Commercial Real Estate Terms – T

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Taking: A common synonym for condemnation, or any interference with private property rights, but it is not essential that there be physical seizure or appropriation. See Rentlaw.com – Eminent Domain

Tax Base: The assessed valuation of all real property that lies within a taxing authority’s jurisdiction. When multiplied by the tax rate, it determines the amount of tax due.

Tax Lien: A statutory lien for nonpayment of property taxes that attaches only to the property upon which the taxes are unpaid

Tax Roll: A list or record containing the descriptions of all land parcels located within the county, the names of the owners or those receiving the tax bill, assessed values and tax amounts

Tenant (lessee): One who rents real estate from another and holds an estate by virtue of a lease



Tenant at Will:
One who holds possession of premises by permission of the owner or landlord. The characteristics of the lease are an uncertain duration and the right of either party to terminate on proper notice.


Tenant Improvement (TI):
Improvements made to the leased premises by or for a tenant

Tenant improvement (TI) allowance: Defines the fixed amount of money contributed by the landlord toward tenant improvements. The tenant pays any of the costs that exceed this amount. One method is “free rent”. See Rent Commencement Date


Tenant in Common (TIC):
Method of Ownership whereby there are multiple owners, each owning a deed to their share of ownership.


Tenant Mix:
A phrase used to describe the quality of a property’s income stream. In multi-tenanted properties, institutional investors typically prefer a mixture of national credit tenants, regional credit tenants and local non-credit tenants.

Term: The lifetime of a loan ( or lease).


Tenant Screening: Also known as Tenant Verification, Tenant Credit Report. PRIOR to renting to an individual, a credit bureau report is run to verify tenants past banking, renting and other information. See Our Tenant Credit Report Service
Title: The means whereby the owner has the just and full possession of real property

Title Insurance: A policy issued by a title company that insures against loss resulting from defects of title to a specifically described parcel of real property, or from the enforcement of liens existing against it at the time the title policy is issued

Title Search: A review of all recorded documents affecting a specific piece of property to determine the present condition of title

Total Acres:
All land area contained within a real estate investment

Total Assets
: The sum of all gross investments, cash and equivalents, receivables, and other assets presented on the balance sheet

Total Commitment:
The full mortgage loan amount that is obligated to be funded if all stated conditions are met


Total Inventory: The total square footage of a type of property within a geographical area, whether vacant or occupied

Total Principal Balance:
The total amount of debt, including the original mortgage amount adjusted for subsequent fundings, principal payments and other unpaid items (e.g., interest) that are allowed to be added to the principal balance by the mortgage note or by law

Total Retail Area:
Total floor area of a retail center less common areas. It is the area from which sales are generated and includes any department stores or other areas (such as banks, restaurants or service stations) not owned by the center.

Total Return:
The sum of quarterly income and appreciation returns

Trade Fixtures: Personal property that is attached to a structure that is used in the business. Because this property is part of the business and not deemed to be part of the real estate, it is typically removable upon lease termination.

Tranche:
A class of securities.

Triple net lease: A lease that requires the tenant to pay all expenses of the property being leased in addition to rent. Typical expenses covered in such a lease include taxes, insurance, maintenance and utilities. Commonly referred to as “NNN” lease or “3N”. Also see CAM charges. Read more on Triple Net Leases

Trustee: The trustee oversees the flow of funds through the CMBS structure on behalf of the bondholders. The trustee is responsible for collecting principal and interest from the servicer, distributing payments to bondholders and reporting to bondholders.

Turn Key Project:
The construction of a project in which a third party is responsible for the total completion of a building, or for the construction of tenant improvements to the customized requirements and specifications of a future owner or tenant. So you can “turn the key and be open for business or move-in”.

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