What does TI stand for in commercial real estate?
The real estate definition of a TI (tenant improvements) is the customized alterations a building owner makes to rental space as part of a lease agreement, in order to configure the space for the needs of that particular tenant.
What is ClAss C commercial property?
ClAss C Buildings: This is the lowest grade for useable office buildings. These office buildings are gene- rally older and may be located on less desi- rable streets in older sections of the city, for example. Many of these buildings usually have higher than average vacancy rates for their market.
What does $12.00 SF yr mean?
In the commercial leasing industry, $/SF/year or $/SF/yr means the rent per square foot per year. This would be calculated as $20 x 1000 square feet = $20,000 total (this is the cost for the total year). Now, to get your monthly cost, divide by 12. So, $20,000 / 12 = $1,667 or get $1.67 per square foot per month.
What is the cap rate in commercial real estate?
In commercial real estate, a capitalization rate (“cap rate”) is a formula used to estimate the potential return an investor will make on a property. The cap rate is expressed as a percentage, usually somewhere between 3% and 20%. Cap rates generally have an inverse relationship to the property value.
Who pays for commercial build out?
Who pays for an office build out depends on how you negotiate your lease contract. In some cases the landlord will pay for 100% of a standard build out, however If you want high end finishes then you may end up coming out of pocket a little. The management of this process also depends on the size and scope of work.
What is Class A and Class B office space?
Class A buildings also are well located, have good access, and are professionally managed. As a result of this, they attract the highest quality tenants and also command the highest rents. This is the next notch down. Class B buildings are generally a little older, but still have good quality management and tenants.
What does price per square foot mean in commercial real estate?
Price per square foot (PPSF) is a common term used in the commercial real estate industry. It denotes the site dimensions of office buildings, retail centers, and industrial buildings. It can be calculated by dividing the price of the building by the building’s square feet.
What does 15 SF NNN mean?
NNN stands for net, net, net. It means that the tenant pays most of the expenses. They pay the rent fees plus property taxes, property insurance, and CAM, or common area maintenance. The NNN fees are added onto the base rental fee, which is usually calculated as a dollar-per-square-foot number like $15.