AAA Tenant: A tenant with a top credit rating. This type of tenant is
often critical to the developer’s ability to arrange both construction and
permanent financing for a major commercial project, such as a shopping center or office building.

Abandoment: The voluntary relinquishment of rights of ownership or another interest (such as an easement) by failure to use the property, coupled with intent to abandon (give up the interest).

Abetement: A reduction or decrease. Usually applies to a decrease of assessed valuation of ad valorem taxes after the assessment, and levy.

Above Building Standard: Upgraded finishes and specialized designs necessary to accommodate a tenant’s requirements.

Absorption Rate:  The rate (speed) at which vacant space is either
leased or sold to users in the marketplace. This rate is usually expressed in square feet per year or in the case of multi-family housing, in the number
of units per year. Also See Market Absorption

Abstract of Judgment: A summary of money judgment obtained in court. (When this summary or abstract is recorded in the county recorder's office,
in some states the judgment becomes a lien on the debtor's property, both presently owned and/or after-acquired.)

Abstract of Title:  A summary prepared by a licensed abstractor of all documents recorded in the public records of the political subdivision where
the land is located. An abstract in some states or areas is reviewed by an attorney or other experienced title examiner to determine the status of
title. Virtually every abstractor today provides actual copies of the records rather than an abstract of each document.

Acceration Clause:  A cause in a deed of trust or mortgage, which "accelerates," or hastens, the time when the indebtedness becomes due.
For example, some deeds of trust contain a provision (an acceleration
clause) stating that the note shall become due immediately upon the sale of the land or upon failure to pay interest or an installment of principal and interest.

Accommodation Recording:  Recording of instruments with the county recorder by a title company merely as a convenience to a customer and without assumption of responsibility for correctness or validity.

Acknowledgment:  A formal declaration before a duly authorized officer (such as a notary public) by a person who has executed an instrument that such execution is his own act and deed. An acknowledgment is necessary
to entitle an instrument (with certain specific exceptions) to be recorded,
to impart constructive notice of its contents and to entitle the instrument
to be used as evidence without further proof. The certificate of acknowledgmentis attached to the instrument or incorporated therein.

Acquisition and Development Loan (A&D Loan): A loan for the purchase and preparation of raw land for development.  Usually a construction loan or land sale is the source of repayment.

Acre:  A measure of land equal to 43,560 square feet.

Ad Valorem: According to value. This is a tax imposed on the value of property (references a general property tax), which is typically based on
the local government’s valuation of the property.

Add-On Factor: Often referred to as the Loss Factor or Rentable/Usable (R/U) Factor, it represents the tenant’s pro-rata share of the Building
Common Areas, such as lobbies, public corridors and restrooms. It is
usually expressed as a percentage which can then be applied to the usable square footage to determine the rentable square footage upon which the tenant will pay rent.

Allowance Over Building Shell: Most often used in a yet-to-be
constructed property, the tenant has a blank canvas upon which to
customize the interior finishes to their specifications. This arrangement
caps the landlord’s expenditure at a fixed dollar amount over the
negotiatedprice of the base building shell. This arrangement is most
successful when both parties agree on a detailed definition of what construction is included and at what price.

Amendment: A change to either alter, add to, or correct part of an agreement without changing the principal idea or essence.

American Land Title Association (ALTA):  An association
representing more than 2,100 title abstractors, title insurance companies,
title insurance agents, and associate members that was founded in 1907. Members of the association use standardized title insurance forms
developed by ALTA to provide uniformity within the industry. ALTA’s
national headquarters islocated at 1828 L Street, N.W., Suite 303, Washington, D.C. 20036; (202) 296-3671.

Amortization: The repayment of a mortgage debt over a period of time
in a series of periodic installments. It should be noted that a portion of
each payment consists of a blend of interest and amortization of principal.  Specifically, this is the payback of the principal portion of the loan owed to
the lender. The effect of amortization is to build up the paper value of the owner's equity while reducing the debt obligation.

Anchor Tenant: A well-known commercial retail business such as a
national chain store or regional department store  (AAA Tenant)
strategically placed in a shopping center so as to generate the most
customers for all of the stores located in the shopping center.

Anchored Centers:   A shopping center with an anchor tenant.

Annual Loan Constant: The ratio of the annual debt payment on a loan
to the original amount borrowed. The loan constant is also referred to as a mortgage constant.  

Annual Percentage Rate (APR): The actual cost of borrowing money, expressed in the form of an annual interest rate. It may be higher than
the note rate because it represents full disclosure of the interest rate,
loan origination fees, loan discount points, and other credit costs paid to
the lender.

Appraisal: An estimate of opinion and value based upon a factual analysis
of a property by a qualified professional.

Appreciation: The increased value of an asset.

"As-Is" Condition: The acceptance by the tenant of the existing
condition of the premises at the time the lease is consummated. This would include any physical defects.

Assessment: A fee imposed on property, usually to pay for public improvements such as water, sewers, streets, improvement districts, etc.

Assignment: A transfer by lessee of lessee’s entire estate in the
property. Distinguishable from a sublease where the sub lessee acquires something
less than the lessee’s entire interest.

Average Daily Rate(ADR): The average rate charged by a hotel for
one (1) room for one (1) day; arrived at by dividing the total room
revenue by the actual rooms occupied.

Average Life: It is a way to look at the term of a loan or bond that
accounts for principal pay downs.  If a loan is interest only with a full
balloon at the end, the average life will equal the maturity.  If there is amortization, principal is being paid over the life of the loan, decreasing
the balloon payment and the average life.  This number is then used to
find thetreasury that has the closest remaining term, but is not shorter.
For example, a 10/25 loan has an average life of 9 years.  9 years from
todayis October 2008.  The current list of outstanding, non-callable US treasury securities with maturities in 2008 includes March 2008, June
2008, September 2008 and a December 2008.  The lender would choose
the December 2008 because it is longer than the actual due date.