TERM |
DEFINITION |
T.I. Tenant Improvements |
The interior improvements or renovations in an office space. |
TIA Tenant Improvement Allowance |
A Landlord’s contribution toward interior improvements. |
LOI Letter of Intent |
Outlines the basic terms and is the point of beginning for the office lease. |
BOMA Building Owner’s and Management Association |
A professional association that sets standards of practice within commercial real estate. Most leases specify BOMA standards for the measurement of square footage. |
USF Usable Square footage |
The usable area of space leased. |
RSF Rentable Square Footage |
The usable space plus a pro-rata share of common areas. |
FF&E Furniture Fixtures & Equipment |
Items owned by the tenant that may be temporarily affixed to a premises but are removed when the tenant vacates. |
ROFR Rights of First Offer |
Tenant’s expansion rights that give the tenant the first offer to lease space when it becomes available for lease. |
PG Personal Guaranty |
Typically the principle and spouse of the tenant entity will provide a guaranty of the tenant’s monetary performance under the lease. |
NNN Triple Net Lease |
Operating expenses are fully passed through to the tenant or otherwise paid directly. |
FSG Full Service Gross |
Operating expenses are imbedded in the lease and paid for by the landlord. |
MG Modified Gross |
A hybrid whereby some expenses are paid by the tenant and some are paid by the landlord. |
BY Base Year |
A way of calculating an expense base that uses the actual expenses for a specified year. |
CAM Common Area Maintenance Charges |
Most frequently used in a NNN lease, this refers to the expenses allocated to the common areas like landscaping, electricity, parking lot repairs, etc. |
CCR’s Covenants, Conditions and Restrictions |
Documents that outline proposed uses, restrictions and in many cases, construction guidelines for a property or land. |
Average Daily Rate |
Room revenue divided by rooms sold. |
Adjusted Net Operating Income |
NOI less FF&E Reserves. |
Basis Point |
One hundredth of a percentage point (0.01%). |
F&B Revenue |
Revenue derived from food and beverage sales. |
FF&E Reserve |
A deduction from NOI to cover the expected recurring cost of replacements of the furniture, fixtures & equipment. The current amount of deduction is a lender requirement of 4% of gross revenues. For GAAP reporting purposes, the FF&E reserve is eliminated and actual costs incurred for replacements are capitalized or expensed. |
Gross Operating Profit |
Hotel revenue less operating expense, excluding management fees and fixed costs. |
London Inter-Bank Offered Rate |
The rates that contributor banks in London offer each other for interbank deposits. |
Net Operating Income |
GOP less management fees and fixed costs – taxes, insurance, etc. |
Occupancy Rate |
Rooms sold divided by rooms available. |
Revenue Per Available Room |
Room revenue divided by rooms available. |
Room Revenue |
Revenue derived from guest room rental. |
Social, Military, Educational, Religious, Fraternal |
A market segment for sales of banquet rooms and meeting facilities. |
Smith Travel Research Report |
Provides market share analysis for all major hotel chains and brands. |
Trailing 12 Month |
A 12 month lookback from a specific point in time. Ex. A “Trailing 12 Month NOI” would be the preceding 12 months of NOI from a given month. |
STR Comp Set |
A peer group of competitive hotels selected by management to benchmark the subject property’s performance. Current Comp 1 – Measures against full service hotels in Santa Cruz, CA and is the comp set defined in the Hotel Management Agreement; Comp 2 – Measures against resort hotels in Northern, CA to assist in pricing & compare performance as a destination hotel. |
Total Revenue |
Room Revenue, F&B Revenue and all other revenues generated from operations. |
Total Year Forecast |
Actual performance through reporting period and updated forecasted performance through the remaining year. |
Yield Maintenance |
The present value of remaining payments multiplied by the difference between the bond interest rate and the rate on a Treasury note of the same duration. |