Yieldlex

A lease where the tenant bears all costs for repairs and insurance. The landlord receives 'clear' rent with no leakage.

Tenant pays rent plus all three major property expenses: taxes, insurance, and maintenance.

Tenant pays one flat fee. Landlord pays all operating expenses (taxes, maintenance, insurance).

A specific date when the tenant (or landlord) can terminate the lease early, usually with 6 months' notice.

A statutory right for a tenant to renew their lease at the end of the term (e.g., UK Landlord & Tenant Act 1954).

The legal term for a tenant's right to transfer (assign) or sublet their lease to someone else.

The obligation of the tenant to return the property in its original condition at the end of the lease.

A clause ensuring rent can only stay the same or go up at review, never down.

Total revenue minus all necessary operating expenses. Before debt, tax, or capex.

The immediate cash return generated by the property based on current passing rent and purchase price.

US term for Net Initial Yield. Represents the un-levered return of the asset.

The anticipated yield once the rent has been increased to current market levels (ERV).

A weighted average of the Initial Yield and Reversionary Yield. It represents the true internal return.

The open market rent the property would achieve if leased today.

Weighted Average Unexpired Lease Term. The average time remaining on all leases, weighted by rent.

The time between one tenant leaving and the next one arriving.

A fee collected from tenants to pay for shared services (security, cleaning, lifts).

An incentive given to tenants (e.g., '6 months free') to sign a lease.

Capital Expenditure (upgrading the asset, e.g., new roof) vs Operating Expenditure (maintaining it, e.g., cleaning).

The size of the loan relative to the asset value.

Debt Service Coverage Ratio. How easily income covers mortgage payments.

The gradual repayment of a loan's principal over time.

The primary loan (mortgage). First to be repaid, lowest risk, lowest interest rate.

Junior debt that sits between Senior Debt and Equity. Higher risk, higher rate.

The estimated final value of a project once construction is 100% complete and sold/leased.

How much a developer can afford to pay for land.

A clause where the land seller gets extra money if the developer achieves a higher value than expected.

The point when the building is 'finished' and ready for occupation, triggering lease starts and warranty periods.

A property that will become obsolete due to new environmental regulations (e.g. failing minimum EPC standards).

Global certification systems for rating the sustainability of buildings.

The extra rent or value achieved by highly sustainable buildings.

Energy Performance Certificate rating from A (most efficient) to G (least efficient).

A building that produces no net carbon emissions through efficient design and renewable energy.

The lowest risk real estate strategy: prime locations, long leases, blue-chip tenants.

Slightly higher risk than Core, with minor value-add opportunities.

Properties requiring significant improvement (renovations, re-leasing, repositioning).

The highest risk strategy: ground-up development, distressed assets, or major repositioning.

A company sells its real estate and immediately leases it back from the buyer.

A development built specifically to a tenant's requirements, with a pre-signed lease.

The tenant leases only the land and owns (or builds) the structure on top.

The annualized return of an investment, accounting for the timing of all cash flows.

Annual pre-tax cash flow divided by total cash invested.

Total cash returned divided by total cash invested.

The cap rate at acquisition, based on Year 1 NOI.

The assumed cap rate when selling the property at the end of the hold period.

The projected NOI once a property reaches full occupancy and market rents.

The total floor space available for tenant use in a retail property.

The actual rentable space a tenant occupies, excluding shared areas.

The ratio of usable space to total building area.

The percentage of rentable space currently leased.

The rate at which available space is leased in a market over a period.

The annual rent divided by the total square footage.