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Glossary
Outlet center
A retail property type usually located in rural or occasionally in tourist locations, outlet centers consist mostly of manufacturers’ outlet stores selling their own brands at a discount. These centers are typically not anchored. A strip configuration is most common, although some are enclosed malls, and others can be arranged in a village cluster.
Overage rent
See percentage rent.
Oversupply
In reference to commercial real estate, oversupply is a stock or supply of a given commercial property type that is greater than that which can be cleared under prevailing prices levels and market conditions (for example, excess supply). Also, a phase of the real estate market cycle denoting that period of time in which commercial real estate markets become saturated with units due to overbuilding.
Owners moving expense
See moving allowance.
Owning
A means of obtaining the full economic use of a property for an unspecified period by obtaining an ownership interest.
Partially amortized mortgage loan
The payments do not repay the loan over its term and thus a lump sum (balloon) is required to repay the loan.
Participation mortgage
A loan secured by real property, with a stated interest rate that also provides for a share to the lender in annual net cash flow, gain on sale, or proceeds from refinancing the property. (Real Estate Information Standards)
Passive income
Income from rental activity, limited business interests, or other activities in which the investor does not materially participate.
Passive losses
Losses from the ownership of passive investments.
Payment (PMT)
A periodic amount paid or received for two or more periods.
Percentage lease
A lease in which the rent amount is based on a percentage of gross sales (monthly or annually) made by the tenant.
Percentage rent
The additional rent (over a base amount) that is paid by tenants to owners on tenant sales over a specified dollar amount. It is frequently found in retail leases. Also known as overage rent.