Commercial Real Estate Glossary: (R-Z)
Real Estate Investment Trust (REIT)
An investment vehicle in which investors purchase ownership in a trust, which in turn invests the money in real estate and distributes at least ninety percent of its taxable income to investors. The trust is not subject to corporate income tax if it complies with REIT tax requirements. Shareholders must include their REIT income in their personal tax returns
Regional Center
A retail center that provides general merchandise (a large percentage of which is apparel) and services in full depth and variety. It’s main attractions are its anchors; traditional, mass merchant, discount department stores, or fashion specialty stores. A typical regional center has parking surrounding the outside perimeter and is enclosed with an inward orientation of stores connected by a common walkway
Rent Concession
A period of free rent or other allowance that the owner gives to the tenant
Rentable Area
The computed area of a building defined by the Building Owners and Managers Association guidelines and typically measured in square feet, including both core/structure and useable area. The actual square footage area for which the tenant will pay rent, it is the gross area of an office building, less uninterrupted vertical space (such as stairways and elevators). Unlike useable area, rentable area includes common areas such as lobbies, restrooms and hallways, as well as the measurement of structural columns and architectural projections
Research and Development
Industrial space category that is a hybrid of office and manufacturing. The research and development category is the most people-intensive of industrial properties. Tenants of these properties usually require many improvements such as clean rooms for chip manufacturing, laboratories, cafeterias, lounges, and other amenities. These properties have rental and sale values second only to pure office space among commercial properties.
Retail Property
Property used to market and sell consumer goods and services. Types of retail properties include: community centers, fashion/specialty centers, neighborhood centers, outlet centers, power centers, regional center, superregional center and them/festival center
Retail Trade Area
Also referred to as a service area, it generally is defined as the geographic or formal area from which a sustained patronage is attracted to support