Glossary

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.

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.

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.

Time-weighted average annual rate of return

The constant annual return over a series of years that would compound to the same return as compounding the actual annual returns for each year in the series.

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.

Toolbar

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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.

Trackback

Automated notification that another website mentioned your site which is baked into most popular blogging software programs.

Due to the automated nature of trackbacks they are typically quite easy to spam. Many publishers turn trackbacks off due to a low signal to noise ratio.

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. CMBS offerings are generally divided into rated and unrated classes, or tranches, according to seniority and risk. Higher-rated tranches allow for internal credit enhancements; lower-rated classes offer higher yields.

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.

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.