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.