Industry Terms and Definitions

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1 A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
E-commerce
Electronic commerce is the buying and selling of products or services mostly through the Internet. Typically, transactions are carried out via desktop and laptop computers as well as on mobile devices such as smartphones and smart tablets.
Effective Rent
Expressed in dollars per square foot either per year or per month depending on market standards, it is a measurement of the value of the lease when all the concessions plus escalations are included. Effective rent calculations may vary according to local market practices; for example, in some markets, broker commissions are included.
Effective Rent Calculation
Effective Rent = (total rent – free rent – cash allowances) / lease
term / rentable square foot Total Rent = rent paid during the term of the lease including
escalations Note: Cash allowances can include free rent, moving allowances
and other cash considerations.
Assumptions: <5,000-square-foot (sf) lease
36 months
$25 contract rate with $0.50 annual escalations
1 month free rent (first month)


  Formulas Total Rent
Year 1 (11 months) $25.00 x 5,000 sf x (11/12) = $114,583
Year 2 (12 months) $25.50 x 5,000 sf = $127,500
Year 3 (12 months) $26.00 x 5,000 sf = $130,000
Total Rent or Consideration   $372,083
Effective Rental Rate   $24.85/sf/year
Encumbered Space
A block of space offered for lease by a landlord to which another tenant has some right to lease or occupy at some future date.
Energy Star®
Also referred to as an “EPA rating” or an “Energy Star rating,” the rating is a standardized national benchmark that helps architects and building owners assess energy use relative to similar buildings in the program. An Energy Star-qualified building means the building meets EPA criteria for energy efficiency and displays the Energy Star building label.
Experiential Retail
The notion that people buy goods online but pursue experiences at brickand- mortar locations (i.e., do yoga, eat at restaurants, visit flagship stores for experience and entertainment, etc.).
Exurban
An emerging residential area beyond built-up suburbs and edge cities.