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
When the space is physically occupied. (Synonym: leasing activity)
Tenants or Tenancy in Common (TIC)
An estate held by two or more persons, each of whom has an undivided interest, which means that each party has the right to sell or transfer the ownership of his or her ownership interest.
Third-party Logistics (3PL)
Businesses that provide one or more logistics services including multiclient warehousing, contract warehousing, transportation management, distribution management, inventory management and freight consolidation.
Total Gross Absorption
(See Gross Absorption)
Total Inventory
The total number of buildings and total square footage (net rentable area) in the competitive inventory. Buildings under construction are not part of total inventory. Total inventory increases when a new building is delivered and decreases when an existing building is demolished or changes use. Total inventory includes properties under renovation if the building remains inhabitable during the renovation but excludes properties converting to a different use. Total inventory is typically measured at the submarket and market levels. A description of the characteristics and numeric thresholds that make up the total inventory should be provided. The total inventory figure may vary from one data provider to another as a result of tailored definitions of what constitutes the competitive inventory. (See competitive inventory for more information.)
Total Net Absorption
(See Net Absorption)
Total Occupied Space
(See Occupied Space)
Total Vacancy Rate
(See Vacancy Rate)
Total Vacant Space
(See Vacant Space)
Town Center
A historical term used to refer to the commercial, civic or geographic center of a community. Today, the term is associated with retail and has come to be known as a robust retail cluster with civic or open spaces in proximity to a variety of uses such as residential, office, retail and hotel.
Traditional Outlet
The tenants offer a discount version of mainstream retailers and are often called “factory stores.” They usually focus on apparel. Traditionally, the stores have been located far outside a city center. The outlets are designed as a destination or tourist magnet. (See Retail Building Types Matrix.)
Traditional Retailer
A retailer that started selling in brick-and-mortar locations but that now also sells items online.
Transit Score
Transit score is a number between 0 and 100 that measures the relative usefulness of nearby routes. “Usefulness” is typically measured by a weighted algorithm of characteristics such as distance to the nearest stop; mode of the route such as bus, ferry or rail; and frequency of service.
90–100 Rider’s Paradise
World-class public transportation
70–89 Excellent Transit
Transit convenient for most trips
50–69 Good Transit
Many nearby public transportation options
25–49 Some Transit
A few nearby public transportation options
0–24 Minimal Transit
Possible to get on a bus
Transit-oriented Development (TOD)
Real estate projects that are built around transit to maximize access to shared transportation modes. Typically, the TOD project is dense and walkable, and it includes a mix of uses such as residential, office, retail, hotel and entertainment.
Triple Net Lease
A lease agreement whereby the tenant pays taxes, maintenance and property insurance as well as all operating costs associated with the tenant’s occupancy, including personal property taxes, janitorial services and all utility costs. The landlord is responsible for the roof and the structure and sometimes the parking lot. (See Common Lease Types Matrix.)
Trophy Building
A landmark property that is located in a highly desirable submarket, is designed by a recognized architect, and features high-end finishes and modern or efficient systems. This building commands among the highest rents in the market and is more than 80 percent occupied by the market’s premier tenants. It is highly sought after by institutional investors such as pension funds and insurance companies as well as by foreign investors. These properties are more desirable than Class A buildings.
Truck Court
Exterior area adjacent to an industrial building’s loading docks where trucks maneuver. The most important measure of the truck court is the depth from the building to the end of the truck court. Greater depth allows for greater maneuverability and better accommodates multiple trucks.
Truck Terminal
This specialized distribution building for redistributing goods from one truck to another serves as an intermediate transfer point. The facilities are primarily used for staging loads (rather than long-term storage) and possess very little, if any, storage area. (Typical characteristics are shown in the Industrial Building Types Matrix.)
Truck-turning Radius
The tightest turn a truck can make, depending on several variables such as truck configuration, trailer size and location of adjacent objects that obstruct the inner turning radius.
A framework of beams forming a rigid structure (as in a roof truss).
Truss Height
Distance from the floor to the bottom edge of a truss used to support the ceiling or roof of a building. If there are hanging objects, beams or joists below the truss, the clear height will be lower than the truss height.
A term used to describe a landlord’s agreement to provide and pay for improvements to a tenant’s premises. The landlord is required to deliver the premises in a condition ready for the tenant’s stipulated use.