ORLANDO INDUSTRIAL7.2%+0.4%
MIAMI MULTIFAMILY$3,420+1.2%
TAMPA RETAIL4.8%-0.2%
US-192 CORRIDOR$340/SF+4.1%
30Y FIXED MORTGAGE6.72%-0.08%
FED PROBABILITY (PAUSE)92%+2%
ORLANDO INDUSTRIAL7.2%+0.4%
MIAMI MULTIFAMILY$3,420+1.2%
TAMPA RETAIL4.8%-0.2%
US-192 CORRIDOR$340/SF+4.1%
30Y FIXED MORTGAGE6.72%-0.08%
FED PROBABILITY (PAUSE)92%+2%
ORLANDO INDUSTRIAL7.2%+0.4%
MIAMI MULTIFAMILY$3,420+1.2%
TAMPA RETAIL4.8%-0.2%
US-192 CORRIDOR$340/SF+4.1%
30Y FIXED MORTGAGE6.72%-0.08%
FED PROBABILITY (PAUSE)92%+2%
FL CRE GLOSSARY: 250+ TERMS WITH FLORIDA-SPECIFIC CONTEXT AND STATUTES · CAP RATE, DSCR, NNN LEASE, 1031 EXCHANGE, FIRPTA — EVERY TERM DEFINED WITH FL DATA · DOC STAMP: $0.70/$100 STATEWIDE, $1.05/$100 MIAMI-DADE — F.S. §201.02 · TRIM NOTICE: 25-DAY APPEAL DEADLINE IS ABSOLUTE — FILE FIRST, GATHER EVIDENCE LATER · FL COMMERCIAL RENT TAX: 2% ON BASE RENT + CAM — F.S. §212.031 · DSCR: 1.20x MINIMUM FOR MOST FL COMMERCIAL LENDERS — Q1 2026 · SBA 504: 10% DOWN FOR OWNER-OCCUPIED — DRAMATICALLY CHANGES LEASE VS BUY MATH · THE LIST ORLANDO: INSTITUTIONAL CRE INTELLIGENCE — thelistorlando.com · FL CRE GLOSSARY: 250+ TERMS WITH FLORIDA-SPECIFIC CONTEXT AND STATUTES · CAP RATE, DSCR, NNN LEASE, 1031 EXCHANGE, FIRPTA — EVERY TERM DEFINED WITH FL DATA · DOC STAMP: $0.70/$100 STATEWIDE, $1.05/$100 MIAMI-DADE — F.S. §201.02 · TRIM NOTICE: 25-DAY APPEAL DEADLINE IS ABSOLUTE — FILE FIRST, GATHER EVIDENCE LATER · FL COMMERCIAL RENT TAX: 2% ON BASE RENT + CAM — F.S. §212.031 · DSCR: 1.20x MINIMUM FOR MOST FL COMMERCIAL LENDERS — Q1 2026 · SBA 504: 10% DOWN FOR OWNER-OCCUPIED — DRAMATICALLY CHANGES LEASE VS BUY MATH · THE LIST ORLANDO: INSTITUTIONAL CRE INTELLIGENCE — thelistorlando.com
The List Orlando

Florida CRE glossary & encyclopedia

220 Florida-specific commercial real estate terms. Each with FL context, statutory references, formulas, and related terms. The reference that FL attorneys, CPAs, brokers, and investors bookmark.

Terms defined
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Showing 220 of 220 terms
#2 terms
1031 Exchange(Like-Kind Exchange)beginner
Tax deferral mechanism under IRC §1031. Defer capital gains by reinvesting proceeds into replacement property of equal o...
Transactions▼
1031 Exchange ID Rulesintermediate
IRS rules governing 45-day replacement property identification. Three rules: Three-Property Rule, 200% Rule, 95% Rule....
Capital Markets▼
A11 terms
Absolute NNN Lease(Bond Lease)intermediate
The most landlord-favorable lease. Tenant pays ALL property expenses including structural repairs, roof replacement, and...
Leases▼
Absorption Rateintermediate
The rate at which available commercial space is leased or sold in a market over a given period. Positive absorption = de...
Property Operations▼
ADA Compliance(Americans with Disabilities Act)beginner
Federal law requiring commercial properties to be accessible to persons with disabilities. Applies to public accommodati...
Property Operations▼
Air Rightsadvanced
Legal right to use, develop, or control space above a parcel. Can be sold, leased, or transferred separately from land b...
Capital Markets▼
All-Cash Salebeginner
Purchase made entirely with equity — no mortgage. Eliminates lender contingencies, allows faster closing....
Transactions▼
Amortizationbeginner
Scheduled repayment of a loan over time through regular payments covering principal and interest. The amortization sched...
Financing & Debt▼
Anchor Tenantbeginner
A major, high-traffic tenant whose presence attracts customers for smaller co-tenants. Anchors typically occupy large sp...
Leases▼
As-Is Valueintermediate
Current market value in present condition and occupancy — not assuming any hypothetical improvements or future lease-up....
Valuation▼
Asbestos Containing Materials(ACM)intermediate
Building materials containing asbestos — commonly found in pre-1980 FL commercial buildings in insulation, floor tiles, ...
Environmental▼
Assignment of Contractintermediate
Transfer of buyer's contract rights to new buyer. Original buyer transfers position without completing purchase....
Transactions▼
Assignment of Leaseintermediate
Transfer of tenant's entire leasehold interest to a new party. Original tenant typically remains secondarily liable unle...
Leases▼
B10 terms
Balloon Paymentbeginner
A large lump-sum principal payment due at the end of a loan term that was not fully amortized. Common in commercial mort...
Financing & Debt▼
Bert Harris Actadvanced
FL law providing property owners cause of action when government action 'inordinately burdens' private property without ...
Florida-Specific▼
Boutique Hotelintermediate
Small independent hotel (<100 rooms) with distinctive design and local character. Competes with lifestyle brands....
Property Types▼
Bridge Loanintermediate
Short-term financing (6-36 months) used to bridge the gap between a property's current condition and when it qualifies f...
Financing & Debt▼
Brownfieldsintermediate
Contaminated or potentially contaminated property where environmental conditions complicate redevelopment. FL FDEP Brown...
Environmental▼
BTR Community(Build-to-Rent)intermediate
Purpose-built single-family/townhome communities designed for rental. Professional management at scale in planned commun...
Property Types▼
Building Classbeginner
A, B, or C rating system for commercial buildings based on age, quality, amenities, and location. No formal national sta...
Property Operations▼
Building Condition Assessment(BCA)intermediate
Professional inspection report evaluating the physical condition of a commercial building's major systems — roof, HVAC, ...
Property Operations▼
Building Envelopeintermediate
The physical barrier between a building's interior and exterior — roof, walls, windows, foundation. The primary defense ...
Property Operations▼
Burn-Off Guaranteeintermediate
Personal guarantee that decreases over the lease term based on tenant payment performance. Incentivizes tenants to negot...
Leases▼
C26 terms
CAM Charges(Common Area Maintenance)beginner
Operating expenses passed to tenants proportionally. Includes landscaping, parking maintenance, security, management fee...
Leases▼
CAM Reconciliationintermediate
Annual process where landlord compares actual operating expenses to estimated CAM charges collected from tenants, with t...
Leases▼
Cap Rate(Capitalization Rate)beginner
The ratio of NOI to market value or sale price. The primary metric for comparing commercial real estate investments acro...
Valuation▼
Cap Rate Compressionintermediate
Market condition where cap rates decline (values rise relative to income). Driven by increased demand, lower rates, or s...
Valuation▼
Capital Expenditure(CapEx)intermediate
Major expenditures for improvements or replacements that extend the useful life of the property — roof, HVAC, parking lo...
Property Operations▼
Capital Stackintermediate
The complete structure of all capital sources financing a real estate project — from senior debt at the bottom to common...
Financing & Debt▼
Carve-Out Guaranteeadvanced
Limited personal guarantee on non-recourse loans creating liability for specific bad acts — fraud, misappropriation of r...
Financing & Debt▼
Cash-on-Cash Returnintermediate
Annual pre-tax cash flow divided by total cash invested. Measures cash income return on actual equity deployed — include...
Valuation▼
CDD Assessment(Community Development District)beginner
Mandatory assessment charged to properties within a Florida Community Development District — special-purpose government ...
Florida-Specific▼
Certificate of Occupancy(CO)beginner
Document from building authority certifying compliance with codes and fitness for occupancy. Required before legal use....
Zoning & Land Use▼
CFIUS Reviewadvanced
US interagency committee reviewing certain foreign real estate transactions near sensitive government facilities for nat...
Florida-Specific▼
Citizens Property Insuranceintermediate
Florida's state-created insurer of last resort. Not a government guarantee. Rate increases and depopulation program push...
Florida-Specific▼
Class A Officebeginner
Highest quality office: newest construction, premium locations, full amenities, professional management, premium rents....
Property Types▼
Closing Agentbeginner
The neutral party who conducts the real estate closing — handling document execution, fund disbursement, recording, and ...
Transactions▼
Closing Statement(ALTA Settlement Statement)beginner
Document itemizing every financial transaction at closing. Shows all debits, credits, prorations, and final cash require...
Transactions▼
CMBS Loan(Commercial Mortgage-Backed Security)advanced
A commercial mortgage pooled with others and sold to bond investors as securities. Non-recourse, fixed-rate, typically 5...
Financing & Debt▼
Co-Tenancy Clauseintermediate
Lease provision allowing tenant to pay reduced rent or terminate if anchor tenants or occupancy levels fall below a thre...
Leases▼
Cold Storage(Refrigerated Warehouse)advanced
Industrial facility maintaining refrigerated or frozen temperatures. Most capital-intensive property type but commands s...
Property Types▼
Commencement Datebeginner
The date a commercial lease officially begins — when rent obligations start. May differ from the date the tenant takes p...
Leases▼
Comparable Sales(Comps)beginner
Recently sold properties similar to the subject property used for valuation comparison. Adjustments made for differences...
Valuation▼
Construction Exchange(Improvement Exchange)advanced
1031 variation using exchange proceeds for construction on replacement property. EAT holds property while improvements m...
Capital Markets▼
Construction Loanintermediate
Short-term financing for real property construction. Funds drawn in stages as milestones are met. Converts to permanent ...
Financing & Debt▼
Contract Assignabilityintermediate
The right of a buyer under a purchase contract to transfer their position to another buyer. May be unlimited, restricted...
Transactions▼
Cost Approachintermediate
Appraisal method estimating value based on land value plus cost to construct improvements minus depreciation. Used for u...
Valuation▼
Credit Tenantintermediate
A tenant with investment-grade credit (BBB- or better). Credit tenant leases command premium pricing (lower cap rates) b...
Leases▼
Crowdfundingintermediate
Raising capital from many investors through online platforms for real estate investment. SEC Regulation D (accredited) a...
Capital Markets▼
D15 terms
Dark Anchorintermediate
An anchor that has vacated but still pays rent. Lights off, no operations. Drags down traffic and co-tenant performance....
Leases▼
Data Centeradvanced
Facility housing computer systems, telecom, and storage. Requires massive electrical infrastructure, redundant cooling, ...
Property Types▼
DCF Analysis(Discounted Cash Flow)advanced
Projects all future cash flows and discounts them to present value using a required rate of return. More comprehensive t...
Valuation▼
Debt Fundadvanced
Investment vehicle that pools investor capital to originate or acquire commercial real estate loans rather than equity p...
Capital Markets▼
Debt Yieldadvanced
NOI divided by loan amount. Measures lender's return if they took the property through foreclosure. CMBS lenders increas...
Financing & Debt▼
Deed in Lieu(Deed in Lieu of Foreclosure)advanced
Borrower voluntarily transfers title to lender in exchange for release from mortgage obligation, avoiding foreclosure....
Capital Markets▼
Deed Restrictionintermediate
Private covenant in a deed limiting how property can be used. Runs with the land and binds all future owners....
Transactions▼
Defeasanceadvanced
A CMBS loan prepayment mechanism where the borrower substitutes US Treasury securities for the property collateral, main...
Financing & Debt▼
Development Order(DO)advanced
Binding governmental decision authorizing specific development under FL's DRI review process. Creates vested rights....
Zoning & Land Use▼
Discount Rateadvanced
The required rate of return used to discount future cash flows to present value in a DCF analysis. Reflects the risk of ...
Valuation▼
Documentary Stamp Tax — Deedsbeginner
Florida excise tax on real property transfer. Rate: $0.70/$100 statewide, except Miami-Dade at $1.05/$100. Includes full...
Financing & Debt▼
Documentary Stamp Tax — Mortgagesbeginner
Florida excise tax on new mortgage instruments. Rate: $0.35/$100 of principal. Applied to face amount of mortgage note....
Financing & Debt▼
DSCR(Debt Service Coverage Ratio)beginner
Net Operating Income divided by annual mortgage payments. Measures how many times income covers debt obligations. The pr...
Financing & Debt▼
DST(Delaware Statutory Trust)advanced
A legal entity that allows multiple investors to hold fractional ownership in investment real estate. Qualifies as repla...
Capital Markets▼
Due Diligence Periodbeginner
Contractually specified period for buyer to investigate property and terminate if needed. Buyer's window to discover all...
Transactions▼
E8 terms
EGI(Effective Gross Income)beginner
Gross potential rental income minus vacancy and credit loss, plus other income (parking, storage, signage, laundry). The...
Valuation▼
Environmental Indemnityadvanced
Agreement by seller (or responsible party) to indemnify buyer against environmental cleanup costs and liabilities. Negot...
Environmental▼
Equity Multipleintermediate
Total return divided by total equity invested. 2.0x means $2 for every $1 invested. Does not account for time — use alon...
Valuation▼
Escrow Deposit(Earnest Money)beginner
Good-faith deposit held by neutral escrow agent pending closing. May be 'hard' (non-refundable) or 'soft' (refundable du...
Transactions▼
Estoppel Certificatebeginner
Signed document by tenant confirming current lease status — rent, term, options, deposits, defaults. Binds tenant to cer...
Leases▼
Exclusive Use Clauseintermediate
Lease provision granting tenant exclusive right to conduct specific business use within a center. Prevents landlord from...
Leases▼
Expansion Optionintermediate
Tenant's contractual right to lease additional space in the building, typically adjacent to their existing suite....
Leases▼
Expense Ratiobeginner
Total operating expenses as a percentage of effective gross income. Measures operational efficiency....
Property Operations▼
F26 terms
F.S. §475(Florida Real Estate Licensure)intermediate
FL's primary real estate licensing law governing brokers, sales associates, and appraisers. Establishes licensing, condu...
Florida-Specific▼
FAR(Floor Area Ratio)intermediate
Ratio of building's total floor area to land area. FAR 2.0 on 10,000 SF lot = 20,000 SF building allowed. Higher FAR = m...
Zoning & Land Use▼
FIRPTA Withholding(Foreign Investment in Real Property Tax Act)intermediate
Buyer withholds 15% of gross sale price when purchasing US property from foreign seller. Prepayment toward seller's US t...
Transactions▼
FL Commercial Rent Sales Taxbeginner
2% state sales tax on commercial rent under F.S. §212.031. Applied to base rent AND all NNN/CAM charges. One of few stat...
Leases▼
Flex Spacebeginner
Versatile property combining office and warehouse/light industrial space. Flexible configuration — 20% to 60% office....
Property Types▼
Flood Zonebeginner
FEMA-designated area with varying levels of flood risk. Zone A/AE = high risk (mandatory flood insurance for federally-b...
Environmental▼
Florida Ad Valorem Taxbeginner
Property tax assessed on the value (ad valorem = 'according to value') of real property by FL county property appraisers...
Florida-Specific▼
Florida Broker Lien Lawintermediate
FL law granting licensed brokers lien right on commercial property for unpaid commissions under written contract. Commer...
Florida-Specific▼
Florida Building Code(FBC)beginner
Mandatory statewide minimum building code. Updated every 3 years. Contains hurricane-resistant requirements unique to FL...
Florida-Specific▼
Florida Condominium Actintermediate
F.S. Chapter 718 governing creation, sale, and operation of condominiums in Florida. Among most comprehensive condo stat...
Florida-Specific▼
Florida Corporate Transparency Act(CTA)beginner
Federal law (effective 2024) requiring most LLCs and corporations to report beneficial ownership information (BOI) to Fi...
Florida-Specific▼
Florida CRA(Community Redevelopment Area)intermediate
Special district using tax increment financing (TIF) to address blight. CRA captures property tax growth above frozen ba...
Florida-Specific▼
Florida Eminent Domainadvanced
Government's power to take private property for public use with payment of 'full compensation.' FL has among the stronge...
Florida-Specific▼
Florida Estoppel Certificate Lawbeginner
FL statute requiring HOA and condo associations to provide estoppel certificates within specific timeframes. Governs the...
Florida-Specific▼
Florida Impact Feesintermediate
One-time fees charged by FL local governments on new development to fund infrastructure — roads, water/sewer, fire, park...
Florida-Specific▼
Florida Judicial Foreclosureintermediate
FL is a judicial foreclosure state — all foreclosures must go through circuit court. No power of sale / non-judicial for...
Florida-Specific▼
Florida Live Local Actadvanced
2023 legislation creating powerful zoning and density incentives for affordable housing on commercially or industrially ...
Florida-Specific▼
Florida Marketable Title Actadvanced
FL statute establishing that a 30-year root of title creates marketable title, extinguishing most earlier claims, liens,...
Florida-Specific▼
Florida Mechanic's Lienintermediate
FL law granting contractors, subcontractors, and material suppliers a lien on real property for unpaid construction work...
Florida-Specific▼
Florida Opportunity Zone(OZ)advanced
Federal tax incentive: defer and partially exclude capital gains by reinvesting into Qualified Opportunity Funds investi...
Florida-Specific▼
Florida Radon Disclosurebeginner
Required VERBATIM disclosure in ALL Florida real estate purchase contracts and leases — both residential and commercial....
Florida-Specific▼
Florida Rent Tax(Sales Tax on Commercial Rent)beginner
2% state sales tax on commercial rent under F.S. §212.031. Applied to total rent — base AND all NNN/CAM. One of few stat...
Florida-Specific▼
Florida Sinkhole Disclosurebeginner
FL law requiring sellers to disclose known sinkholes and sinkhole testing results. Sinkhole activity is a significant ge...
Florida-Specific▼
Forbearance Agreementintermediate
Lender agrees to temporarily suspend or reduce payments, refrain from exercising remedies, or delay foreclosure for a de...
Financing & Debt▼
Forward Commitmentadvanced
Lender's agreement to provide financing at a future date at terms negotiated today. Locks in terms for projects not yet ...
Financing & Debt▼
Full Service Gross Lease(FSG)beginner
Tenant pays one rate; landlord pays all operating expenses. Common for Class A office. No CAM charges — landlord absorbs...
Leases▼
G4 terms
Going-In Cap Rateintermediate
Cap rate at time of purchase using current or stabilized NOI. Buyer's initial unlevered yield....
Valuation▼
GRM(Gross Rent Multiplier)beginner
Property price divided by annual gross rental income. Quick screening tool — does not account for expenses, vacancy, or ...
Valuation▼
Gross-Up Provisionintermediate
Lease clause adjusting actual operating expenses to reflect what they would be if the building were 95% occupied. Preven...
Leases▼
Ground Lease(Leasehold Interest)advanced
Long-term lease of land only (50-99 years). Tenant builds and owns improvements; improvements revert to landowner at exp...
Property Types▼
H3 terms
Hard Money Loanintermediate
Asset-based, short-term financing from private lenders. Qualification based on property value and equity — not credit. S...
Financing & Debt▼
Holdover Tenantintermediate
A tenant remaining in possession after lease expiration without landlord's written consent. FL statute F.S. §83.06 allow...
Leases▼
Homestead Exemptionbeginner
FL constitutional property tax exemption for permanent residents occupying primary residence. $50,000 exemption + Save O...
Florida-Specific▼
I8 terms
Income Approachintermediate
Appraisal method converting expected income into present value. Two methods: direct capitalization (NOI / cap rate) and ...
Valuation▼
Industrial / Warehousebeginner
Property for manufacturing, warehousing, distribution, or light industrial. Large floor plates, high ceilings, dock door...
Property Types▼
Infill Developmentintermediate
Development of vacant/underutilized land within existing developed areas rather than greenfield. Higher land cost but ex...
Zoning & Land Use▼
Insurance Loss Historybeginner
Record of all insurance claims filed on a property over the previous 5 years. Required by FL commercial lenders and insu...
Property Operations▼
Intangible Taxbeginner
Florida's one-time tax on new mortgage notes. Rate: $0.002/dollar (2 mills or 0.20%). Often overlooked in closing cost e...
Financing & Debt▼
Interest Rate Capadvanced
A derivative limiting maximum interest rate on floating-rate loans. If reference rate rises above cap strike, cap seller...
Financing & Debt▼
Interest-Only Loanintermediate
Loan where borrower pays only interest for a specified period — no principal. After I/O period, converts to amortizing o...
Financing & Debt▼
IRR(Internal Rate of Return)intermediate
Discount rate making NPV of all cash flows equal zero. Represents annualized compound return over entire hold period....
Valuation▼
J3 terms
Joint Venture(JV)advanced
A business arrangement where two or more parties agree to pool resources for a specific CRE project while maintaining se...
Capital Markets▼
Judicial Foreclosureintermediate
A foreclosure process that requires a court proceeding — the lender files a lawsuit, and a judge must approve the sale. ...
Florida-Specific▼
Just Valuebeginner
The Florida statutory term for fair market value used by county property appraisers to assess real property. Defined as ...
Florida-Specific▼
K2 terms
Key Moneyintermediate
An upfront payment made by a tenant to a landlord (or outgoing tenant) for the right to lease a highly desirable commerc...
Leases▼
Kick-Out Clauseintermediate
A lease provision allowing either the landlord or tenant to terminate the lease early under specified conditions — typic...
Leases▼
L14 terms
Landlord Lien Waiverintermediate
Document by which a landlord waives its contractual or statutory lien on a tenant's personal property (equipment, invent...
Leases▼
Last-Mile Distributionintermediate
Logistics facility in dense suburban area for fast delivery. Smaller than traditional DC but commands premium rents due ...
Property Types▼
Lease Abstractintermediate
A concise summary of all material lease terms extracted from the full lease document. Used by investors, lenders, and pr...
Leases▼
Lease Expiration Scheduleintermediate
A table showing when all leases in a building expire — by date, tenant, SF, and annual rent. Critical for valuation, ris...
Property Operations▼
LEED Certificationintermediate
Leadership in Energy and Environmental Design — a voluntary green building certification system. Points-based rating: Ce...
Environmental▼
Letter of Intent(LOI)beginner
A non-binding document outlining key terms before formal lease or purchase agreement. Establishes framework for negotiat...
Leases▼
Letter of Intent — Purchase(LOI)beginner
Non-binding outline of purchase terms before formal PSA. Establishes price, deposit structure, due diligence period, and...
Transactions▼
Level of Service(LOS)advanced
Measure of road infrastructure capacity. FL concurrency: new development cannot cause LOS to fall below adopted threshol...
Zoning & Land Use▼
Lis Pendensadvanced
A recorded notice that a lawsuit has been filed involving the title to or possession of real property. Warns potential b...
Transactions▼
Loan Modificationintermediate
Formal agreement changing original loan terms — extending maturity, reducing rate, deferring payments. Typically when bo...
Financing & Debt▼
Lot Coverageintermediate
Percentage of parcel that may be covered by buildings or impervious surfaces. Limits footprint, ensures drainage....
Zoning & Land Use▼
LTC(Loan-to-Cost Ratio)intermediate
Loan amount as percentage of total project cost including acquisition, construction, and soft costs. Used for constructi...
Financing & Debt▼
LTV(Loan-to-Value Ratio)beginner
Loan amount as a percentage of the property's appraised value. Primary risk metric for lenders — lower LTV means more bo...
Financing & Debt▼
M8 terms
Medical Office(MOB)intermediate
Office space designed for healthcare delivery. Requires specialized buildout: exam rooms, ADA compliance, plumbing, HVAC...
Property Types▼
Mezzanine Financingadvanced
Subordinate financing between senior debt and equity. Secured by pledge of ownership interests, not real property mortga...
Financing & Debt▼
Millage Ratebeginner
Property tax rate in mills (1 mill = $1/$1,000 taxable value). Total = sum of all taxing authorities — county, school, m...
Florida-Specific▼
Mini-Perm Loanadvanced
Short-term permanent loan (3-7 years) bridging construction completion to long-term financing. Allows project to stabili...
Financing & Debt▼
Mixed-Useintermediate
Development combining two or more uses — typically retail ground floor with office or residential above. Increasingly co...
Property Types▼
Modified Gross Leasebeginner
Tenant pays base rent plus defined expenses (varies by lease). Landlord pays remaining expenses. Falls between NNN and F...
Leases▼
Mold Remediationintermediate
Professional removal of mold contamination from building materials and HVAC systems. Major FL concern due to humidity an...
Environmental▼
Multifamilybeginner
Residential property with 5+ units. Classified as commercial real estate for lending and investment purposes. Most liqui...
Property Types▼
N6 terms
Named Storm Deductibleintermediate
Separate, much higher deductible for hurricane/tropical storm damage. Typically 2-5% of insured value — not a flat dolla...
Florida-Specific▼
NAV(Net Asset Value)advanced
Total value of all real estate assets minus all liabilities. For REITs: NAV per share represents 'true' value of underly...
Capital Markets▼
NNN Lease(Triple Net)beginner
Tenant pays base rent PLUS property taxes, insurance, and common area maintenance (CAM). Landlord receives truly net inc...
Leases▼
NOI(Net Operating Income)beginner
Annual property income minus operating expenses, before debt service, depreciation, and income taxes. The most important...
Valuation▼
Non-Recourse Loanintermediate
Lender's sole remedy in default is foreclosure on collateral. Borrower not personally liable for deficiency. 'Carve-out ...
Financing & Debt▼
Nonconforming Useintermediate
Land use legally established under prior zoning but no longer conforming. Allowed to continue but cannot expand. If aban...
Zoning & Land Use▼
O4 terms
Operating Expense Stopintermediate
A base-year operating expense amount above which the tenant pays its proportionate share of increases. Combines elements...
Leases▼
Operating Expenses(OpEx)beginner
All costs of operating and maintaining a commercial property excluding debt service, capital expenditures, depreciation,...
Valuation▼
Opportunity Fund(QOF)advanced
Investment vehicle that deploys capital into designated Opportunity Zones to receive capital gains tax benefits under IR...
Capital Markets▼
Origination Feebeginner
Upfront fee for processing and underwriting. Expressed as points (1 point = 1%). Paid at closing....
Financing & Debt▼
P16 terms
Pad Siteintermediate
Standalone commercial site outparcel to larger retail center. Single-tenant, high visibility. Fast food, banks, pharmaci...
Property Types▼
Percentage Rentintermediate
Additional rent calculated as a percentage of tenant's gross sales above a specified breakpoint. Common in retail leases...
Leases▼
Personal Guaranteeintermediate
Individual commitment to repay debt personally if entity borrower defaults. Makes guarantor liable regardless of busines...
Financing & Debt▼
Phase I ESA(Phase I Environmental Site Assessment)intermediate
Standardized environmental review of property's historical uses. No physical sampling — records, interviews, site reconn...
Transactions▼
Phase II ESA(Phase II Environmental Site Assessment)advanced
Physical sampling and laboratory analysis of soil, groundwater, or building materials to confirm or deny contamination i...
Environmental▼
Platintermediate
Recorded map dividing land into lots, blocks, tracts. Shows boundaries, easements, rights-of-way. Required to record ind...
Zoning & Land Use▼
Power of Attorney(POA)intermediate
Legal document authorizing one person to act on behalf of another in legal/financial matters. Used when principal cannot...
Transactions▼
Preferred Equityadvanced
Investment between senior debt and common equity. Preferred investors receive return before common equity but after seni...
Financing & Debt▼
Preferred Return(Pref)advanced
The minimum annualized return that must be paid to limited partners before the sponsor/GP receives any promote or profit...
Capital Markets▼
Prepayment Penaltyintermediate
Fee charged when borrower pays off a loan before maturity. Compensates lender for lost expected interest income....
Financing & Debt▼
Price Per SF(Price Per Square Foot)beginner
Total sale price divided by total rentable SF. Allows quick cross-property comparison....
Valuation▼
Promoted Interest(Promote)advanced
The GP/sponsor's share of profits above the preferred return — the performance incentive. Typically 20-30% of profits af...
Capital Markets▼
Property Management Feebeginner
Fee paid to professional property manager for day-to-day operations. Typically 3-8% of effective gross income for commer...
Property Operations▼
Property Tax Appealbeginner
Formal challenge to the county property appraiser's assessed value. FL process: VAB petition within 25 days of TRIM noti...
Property Operations▼
Prorationbeginner
Division of periodic expenses between buyer and seller at closing based on ownership periods during payment cycle....
Transactions▼
PSA(Purchase and Sale Agreement)intermediate
Binding legal contract for commercial real estate sale. Commercial PSAs are negotiated from scratch — no standard form l...
Transactions▼
Q2 terms
Qualified Intermediary(QI)intermediate
Neutral third party in 1031 exchange holding sale proceeds. Investor cannot touch money — any control disqualifies excha...
Transactions▼
Quiet Title Actionadvanced
Lawsuit in FL circuit court to resolve competing title claims. Establishes ownership when title is clouded....
Transactions▼
R10 terms
Rate Lockintermediate
Lender's commitment to hold a specified rate for a defined period (30-90 days) while loan closes. Costs 0.125-0.25% of l...
Financing & Debt▼
Recapture Clauseintermediate
Landlord's right to take back leased space if tenant attempts to sublease or vacate. Protects landlord from undesirable ...
Leases▼
Recourse Loanintermediate
Lender can pursue borrower's personal assets beyond collateral in default. Borrower fully liable for deficiency....
Financing & Debt▼
REIT(Real Estate Investment Trust)intermediate
Entity owning income-producing RE that qualifies for special tax treatment by distributing 90%+ of taxable income to sha...
Capital Markets▼
Renewal Optionbeginner
Tenant's right to extend the lease for additional term(s) at predetermined or market-rate rent. Must be exercised by wri...
Leases▼
Rent Per SFbeginner
Annual rental rate expressed per square foot. The standard pricing metric for commercial space. Quoted as NNN (base only...
Valuation▼
Replacement Costintermediate
The cost to construct a building with the same utility using current construction methods and materials. Floor value for...
Valuation▼
Replacement Reservesintermediate
Funds set aside annually for future capital expenditures — roof, HVAC, parking, elevators. Standard institutional practi...
Property Operations▼
Restrictive Covenant(Deed Restriction)intermediate
Private agreement in deed/plat limiting land use. Unlike zoning (public law), covenants are private — bind all future ow...
Zoning & Land Use▼
Reverse 1031 Exchangeadvanced
Buy replacement property BEFORE selling relinquished property. Requires Exchange Accommodation Titleholder (EAT) to hold...
Transactions▼
S21 terms
Sale-Leasebackadvanced
Owner sells building and simultaneously signs long-term lease to remain as tenant. Converts equity into operating capita...
Transactions▼
Sales Comparison Approachintermediate
Appraisal method estimating value by comparing subject property to recent sales of similar properties, with adjustments ...
Valuation▼
Save Our Homes Cap(SOH)beginner
FL constitutional provision limiting annual assessment increases for HOMESTEAD properties to lesser of 3% or CPI. Does N...
Florida-Specific▼
SBA 504 Loan(Small Business Administration 504)beginner
Federally-backed loan for owner-occupied CRE with 10% down. Three-tier: 50% bank first mortgage + 40% SBA CDC debenture ...
Financing & Debt▼
SBA 7(a) Loan(Small Business Administration 7(a))beginner
SBA's primary general-purpose loan. More flexible than 504 — working capital, equipment, and real estate. Max $5M. Varia...
Financing & Debt▼
Select-Service Hotelintermediate
Hotel between limited-service and full-service. Breakfast, limited F&B, small meeting rooms. Hampton Inn, Courtyard, Alo...
Property Types▼
Self-Storageintermediate
Facility renting individual units on month-to-month basis. Low operating cost, recession-resistant, strong NOI margins....
Property Types▼
Self-Storage Climate Controlledintermediate
Storage units with temperature and humidity control — essential in FL's climate. Commands 20-40% premium over non-climat...
Property Types▼
Seller Financingintermediate
Seller provides loan to buyer as part of purchase. Evidenced by promissory note secured by mortgage. Bypasses institutio...
Transactions▼
Senior Housingadvanced
Residential property designed for elderly residents. Ranges from independent living to assisted living to memory care/sk...
Property Types▼
Sensitivity Analysisadvanced
Models how projected returns change when key assumptions vary — cap rate, rent growth, vacancy, interest rate, hold peri...
Valuation▼
Short Saleadvanced
Sale where proceeds are insufficient to pay mortgage. Lender agrees to accept less and release lien....
Capital Markets▼
Single-Tenant NNN(STNL)beginner
Standalone commercial building leased to one tenant on absolute or triple-net basis. Landlord receives truly passive inc...
Property Types▼
SNDA(Subordination, Non-Disturbance, Attornment)advanced
Three-party agreement between landlord, tenant, and lender. Tenant subordinates lease to mortgage; lender agrees not to ...
Leases▼
Spot Zoningadvanced
Rezoning a small area inconsistently with surroundings and comprehensive plan. Courts scrutinize as potentially illegal....
Zoning & Land Use▼
Stabilized Valueintermediate
Estimated value of a property at a projected future date when it has achieved a stabilized occupancy and cash flow — typ...
Valuation▼
Standby Commitmentadvanced
Lender's commitment to provide permanent financing after construction, conditioned on project meeting criteria (occupanc...
Financing & Debt▼
Stormwater Managementintermediate
Systems and practices for collecting, treating, and discharging rainwater runoff. FL requires on-site stormwater retenti...
Environmental▼
Strip Centerbeginner
Single-story retail center with storefronts facing a parking lot. Typically 10,000-100,000 SF with multiple inline tenan...
Property Types▼
Surveybeginner
A professional measurement and mapping of property boundaries, improvements, easements, and encroachments. Required by m...
Transactions▼
Syndicationadvanced
The pooling of investor capital to acquire, develop, or reposition commercial real estate. Typically structured as LLC o...
Capital Markets▼
T7 terms
TDT(Tourist Development Tax)intermediate
FL's local option tax on short-term rentals (≤6 months). Each county sets own rate. Funds tourism promotion and conventi...
Florida-Specific▼
Tenant Improvement Allowance(TI)beginner
Landlord contribution to tenant's buildout costs. Expressed as $/SF. Negotiated as part of lease — amortized into the re...
Leases▼
Tenant Retentionbeginner
Strategies to keep existing tenants from vacating at lease expiration — rent concessions, TI for renewal, lease restruct...
Property Operations▼
Terminal Cap Rateadvanced
Cap rate applied at time of sale to estimate future sale price in DCF analysis. Convention: 25-50 bps above going-in cap...
Valuation▼
Title Commitmentintermediate
Document from title company committing to issue policy upon closing. Identifies defects, liens, exceptions....
Transactions▼
Title Insurancebeginner
Insurance protecting against loss from title defects, liens, or encumbrances existing at or before policy date. Protects...
Transactions▼
TRIM Notice(Truth in Millage)beginner
Annual notice from FL county property appraisers sent by August 24: current assessed value, proposed millage, estimated ...
Florida-Specific▼
U2 terms
Unlevered IRRadvanced
IRR calculated without considering debt — as if purchased with 100% equity. Measures return from real estate fundamental...
Valuation▼
UST(Underground Storage Tank)intermediate
Buried tank storing petroleum or hazardous substances. Regulated by FL DEP and EPA. Removal, cleanup, and closure requir...
Environmental▼
V2 terms
VAB(Value Adjustment Board)intermediate
Quasi-judicial FL board hearing property tax assessment appeals. Each county has one. Can reduce or reject the property ...
Florida-Specific▼
Vacancy Ratebeginner
Percentage of rentable space that is unoccupied. Physical vacancy (literally empty) vs economic vacancy (occupied but no...
Property Operations▼
W5 terms
WALT(Weighted Average Lease Term)intermediate
The average remaining lease term weighted by each tenant's proportion of total rental income. Measures income stream sta...
Property Operations▼
Waterfall Structureadvanced
Hierarchical distribution of cash flows in a real estate partnership — order and splits in which investors and sponsor r...
Valuation▼
Wetlandsadvanced
Areas saturated by surface or groundwater with hydric soils and hydrophytic vegetation. FL has extensive wetland protect...
Environmental▼
Wire Fraud Preventionbeginner
Protocols to prevent interception and redirection of real estate closing funds through email compromise, social engineer...
Transactions▼
Workforce Housingintermediate
Housing affordable to workers earning 60-120% of area median income. Growing institutional investment category in FL due...
Property Types▼
X1 terms
X-Flood Zone (Zone X)beginner
FEMA flood zone designation indicating moderate to minimal flood risk. Zone X (shaded) = 500-year floodplain (0.2% annua...
Environmental▼
Y1 terms
Yield Maintenanceadvanced
CMBS prepayment premium ensuring lender receives same yield whether loan runs to maturity or is paid early. PV of remain...
Financing & Debt▼
Z3 terms
Zero Lot Lineintermediate
A development configuration where a building is positioned directly on one or more property boundary lines with zero set...
Zoning & Land Use▼
Zoningbeginner
Government regulation dividing land into districts (zones) with specific permitted uses, densities, building heights, se...
Zoning & Land Use▼
Zoning Varianceintermediate
Permission granted by a local Board of Zoning Adjustment to deviate from specific zoning requirements (setbacks, height,...
Zoning & Land Use▼
Download the complete FL CRE glossary — PDF
All 220 terms. FL statutes. Formulas. Printable reference. Used by Florida attorneys, CPAs, brokers, and investors.
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This glossary is for educational purposes only. It does not constitute legal, tax, or financial advice. Florida law changes frequently — verify all statutory references with current statutes. Consult a licensed Florida attorney, CPA, or real estate professional before making decisions based on this information. © 2026 The List Orlando — thelistorlando.com — (689) 239-7605