Glossary - Words and Terminology used in Commercial Property

CAP RATE
Short form for 'capitalization rate'. It is ...see more

CAPITAL EXPENDITURE
Money spent to improve a property and enhance its ...see more

CAPITAL GAIN
Increase in value of a capital property (a propert ...see more

CAPITAL IMPROVEMENT
Value enhancing work carried out on a capital prop ...see more

CAPITAL LOSS
Decrease in value of a capital property (a propert ...see more

CARRYING CHARGES (COSTS)
The expense required to maintain a property over a ...see more

CASH FLOW
Description of the net income from a property afte ...see more

CASH-OUT REFINANCE
When an owner renegotiates or negotiates a new mor ...see more

CEILING
The limit over which the interest rate on a ...see more

CENTRAL BUSINESS DISTRICT (CBD)
The business and commercial "core" of a muni ...see more

CERTIFICATE OF OCCUPANCY
Document issued by the local municipality indicati ...see more

COLLATERAL MORTGAGE
A loan which is secured by some sort of written no ...see more

COMMERCIAL LEASE AGREEMENT
Contract which stipulates the terms under which bu ...see more

COMMERCIAL PROPERTY
As opposed to residential or residentially orienta ...see more

COMMISSION
Payment to a salesperson (a listing real estate ag ...see more

COMMON AREAS
Portions of the property and buildings owned by a ...see more

COMPARABLES
Used in assessing or establishing the fair market ...see more

COMPOUND INTEREST
As opposed to simple interest. The accumulat ...see more

CONTIGUOUS SPACE
1. Multiple spaces within the same building and on ...see more

CONTRACT RENT
The periodic rental payment as set out in the leas ...see more

CONVERSION CLAUSE
A provision in a variable rate mortgage (adjustabl ...see more

CONVEY
To transfer title to (or any other interest ...see more

COST APPROACH
An appraisal method where a property's value ...see more

CUMULATIVE INTEREST
The total amount charged as interest on a loan or ...see more

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