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BALANCE‌ ‌SHEET‌

A sheet that gives a peek into the assets, liabilities, and the equity of the company, the three utmost financial factors of any corporate real estate business.

CAPITAL LEASE

A long-term lease that makes the tenant or the lessee a near-owner of the asset, since a major part of the assets are transferred in this lease. In finance, the capital lease is considered a debt.

CASH FLOW STATEMENT

A primary element for the financials of a company, this statement records the cash generated or lost during a said period of time. Cash from operations, investments, and finances are the key factors calculated here.

 

DEPRECIATION EXPENSE

Over time, buildings, machines, and other similar assets go through wear and tear, which reduces their value. The periodic cost of maintenance or renovation that goes for such depreciation is called depreciation expense.

DIRECT COSTS

Hard or direct costs give an idea of the expenses made for labor, materials, or heavy equipment used for large constructions.

EFFECTIVE GROSS INCOME

The calculated value of a property which considers factors such as vacancies or collection losses.

EFFECTIVE RENTAL RATE

The equivalent constant rate per period that is equal to the present value of net cash flows over the term of a lease. ERR is calculated both by the lessor and the lessee for different purposes.

FACILITY MANAGEMENT

A holistic management system that ensures the robustness of the work environment. It integrates various processes of a corporate organization such as the workforce, workspace, and even technology.

FOCUS SPACES

Private spaces for small meetings, one-on-one conversations, or phone calls. Such spaces are common in a co-working space environment and usually compensate for the lack of an entirely private space.

GOVERNMENT INCENTIVES

Incentives such as free lands, tax rebated spaces, or special assistance provided by the city, state, or national government. These incentives can play a decisive role in where corporate real estate is set up.

GROSS BUILDING AREA

The total area of a building which includes below-ground areas such as basements and parking. GBA does not include any area that is not enclosed, since it is calculated within the walled spaces.

HAZARD INSURANCE

Financial protection against calamities such as fires, windstorms, and more. Each hazard insurance agreement for corporate real estate covers different hazards for insurance.

HOLDING PERIOD

The period for which a rented or leased space is held by the organization as per the agreement.

INTEGRATED SUPPORT SERVICES

A collaborative ecosystem which is made of the non-core business segments such as Human Resources, Finance, IT, and more. The support team helps in the smooth functioning of the corporate, while enhancing work experience and reducing costs in various segments.

KEY PERFORMANCE INDICATORS (KPI)

Parameters that are both financial and non-financial, which help an individual decide the success of a business. They measure the progress made in the long run, and are used in business intelligence to find the best strategies for the coming future while also auditing improvements.

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LEASE ABSTRACTING

Hotel classifications driven by physical location.

LEASEHOLD INTEREST

The interest that is held by the lessee or the tenant, who temporarily has the rights to usage and occupancy of the corporate space, as agreed upon in the lease for a specified time period.

MARKETABILITY STUDY

A detailed study of the economics of the corporate real estate market, which gives insight on future market demands, best use of a property, testing proposal developments, and so on.