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Commercial Real Estate Glossary



Fixed lease

A lease in which the lessee pays a fixed rental amount for the duration of the lease.


An estimate or prediction of a future condition or outcome.

Forecast period

An upcoming time period of interest in which a forecast is to be made.

Formal (or geographic) data

Information/data collected and presented by formal region. Also see formal region.

Formal region

A region identified by political jurisdiction or on the basis of the presence or absence of one or more distinguishing features or characteristics.

Free rent

See rent concessions.

Fully amortized mortgage loan

A method of loan amortization in which equal periodic payments completely repay the loan.

Functional components

Factors which determine how a location or site functions.

Functional data

Information/data collected and presented by functional region. Also see functional region.

Functional feasibility

Considerations made in the site selection process which assist in the evaluation of site potential as defined in terms of the practicality of a site, the best site for a given use, or the determination of a site's best use, through the examination of linkages, competition, demographics, and market conditions.

Functional obsolescence

A form or source of accrued depreciation considered in the cost approach to market value. The reduced capacity of a property or improvements to perform their intended functions due to new technology, poor design, or changes in market standards.

Functional region

A region delineated in terms of linkages or economic interactions that are typically organized as a trade area about a dominant location, center, or economic activity.

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