March 10, 2010

Commercial Real Estate terms


When dealing with Real-Estate properties, you should have a detail knowledge about common commercial Real-Estate Terms. Real-Estate means Real Property. Most of you may already know the common terms like Lease, Sublease etc. But today I shall tell you some other commercial terms, which are used very frequently in Real-Estate purpose.

Broker
They are the connecting medium between the two parties, involved in a real-estate transaction. Normally they are state-licensed.  They get commission for their work. They also get fees from the sellers or the landlords of the property.


Appraisal
It is very essential for  the sell of any kind of property. Actually, it is a report, provided by the licensed agent, which is based on the straight and fair evaluation of the values of the property of anybody along with a clear explanation.


Build-to-suit
It is  one of the procedures of leasing any property. In this method, the owner of the land takes action as specified by the tenant for the betterment of the land. All the costs related to this work are included in the lease terms.


Concessions
Sometimes the owners of the land or properties, give some dicounts ( absorption of moving charges, decreased rent at the beginning, build-outs etc. ). This is called Concession. This helps in closing the lease.


HVAC
The abbreviation of "Heating-Ventilation-Air-Conditioning". The commercial building, maintained by the property-owner, is called HVAC.


Lien
A creditor can file a legal claim on a property if the debtor (here the land-owner) fails to pay his debt. This is called lien.

Don't forget these. Because money really matters.

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