC 842.","long_definition":"Both IFRS 16 and ASC 842 require tenants to recognise lease incentives as a reduction to right-of-use asset and lease liability over the lease term. Affects reported earnings; coordinate with finance team early in lease drafting.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"ifrs-16","term":"IFRS 16","category":"Accounting","region_scope":"Global","short_definition":"International accounting standard requiring on-balance-sheet lease recognition.","long_definition":"Effective 2019. Tenants recognise a right-of-use asset and a lease liability for nearly all leases. Materially affects EBITDA, leverage ratios, and ROIC for tenant-occupier businesses with large real-estate portfolios.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"asc-842","term":"ASC 842","category":"Accounting","region_scope":"US","short_definition":"US GAAP equivalent of IFRS 16 — on-balance-sheet lease recognition.","long_definition":"Effective 2019. Similar to IFRS 16 but with operating-lease vs finance-lease distinction preserved. Operating leases recognise straight-line lease expense; finance leases bifurcate into interest and amortisation.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"right-of-use-asset","term":"Right-of-use asset (ROU)","category":"Accounting","region_scope":"Global","short_definition":"Balance-sheet asset representing the tenant's right to use leased space.","long_definition":"Recognised under IFRS 16 / ASC 842 at lease commencement. Equals the lease liability plus any prepaid rent, minus any lease incentives received. Amortised over the lease term.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"lease-liability","term":"Lease liability","category":"Accounting","region_scope":"Global","short_definition":"Balance-sheet liability for the present value of future lease payments.","long_definition":"Recognised under IFRS 16 / ASC 842. Discounted at the lessee's incremental borrowing rate. Reduces over the lease term as payments are made.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"kpi-cost-per-seat","term":"Cost per seat (KPI)","category":"Strategy","region_scope":"Global","short_definition":"Total occupancy cost divided by seat count.","long_definition":"The single most useful normalisation metric for cross-city occupier portfolios. Includes rent, opex, real-estate tax, amortised TI, parking, and broker fee. Class A Atlas tools express in USD per seat per month for cross-currency comparability.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"kpi-seat-utilisation","term":"Seat utilisation (KPI)","category":"Strategy","region_scope":"Global","short_definition":"Average daily occupied seats divided by total seats.","long_definition":"Hybrid-work-era metric. Typical institutional Class A occupier runs 50–70% utilisation on a peak day. Drives portfolio sizing decisions and informs whether expansion or consolidation is in order.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"occupancy-density","term":"Occupancy density","category":"Strategy","region_scope":"Global","short_definition":"Square feet of usable space per seat.","long_definition":"Ranges from 60–80 sf/seat (dense AI tenants, trading floors) to 250+ sf/seat (executive floors, law-firm partner offices). Class A institutional baseline: 120–180 sf/seat. Drives TI cost, HVAC sizing, and life-safety calculations.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"iaq-indoor-air-quality","term":"Indoor air quality (IAQ)","category":"ESG","region_scope":"Global","short_definition":"Quality of breathable air inside the building.","long_definition":"Measured on PM2.5, CO2, VOCs, and humidity. Trophy buildings increasingly publish real-time IAQ via tenant apps. WELL Air concept and Fitwel IAQ scores certify performance.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"merv-rating","term":"MERV rating","category":"MEP","region_scope":"US","short_definition":"Filter efficiency rating used in HVAC systems.","long_definition":"MERV 13 is now the trophy minimum for IAQ-conscious tenants. MERV 16+ for lab and clinical fit-outs. The retrofit cost is modest; the IAQ uplift is material.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"green-lease","term":"Green lease","category":"ESG","region_scope":"Global","short_definition":"Lease with cooperative landlord-tenant ESG performance clauses.","long_definition":"Standard inclusions: shared metering, ESG data exchange, green-power procurement coordination, and waste/recycling commitments. The Better Buildings Partnership (UK) and BOMA (US) publish green-lease templates.","last_updated":"2026-04-01T00:00:00.000Z"},{"slug":"split-incentive","term":"Split incentive","category":"ESG","region_scope":"Global","short_definition":"Misaligned ESG investment incentive between landlord and tenant.","long_definition":"Landlord pays for energy-efficiency capex; tenant captures the operating-cost savings via opex pass-through. Resolved through green-lease provisions, performance-based rent kickers, or shared-savings agreements.","last_updated":"2026-04-01T00:00:00.000Z"}]}