Industry Terms and Definitions

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Mobile commerce is buying and selling via non-tethered devices such as smartphones and smart tablets.
Manufacturing Building
A facility used for the conversion, fabrication or assembly of raw or partly wrought materials into products or goods. (Typical characteristics are shown in the Industrial Building Types Matrix.)
Market and Submarket
In commercial real estate (CRE), the terms “market” and “submarket” have many characteristics.
  1. Hierarchy: In terms of geographic hierarchy, a region is made up of markets, and a market is made up of submarkets.
  2. Boundaries: Markets and submarkets have generally accepted geographic boundaries that do not overlap. They are most commonly bound by streets, roads and natural features such as parks and rivers, which clearly indicate where one market or submarket ends and another begins.
  3. Purpose: Markets and submarkets are the foundation upon which analysts track real estate fundamentals such as vacancy, absorption, rents and construction activity.
  4. Markets and submarkets are further broken down by total buildings and by total square footage in those buildings.
  5. Product types: Office and industrial product types may share generally accepted market or submarket boundaries because in the United States, office space tends to be clustered together as does industrial space. However, there may also be separate and distinct boundaries for each respective property type. Suburban retail is more closely tied to residential and, therefore, is dispersed across large geographic areas, whereas urban retail is typically clustered in specific areas or on specific streets.
Master Lease
The controlling lease identifying the terms and length of the lease. Note that a sublease cannot extend beyond the term of the master lease. (See Common Lease Types Matrix.)
Medical Office Building (MOB)
A structure with at least 75 percent of its interior built out to accommodate healthcare providers such as doctors and dentists or healthcare technicians who perform exams with specialized equipment. Typically, the buildings have more robust mechanical, electrical and plumbing systems as well as reinforced floors to accommodate numerous exam rooms and heavy medical equipment.
Mezzanine Office
Office space that is built in an industrial facility. It is usually along the perimeter of a facility and creates an intermediate floor.
Mid-rise Office Building
(See Office Building Types and Sizes)
Mixed-use Development (MXD)
The grouping of multiple significant uses within a single site or building such as retail, office, residential or lodging facilities. Examples include office buildings that contain ground-level retail and housing, plus projects that have separate office, retail and multifamily properties. Clustering of at least three different uses such as office, retail, residential and/or hotel adjacent to or in close walkable proximity to one another. Uses can be contained in the same building or dispersed in different buildings that are adjacent to or close to one another.
Modified Gross Lease
(See Modified Lease)
Modified Lease
A lease in which the landlord receives a stipulated rent, and payment of the property’s operating expenses is divided between the lessor and lessee via specified terms in the lease; also called “Modified Gross,” “Net-net” (Double Net), “Net-net-net” (Triple Net), etc., depending on the degree to which the tenant or landlord are responsible for operating costs. (See Common Lease Types Matrix.)
Multitenant Office Building
A building that is not owner occupied and space that is leased to two or more tenants.