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Commercial Real Estate Glossary

Glossary

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Technical components

Factors that determine whether a location or site is suitable or able to support a given use.

Technical feasibility

In the case of site selection, it is an evaluation of multiple sites to determine which sites should be considered further based upon their physical limitations, regulatory requirements, and environmental and legal considerations; whereas in the case of highest and best use, it refers to the determination of the possible uses of a particular site as based upon technical considerations.

Tenant

A person or entity who has possession of the property though a lease. A tenant also may be referred to as a lessee.

Tenant improvements

Preparation of leased premises prior to or during a tenant’s occupancy, which may be paid for by either the landlord, the tenant, or both.

Tenant-paid tenant improvements (TPTI)

The total cost (outlay) of necessary tenant improvements paid by the tenant netted against any allowance provided by the landlord.

Tenure

A designation which distinguishes between the renter versus owner-occupied status of housing units or households.

Theme/festival center

These retail centers typically employ a unifying theme that is carried out by the individual shops in their architectural design and, to an extent, in their merchandise. The biggest appeal of these centers is to tourists; restaurants and entertainment facilities can anchor them. These centers, generally located in urban areas, tend to be adapted from older, sometimes historic, buildings and can be part of mixed-use projects. [International Council of Shopping Centers (ICSC) Shopping Center Descriptions]

Threshold population

The minimum number of people or minimum market area or sales volume necessary to sustain a business or make it economically viable. Also see high order goods and lower order goods.

TI

See tenant improvements.

TI allowance from owner

Entry on the tenant’s Cash Flow Form. A specified amount of money the owner will pay for tenant improvement.

Time value of money (TVM)

An economic principle recognizing that a dollar today has greater value than a dollar in the future because of its earning power.

Total effective rate

The rate per square foot paid by the tenant over the entire period analyzed.

Formula:Total effective rate = Total effective rent Square footage rented

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