GLOSSARY OF TERMS - B
|BASE RENT: |
The minimum monthly rent, usually computed on a per-square-foot-per-year basis, due under the lease.
The original purchase price or cost of investment property plus any out-of-pocket expenses or closing costs such as brokerage commissions, escrow costs, title insurance premiums, sales tax (if personal property), tax-deferred like-kind exchange fees and other closing costs directly related to the acquisition.
|BENEFICIAL ACCESS: |
Most tenants need a couple of weeks prior to officially taking occupancy to ready their new space with furniture/equipment, telephone systems, data and telephone cabling, etc. Most property owners will provide the tenant's vendors with such early set-up access to the space under consideration at no rental charge.
The sales threshold over which percentage rent is due. It is calculated by dividing the annual base rent by the negotiated percentage applied to the tenant's gross sales.
|BROKER DEALER (BD): |
Brokers dealers are licensed to sell securities. Registered Representatives or Reps are supervised by broker dealers. Tenant in common real estate structured as a security is sold as a security by broker dealers. Tenant in common structured as real estate is sold as real estate by real estate brokers.
|BROKER, REAL ESTATE: |
Licensed to be an intermediary on behalf of others for a fee or commission as it relates to real estate transactions. Can represent buyer, seller, both or act as a finder without representing either party. Licensed real estate sales people are supervised by real estate brokers.
Refers to a property that is constructed or finished-off or retrofitted to lessee or purchaser specifications.
Periodic adjustments to the rental rate in a lease, usually as a fixed percentage
or adjusted based CPI.
|BUNDLE OF RIGHTS: |
Legal concept that property ownership is comprised of separate rights. Examples are rights to ownership of the land, improvements, mineral rights, water rights and access easements.
|BUSINESS RISK: |
The uncertainty associated with the possible profit outcomes of a business venture.
This Glossary of Commercial Real Estate Terms is provided for general understanding purposes. Readers should consult with their legal and/or accounting professionals for specific situations and questions. TM 1031 Exchange Inc. and its employees provide neither legal nor accounting services or advice.