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Glossary
Leased fee
In exchange for permitting a tenant to use the property, the owner/lessor has the right to receive rental income and the right to repossess the property upon termination of the lease.
Leased fee interest
The value (to the owner) of the rental payments plus the value of the property at the end of the lease term (reversionary interest).
Leasehold estate
In exchange for rent, the tenant has the right to occupy and use the property for the duration of the lease.
Leasehold interest
The value (to the tenant) of the lease. The value of the leasehold interest is determined by present value of the difference between market rent and the contract rent.
Leasing
A means of obtaining the physical and partial economic use of a property for a specified period without obtaining an ownership interest.
Lessee
The person renting or leasing the property. Also known as a tenant.
Lessor
The person who rents or leases a property to another. Also known as a landlord.
Leverage
The use of borrowed funds to finance a portion of the cost of an investment.
Lifestyle characteristics (psychographics)
Intangible characteristics of a local economy that define and shape the quality of life element and the social and cultural identity of the local population.
Linkages
The cost to transport goods, services, or people to and from a site measured in time, distance, and inconvenience.
Liquidation value
The likely price that a property would bring in a forced sale (foreclosure or tax sale). Used when a sale must occur with limited exposure time to the market or with restrictive conditions of sale.
Liquidity
The ability to convert an investment into cash quickly without loss of principal.