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Glossary
Retail
Also see community center, fashion/specialty center, neighborhood center, outlet center, power center, regional center, superregional center, and theme/festival center.
Retail gap analysis
A gap analysis performed specifically on retail floorspace in a given market or trade area.
Retail gravity model
A gravity model used to estimate dollar flows to or the sale/revenue potential of competing retail establishments in a given geographic market. Also see gravity model.
Retail property
Properties used exclusively to market and sell consumer goods and services.
Retail trade area
Also referred to as service area, is generally defined as the geographic or formal area from which a sustained patronage is attracted to support a retail center or establishment; the extent to which is determined by numerous factors including the site characteristics of the center or establishment, its accessibility, the presence or absence of physical barriers to movement, and general limitations imposed by driving time, congestion, and distance/separation.
Reversion value
A lump-sum cash benefit that an investor receives or expects to receive upon the sale of an investment.
Risk
The probability that actual cash flows from an investment will vary from the forecasted cash flows.
Safe rate
The rate a low risk, liquid investment achieves.
Sale cost
The brokerage commissions and fees, and any additional transaction costs that are incurred during the sale of the property.
Sale-leaseback
A leasing and financing strategy in which a property owner sells its property to an investor, then leases it back. This strategy frees capital that otherwise would be frozen in equity.
Sales proceeds after tax
The sale proceeds before tax minus the tax liability on the sale.
Sale(s) proceeds before tax
The sale price minus the sale costs and the mortgage loan balance.