Commercial Real Estate Glossary

Acre: Area of land equal to 43,560 SF (4,047 M2).

Bulk Warehouse (Warehouse): All modern distribution facilities 25,000 SF (2,500 M2) or greater. Quoted annual rate, net basis.

CBD (City Center): The central business district is a market’s primary concentration of business activity, much like a traditional downtown.

Class “A” Office (Prime): Excellent location (5,000 SF or 500 M2), highquality tenants, high-quality finish, excellently maintained; usually new, or old buildings that are competitive with new construction.

Class “B” Office (Secondary): Good location (5,000 SF or 500 M2), fairly highquality construction and tenants. Buildings with only minimal deterioration or obsolescence.

Community Power Centers (Big Box): Retail centers over 250,000 SF – 600,000 SF (25,000 M2 – 56,000 M2), which include one or more “category killers”, life-style centers and outlet centers.

Development Land Prices: Based on land sales recorded between October 2006 and October 2007. The guide quotes the rate paid for land with available utilities and zoning in place for the use noted.

Downtown Office (City Center): Sites in the market’s central business district.

Downtown Retail (City Center): Any prime ground floor retail space in the market’s central business district, excluding space in enclosed malls. United Kingdom and Ireland presented on Zone A Basis.

Education Index: The Education Index was calculated by dividing the number of people with a college degree and some college education by the total population in that Market and by then dividing that quotient by the same figure for the United States. Data provided by SRC, LLC.

Effective Average Rent: Net present value rate taking concessions, such as free rent and escalations into account.

Full Service Basis: Indicates that the landlord pays all expenses.

Government Index: The Government Index was calculated by dividing an estimate of total government services employment by total nonagricultural employment for a Market. This quotient was then divided by the same data for the United States. Data provided by SRC, LLC.

Health Services Index: The Health Services Index was calculated by dividing an estimate of total health services employment by total non-agricultural employment for a Market. This quotient was then divided by the same data for the United States. Data provided by SRC, LLC.

High Tech/R&D (Flex): Modern buildings with space dedicated to research/product development, or buildings in industrial settings with high percentage of office/ showroom style finish.

GLA: Gross leasable area.

GSA: General Services Administration, the US Government’s property procurement agency.

Hectare: Area of land equal to 2.47 acres.

Highway/Commercial Land: Refers to any commercially zoned land that has frontage along, and access to, a major state or interstate highway.

Income Index: The Income Index was calculated by dividing per capita income in a Market by the average national per capita income. Data provided by SRC, LLC.

Industrial Rents: This report quotes the annual rate on a net basis.

Manufacturing Space: All facilities of 25,000 SF (2,500 M2) or greater used in the production or development of goods.

Neighborhood Service Centers (Retail Units on Parks): Retail centers ranging in size from 75,000 to 250,000 SF (7,500 M2 to 25,000 M2), anchored by foot and/or drug stores providing general services to the local market—including pad sites. United Kingdom and Ireland presented on Zone A Basis.

Net Basis: Indicates the tenant pays for most of the operating costs such as utilities, maintenance, repairs and cleaning.

Office Index: The Office Index was calculated by dividing an estimate of office employment by total non-agricultural employment for a Market. This quotient was then divided by the same data for the United States. Data provided by SRC, LLC.

Office Rents: This report quotes the annual rate as full-service basis. Europe quoted as annual rates, net basis.

Population Growth Index: The Population Growth Index was calculated by dividing the projected five year population growth rate for the Market by the same projected value for the United States. Data provided by SRC, LLC.

Regional Mall (Regional Shopping Center): Suburban or downtown properties over 600,000 SF (60,000 M2) with at least two major department store anchor tenants.

Retail Rents: This report quotes the annual rate on a full-service basis. Europe quoted as annual rates, net basis.

Retail Services Index: The Retail Services Index was calculated by dividing an estimate of total retail services employment by total non-agricultural employment for a Market. This quotient was then divided by the same data for the United States. Data provided by SRC, LLC.

SF; s.f.: Square foot or square feet, depending on the reference. 1 square foot = 0.093 M2.

SM; sm; M2: Square meter. 1 S.M. = 10.764 square feet.

Solus Food Stores: Stand-alone large supermarkets or hypermarkets from 50,000 SF (5,000 M2) and up. Quoted as annual rates, net basis.

Suburban Office: Stand-alone buildings and business parks not within the metro city limits.

Vacancy Rate: The percentage of market space being directly offered by the landlord or properties forlease and the amount of sublease space being offered by tenants. In cases where the space is under lease but not occupied, count it as part of the vacancy.

Wholesale Index: The Wholesale Index was calculated by dividing an estimate of wholesale employment by total non-agricultural employment for a Market. This quotient was then divided by the same data for the United States. Data
provided by SRC, LLC.

Zone A: The area at the front of the shop at pedestrian level. It is usually 6.1 meters deep, this measurement equating 20 feet. In a very limited number of locations, Zone A can be 30 feet deep (9.1 meters).