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Commercial Real Estate Glossary




See dynamic system and systems analysis.

Systems analysis

A methodological framework for investigating the structure, components, and functions of a system.


A chart used to summarize the timing of real estate cash flows.

Tangible characteristics

Attributes that are quantifiable, measurable, factual, or expressed numerically as data or statistics.

Target market

Likely users or investors whose needs match the property’s features. Alternatively, when representing users, the target market is the kind of property that matches your user-client’s needs.

Tax impact

The impact of taxes on investment income and rate of return.

Tax liability

Real estate taxable income multiplied by the tax rate.

Tax savings (annual expense)

Entry on the tenant’s Cash Flow Form. All annual expenses incurred by the tenant are tax deductible. The tax savings are calculated by multiplying the annual deduction by the tenant’s tax rate.

Tax savings (capital expenditure)

Entry on the tenant’s Cash Flow Form. It refers to any tax savings associated with any capital expenditure by the tenant in terms of the site or major, unusual business expenses incurred to make the new office efficient for the business. The amount of tax savings is calculated by multiplying the annual deduction amount by the tenant’s tax rate.

Tax shelter

The ability of real estate investments to reduce an investor’s tax liability through the use of cost recovery.

Taxable income

Adjusted gross income less personal deductions and exemptions.


How an investment is affected by tax laws and codes.

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