Joint venture: An investment entity formed by one or more entities to acquire or develop and manage real property and/or other assets. Just compensation: Compensation that is fair to both the owner and the public when property is taken for public use through condemnation (eminent …

Implied cap rate: Net operating income divided by the sum of a REIT’s equity market capitalization and its total outstanding debt. Implied Contract: An agreement which is not reduced to writing but is created, under the common law, on the basis of the behavior of …

Hard cost: The cost of actually constructing property improvements. Hedging: Protecting oneself against negative outcomes. Hereditaments: Any property, whether real or personal, tangible or intangible, that may be inherited. High-rise: In the central business district, this could mean a building higher than 25 stories above …

General contractor: The prime contractor who contracts for the construction of an entire building or project, rather than just a portion of the work. The general contractor hires subcontractors, coordinates all work and is responsible for payment to subcontractors. General partner: A member of a …

Face rental rate: The asking rental rate published by the landlord. Facility space: The floor area in hospitality properties dedicated to operating departments such as restaurants, health clubs and gift shops that service multiple guests or the general public on an interactive basis not directly …

Earnest money: The monetary advance of part of the purchase price to indicate the intention and ability of the buyer to carry out the contract. Easement: A right created by grant, reservation, agreement, prescription or necessary implication to use someone else’s property. Easement Appurtenant: An …

Deal structure: With regard to the financing of an acquisition, deals can be unleveraged, leveraged, traditional debt, participating debt, participating/convertible debt or joint ventures. Debt service: The outlay necessary to meet all interest and principal payments during a given period. Debt service coverage ratio (DSCR): …

Call date: Periodic or continuous rights given to the lender to cause payment of the total principal balance prior to the maturity date. Capital appreciation: The change in market value of a property or portfolio adjusted for capital improvements and partial sales. Capital expenditures: Investment …

Balloon, or bullet, loan: A loan with a maturity that is shorter than the amortization period. Balloon Payment: The final payment of balance due on a partially amortized loan. Balloon risk: The risk that a borrower will not be able to make a balloon (lump …