Industry Terms and Definitions

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
Neighborhood Shopping Center
This type of retail property is most commonly found in the United States. Anchored by supermarkets and drug stores, the centers are typically one-level, rectangular structures with surface parking in the front and merchandise loading areas in the back. They provide for the sale of convenience goods (food, drugs, etc.) and personal services (laundry, dry cleaning, etc.) for the day-to-day living needs of the immediate neighborhood. (See Retail Building Types Matrix.)
Net Absorption
The net change in occupied space over a specified period of time. This change is measured in square feet at the building, submarket and market levels. This figure reflects the amount of space occupied as well as the amount of space vacated. Net absorption can be either positive or negative and must reflect increases and decreases in inventory levels.
Net Cash Flow
Net cash flow is the annual income produced by an investment property after deducting allowances for capital repairs, leasing commissions, tenant inducements (after the initial lease is up) and debt service from net operating income.
Net Lease
A lease in which the tenant pays a share of operating expenses in addition to the stipulated rent. Disclosure of the specific expenses to be paid directly by the tenant is required. (See Common Lease Types Matrix.)
Net-net Lease
(See Modified Lease)
Net-net-net Lease
(See Modified Lease)
Net Operating Income (NOI)
The income generated after deducting operating expenses but before deducting taxes and financing expenses.
New Space
Space delivered to the market that was never previously leased or occupied by a tenant.
New Supply
(See Delivered)