---
title: "Glossary — Class A Atlas"
description: "Plain-English definitions for global commercial real estate terms."
canonical: https://classa.info/glossary
pageType: glossary-index
lastUpdated: 2026-05-29T16:17:29.065Z
license: "CC BY 4.0 with attribution to Class A Atlas (https://classa.info)."
---

> Class A Atlas publishes 255 plain-English glossary terms covering US, UK, EU, and APAC commercial real-estate lease regimes.

## TL;DR

- 255 terms.
- US, UK, EU, APAC scope.
- Cross-referenced to long-form guides.
- Region-specific equivalents.

# Glossary

## 255 commercial real estate definitions

Plain-English definitions covering US, UK, EU, and APAC commercial real estate lease regimes. Cross-referenced to long-form guides where relevant.

- [**Class A**](/glossary/class-a) — Top-tier classification of office space, distinguished by quality, location, age, and [amenitisation](/glossary/amenitisation).
- [**Class B**](/glossary/class-b) — Mid-tier office space — older or less prestigious than [Class A](/glossary/class-a), typically at lower rents.
- [**Class C**](/glossary/class-c) — Lower-tier office space — older, deferred maintenance, often functionally obsolete.
- [**Trophy asset**](/glossary/trophy-asset) — The top sub-tier of Class A — defined by address, architecture, amenitisation, ESG, and tenancy.
- [**Rentable square feet (RSF)**](/glossary/rentable-square-feet) — The measured area on which rent is calculated — includes a share of common areas.
- [**Usable square feet (USF)**](/glossary/usable-square-feet) — The actual interior area a tenant can occupy.
- [**Loss factor**](/glossary/loss-factor) — The percentage difference between rentable and usable square feet.
- [**BOMA standard**](/glossary/boma) — The Building Owners and Managers Association measurement standard for US office.
- [**IPMS**](/glossary/ipms) — International Property Measurement Standards — the global counterpart to BOMA.
- [**Net internal area (NIA)**](/glossary/net-internal-area) — UK measurement standard for tenant-usable office area.
- [**Modified gross lease**](/glossary/modified-gross-lease) — The dominant US lease structure — base rent includes operating expenses up to a [base year](/glossary/base-year).
- [**Triple net lease (NNN)**](/glossary/triple-net-lease) — A lease where the tenant pays base rent plus all operating expenses, taxes, and insurance.
- [**FRI (Full Repairing and Insuring)**](/glossary/fri-lease) — The dominant UK commercial lease structure.
- [**Base year**](/glossary/base-year) — The reference year for operating expense escalations under a modified-gross lease.
- [**Operating expenses (op-ex)**](/glossary/operating-expenses) — The cost of running the building — utilities, maintenance, security, management.
- [**Service charge**](/glossary/service-charge) — The UK / European equivalent of operating expenses — recharged to tenants.
- [**Rateable value**](/glossary/rateable-value) — The Valuation Office Agency's valuation of a UK property — the basis for [business rates](/glossary/business-rates).
- [**Rent-free period**](/glossary/rent-free-period) — Months of zero base rent at the start of (or layered into) a lease term.
- [**Tenant improvement allowance (TI / TIA)**](/glossary/tenant-improvement-allowance) — Landlord-funded contribution toward the tenant's [fit-out](/topics/fit-out-capex)">fit-out.
- [**Face rent**](/glossary/face-rent) — The headline base rent before concessions.
- [**Effective rent**](/glossary/effective-rent) — [Face rent](/glossary/face-rent) minus the present value of all concessions, expressed per square foot per year.
- [**Dilapidations**](/glossary/dilapidations) — The tenant's contractual obligation to return the premises to the lease-specified condition.
- [**Reinstatement**](/glossary/reinstatement) — The tenant's contractual obligation to return the premises to bare-shell or original condition at lease end.
- [**Schedule of Condition**](/glossary/schedule-of-condition) — A photographic and written record of the premises' condition at lease commencement.
- [**Break clause**](/glossary/break-clause) — A contractual right to terminate the lease before its expiry, on stated conditions.
- [**Rent review**](/glossary/rent-review) — A scheduled review of base rent during the term, typically to open-market rent.
- [**Indexation**](/glossary/indexation) — Annual rent escalation tied to a published price index.
- [**Cap rate**](/glossary/cap-rate) — The yield at which an asset is valued — net operating income divided by capital value.
- [**Prime yield**](/glossary/yield) — The [cap rate](/glossary/cap-rate) (yield) for the most prestigious assets in a given submarket.
- [**Core and shell**](/glossary/core-and-shell) — The base building delivered without interior fit-out — structure, exterior, MEP risers, lobby.
- [**Cat A**](/glossary/cat-a) — UK landlord delivery standard — base building plus raised floor, ceilings, basic MEP fit-out.
- [**Cat B**](/glossary/cat-b) — Tenant-funded interior fit-out — partitions, finishes, furniture, AV.
- [**Fit-out**](/glossary/fit-out) — The construction work to make a leased premises occupiable for the tenant's use.
- [**Lease commencement date**](/glossary/lease-commencement) — The contractual start date of the lease term.
- [**Substantial completion**](/glossary/substantial-completion) — Construction milestone at which the premises is functionally ready for occupancy.
- [**Good Guy Guarantee**](/glossary/good-guy-guarantee) — A limited personal guarantee common in NYC commercial leases.
- [**Personal guarantee**](/glossary/personal-guarantee) — A guarantee by an individual of the tenant's lease obligations.
- [**Letter of credit (LOC)**](/glossary/letter-of-credit) — Bank-issued security for the tenant's lease obligations.
- [**Rent deposit**](/glossary/rent-deposit) — Cash security held by the landlord for the tenant's lease obligations.
- [**Bank guarantee**](/glossary/bank-guarantee) — An on-demand bank guarantee issued in favour of the landlord.
- [**Sublease**](/glossary/sublease) — A grant of occupancy from the prime tenant to a sub-tenant.
- [**Assignment**](/glossary/assignment) — A full transfer of all lease obligations from the prime tenant to a new tenant.
- [**Consent to sublet**](/glossary/consent-to-sublet) — The landlord's required approval of a proposed sublease or assignment.
- [**Recapture right**](/glossary/recapture-right) — Landlord's right to terminate the lease instead of consenting to a sublease or assignment.
- [**Right of first offer (ROFO)**](/glossary/right-of-first-offer) — Tenant right to be offered adjacent space before the landlord markets it.
- [**Right of first refusal (ROFR)**](/glossary/right-of-first-refusal) — Tenant right to match a third-party offer on adjacent space.
- [**Expansion right**](/glossary/expansion-right) — Hard contractual right to lease specified additional space at a stated trigger date.
- [**Contraction right**](/glossary/contraction-right) — Tenant right to surrender a portion of the premises at a stated trigger date.
- [**Termination option**](/glossary/termination-option) — Tenant right to terminate the entire lease at a stated trigger date, often subject to a fee.
- [**LEED**](/glossary/leed) — US Green Building Council's environmental rating system.
- [**BREEAM**](/glossary/breeam) — UK and global environmental rating system from BRE Group.
- [**NABERS**](/glossary/nabers) — Australia's National Australian Built Environment Rating System.
- [**BCA Green Mark**](/glossary/bca-green-mark) — Singapore's mandatory green building rating.
- [**WELL certification**](/glossary/well-certification) — Health and wellbeing-focused building rating from the International WELL Building Institute.
- [**Fitwel**](/glossary/fitwel) — Health and wellbeing rating system, lighter touch than WELL.
- [**EPC (Energy Performance Certificate)**](/glossary/epc) — UK statutory energy rating, A-G scale.
- [**DEC (Display Energy Certificate)**](/glossary/dec) — UK operational energy rating for public buildings — A-G scale.
- [**Flex space / coworking**](/glossary/flex-space) — Office space rented on short-term, fully-managed contracts from a flex provider.
- [**Managed office**](/glossary/managed-office) — Bespoke fitted office delivered and managed by a third party — between flex and traditional.
- [**Turnkey**](/glossary/turnkey) — A fully-fitted suite delivered ready for occupancy by the landlord.
- [**Pre-built suite**](/glossary/pre-built-suite) — A landlord-built office in a Class A building, delivered fitted but typically minimally customised.
- [**LOI (Letter of Intent)**](/glossary/loi) — Non-binding written summary of agreed deal terms — the basis for lease negotiation.
- [**Heads of terms (HOT)**](/glossary/heads-of-terms) — UK / EU equivalent of the Letter of Intent.
- [**Per square foot (PSF)**](/glossary/psf) — Standard US unit for quoting rent and other office economics.
- [**Per square metre (PSM)**](/glossary/psm) — Standard EMEA / APAC unit for quoting rent.
- [**Net absorption**](/glossary/net-absorption) — The change in occupied office space over a period — positive or negative.
- [**Vacancy rate**](/glossary/vacancy-rate) — The share of office space currently available for lease in a market.
- [**Availability rate**](/glossary/availability-rate) — Vacancy rate plus space currently leased but available for sublease.
- [**Stamp duty / SDLT**](/glossary/stamp-duty) — A tax on lease execution.
- [**Business rates**](/glossary/business-rates) — UK statutory tax on commercial property occupation.
- [**Commercial Rent Tax (CRT)**](/glossary/commercial-rent-tax) — NYC tax on commercial tenants below 96th Street.
- [**Subdivision cost**](/glossary/subdivision-cost) — Capex required to subdivide a single floor for multiple tenants.
- [**Base building**](/glossary/base-building) — The structural and core-services condition of a building before tenant fit-out.
- [**Workplace strategy**](/glossary/workplace-strategy) — The discipline of designing how a workforce uses physical space.
- [**Density**](/glossary/density) — The ratio of usable square feet per seat in a workplace.
- [**End-of-trip facilities**](/glossary/end-of-trip) — Building-provided showers, lockers, and bicycle storage for cycle and run commuters.
- [**Amenitisation**](/glossary/amenitisation) — The bundle of building-provided amenity space and services.
- [**Smart building**](/glossary/smart-building) — A building with integrated IoT, sensor, and analytics infrastructure.
- [**Teiki shakuya (定期借家)**](/glossary/teiki-shakuya) — Japanese fixed-term lease — ends on the contract date with no renewal right.
- [**Futsu shakuya (普通借家)**](/glossary/futsu-shakuya) — Japanese ordinary lease — strong tenant renewal rights.
- [**Genjo kaifuku (原状回復)**](/glossary/genjo-kaifuku) — Japanese contractual obligation to restore the leased premises to original condition.
- [**Ejari**](/glossary/ejari) — Dubai's mandatory lease registration system.
- [**DIFC**](/glossary/difc) — Dubai International Financial Centre — an English-common-law free zone.
- [**ADGM**](/glossary/adgm) — Abu Dhabi Global Market — English-common-law free zone.
- [**VCC**](/glossary/vcc) — Singapore Variable Capital Company — flexible fund-management vehicle.
- [**Décret tertiaire**](/glossary/decret-tertiaire) — France's Tertiary Sector Decree mandating progressive office energy reductions.
- [**ILAT (Indice des Loyers des Activités Tertiaires)**](/glossary/ilat) — French rent index for tertiary leases.
- [**DGNB**](/glossary/dgnb) — German Sustainable Building Council certification.
- [**Net Internal Area (NIA UK)**](/glossary/nia-uk) — UK measurement standard for office area excluding common areas.
- [**RICS**](/glossary/rics) — Royal Institution of Chartered Surveyors — UK professional body for surveyors and valuers.
- [**Traditional vs flexible occupancy**](/glossary/trad-vs-flex) — The strategic choice between a direct landlord lease and a flex-provider contract.
- [**TI amortisation**](/glossary/ti-amortisation) — Recovering tenant-improvement spend through a rent uplift over the lease term.
- [**Free rent abatement**](/glossary/free-rent-abatement) — Months of zero base rent at the start of a lease, as concession.
- [**Expansion option**](/glossary/expansion-option) — Tenant's contractual right to lease additional contiguous space.
- [**Sublease rights**](/glossary/sublease-rights) — Tenant's right to sublet space, usually subject to landlord consent.
- [**Assignment rights**](/glossary/assignment-rights) — Tenant's right to transfer the lease to another entity.
- [**Good-guy guaranty**](/glossary/good-guy-guaranty) — Personal guaranty limited to the period the tenant occupies.
- [**Personal guaranty**](/glossary/personal-guaranty) — An individual's personal financial guarantee of lease obligations.
- [**Rent deposit deed**](/glossary/rent-deposit-deed) — UK security mechanism — cash held by the landlord against breach.
- [**Service charge cap**](/glossary/service-charge-cap) — Contractual cap on annual service-charge increases.
- [**Operating expense cap**](/glossary/opex-cap) — Annual cap on the tenant's share of building operating expenses.
- [**Gross-up provision**](/glossary/gross-up-provision) — Adjusts opex as if the building were 95–100% occupied.
- [**Warm shell**](/glossary/warm-shell) — Core and shell plus base HVAC, lighting, and floor.
- [**Cold shell**](/glossary/cold-shell) — Bare core and shell with no MEP at the floor.
- [**Turn-key build-out**](/glossary/turn-key) — Landlord delivers the space fully fit out per tenant spec.
- [**Spec suite**](/glossary/spec-suite) — Pre-built tenant suite delivered turn-key by the landlord.
- [**WiredScore**](/glossary/wiredscore) — Independent rating of building digital connectivity infrastructure.
- [**SmartScore**](/glossary/smartscore) — Certification of building IoT/smart-systems maturity.
- [**LEED Platinum**](/glossary/leed-platinum) — Highest tier of US Green Building Council's LEED certification.
- [**BREEAM Outstanding**](/glossary/breeam-outstanding) — Highest tier of UK BREEAM environmental certification.
- [**ENERGY STAR rating**](/glossary/energy-star) — US EPA building energy-performance benchmark, scored 1–100.
- [**EPC rating**](/glossary/epc-rating) — UK/EU Energy Performance Certificate rating, A (best) to G.
- [**Minimum Energy Efficiency Standards (MEES)**](/glossary/minimum-energy-efficiency-standards) — UK regulation banning the letting of energy-inefficient buildings.
- [**GRESB**](/glossary/gresb) — Global ESG benchmark for real estate funds and assets.
- [**Corporate Sustainability Reporting Directive (CSRD)**](/glossary/csrd) — EU rule requiring detailed ESG reporting for large companies.
- [**Scope 1 emissions**](/glossary/scope-1-emissions) — Direct emissions from sources owned or controlled by the entity.
- [**Scope 2 emissions**](/glossary/scope-2-emissions) — Indirect emissions from purchased electricity, heat, and cooling.
- [**Scope 3 emissions**](/glossary/scope-3-emissions) — All other indirect emissions in the value chain.
- [**Embodied carbon**](/glossary/embodied-carbon) — Lifecycle carbon emissions from construction materials and processes.
- [**Operational carbon**](/glossary/operational-carbon) — Carbon emitted by a building's day-to-day operations.
- [**Power purchase agreement (PPA)**](/glossary/ppa-power-purchase-agreement) — Long-term contract to buy renewable electricity from a specific generator.
- [**Renewable Energy Certificate (REC)**](/glossary/renewable-energy-certificate) — Tradable certificate proving 1 MWh of renewable generation.
- [**Guarantees of Origin (GO)**](/glossary/guarantees-of-origin) — European equivalent of US RECs.
- [**PSF rentable (rent psf, RSF basis)**](/glossary/psf-rentable) — Rent quoted per rentable square foot.
- [**PSF usable (USF basis)**](/glossary/psf-usable) — Rent allocated to the actual demised space.
- [**BOMA measurement standard**](/glossary/boma-standard) — US trade-body standard for measuring office floor areas.
- [**Carpet area**](/glossary/carpet-area) — India-market measure of internal usable space within walls.
- [**Tsubo**](/glossary/tsubo) — Japanese unit of floor area, ~3.305 m².
- [**Ping**](/glossary/ping) — Taiwanese unit of floor area, ~3.306 m².
- [**Yardstick rent**](/glossary/yardstick-rent) — Notional rent used in service-charge gross-ups.
- [**Stepped rent**](/glossary/stepped-rent) — Pre-agreed rent increases at fixed dates over the lease term.
- [**CPI-linked rent**](/glossary/cpi-linked-rent) — Rent indexed to a published consumer-price index.
- [**Upwards-only rent review**](/glossary/upwards-only-rent-review) — UK rent review mechanism that prohibits rent decreases.
- [**Stamp duty land tax (SDLT)**](/glossary/stamp-duty-land-tax) — UK transaction tax on lease grants and assignments.
- [**Registration charges (India)**](/glossary/registration-charges-india) — Indian state-level fee for lease registration.
- [**VAT on rent**](/glossary/vat-on-rent) — EU value-added tax applied to commercial rent at landlord's election.
- [**GST on rent**](/glossary/gst-on-rent) — Goods-and-services tax on commercial rent in APAC markets.
- [**Tenant occupier tax**](/glossary/tenant-occupier-tax) — Property tax assessed on the occupier rather than the owner.
- [**Taxe foncière**](/glossary/taxe-fonciere) — French local property tax, paid by owner but typically reimbursed by tenant.
- [**Property rates (HK)**](/glossary/property-rates-hk) — Hong Kong occupier tax of 5% of estimated rental value.
- [**Property tax (Singapore)**](/glossary/property-tax-singapore) — Singapore annual tax of 10% of annual value for non-residential.
- [**Land appreciation tax (China)**](/glossary/land-appreciation-tax) — Chinese capital-gains-style tax on real-property disposals.
- [**Yield on cost**](/glossary/yield-on-cost) — Annual NOI divided by total acquisition + capex cost.
- [**Internal rate of return (IRR)**](/glossary/irr) — Annualised return on a multi-year investment cash flow.
- [**Net operating income (NOI)**](/glossary/noi) — Effective gross income less operating expenses, before debt and capex.
- [**Headline rent**](/glossary/headline-rent) — Quoted face rent, before concessions.
- [**Net effective rent**](/glossary/net-effective-rent) — US-market effective rent: face rent net of free rent and TI amortisation.
- [**Concession package**](/glossary/concession-package) — Sum of free rent + TI + other landlord giveaways.
- [**Blend and extend**](/glossary/blend-and-extend) — Renegotiating rent down in exchange for extending the term.
- [**Early renewal**](/glossary/early-renewal) — Renegotiating an extension before the lease expires.
- [**Operating covenants**](/glossary/operating-covenants) — Tenant promises about how the space will be used.
- [**Co-tenancy clause**](/glossary/co-tenancy) — Right to abate rent if anchor tenants leave.
- [**Bumps and resets**](/glossary/bumps-and-resets) — Stepped rent (bump) plus periodic market reset.
- [**Fair market rent (FMR)**](/glossary/fair-market-rent) — Negotiated definition of market rent for renewal options.
- [**Appraisal clause**](/glossary/appraisal-clause) — Mechanism for setting renewal rent via independent appraisal.
- [**Loss payee endorsement**](/glossary/loss-payee) — Insurance clause naming the landlord on the tenant's policy.
- [**Casualty clause**](/glossary/casualty-clause) — Lease terms governing damage and rebuild after a fire/disaster.
- [**Condemnation clause**](/glossary/condemnation-clause) — Lease terms governing partial or total taking by eminent domain.
- [**Estoppel certificate**](/glossary/estoppel-certificate) — Tenant statement confirming lease terms, often required for landlord financing or sale.
- [**Subordination, non-disturbance, and attornment (SNDA)**](/glossary/snda) — Tri-party agreement protecting the tenant if the lender forecloses.
- [**Subordination**](/glossary/subordination) — Tenant lease ranks below the landlord's mortgage in the title hierarchy.
- [**Non-disturbance**](/glossary/non-disturbance) — Lender's promise not to terminate the lease on landlord default.
- [**Attornment**](/glossary/attornment) — Tenant's promise to recognise a successor landlord (e.g., the lender).
- [**Cap on tax pass-through**](/glossary/cap-on-tax-pass-through) — Cap on the tenant's share of real-estate-tax escalations.
- [**Tenant improvement allowance (TI)**](/glossary/ti-allowance) — Landlord-funded build-out budget for the tenant fit-out.
- [**Fit-out overrun**](/glossary/fit-out-overrun) — Cost above the TI allowance, paid by the tenant or amortised.
- [**Permitting risk**](/glossary/permitting-risk) — Risk that fit-out construction permits delay occupancy.
- [**Certificate of occupancy (CO)**](/glossary/certificate-of-occupancy) — Local-authority sign-off that the space may be occupied.
- [**Demising walls**](/glossary/demising-walls) — Walls separating one tenant's space from another's or common area.
- [**Raised access floor**](/glossary/raised-access-floor) — Floor system with removable panels covering MEP services.
- [**VAV system**](/glossary/vav-system) — Variable Air Volume HVAC — adjusts airflow per zone.
- [**Chilled beam**](/glossary/chilled-beam) — Energy-efficient HVAC using chilled water rather than circulated air.
- [**VRF system**](/glossary/vrf-system) — Variable Refrigerant Flow — multi-zone heat pump cooling/heating.
- [**Primary power feed**](/glossary/primary-power) — First-line electrical service from the utility to the building.
- [**N+1 redundancy**](/glossary/n-plus-1) — One spare unit beyond the minimum required (N).
- [**Tier III equivalent (data)**](/glossary/tier-iii-data) — 99.982% uptime data infrastructure target.
- [**Loading dock access**](/glossary/loading-dock-access) — Tenant rights to use the building loading dock.
- [**Freight elevator access**](/glossary/freight-elevator) — Right to schedule the freight elevator for moves and deliveries.
- [**After-hours HVAC**](/glossary/after-hours-hvac) — HVAC service outside building standard hours, typically billed hourly.
- [**Amenity floor**](/glossary/amenity-floor) — Dedicated tenant-amenity floor in trophy Class A buildings.
- [**End-of-trip facilities**](/glossary/end-of-trip-facilities) — Showers, lockers, bike storage for cycling commuters.
- [**Biophilic design**](/glossary/biophilic-design) — Architectural design using nature, daylight, and natural materials.
- [**Podium-and-tower typology**](/glossary/podium-tower) — Building typology with a wide low-rise podium and a slim residential/office tower above.
- [**Ground-floor activation**](/glossary/ground-floor-activation) — Retail, food, and public realm at the building base.
- [**Sky lobby**](/glossary/sky-lobby) — Mid-building elevator-transfer floor in supertall Class A buildings.
- [**Destination-dispatch elevators**](/glossary/destination-elevators) — Elevator system grouping passengers by floor for efficiency.
- [**Façade replacement**](/glossary/facade-replacement) — Major capex programme replacing the building envelope.
- [**Deep retrofit**](/glossary/deep-retrofit) — Whole-building reposition including facade, MEP, and core upgrades.
- [**Asset management plan**](/glossary/asset-management-plan) — Owner's roadmap for capex, leasing, and exit on a Class A asset.
- [**Yield shift**](/glossary/yield-shift) — Change in market cap rates; the largest valuation driver.
- [**Rental growth assumption**](/glossary/rental-growth-assumption) — Projected annual rental-rate change in a DCF.
- [**Tenant retention rate**](/glossary/tenant-retention-rate) — Percentage of expiring leases renewed in place.
- [**Downtime assumption**](/glossary/downtime-assumption) — Months of vacancy assumed between tenant departure and replacement.
- [**Core open-end fund**](/glossary/core-fund) — Stabilised real-estate fund with quarterly liquidity.
- [**Value-add fund**](/glossary/value-add-fund) — Closed-end fund targeting reposition and lease-up returns.
- [**Opportunistic fund**](/glossary/opportunistic-fund) — Highest-risk closed-end fund targeting development and distressed.
- [**Open-end fund**](/glossary/open-end-fund) — Real-estate fund with periodic subscription/redemption windows.
- [**Closed-end fund**](/glossary/closed-end-fund) — Fund with a fixed term — capital is called and returned over the life.
- [**Joint venture (JV)**](/glossary/joint-venture) — Partnership structure between an operator and a capital partner.
- [**Promote (carry)**](/glossary/promote) — Sponsor's share of profits above the hurdle rate.
- [**Preferred return**](/glossary/preferred-return) — Hurdle return paid to LPs before promote kicks in.
- [**Management fee**](/glossary/management-fee) — GP's annual fee for managing the fund or JV.
- [**Acquisition fee**](/glossary/acquisition-fee) — GP fee charged at acquisition of an asset.
- [**Disposition fee**](/glossary/disposition-fee) — GP fee at sale of an asset.
- [**Capital drawdown**](/glossary/drawdown) — Calling committed equity from LPs to fund acquisitions or capex.
- [**J-curve**](/glossary/j-curve) — Early negative returns followed by positive returns in a closed-end fund.
- [**Vintage year**](/glossary/vintage-year) — Year a fund first deploys capital — the key benchmark for performance.
- [**Core-plus fund**](/glossary/core-plus-fund) — Income-focused fund with light value-add overlay.
- [**Non-recourse loan**](/glossary/non-recourse-loan) — Loan secured only by the asset, with no personal/sponsor guarantee.
- [**Recourse loan**](/glossary/recourse-loan) — Loan with full personal/sponsor guarantee.
- [**Loan-to-value (LTV)**](/glossary/ltv-loan-to-value) — Loan amount divided by asset value.
- [**Debt service coverage ratio (DSCR)**](/glossary/dscr) — NOI divided by annual debt service.
- [**Debt yield**](/glossary/debt-yield) — NOI divided by loan amount — lender risk metric independent of cap rate.
- [**Interest-only (IO) period**](/glossary/interest-only-period) — Loan period with no principal amortisation.
- [**Commercial mortgage-backed securities (CMBS)**](/glossary/cmbs) — Pooled commercial loans securitised into bonds.
- [**Agency debt**](/glossary/agency-debt) — Loans by Fannie/Freddie/HUD on multifamily assets.
- [**Preferred equity**](/glossary/preferred-equity) — Equity tranche paid before common equity, after debt.
- [**Mezzanine debt**](/glossary/mezzanine-debt) — Subordinated loan tranche between senior debt and equity.
- [**Build-to-suit (BTS)**](/glossary/build-to-suit) — Custom-built premises designed for a specific tenant.
- [**Sale-leaseback**](/glossary/sale-leaseback) — Owner-occupier sells the building and leases it back from the buyer.
- [**Ground lease**](/glossary/ground-lease) — Long-term lease of land where tenant owns improvements.
- [**Leasehold vs freehold**](/glossary/leasehold-vs-freehold) — Long-term lease ownership vs absolute title to land.
- [**Hold and occupy strategy**](/glossary/ahold-and-occupy) — Owner-occupier strategy retaining real estate as strategic asset.
- [**Real estate as a service (REaaS)**](/glossary/real-estate-as-a-service) — Flex/serviced model bundling space, services, and amenity into one fee.
- [**Hub-and-spoke portfolio**](/glossary/hub-and-spoke) — Central HQ with smaller satellite offices in the metro.
- [**Neighborhood of choice**](/glossary/neighborhood-of-choice) — Submarket selection driven by talent commute economics.
- [**Transit isochrone**](/glossary/transit-isochrone) — Map of areas reachable within X minutes by public transit.
- [**Tenant representation broker**](/glossary/tenant-rep-broker) — Commercial broker who exclusively represents the tenant.
- [**Agency broker**](/glossary/agency-broker) — Broker who exclusively represents landlords.
- [**Stalking-horse offer**](/glossary/stalking-horse) — Initial bid that sets a floor in a competitive sale process.
- [**Broken-deal cost**](/glossary/broken-deal-cost) — Costs incurred on an investment that fails to close.
- [**Physical due diligence**](/glossary/physical-due-diligence) — Engineering survey of the building during acquisition.
- [**Phase I environmental site assessment**](/glossary/phase-i-environmental) — Standard environmental review at acquisition.
- [**Anchor tenant**](/glossary/anchor-tenant) — Largest, longest-term, highest-credit tenant in a building.
- [**Lease-up period**](/glossary/lease-up-period) — Time from CO to stabilised occupancy.
- [**Stabilised occupancy**](/glossary/stabilised-occupancy) — The occupancy level a building targets long-term, typically 90–95%.
- [**Submarket rent index**](/glossary/submarket-rent-index) — Average asking or transacted rent across a defined submarket.
- [**Net absorption**](/glossary/absorption) — Change in occupied space over a period.
- [**Construction pipeline**](/glossary/construction-pipeline) — Square footage under construction or fully approved for delivery.
- [**Submarket tier (trophy / prime / established / emerging)**](/glossary/submarket-tier) — Quality-tier classification of submarkets within a city.
- [**Rent roll**](/glossary/rent-roll) — Schedule of all leases at an asset, by tenant, suite, term, and rent.
- [**Weighted average lease term (WALT/WAULT)**](/glossary/weighted-average-lease-term) — Average remaining lease term, weighted by rent.
- [**Tenant credit rating**](/glossary/tenant-credit-rating) — External or internal credit grade applied to anchor tenants.
- [**Lease-incentive amortisation**](/glossary/lease-incentive-amortisation) — Accounting treatment of TI and free rent under IFRS 16 / ASC 842.
- [**IFRS 16**](/glossary/ifrs-16) — International accounting standard requiring on-balance-sheet lease recognition.
- [**ASC 842**](/glossary/asc-842) — US GAAP equivalent of IFRS 16 — on-balance-sheet lease recognition.
- [**Right-of-use asset (ROU)**](/glossary/right-of-use-asset) — Balance-sheet asset representing the tenant's right to use leased space.
- [**Lease liability**](/glossary/lease-liability) — Balance-sheet liability for the present value of future lease payments.
- [**Cost per seat (KPI)**](/glossary/kpi-cost-per-seat) — Total occupancy cost divided by seat count.
- [**Seat utilisation (KPI)**](/glossary/kpi-seat-utilisation) — Average daily occupied seats divided by total seats.
- [**Occupancy density**](/glossary/occupancy-density) — Square feet of usable space per seat.
- [**Indoor air quality (IAQ)**](/glossary/iaq-indoor-air-quality) — Quality of breathable air inside the building.
- [**MERV rating**](/glossary/merv-rating) — Filter efficiency rating used in HVAC systems.
- [**Green lease**](/glossary/green-lease) — Lease with cooperative landlord-tenant ESG performance clauses.
- [**Split incentive**](/glossary/split-incentive) — Misaligned ESG investment incentive between landlord and tenant.

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Citation: Source: Class A Atlas (https://classa.info/glossary), updated 2026-05-29T16:17:29.065Z.