The schedule by which a loan balance is reduced over time through regular payments of principal and interest.

A property developed specifically to meet the design and operational needs of a tenant. Often involves long-term leases.

Expenses shared among tenants for maintaining common areas such as parking lots, landscaping, hallways, lighting, and security.

A metric used to estimate investment return. Calculated as Net Operating Income (NOI) ÷ Purchase Price. It helps investors compare opportunities and assess risk levels.

A measure of annual pre-tax cash flow compared to the amount of cash invested. Commonly used by leveraged investors.

A lender metric that compares property income to loan payments. A DSCR above 1.0 means the property generates enough income to cover debt obligations.

The investigation window after contract execution where buyers review financials, leases, zoning, environmental factors, and physical condition before closing.

A lease provision allowing rent to increase at set intervals or based on inflation or operating expense increases.

A lease where the landlord pays most property operating expenses, and the tenant pays a single, all-inclusive rent amount.

A preliminary, usually non-binding document outlining key deal terms before drafting formal contracts.

The loan amount divided by property value. Higher LTV means higher lender risk.

A development that combines different uses such as retail, office, and residential within one property or complex.

Total property income minus operating expenses (excluding mortgage payments and taxes). A core figure in property valuation.

A lease where tenants pay base rent plus property taxes, insurance, and maintenance expenses.

Costs required to run and maintain a property, such as utilities, management, repairs, and insurance

Financial projections of a property’s future income and expenses, used for investment analysis.

A detailed list of tenants, lease terms, rental rates, and expiration dates.

A performance measure comparing profit gained to the investment cost.

The process of evaluating locations based on demographics, traffic, accessibility, zoning, and market demand.

Custom interior build-outs paid by landlord or tenant to prepare space for occupancy.

A property with potential to increase income or market value through renovation, lease restructuring, or repositioning.

Government regulations dictating how land or buildings can be used (retail, industrial, office, etc.).