Tyler Cauble felt this jargon-induced headache early on in his commercial investing career. Since then, he’s become fluent in CRE-speak and is able to quickly tell you exactly what different underwriting, lease, and property terms mean. Don’t start off your commercial real estate investing journey on the wrong foot. Let Tyler walk you through fourteen of the most common commercial real estate terms so you not only look smarter but invest smarter.
Have any other terminology you’re perplexed by? Let us know in the comments below, we’ll try our best to give you a digestible definition!
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Commercial Real Estate Vocabulary 101 – Part 1:
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Everything You Need to Know About Triple Net Leases:
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The Newbie’s Real Estate Dictionary:
The Newbie’s Real Estate Dictionary: 16 Common Investing Terms, Defined & Explained
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00:00 Explaining the CRE Jargon
00:54 The Language of Commercial Real Estate
01:18 1. Net Operating Income (NOI)
01:48 2. Debt-Service Coverage Ratio (DSCR)
02:47 3. Capitalization Rate
03:54 4. Return on Investment (ROI)
04:31 5. Commercial Cash-Out Refinance
04:59 6. Price Per Sqft/Unit
06:05 7. Building Classification
07:25 Commercial Lease Terms
07:37 8. Triple Net Lease (NNN)
08:25 9. Full Service Gross (FSG)
09:04 10. Modified Gross Lease (MG)
09:42 Lease Clauses
09:55 11. Sublease Clause
10:33 12. Exclusivity Clause
11:14 13. Rent Escalation Clause
11:47 14. Delivery Conditions