COSTAR PROPERTY PROFESSIONAL USER MANUAL Glossary

COSTAR PROPERTY PROFESSIONAL USER MANUAL

Glossary

A/C: Used in context of listing a property’s ameni- Atrium: A lobby or open area usually with high space may have, but is not limited to, extensive
ties or features, indicates that the entire building vaulted ceilings or a grand central court. See steel frame with concrete floors to handle addi-
has air conditioning; not just the office space. also: Amenities tional floor loading, extremely high floor separa-
See also: Amenities, Features tions allowing extensive mechanical equipment
Attachment: In context of the My Surveys page, “runs” above the suspended ceiling and below
Absorption: Refers to the change in occupancy refers to a file that is associated with a saved sur- the floor structure above, high speed data
over a given time period. Lease renewals are not vey and is uploaded for storage into a Client access, heavy duty HVAC, higher roof loading
factored into absorption unless the renewal Folder. See also: Client Folder, Publish capacity to support heavy air handling equip-
includes the occupancy of additional space. (In ment, and enhanced environmental control tech-
that case, the additional space would be counted Available Space: The total amount of space that nology. This space may also be designated a
in absorption.) Pre-leasing of space in non-exist- is currently being marketed as available for lease “clean room” for handling materials with high tol-
ing buildings (e.g., Proposed, Under or sale in a given time period. It includes any erances and contamination requirements. See
Construction, Under Renovation) is not counted space that is available, regardless of whether the also: Amenities, Secondary Type
in absorption until the actual move-in date. See space is vacant, occupied, available for sublease,
also: Positive Absorption, Negative Absorption, or available at a future date. CoStar includes only Building Available: The total square footage of
Gross Absorption, Net Absorption. existing, under construction, and under renova- space that is available for lease or sale within a
tion buildings in its statistical calculations of building, regardless of space type or use.
Absorption Assumption: In context of Property available space.
Professional analytic forecasting, a user-entered Building Contiguous: See Contiguous Block
variable for projecting vacancy rates. This Average Weighted Rent: Refers to the average
assumption variable is for net absorption and can rental rate for spaces within a building, with the Building Expenses: The cost associated with run-
be entered as a fixed or variable rate. See also: average being weighted according to the size of ning and maintaining a building; including prop-
Forecast, Delivery Assumption the space available (the larger the space, the erty taxes, insurance, electricity, other utilities,
more that particular rental rate “counts” in the janitorial fees, etc. Expenses are usually divided
Active: See Sale Status average).To calculate the average weighted rent, by the rentable building area and stated on a per-
multiply the number of available square feet by square-foot basis.
Air Lines: Compressed air lines for operating the corresponding rental rate for each space,
machinery, such as pneumatic tools. See also: take that dollar amount sum, and divide that fig- Building FAR: Floor Area Ration (FAR) is the
Features ure by the total number of available square feet. rentable building area divided by the land area.
Negotiable rental rates and rental rates of zero
Alert: A CoStar Property Professional feature that are excluded from this calculation. Rental rates Building Type: See Property Type
highlights new properties and/or spaces match- stated as a range are calculated using the mid-
ing the criteria of a saved survey. Red exclama- point of the range. When calculating the average Built-Out: See Condition
tion marks or emails serve as the notification weighted rent from a collection of rental rates
symbol to highlight the new properties and new that have different service types, only rents with Buss Ducts: Electricity conducting copper bars
spaces. the predominant service type are included within that run along the ceilings in open ducts for effi-
the calculation. See also: Asking Rent, Average ciently hooking up machinery. Each section can
Amenities: Special characteristics that can Weighted Rent, Effective Rent, Estimated Rent, have multiple connections and can be shut off.
enhance a property’s appeal, such as: A/C, Estimated Gross Rent, Services See also: Features
Balconies, Card Key Access, Fenced Lot, Mixed-
Use, Rooftop Terrace, Tenant Controlled HVAC. BOMA Standard: Building Owners and Managers CAM (Common Area Maintenance) Charge: A
See also: Features Association Standard. Since 1915, the BOMA potential lease expense, in addition to contractu-
Standard has been the only floor measurement al rent, passed on to the tenant(s) for cleaning
Anchor Tenant: Tenants that are considered method for commercial real estate approved by and/or maintenance of the building’s common
“credit worthy” and attract or generate traffic for the American National Standards Institute (ANSI). areas. For retail properties, this may include
a retail facility (e.g. a supermarket in a neighbor- These Standards present a calculation methodol- advertising and other associated expenses.
hood shopping center, a major chain or depart- ogy in an effort to insure accurate comparisons
ment store in a regional mall). between buildings. They are, however, only CAP Rate: Income rate of return for a total proper-
guidelines and not a law or enforceable regimen, ty that reflects the relationship between one
Asking Rent: The dollar amount space is offered as is commonly thought. A must for building year’s net operating income and the total price or
for lease at, based on square foot per year or owners, managers, facilities managers, tenants, value. Calculated by dividing the net operating
month charge. Asking Rent is presented in a appraisers, architects, leasing professionals, income by the sale price or value.
manner that indicates the rent amount and the lending institutions and others when calculating
services included or charged for separately. See leases, allocating building expenses to cost cen- Card Key Access: Security system that controls
also: Average Weighted Rent, Effective Rent, ters, or comparing occupancy. building access via an electronic card reading
Estimated Rent, Estimated Gross Rent, Services system. This type of system will typically record
Biotech/Lab Space: A building or space that has and store the time and identity of the user. See
Assessed Value: The dollar value of a property, been built-out for extensive laboratory use. Such also: Amenities
oftentimes stated in context of taxation. The
assessed value may include a separation of land Ceiling Height: The distance on an industrial
and building components. building from the top of the finished floor to the
lowest bottom edge of the roof structure. These
heights may vary in some buildings. It is used to

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© 2006 CoStar Group, Inc. All rights reserved. Other product and company names mentioned herein may be the trademarks of their respective owners. Information in this document is subject to change without notice.

COSTAR PROPERTY PROFESSIONAL USER MANUAL

Glossary

measure the vertical capacity of a building for chiefly on lower pricing to attract tenants and modifications. Shell: Space is new and unim-
storage and/or placement of equipment. investors. proved, as the space has never previously been
occupied by a tenant. It must be built-out prior to
Changes: Changes are modifications made to Clear Height: See Ceiling Height occupancy.
property or space data and presented in Property
Professional search results and/or change Client Folder: In context of Property Professional’s Condo: Office, medical, retail, or industrial suites
reports. The list below identifies Change types as My Surveys feature, a space where a user can of space that may be purchased. The term “con-
tracked. store and organize client contact information, dominium” refers to a form of ownership, not a
saved surveys, saved survey snapshots, and file type of structure or building. Condominiums are
Space Additions • Space Removals • Rental Rate attachments. Also, client folders and their con- typically multiunit structures or properties in
Changes • Sales Status Changes • Properties tents can be “shared” with other users. See also: which persons hold fee simple title to individual
Added • Properties Removed • RBA Changes • Publish, Attachment, Presentation units and an undivided interest in the common
Property Management Changes • Leasing areas.
Company Changes Close Date: Date that a for-sale property actually
closed escrow or the Recording Date at the Conferencing Facility: A meeting facility that may
Class: An office property classification system County Assessor’s Office. be used by all of the tenants in the building. See
based on the physical features and conditions, also: Amenities
architectural quality, typical pricing methods, and Column Depth: See Column Spacing
general locale of a building. See also: Class A, Construction Material: Indicates the type of mate-
Class B, and Class C Column Spacing: The minimum width and depth rials that were used to construct the building
between columns found within an industrial frame. The construction types are: Brick & Block,
Class A: A classification used to describe build- building. A building that is “clear of columns” Brick & Glass, Brick & Steel, Brick & Timber,
ings that may be considered a historical and/or does not have any columns within the building. Concrete, Concrete Brick, Poured in Place, Pre-
architectural landmark. It may have been built Cast, Reinforced Concrete, Reinforced Mason,
within the last 5-10 years, but if it is older, it has Column Width: See Column Spacing Split-Face Block, Steel, Steel & Concrete, Steel &
been renovated to maintain its status and to pro- Glass, Steel & Concrete Slabs, Tilt-Up, and Wood
vide many amenities. Class A buildings are gener- Common Area: See Core Frame.
ally one-of-a-kind with a unique shape and floor
plans, notable architectural design, excellent and Community Center: A retail property that typically Contig: See Contiguous Block
possibly outstanding location. It has the best offers a wider range of apparel and other soft
quality materials and workmanship, expensive goods than the neighborhood center. They have Contiguous Block: Continuous available space in
trim and interior fittings. It has first-rate mainte- two or more anchors, with supermarkets, super a building that a prospective tenant would be
nance and management and is usually occupied drugstores and discount stores as common able to occupy. Contiguous space in a building
by prestigious tenants. Class A buildings are anchors. Community center tenants sometimes includes all space on one floor and adjoining
most eagerly sought by investors willing to pay a contain off-price retailers selling such items as floors that are either above or below. Space is
premium for quality and are often designed by apparel, home improvement/furnishings, toys, considered contiguous in a building if it is con-
architects whose names are immediately recog- electronics, or sporting goods. A community nected to another floor above or below. A floor
nizable. shopping center development typically has a may be skipped in between as long as the floors
total square footage between 100,000 and on either side are full floors. Contiguous on one
Class B: A classification used to describe build- 350,000 SF. See also: Retail, Secondary Type, floor refers to the largest block of space on a sin-
ings that offer: utilitarian space without attrac- Property Type gle floor. Space must be touching in order to be
tions; ordinary design, if new or fairly new; good considered contiguous.
to excellent space and design if older; and a non- Comparison Survey: In context of Peering, a
landmark building. Class B buildings are less saved analytic survey selected for use in peer Core: The areas on a floor, such as washrooms,
appealing to tenants and may be deficient in a group analytic comparisons. See also: Peering, janitorial closets, electrical rooms, telephone
number of respects including floor plans, condi- Survey rooms, mechanical rooms, elevator lobbies, and
tion, and facilities. They lack prestige and must public corridors, which are available for the use
depend chiefly on lower prices to attract tenants Concierge: A lobby attendant provided by the of all tenants on that floor. It does not include
and investors. They are generally considered to building owner to assist tenants with special major vertical penetrations such as elevator
be a more speculative investment. requests such as tickets to the theater, concerts, shafts stairways, equipment runs, etc. (Identified
or other performances, restaurant information as a percentage of rentable area.)
Class C: A classification used to describe build- and reservations, ordering flowers, or calling
ings that are generally no-frills, older buildings taxis, to name a few. Concierges are usually Crane: Machinery used for loading, unloading
that offer basic space. Class C buildings typically found in buildings that are Class A. See also: and moving heavy loads through an industrial
offer: below average maintenance and manage- Amenities building. It runs along a track located on the ceil-
ment, mixed or low tenant prestige, and inferior ing of the building. There are also cab cranes that
elevators and mechanical/electrical systems. As Condition: The state of a particular space avail- are located on the ceiling, and an operator can sit
with Class B, they lack prestige and must depend able for lease. Conditions include those listed in the cab to operate the crane. The two crane
below. Built-Out: Space has existing tenant types can run in tandem for heavier loads. A
improvements performed on it, which make it
able to be occupied by a tenant.Move-In: Space
is “built-out” and a tenant may move in with no

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© 2006 CoStar Group, Inc. All rights reserved. Other product and company names mentioned herein may be the trademarks of their respective owners. Information in this document is subject to change without notice.

COSTAR PROPERTY PROFESSIONAL USER MANUAL

Glossary

number indicates how many cranes. Capacity (in include: a numeric value indicating the number of into moist, cool air by saturating it with water
tons) and Hook Height (in feet) may also be indi- drive-ins that exist, “Yes” indicating drive-ins exist, vapour. This type of equipment is commonly
cated. “None” indicating no drive-ins exist, and a meas- used in warm, dry climates. Common in the
urement indicating the height and width of the Phoenix market.
Cross Docks: A building attribute usually found in drive-in. If there is a dash, CoStar Researchers
Truck Terminals that facilitates companies that have not yet researched this field for the particular Executive Suite: A small unit of office space on a
have a high volume of inventory that is simulta- building. See also: Loading Docks, Cross Docks multi-tenanted floor. Typically has shared access
neously incoming and outgoing — such as pack- to a reception area, conference room and staff
age delivery services. In a building with Cross Effective Rent: The base rent paid by a tenant, services. May be furnished and provide access to
Docks, packages can be received on one side of adjusted downward for concessions paid for by photocopying, telephone usage and mail han-
the building, sorted or combined with other pack- the landlord (such as free rent, moving expenses, dling.
ages “in the middle,” and loaded to go out the or other allowances), and upward for costs that
other side of the building. Buildings with Cross are the responsibility of the tenant (such as oper- Existing: A building status identifying buildings
Docks are typically column-free and unheated. To ating expense pass throughs). Effective rent is that have been completed and are ready for
have Cross Docks, the building needs to be very the total of all cash flows over the term of the occupancy. A certificate of occupancy has been
narrow, between 60 to 80 feet wide. See also: lease. See also: Asking Rent, Average Weighted issued to the owner.
Loading Docks, Drive-Ins Rent, Estimated Rent, Estimated Gross Rent,
Services FAR: See Building FAR
Delivery Assumption: In context of Property
Professional analytic forecasting, a user-entered Empowerment Zone: An area designated by the Features: Special characteristics that can
variable for projecting vacancy rates. This U. S. government where financial incentives (such enhance an industrial property’s appeal, such as:
assumption variable is for net deliveries and can as corporate income tax credits) are provided for 24/7 building access, floor drains, skylights,
be entered as a fixed or variable rate. See also: economic development purposes. See also: property manager on sight, wet lab. See also:
Forecast, Absorption Assumption Amenities Amenities

Demolished: A building status identifying buildings Enterprise Zone: A designated area where finan- Fee Simple: Absolute ownership of real property.
that have been destroyed (torn down, burned, cial incentives (such as tax credits) are provided The owner has the right of disposition without
earthquake, natural disaster, etc.) or were convert- for economic development purposes. See also: limitation for the duration of their life. After death,
ed to a building type not tracked by CoStar (e.g., Amenities the property then passes to the owner-designat-
an office converted into a college). A building that ed heirs.
has been converted from office to industrial or vice Escalation: Indicates the amount and timing of
versa is also considered demolished. Demolished increases in the base rental rate for a tenant Flex: Describes spaces and properties that can be
buildings remain in CoStar Property Professional under lease. The increases can occur throughout used for a variety of purposes. Can be used in
database for historical purposes. the term of the lease, semi-annually, or at mid- combination with office, warehouse, quasi-retail,
term. Escalations may be expressed as a percent- R&D, industrial, and distribution uses. As a prop-
Direct Space: Space that is being offered for age of the original base rent or as a specific dollar erty type, Flex buildings have at least half of the
lease directly from the landlord or owner of a amount per square foot each per year. RBA used as office space, typically have ceiling
building, as opposed to space being offered in a heights under 18 feet, and are commonly zoned
building by another tenant (or broker of a tenant) Estimated Gross Rent: Projected rental rates that light industrial. Flex buildings have also been
trying to sublet a space that has already been include all operating expenses such as utilities, called Incubator, Tech, and Showroom buildings
leased. See also: Space Type electricity, janitorial services, taxes and insurance. in markets throughout the country. See Space
See also: Full Service Use, Property Type
Divisible Space: The smallest amount of square
feet to which the total unit of space may be Estimated Rent: The estimated monthly or yearly Floor Area Ratio: See Building FAR
divided. amount that a tenant pays in rent per square
foot. The estimated rent is based upon the asking Floor Contiguous: See Contiguous Block
Document Number: Reference number that corre- rent of the available space at the time the tenant
sponds to the grant deed, warranty deed or con- moved in. This value is oftentimes displayed in Floors: See Stories
veying instrument at a county recorder’s office. context of integrated CoStar Tenant® information.
Foil: A protective metal barrier that is placed
Docks: See Loading Docks, Cross Docks, Drive- Estimated Spread/SF: Spread/SF is the differ- between bays and in the ceiling of an industrial
Ins, Levelators ence between the building’s asking rent/SF and building to contain harmful chemicals. See also:
the tenant’s rent/SF paid. Spread/SF = (Current Features
Double Net: In context of lease service types, an Asking Rate) - (Estimated Rate paid). A positive
arrangement where lessee may pay for two of the value denotes a favorable dollar differential for Forecast: In context of Property Professional ana-
building expenses as determined by the landlord the tenant. A negative value denotes an unfavor- lytics, a feature for projecting vacancy rate trends,
and lessee. See also: Services able dollar differential for the tenant. based upon search result data and user-entered
delivery and absorption assumptions.
Drive-Ins: An entrance that enables trucks to drive Evaporative Cooled: Term relating to a type of
right in to the building. This type of door usually climate conditioning in a warehouse environ- Foreign Trade Zones (FTZs): Were created in the
indicates manufacturing use. Field values may ment. Produced by a equipment that turns air United States to provide special customs proce-
dures to U.S. plants engaged in international
trade-related activities. Duty-free treatment is
accorded items that are processed in FTZs and

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© 2006 CoStar Group, Inc. All rights reserved. Other product and company names mentioned herein may be the trademarks of their respective owners. Information in this document is subject to change without notice.

COSTAR PROPERTY PROFESSIONAL USER MANUAL

Glossary

then reexported, and duty payment is deferred being 99 years in length. The lessee pays the les- lease obligation. It includes all leased space,
on items until they are brought out of the FTZ for sor a monthly, quarterly or annual rent payment. regardless of whether the space is currently occu-
sale in the U.S. market. This helps to offset cus- The lessee often constructs a building on the site pied by a tenant. Leased space also includes
toms advantages available to overseas producers and operates it as if they owned the ground out- space being offered for sublease.
who compete with domestic industry. right. At the expiration of the lease agreement,
the lessor gains control of whatever is construct- Leasing Activity: The volume of square footage
Freestanding: A retail property with a single ten- ed on the land, unless the lease is renewed. that is committed to and signed under a lease
ant retail completely by itself and not part of any Typically these occur in large urban areas like obligation for a specific building or market in a
type of shopping center. See also: Retail, New York, Philadelphia, Baltimore, etc. given period of time. It includes direct leases,
Secondary Type, Property Type subleases and renewals of existing leases. It also
One of the largest ground leases in history includes any pre-leasing activity in under con-
Front Loading: An industrial building feature involved the territory of Hong Kong. The city was struction, planned buildings or under renovation
where the loading docks are located on the front once controlled by Great Britain under a 99-year buildings.
of the building facing the street, rather than in lease signed in 1898. China flat-out refused to
more common locations in the rear or at the side renew the lease. So in 1997, as the lease expired, Levelators: Steel plates moved by auto-hydraulic
of the building. See also: Features China received one of the largest and most-mod- lifts to level a loading dock or door with a truck
ern cities in the world. bed. A fully loaded truck sits 4-6 inches lower
Full Floors Only: A search criteria field that will than a standard 48-inch high-dock. An empty
narrow your search so that only spaces where the Horizontal Space: See Contiguous Block truck will sit 4-6 inches higher. The levelator is
entire floor is available for lease will be consid- used to account for the difference so a forklift can
ered. See also: Contiguous Block Improvement Ratio: The assessed value of the be driven into the truck. A building with multiple
improvements divided by total property assessed docks may not have a levelator for each spot.
Full Service (Full Service Gross or Gross): Rental value. Field values include: a numeric value indicating
rates that include all operating expenses such as the number of levelators that exist and “None”
utilities, electricity, janitorial services, taxes and Incubator: See Flex indicating there are no levelators. If a dash dis-
insurance. See also: Services plays, CoStar Researchers have not yet
Industrial: A type of building that is designed and researched this field for the particular building.
Full Value: When the terms of a sale are all cash, built for bulk warehousing, distribution, mechani-
the documentary transfer tax is paid on the entire cal storage and repair, and heavy manufacturing. Levelor: See Levelators
sales price. Cash plus a new loan by the buyer is Ceiling heights are generally in excess of 18 feet
treated the same as an all cash sale. with heavy industrial zoning. Manufacturing Lifestyle Center: An upscale, specialty retail, main
buildings may include ductwork, air lines, buss street concept shopping center. An open center,
Gross Absorption: The total change in occupied ducts, exhaust systems, floor drains and storage usually without anchors, about 300,000 SF GLA
space over a given period of time, counting space tanks. Warehouse buildings will contain open or larger, located near affluent neighborhoods,
that is occupied but not space that is vacated by space for storage such as a building with no includes upscale retail, trendy restaurants and
tenants. Gross absorption differs from leasing columns and will have high ceilings. It may entertainment retail. Nicely landscaped with con-
activity, which is the sum of all space leased over include humidity and cooling controls. Industrial venient parking located close to the stores.
a certain period of time. See also: Absorption secondary types as tracked are: Distribution,
Manufacturing, Service, Truck Terminal, and Listed: The amount of time, in weeks or months,
Gross Income Multiplier (GIM): The ratio of sale Warehouse. See Property Type, Secondary Type the listing has been on the market.
price to gross scheduled income plus other
income at time of sale, or projected GSI for the Industrial Gross: An industrial rent where the Load Factor: The ratio between the usable area
first year of ownership. Calculated by dividing the landlord may pay base year real estate taxes and and rentable areas — or — the factor by which
sale price by the gross scheduled income plus insurance. Tenant may pay common area mainte- the usable area is increased to obtain the
other income. nance. Exact payments need to be determined as rentable area. For example, Usable Area 10,000
they may reflect local custom. See also: Services SF x 1.15 = 11,500 SF Rentable Area.
Gross Rent Multiplier (GRM): Calculated by divid-
ing the sale price by the gross yearly rental Land: The total acreage or square footage of a Loading Docks: Platforms that are level with a
income. land parcel. The site may be improved with a truck bed and are located on the interior or exte-
structure(s) or it may be vacant. rior of a building. This type of door usually indi-
Gross Scheduled Income (GSI): The total annual- cates warehouse or distribution uses and allows
ized scheduled rents for an investment property Land Area: Total size of the parcel of land. The for loading/unloading of inventory from a truck.
at time of sale or projected for the first year of size can be expressed in acres or square feet, Field values that may appear include: a numeric
ownership, assuming full occupancy and includ- dependent upon the user’s “My Profile” prefer- value indicating the number of docks that exist,
ing miscellaneous income. ence settings. The site may be improved with a “Yes” indicating docks exist, “None” indicating
structure(s) or it may be vacant. no docks exist, “Int” indicating internal docks
Ground Lease: A lease agreement where the land exist, and “Ext” indicating external docks exist. If
owner (lessor) agrees to lease their land for a set Lease Term: The duration of the lease. Values for there is a dash, CoStar Researchers have not yet
period of time. Depending on the contents of the this field may be “TBD” (to be determined), a time researched this field for the particular building.
agreement, the lessor can stipulate what the les- span (e.g., 3-5yrs), or a date (e.g., thru April 2004). See also: Cross Docks, Drive-Ins
see can and can not do with the property. The
lease term is often 50 years or more, with most Leased Space: All the space that has a financial

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© 2006 CoStar Group, Inc. All rights reserved. Other product and company names mentioned herein may be the trademarks of their respective owners. Information in this document is subject to change without notice.

COSTAR PROPERTY PROFESSIONAL USER MANUAL

Glossary

Loft/Creative Space: Pre-World War II era, multi- Neighborhood Center: A retail property designed Originally, an outlet center consists of manufac-
story industrial buildings that were constructed in to provide convenience shopping for the day-to- turer’s outlet stores selling their own brands at a
urban settings. Lofts have floor-to-ceiling win- day needs of consumers in the immediate neigh- discount. However, today most outlet centers
dows and a minimum of 12’ ceilings. Renovations borhood. A center ranges in size from 30,000 — provide a secondary location for major retailers to
in these buildings creatively convert the space 150,000 SF. A supermarket and/or drugstore move their out-of-season fashions and no dis-
use from manufacturing to office. However, the anchor most of these (one or more anchors). counts are available. An outlet center does not
building will maintain the loft-style appearance Smaller stores offer drugs, sundries, snacks and have to be anchored. A strip configuration is
despite its space use. Lofts will be labeled for the personal services. The center is usually config- most common, although some are enclosed in
type of space they contain if they do not meet the ured as a straight-line strip with no enclosed malls and others can be arranged in a village
physical descriptions described above. See also: walkway or mall area, although a canopy may cluster. Typically 50,000 — 400,000 SF. See also:
Secondary Type connect the storefronts. See also: Retail, Retail, Secondary Type, Property Type
Secondary Type, Property Type
Lookup: A simplified search approach that finds Overage: A common condition in retail leases
results based on a single piece of information, Net Absorption: The net change in occupied where the tenant pays a certain percentage of
such as a property address, building name, or a space over a given period of time, calculated by their gross sales receipts to the landlord. This
company name. Lookup uses a specialized summing all the positive changes in occupancy payment is in addition to the base rent. The
search engine that compares the Lookup entry (move ins) and subtracting all the negative terms can state that the payment is due on a
against multiple fields of data — then returns the changes in occupancy (move outs). See also: fixed basis (paid every month) or it can be based
results that most closely match the entry. Absorption on gross sales in-excess of a certain amount
(10% of all sales over $10,000 per month). This is
Mall: See Regional Mall, Retail Net Rental Rate: A rental rate that excludes cer- also called "Percentage Lease".
tain expenses that a tenant could incur in occupy-
Medical: Indicates space that is used exclusively ing office space. Such expenses are expected to Owned: In context of Occupancy Status, condi-
for medical purposes. The build-out and/or con- be paid directly by the tenant and may include tion where the tenant owns the space it currently
figuration should support operations of medical janitorial costs, electricity, utilities, taxes, insur- occupies.
tenants (e.g., laboratory support, greater number ance and other related costs. There are many
of wet stacks, special power requirements, visi- variations of net rental rates that can assume a Park Name: The name of the park, subdivision, or
tors’ parking). Medical space is considered a sub- variety of names such as Net of Electric, Single complex in which the building is located.
set of office space and is counted as such. See Net, Double Net, Triple Net, and others.
also: Secondary Type, Space Use Parking: Descriptive information regarding a
New Space: Sometimes called first generation property’s parking, potentially including the type
Metal Halide: A type of reflective light fixture, space; refers to space that has never been occu- of parking (e.g., Covered, Surface) and conditions
associated to industrial property features, used pied and/or leased by a tenant. See also: Space of parking (e.g., Reserved, Free).
to maximize lighting and minimize cost. See also: Type
Features Peering: An analytic feature that enables the user
Occupancy Status: The type of possession in to see an analytic search result (as an aggregate
Mezzanine: A partial story between two main sto- which a tenant has over a space. See Leased, set) or a single property compared to one or two
ries of a building. See also: Amenities Subleased, Month-to-Month, Owned, and saved analytic survey result sets. Peering is avail-
Pending able when viewing summary and history data in
Modified Gross: Similar to Full Service, but the “analytic view” or on the “analytic tab” on a
tenant will be responsible for one or more of their Occupied Space: Space that is physically occu- tabbed detail page.
proportional share of the expenses. The landlord pied by a tenant. It does not include leased space
will pay the remaining expenses the tenant does that is not currently occupied by a tenant. Pending: See Sale Status
not pay. (Modified Gross can be used to identify
all lease types that are not Full Service or Net — Ofc: See Office in Warehouse Pending: In context of Occupancy Status, condi-
they vary from market to market.) See also: tion where there is a proposed lease with the
Services Office: A property type designed for office space execution pending signature by a representative
use. It may have some retail space, such as from the landlord and/or the tenant.
Month-to-Month: In context of Occupancy Status, banks, restaurants, and ground floor shops. See
condition where the tenant leases the space it also: Space Use, Property Type Percent Leased: The percentage of space in a
currently occupies on a short-term, month-to- specific building that has been leased or pre-
month basis. Office in Warehouse: Associated office areas leased. This applies to buildings that are under
within an existing Industrial type building; specifi- construction or proposed, as well as existing
Move-In: See Condition cally a warehouse facility. buildings. Percent Leased = Total Space Leased /
Rentable Building Area x 100
Negative Absorption: Condition that occurs when Offsites: Power, water, and sewer; width and
space that was occupied by a tenant is no longer paving of the streets, curbs, gutters, and side- Plus All Utilities: A building service type where
occupied. All the physically vacated space is walks. Anything outside the boundaries of the the tenant is responsible for their proportional
counted as negative absorption, even if the ten- subject lot. share of utilities. See also: Services
ant vacating the space still has a lease obligation
to the space they are vacating. See also: Outlet Center: A retail property usually located in Plus Cleaning: A building service type where the
Absorption a rural or occasionally in a tourist location. tenant is responsible for their proportional share

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© 2006 CoStar Group, Inc. All rights reserved. Other product and company names mentioned herein may be the trademarks of their respective owners. Information in this document is subject to change without notice.

COSTAR PROPERTY PROFESSIONAL USER MANUAL

Glossary

of cleaning expenses. See also: Services Take the inverse of the Improvement ratio to gen- into the income equation. A majority of the
erate a land ratio of 20%. Calculate the value of expenses collected from tenants are paid out for
Plus Electric: A building service type where the the land when using the land ratio against the fixed and operating expenses throughout the
Lessor pays for all services except electricity. sales price. ($1,000,000 X 20%=$200,000) That course of the year. The tenants are either billed
Tenants pay their share based on the square value is then divided by the land area to come up on a monthly or quarterly basis. Owners use spe-
footage in which they occupy. See also: Services with a Net $/SF for land. (e.g., $200,000/5000 = cific accounting standards to maintain a balanced
$40 Price per SF Net) account of what tenants are billed and what is
Plus Electric & Cleaning: A building service type paid out to vendors. The net charges can be
where the Lessor pays for all services except elec- Property ID: A unique six-character property iden- adjusted (as well as credited back) in order to off-
tricity and cleaning expenses. See also: Services tification code. set an out of balance ledger. When these expens-
es have been included in the gross effective
Plus Utilities and Char.: A building service type Property Type: In context of CoStar Property income the norm is to offset this figure by includ-
where the Lessee pays for everything except utili- Professional, Property Type is the overall classifi- ing the total operating expenses into the pro
ties (electric, water, etc.) and cleaning. See also: cation related to a property. The list below identi- forma expenses.
Services fies the Property Type options as tracked. Each
option is also defined separately within this glos- Regional Mall: A retail property that is typically
Positive Absorption: Condition that occurs when sary. Industrial, Flex, Office, Multi-Family, Retail, enclosed, with an inward orientation of the stores
space not previously occupied becomes occu- Land. See also: Space Use, Secondary Type connected by a common walkway and parking
pied (by a tenant). See also: Absorption surrounds the outside perimeter. The term repre-
Proposed: A building status identifying buildings sents the most common design mode for region-
Power Center: A retail property dominated by that are not yet under construction, but have al and super regional centers and has become an
several large anchors, including discount depart- complete site and architectural plans, and a informal term for these types of centers.This cen-
ment stores, off-price stores, warehouse clubs, or scheduled completion date. ter type provides general merchandise (a large
“category killers,” i.e., stores that offer tremen- percentage of which is apparel) and services in
dous selection in a particular merchandise cate- Publish: In context of the My Surveys page, refers full depth and variety. Its main attractions are its
gory at low prices. The center typically consists of to a feature where Property Professional users anchors: traditional, mass merchant, or discount
several freestanding (unconnected) anchors and can make Presentations and/or Attachments visi- department stores or fashion specialty stores.
only a minimum amount of small specialty ten- ble to password-protected Web sites. The user Malls are 400,000 SF and up. See also: Retail,
ants. 250,000 — 600,000 SF. See also: Retail, manages access to those password-protected Secondary Type, Property Type
Secondary Type, Property Type Web sites. In order for a user to Publish, that user
must have an active subscription to Property Relet: A space type describing a space that was
Pre-leased Space: The amount of space in a Professional and CoStar Connect. previously occupied by a tenant but is now under
building that has been leased prior to its con- the control of the building owner (to lease). See
struction completion date, or certificate of occu- Published Attachment: See Attachment, Publish also: Space Type
pancy date. CoStar includes only under construc-
tion or planned/proposed properties in its statis- Published Presentation: See Presentation Rent: See Asking Rent, Average Weighted Rent,
tical calculations of pre-leased space. Snapshot, Publish Effective Rent, Estimated Rent, Estimated Gross
Rent
Premier Property: A property that is featured via Published Presentation: See Presentation,
CoStar Interactive Advertising and receives spe- Publish Rentable Building Area: See RBA
cial treatments within the screen display.
Rail Line (Industrial): Indicates that rail service is Requirement: In context of a saved surveys and
Presentation: In context of the My Surveys page available to the building, including an area for the My Surveys page, the name assigned to a
and saved surveys, a Presentation is a “snapshot train cars to pull up at one time for loading and saved survey.
copy” of a search result that was created either unloading. See also: Rail Spots
upon saving a survey (and including the option to Retail: A space use and/or a property type
save criteria AND results) or upon editing results Rail Spots (Industrial): Indicates the number of designed for retail sale uses. A retail space can
via the Presentation Maker. The snapshot copy of exterior and interior rail spots (doors) available to be within a non-retail property type, such as the
the results corresponds to the data values seen the building. See also: Rail Line Office property type. A retail property type can be
at the time when the snapshot copy was made. classified further with one of the secondary type
While the user can edit data values via the Raw Land: See Land options listed below. Each secondary type option
Presentation Maker, the snapshot data values are is also defined separately within this glossary.
not updated as a part of CoStar research team RBA: Rentable Building Area is the usable area See also: Space Use, Property Type, Secondary
updates. See also: Publish plus the tenants’ share of common areas, such as Type
air-conditioning rooms, electrical rooms, janitorial
Presentation Maker: A Property Professional utili- rooms, hallways, and bathrooms. It can also be Sale Status: Status of a “for sale” property.
ty for editing property and space data within defined as the gross floor area deducting vertical Status options as tracked are listed below.
a Property Search or Lookup result set. penetration (elevator shafts, stair wells, large
equipment runs). Typically this is the amount of Active • Pending • Under Contract
Price Per SF Net: Example: 5000 SF of land sold space on which the rent is based; calculated
for $1,000,000 and the assessed improvement according to local practice. Secondary Type: A characterization that corre-
ratio (supplied by the assessment office) is 80%. sponds to a building’s physical design and/or
Recoverable Expenses: The landlord’s collection
of expenses from tenants, which is often factored

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© 2006 CoStar Group, Inc. All rights reserved. Other product and company names mentioned herein may be the trademarks of their respective owners. Information in this document is subject to change without notice.

COSTAR PROPERTY PROFESSIONAL USER MANUAL

Glossary

use, such as: Apartment units, bank, bar, airport, Space Notes: Comments indicating key informa- by releasing water into the pipes.)None: building
landfill, self-storage, warehouse, medical, show- tion about a particular space; such as, office fix- does not have a sprinkler system. ESFR: Early
room, distribution. tures and furnishings, amenities, on-site facilities, Suppression Fast Response system is present. (If
type of view, proximity to transportation and a fire starts, the system will concentrate releasing
Services: In context of presentation of an Asking restaurants, and parking information. water only where it senses a fire.)Yes: a sprinkler
Rent, refers to services or charges for services. system exists, however, its type has yet to be
The list below identifies tracked Services. Items Space Type: Refers to the means by which space confirmed.
on the list with an asterisk have additional sepa- is available for lease. The list below identifies the
rate definitions found within this glossary. The Space Type options as tracked. Each option is Status: In context of CoStar Property
service type can display as “Negotiable” in cases also defined separately within this glossary. Professional, Status is the designation that
when the leasing contact does not provide the Direct and Relet terminology is used interchange- relates to the property’s physical existence. The
service type. The service type can display as ably, dependent upon the user’s “My Profile” list below identifies the Status options as
“TBD” for cases in which services are not known, preference settings. tracked. Each option is also defined separately
because the building is not built yet (as in within this glossary.
Proposed or Under Construction properties). Direct • Relet • Sublet • New
Definitions of other tracked service types can be Existing • Under Construction • Under
found within this glossary. See also: Space Use Renovation • Proposed • Demolished

Double Net • Full Service (Full Service Gross or Space Use: Describes the type of operations Stories: The number of floors in the building.
Gross)Industrial Gross • Modified GrossNet • and/or purpose designated for or associated
Plus All Utilities • Plus Cleaning • Plus Electric • with a particular space. The list below identifies Strip Center: See Unanchored Strip Center
Plus Electric & Cleaning • Plus Utilities and Char. the Space Use options as tracked. Items with an
• Tenant Electric • Triple Net (NNN) asterisk have additional separate definitions Subleased: In context of Occupancy Status, con-
found within this glossary. dition where the tenant leases the space it cur-
SF Occupied: See Occupied Space rently occupies from another tenant that has a
Office • Retail • Medical* • Flex* • Warehouse lease on the space.
SF/Employee: The average number of square
feet per employee based on the total square feet See also: Space Type Sublet Space: Space that has been leased by a
occupied divided by the number of employees at tenant and is being offered for lease back to the
a given location. This does not apply to tenants in Speciality/Festival/Entertainment Center: A retail market by the tenant with the lease obligation.
industrial buildings. property typically employing a unifying theme See also: Space Type
that is carried out by the individual shops in their
Shallow Bay: A specific type of industrial classifi- architectural design and, to an extent, in their Submarket: The specific geographic boundary
cation, which reflects a clear height of 18 to 24 merchandise. The biggest appeal of these cen- that serves to delineate a core group of buildings
feet, 11 to 30 percent office build-out, bay depth ters is to tourists. Restaurants and entertainment that are competitive with each other and consti-
120 to 200 feet, dock high and drive-in doors, facilities can be anchors. These centers, generally tute a generally accepted primary competitive
minimum max contiguous areas 5,000sf to located in urban areas, tend to be adapted from set, or peer group. Submarkets are building type
25,000sf, may have rail service, and the primary older, sometimes historic, buildings, and can be specific (office, industrial, retail, etc.) with distinct
uses are distribution, or light manufacturing. See part of mixed-use projects. 80,000 — 250,000 SF. boundaries that are dependent upon different
also: Features See also: Retail, Secondary Type, Property Type factors relevant to each building type.
Submarkets are non-overlapping, contiguous
Shell: See Condition Spread Ratio: The percentage of rent that the ten- geographic designations having a cumulative
ant is overpaying or underpaying in regards to sum that matches the boundaries of the
Showroom: See Flex the building’s asking rent. Spread ratio is calcu- Submarket Cluster in which they are located. See
lated by (Spread/SF) / (Asking Rent/SF) x 100. also: Market, Submarket Cluster
Site Plan Approved: Applies to proposed build- Spread/SF is the difference between the build-
ings only. It indicates that all governmental, con- ing’s asking rent/SF and the tenant’s rent/SF Submarket Cluster: Geographic boundaries that
struction, and other necessary approvals have paid. Spread/SF = (Current Asking Rate) — serve to delineate core areas that are competitive
been received, and that construction can begin. (Estimated Rate paid). A positive value in spread with each other and constitute a generally
Obtaining financing or financing approval is not denotes a favorable percent differential for the accepted primary competitive set of areas.
included, as these are separate items, which may tenant. This information displays on CoStar Submarket Clusters are building type specific,
or may not be needed. See also: Amenities Tenant® detail card. and non-overlapping contiguous geographic des-
ignations have a cumulative sum that matches
Skylights: In context of industrial building fea- Sprinkler: Fire safety system tracked within the boundaries of the entire Region or Market in
tures, refers to a built-in fire safety feature that industrial properties. Field values that may which they are contained. Submarkets can be
allows smoke and heat to escape through the appear (and a description of each) are listed subdivided into Submarkets. See also: Market,
ceiling/roof either automatic or melt-away. See below.Wet: sprinkler pipes are fully charged with Submarket
also: Features waterDry: sprinkler pipes are not filled with water
and a shut-off valve with a pump regulator con- Survey: Properties and spaces within a search
Space: A block of square footage within a build- trols the water pressure. (If a fire starts, at a cer- result. Incorporates criteria entered (either as
ing that could be occupied by a tenant. See also: tain temperature the solder melts away — there- part of a search or a Lookup), individual proper-
Space Type, Space Use

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© 2006 CoStar Group, Inc. All rights reserved. Other product and company names mentioned herein may be the trademarks of their respective owners. Information in this document is subject to change without notice.

COSTAR PROPERTY PROFESSIONAL USER MANUAL

Glossary

ties and spaces added or removed (via features canopies may connect the storefronts, but a strip space. Likewise, space that has been leased but
for Add Properties or remove property), and prop- center does not have enclosed walkways linking not yet occupied because of finish work being
erties and spaces added or removed by query. the stores. A strip center may be configured in a done would also be considered vacant space.
straight line, or have an “L” or “U” shape. Strip
Tech: See Flex centers range in size from 20,000 — 99,999 SF. Vertical Space: See Contiguous Block
See also: Retail, Secondary Type, Property Type
Telecom Hotel/Data Hosting: A building designed Warehouse: Facility used exclusively for storage.
as a centralized repository for the storage, man- Under Construction: A building status identifying See also: Space Use, Secondary Type
agement, and dissemination of data and informa- a building in the process of being developed,
tion. The primary characteristic of these facilities assembled, built or constructed. A building is Weighted Average Rent: See Average Weighted
is that they have very few, if any, offices, because considered to be under construction after it has Rent
they principally house electronic equipment. A begun construction and until it receives a certifi-
data center is owned or leased to one company cate of occupancy. Wet Lab: A type of laboratory that is equipped
and a telecom hotel leased to numerous compa- with fume-hoods and sinks with running water.
nies. See also: Secondary Type Under Contract: See Sale Status See also: Features

Tenant Electric: Lessor pays for all services and Under Renovation: A building status identifying Year Built: The year an existing building was com-
Lessee is responsible for their usage of lights and buildings that are unoccupied because they are pleted. For “Under Construction” and “Proposed”
electrical outlets. See also: Services in a state of renovation. Either they are awaiting buildings, this is the scheduled completion date.
building certificates or are currently under recon-
Term: See Lease Term struction. Zoning: The public regulation of real estate use
accomplished by establishing districts or areas
Time on Market: The length of time a property is Unpublished Attachment: See Attachment, with uniform restrictions.
initially listed for sale until an offer is accepted Publish
and the property is either put under contract or
escrow is opened. Unpublished Presentation: See Presentation,
Publish
Total in Building: An advanced search criteria
option that will apply your SF Avail criteria to the Usable Area: The area occupied by the tenant
sum of all the available space in an entire build- and not shared with other tenants or building
ing. services. It is the rentable area minus the com-
mon areas.
Total in Listing: An advanced search criteria
option that will apply your SF Avail criteria to the Vacancy Rate: The percentage of space that
sum of all the available space under one contrac- exists but is not currently occupied. Vacancy Rate
tual listing. equals the space that is currently marketed in an
existing building, which is physically vacant, plus
Transfer Tax -Full Value: Documentary transfer any space not on the market and not yet occu-
tax affixed to the deed is computed on the full pied divided by the existing RBA (Rentable
value of the property conveyed. Building Area). It is important to note that CoStar
offers two vacancy rates: one that includes
Triple Net (NNN): In context of lease service Sublet space and one that does not. Therefore,
types, usually a lease where the tenant is respon- vacancy rate can be calculated as new/relet or
sible for all expenses associated with their pro- new/relet/sublet. See also: Forecast
portional share of occupancy of the building,
except long-lived structural components and Vacant Available Space: Space that is both
management charges. Local custom dictates dif- vacant and available at the same time. That is,
ferences, which must be confirmed. See also: space that is being marketed as for lease or for
Services sale, and that is physically not occupied by a ten-
ant. The difference between vacant space and
Truck Well: A slope that brings the level of a truck vacant available space is that vacant space can
bed to a dock high loading platform. Capacity is contain spaces that have been leased by a tenant
defined as the number of trucks that can simulta- but not occupied by the tenant.
neously load or unload cargo.
Vacant Space: Space that is not currently occu-
Truss Height: See Ceiling Height pied by a tenant, regardless of any lease obliga-
tion that may be on the space. Vacant space
Type: See Property Type, Space Type, Secondary could be space that is either available or not
Type available. For example, sublease space that is
currently being paid for by a tenant but not occu-
Unanchored Strip Center: A retail property with pied by that tenant, would be considered vacant
an attached row of stores or service outlets man-
aged as a coherent retail entity, with on-site park-
ing usually located in front of the stores. Open

8

© 2006 CoStar Group, Inc. All rights reserved. Other product and company names mentioned herein may be the trademarks of their respective owners. Information in this document is subject to change without notice.