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Glossary
Moving expenses
The cost incurred by the tenant to move into the new space. The landlord may pay a portion or all, depending on what is negotiated in the lease. Also see moving allowance.
Multifamily housing
Housing units that accommodate more than one family or household.
Multiple-use office space
Office space that can be used for a variety of purposes; sometimes referred to as generic office space.
n
A component of the T-bar that represents the number of periods over which the investment is held.
Negative leverage
Borrowed funds are invested at a rate of return lower than the cost of funds to the borrower.
Neighborhood center
This center is designed to provide convenience shopping for the day-to-day needs of consumers in the immediate neighborhood. According to ICSC’s SCORE publication, a supermarket anchors half of these centers, while about a third have a drugstore anchor. Stores offering pharmaceuticals and health-related products, sundries, snacks and personal services, support these anchors. A neighborhood center is usually configured as a straight line strip with no enclosed walkway or mall area, although a canopy may connect the storefronts.
Net lease
A lease in which the tenant pays, in addition to rent, all operating expenses such as real estate taxes, insurance premiums, and maintenance costs. Also see gross lease.
Net operating income (NOI)
The potential rental income plus other income, less vacancy, credit losses, and operating expenses.
Net present value (NPV)
The sum of all future cash flows discounted to present value and netted against the initial investment.
Neutral leverage
An investment situation in which the cost of borrowed funds is exactly equal to the yield provided by the investment.
NOI
See net operating income.
Non-basic employment
Employment that is considered to be of the nonexport-oriented variety: employment not associated with export-oriented activities. Nonbasic employment is best characterized by industries and activities that produce goods and services exclusively for local use or consumption.