Under construction: The period of time after construction has started but before the certificate of occupancy has been issued. Under contract: The period of time after a seller has accepted a buyer’s offer to purchase a property and during which the buyer is able to …

Taking: A common synonym for condemnation, or any interference with private property rights, but it is not essential that there be physical seizure or appropriation. Tax base: The assessed valuation of all real property that lies within a taxing authority’s jurisdiction. When multiplied by the …

Sale-leaseback: An arrangement by which the owner-occupant of a property agrees to sell all or part of the property to an investor, then lease it back and continue to occupy space as a tenant. Sales comparison value: A value indication derived by comparing the property …

Rate of Return: The measure of profitability of an investment. It measures the income that may be obtained from an investment against its purchase price, or its current market price. The rate of return refers to either the yield to maturity on a bond or …

Qualified fee: An estate in fee simple bound by limitations imposed by the grantor. Qualified plan: Any employee benefit plan that is qualified by the IRS as a tax-exempt plan. Among other requirements, the plan’s assets must be placed in trust for the sole benefit …

Parking ratio: Dividing the total rentable square footage of a building by the building’s total number of parking spaces provides the amount of rentable square feet per each individual parking space. Partial sales: The sale of an interest in real estate that is less than …

Occupancy Agreement: An agreement between a member and the co-op that acts as a contract between the two parties. The occupancy agreement outlines the obligations of the member to the co-op, and the obligations of the co-op to the member. Offer: Term used to describe …

NAREIT (National Association of Real Estate Investment Trusts): The national, not-for- profit trade organization that represents the real estate investment trust industry. NCREIF (National Council of Real Estate Investment Fiduciaries): An association of real estate professionals who serve on working committees, sponsor research articles, seminars …

Magic page: Included in the offering prospectus, the magic page is a projected growth story, describing how a new REIT will accomplish its future expectations for funds from operations or funds available for distribution. Maker: One who creates or executes a promissory note and promises …

Landlord’s warrant: A warrant from a landlord to levy upon a tenant’s personal property (e.g., furniture, etc.) and to sell this property at a public sale to compel payment of the rent or the observance of some other stipulation in the lease. Lead manager: The …