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EQUAL HOUSING OPPORTUNITY
WHY USE A REALTOR®?
EXPLANATION OF
COMMON COMMERCIAL LEASE TERMS
COMMERCIAL REAL ESTATE GLOSSARY
USEFUL REAL
ESTATE WEB SITES
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Skip Keyser Realty, Inc. is a member of: National Association of Realtors®
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California Association of Realtors®
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North Bay Association of Realtors®
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California Apartment Association
We do business in accordance with the Title VIII of the federal Fair Housing Law (the Civil Rights Act of 1968, as amended by the Fair Housing Amendments Act of 1988) and the State of California Fair Employment and Housing Act of 1980 (which replaced the Rumford Act) and the Unruh Civil Rights Act of 1959.
This means WE DO NOT DISCRIMINATE AGAINST ANY PERSON BECAUSE OF RACE, COLOR, RELIGION, SEX, HANDICAP, FAMILIAL STATUS, OR NATIONAL ORIGIN in:
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The sale or rental of housing or residential lots
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In advertising the sale or rental of housing
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Inthe provision of real estate brokerage services
"All Realtors® are Licensed Real Estate Professionals but not all Real Estate Agents are Realtors®" REALTOR® is a professional designation indicating that the broker and agents of Skip Keyser Realty:
Subscribe to the Code of Ethics of three different organizations:
National Association of Realtors® - NAR (www.realtor.org)
California Association of Realtors® - CAR (www.car.org)
North Bay Association of Realtors® NorBAR (www.realtour.com)
Are bound by the highest professional standards.
You are encouraged to review these standards and codes of ethics at the above web sites. Earning the Realtor® designation can only be achieved by a real estate professional who has:
Passed the California Department of Real Estate (DRE) licensing exam
Completed the California DRE background check
Undergone peer review by fellow Realtors®
Been approved by the North Bay Association of Realtors® Board of Directors
By choosing a real estate professional who is a Realtor®, you will be selecting an agent who can provide you with a full spectrum of vital services designed to bring your real estate transaction to a timely and successful conclusion. If you have any question about the importance of the Realtor® designation, please contact Skip Keyser, CCIM, Broker/Owner of Skip Keyser Realty at SkipRealty@aol.com. You can also check the license status of any agent at Skip Keyser Realty at the California DRE website - www.dre.ca.gov.
Net Lease (N, NN, NNN or Single, Double or Triple Net) - A lease in which the Lessee/Tenant pays (depending on the number of "nets") the property taxes, fire and casualty insurance premiums, and maintenance costs in addition to the building rent. Often these leases are listed as $X.XX/square foot + $Y.YY/square foot "nets" or "gross-to-net conversion factor." The effective rent is the total of both amounts.
Gross Lease - A lease in which the Lessee/Tenant pays a set amount per square foot or per month. The Lessor/Landlord pays for most operating costs (property taxes, fire and casualty insurance premiums, maintenance costs, etc.), but usually not for utilities, janitorial services, liability insurance, etc.
Industrial Gross (IG) Lease - A cross between a Gross Lease and a Net Lease in that one or more common area-maintenance (CAM), insurance, or property tax expenses are passed through to Lessee. An Industrial-Gross lease differ from a Single/Double/Triple-Net lease in that only the increase (over the base-year amounts) for the above charges are passed through.
Percentage Lease - A lease, generally on a retail business property, for which the rent is based on a percentage of the gross or net sales. There is usually a minimum or "base" rent, in the event of poor sales.
Full-Service Lease - A lease in which the Lessor/Landlord pays for all operating costs, including property taxes, fire and casualty insurance premiums, maintenance costs, utilities, janitorial services, etc.
Ground Lease - A lease of vacant land or of land exclusive of any buildings on it.
COMMERCIAL REAL ESTATE GLOSSARY
ANCHOR TENANT: The key (major) tenant in a shopping center that will serve as the primary draw to attract other businesses and customers.
“AS IS” CONDITION: Premises taken by buyer or tenant in its present condition. The buyer or tenant assumes the responsibility and cost of any improvements and repairs.
BEARING WALL: The wall that supports the floor above or the roof.
B.O.M.A. (Building Owners and Managers Association): A trade organization that supports and represents the needs and interests of the office building industry. Their headquarters are in New York and there are local chapters in most major cities.
BROOM CLEAN: Premises delivered to the buyer or lessee free of debris and floors swept clean.
BUMPS: Scheduled increase(s) in base rent or other charges.
CAPs: An agreed upon maximum contribution from the tenant towards a specific charge, such as common area maintenance, taxes, etc. (not to be confused with CAMs).
CLEAR SPAN: Area within the building that is unobstructed by columns or posts.
CLEAR HEIGHT: Area within the building that is unobstructed by rafters, joists or fire sprinklers.
COMMON AREA: Area(s) that tenants and their customers jointly use.
COMMON AREA CHARGES: Charges to the tenants to reimburse the landlord for the cost to maintain and operate the common areas.
COMMON AREA MAINTENANCE (CAMs): Maintenance performed on the common area.
CONCRETE TILT-UP: Method of construction whereby concrete walls of a structure are poured in forms, allowed to set, then elevated into position by means of a crane.
CCIM (Certified Commercial Investment Member): The professional designation conferred by the Institute of Real Estate Management on individuals who distinguish themselves in the area of education, experience and ethics in the field of commercial property sales, leasing, investment and management.
DEMISING WALL: The wall that separates tenants, and the wall that separates the tenant from the common area.
EFFECTIVE INCOME: Income received by a building after deducting for vacancy and collection loss.
ESCALATION CLAUSE: Provision in lease providing for automatic adjustment in rent and/or other charges in the future, by formula or by prescribed amount.
FIRE SPRINKLER SYSTEM: Fire protection system designed to discharge a specific volume of water within a given area.
FLOOR DRAINS: Drains in the floor for the collection of water or waste.
GROSS LEASABLE AREA (GLA): Total floor area designated for tenant occupancy.
GROSS SCHEDULED INCOME: Income a building will receive at full (100%) occupancy.
I.R.E.M. (Institute of Real Estate Management): A professional association affiliated with the National Association of Realtors® for persons who meet standards of experience, education and ethics with the objective of continually improving their respective managerial skills by mutual education and exchanges of ideas and experiences.
LEASE: A contract between lessor (owner) and lessee (tenant) setting forth the rights and obligations of both parties, and the conditions upon which the lessee may occupy and use the property.
LEASE RATE: Usually stated in dollars per month per square foot (or dollars per year per square foot).
MERCHANTS ASSOCIATION: Non-profit organization consisting of the tenants and the landlord for the purpose of promoting and advertising the shopping center and the tenants.
NET OPERATING INCOME (NOI): Income a building will receive after deducting for vacancy, collection loss and operating expenses.
OPTION: The right to an agreed upon specific condition within a specific time; in a lease it is usually the tenant’s right to extend the lease for a specific time beyond the expiration date.
OVERAGE RENT: Rent calculated on the tenants’ sales and that is in excess of the base (minimum) rent.
OVER-STANDARD IMPROVEMENTS: Improvements for the tenant’s area beyond that which is normally provided by the landlord.
PASS-THROUGH: The cost of a particular item, such as taxes, maintenance, etc., that is paid by (passed through to) the tenant.
PERCENTAGE RENT: Rent calculated as a percent of the tenant’s gross or net sales.
PREVENTATIVE MAINTENANCE: Program of regular inspections and care that allows potential problems to be detected and solved/prevented altogether.
RENTABLE AREA: The square footage within the tenants’ demising walls, plus a pro rata share of the common area on the floor occupied by the tenant.
SECURITY DEPOSIT: A deposit made by the lessee/tenant to the lessor/landlord to insure faithful performance of the lease obligations.
SHOPPING CENTER CLASSIFICATIONS:
Neighborhood Center: Designed to provide everyday convenient goods and services. The center is usually in the 50,000 to 200,000 square feet range and the major tenants are usually a supermarket and/or a chain drug store (discount drug store).
Community Center: Provides everyday convenient goods and services, plus a selection of apparel and home furnishings. The Center is usually in the 200,000 to 400,000 square feet range and the major tenants are generally a junior department store, variety store and/or a supermarket.
Regional Center: A center designed to meet all the shopping needs of the family. The center is always anchored by at least one full-line department store (usually two or three) and is the 400,000 to one million square feet range.
Super Regional Center: A regional center in excess of one million square feet, containing usually four or more full-line department stores.
Specialty/Theme Center: A center designed with specific architectural theme (old world, nautical, etc.) with an array of gift stores, boutiques and restaurants. Usually there is no major tenant.
SPUR TRACK: Railroad track serving individual commercial/industrial properties.
SPAN: Unobstructed area between columns within a commercial/industrial building.
STANDARD TENANT IMPROVEMENTS: The work that the landlord will provide, at his expense, to prepare the premises for occupancy.
TENANT CHARGES: Rent and all other costs that are reimbursed to the landlord by the tenant (i.e., taxes, insurance, maintenance.)
TENANT MIX: The variety of businesses and services that occupy a commercial building.
TRUCK HIGH: Area of building that provides loading through doors at truck level.
TRUCK INDENTURE: Area cut out inside a building to provide inside truck area for loading and unloading.
TRUCK WELL: A ramp and/or level area below ground level that creates loading at truck height.
USABLE AREA: The square footage measured within the tenant’s demising walls, including all or a portion of those walls. The square footage that the tenant has exclusive use of.
WORK LETTER: A document which is part of the lease and which defines the allocation of costs and responsibilities for building improvements to be incurred by the landlord or tenant in preparing the premises for occupancy.
National Association of Realtors (NAR) - www.realtor.org
California Association of Realtors (CAR) - www.car.org
North Bay Association of Realtors (NorBAR) -
www.norbarrealtor.com
California Department of Real Estate (DRE) - www.dre.ca.gov
California State Senate - www.sen.ca.gov
California State Assembly - www.assembly.ca.gov
California Legislative Bill Information - www.leginfo.ca.gov
United States Senate - www.senate.gov
United States House of Representatives - www.house.gov
Federal Legislative Bill Information - www.thomas.loc.gov
Fannie Mae - www.fanniemae.com
Freddie Mac - www.freddiemac.com
Internal Revenue Service - www.irs.gov
U.S. Department of Housing & Urban Development (HUD) - www.hud.gov
Certified Commercial Investment Member (CCIM) - www.ccim.com
Inman Real Estate News - www.inman.com
The Wall Street Journal "Home Center" - www.homes.wsj.com
California State Bar - www.calbar.org
California Office of Administrative Law (includes California Codes) - www.oal.ca.gov