Glossary

Offer

Term used to describe a stated price or spread to sell whole loans or securities.

Open Source

Software which is distributed with its source code such that developers can modify it as they see fit.

On the web open source is a great strategy for quickly building immense exposure and mindshare.

Open space

An area of land or water dedicated for public or private use or enjoyment.

Open-end fund

A commingled fund that does not have a finite life, continually accepts new investor capital and makes new property investments.

Operating cost escalation

Although there are many variations of escalation clauses, all are intended to adjust rents by reference to external standards such as published indexes, negotiated wage levels, or expenses related to the ownership and operation of a building.

Operating expense

The actual costs associated with operating a property, including maintenance, repairs, management, utilities, taxes and insurance.

Opportunistic

A phrase generally used by advisers and managers to describe investments in underperforming and/or undermanaged assets that hold the expectation of near-term increases in cash flow and value. Total return objectives for opportunistic strategies tend to be 20 percent or higher. Opportunistic investments typically involve a high degree of leverage - typically 60 percent to 100 percent on an asset basis and 60 percent to 80 percent on a portfolio basis.

Originator

A company that sources and underwrites commercial and/or multifamily mortgage loans.

Out-parcel

Individual retail sites in a shopping center.

Overallotment

A practice through which underwriters offer and sell more shares than they have agreed to buy from the issuer.

Overture

The company which pioneered search marketing by selling targeted searches on a pay per click basis. Originally named GoTo, they were eventually bought out by Yahoo! and branded as Yahoo! Search Marketing.