Class A Building
A commercial office building that commands the highest rent due to the attractiveness and prestige associated with its location, tenancy, amenities and overall desirability. |
Funds From Operations (Ffo)
A measurement used to define cash flow from operations for REITs and calculated by adding depreciation and amortization expenses to earnings. |
Leadership In Energy And Environment Design (Leed)
An environmental building certificate program established under the US Green Building Council that certifies buildings meet energy-efficiency and green requirements. |
Leverage
The amount of debt used to finance a firm's assets. A firm that has a higher level of debt than equity is considered to be highly leveraged. |
Loan-To-Value Ratio (Ltv)
A ratio used to determine how much of a property is being financed or leveraged. For example, a $100,000 house with a mortgage of $80,000 has an LTV ratio of 80.0%. |
Occupancy Rate
The rate of available spots at a center or a building that are filled. A rate of at least 70.0% is necessary for a center to be profitable. |
Real Estate Investment Trust (Reit)
A legal entity that uses pooled investor capital to purchase and manage income property or mortgage loans. To qualify as a REIT, the entity must distribute at least 90.0% of taxable income. |
Vacancy Rate
The amount of real estate space unoccupied as a percentage of total available space. |