Keller Williams Realty
T
T-bar
A chart used to summarize the timing of real estate cash flows.
Tangible characteristics
Attributes that are quantifiable, measurable, factual, or expressed numerically as data or statistics.
Target market
Likely users or investors whose needs match the property’s features. Alternatively, when representing users, the target market is the kind of property that matches your user-client’s needs.
Tax impact
The impact of taxes on investment income and rate of return.
Tax liability
Real estate taxable income multiplied by the tax rate.
Tax savings (annual expense)
Entry on the tenant’s Cash Flow Form. All annual expenses incurred by the tenant are tax deductible. The tax savings are calculated by multiplying the annual deduction by the tenant’s tax rate.
Tax savings (capital expenditure)
Entry on the tenant’s Cash Flow Form. It refers to any tax savings associated with any capital expenditure by the tenant in terms of the site or major, unusual business expenses incurred to make the new office efficient for the business. The amount of tax savings is calculated by multiplying the annual deduction amount by the tenant’s tax rate.
Tax shelter
The ability of real estate investments to reduce an investor’s tax liability through the use of cost recovery.
Taxable income
Adjusted gross income less personal deductions and exemptions.
Taxation
How an investment is affected by tax laws and codes.
Technical components
Factors that determine whether a location or site is suitable or able to support a given use.
Technical feasibility
In the case of site selection, it is an evaluation of multiple sites to determine which sites should be considered further based upon their physical limitations, regulatory requirements, and environmental and legal considerations; whereas in the case of highest and best use, it refers to the determination of the possible uses of a particular site as based upon technical considerations.
Tenant
A person or entity who has possession of the property though a lease. A tenant also may be referred to as a lessee.
Tenant improvements
Preparation of leased premises prior to or during a tenant’s occupancy, which may be paid for by either the landlord, the tenant, or both.
Tenant-paid tenant improvements (TPTI)
The total cost (outlay) of necessary tenant improvements paid by the tenant netted against any allowance provided by the landlord.
Tenure
A designation which distinguishes between the renter versus owner-occupied status of housing units or households.
Theme/festival center
These retail centers typically employ a unifying theme that is carried out by the individual shops in their architectural design and, to an extent, in their merchandise. The biggest appeal of these centers is to tourists; restaurants and entertainment facilities can anchor them. These centers, generally located in urban areas, tend to be adapted from older, sometimes historic, buildings and can be part of mixed-use projects. [International Council of Shopping Centers (ICSC) Shopping Center Descriptions]
Threshold population
The minimum number of people or minimum market area or sales volume necessary to sustain a business or make it economically viable. Also see high order goods and lower order goods.
TI
See tenant improvements.
TI allowance from owner
Entry on the tenant’s Cash Flow Form. A specified amount of money the owner will pay for tenant improvement.
Time value of money (TVM)
An economic principle recognizing that a dollar today has greater value than a dollar in the future because of its earning power.
Total effective rate
The rate per square foot paid by the tenant over the entire period analyzed. Formula:
Total effective rate = Total effective rent
Square footage rented
Total effective rent
The total dollar amount (cash flow) that the tenant actually will pay out over the entire period analyzed.
Total employment
The total number of actively employed people in the workforce within a given geographic area at a particular point in time.
Total existing inventory
In reference to commercial real state, it is existing and currently available supply or stock as represented by the total number of units or total amount of space available of a specific commercial property type in a given market at a particular point in time.
Total forecast supply
Total existing inventory plus forecast planned additional inventory minus forecast planned removed inventory for a specific commercial property type in a given market area.
Total supply of commercial real estate
Refers to all existing space vacant or occupied, built, forecasted, or demolished, for a particular market area for a specific period of time.
TPTI
See tenant-paid tenant improvements.
Trade area
An area delineated about a central or dominant location, comprising a zone that is dependent upon production output from that location to meet internal demand, whose outermost boundaries are defined in terms of the presence or absence of interactions with that central or dominant location (for example, a localized area over which some specific activity or transaction takes place). Note that in central place theory context, the terms trade area and range are used interchangeably. Also see range.
Trade area gap analysis
A gap analysis performed on a specific trade area located within a predetermined market area or city.
Traffic generators
A business, retailer, or site that draws business to a given location (for example, a large retail store/anchor in a regional shopping mall that generates traffic for smaller retail shops located within the mall or nearby).
Transaction management process
A continuous, cyclical four-stage process in which a transaction manager is involved with qualifying, matching, closing, and adding value for clients. Also see qualify, match, close, and add value.
Transfer income
Money that is transferred to a local economy from outside sources without the exchange of any good or service (including social security, welfare and retirement benefits, interest dividends and rent on investments).
TVM
See time value of money.
U
Urban system (city as a system)
A complex and structured urban environment or system composed of highly diverse, interacting, and interdependent parts and activities aggregated or organized in such a way as to serve a common purpose and/or satisfy the needs and wants of people residing in and dependent upon that system.
Useable area
Rentable area, less certain common areas that are shared by all tenants of the office building (such as corridors, storage facilities, and bathrooms). Also defined in office buildings as the area that is available for the exclusive use of the tenant. Useable area = rentable area × building efficiency percentage.
User criteria
In reference to the identification and classification of properties and the evaluation of feasibility characteristics of various locations/sites in accordance with the specific needs of the user as defined by its business requirements, and the use and zoning restrictions in any given jurisdiction or municipality.
V
Vacancy
The number of units or space (of a specific commercial type) that are vacant and available for occupancy at a particular point in time within a given market (usually expressed as a vacancy rate).
Vacancy allowance
A desirable level of vacancy that is known to facilitate transactions and turnover in a housing market (for example, a vacancy rate that allows the market to operate smoothly and efficiently by enhancing household mobility); an index used for estimating housing demand.
Vacancy rate
The percentage of the total supply of units or space of a specific commercial type that is vacant and available for occupancy at a particular point in time within a given market.
Variable
A measurable attribute of a person, place, property, location, or other phenomenon of interest, whose value may vary from observation to observation.
Variable expenses
Costs, such as utilities, that vary with a building’s occupancy rate.
W
Weighted average cost of capital (WACC)
The average cost of capital (whether equity or debt), taking into account the relative proportions of each source of capital. (Encyclopedia of Real Estate Terms 2nd Edition, Damien Abbott)
Workstation GIS
Mainframe-oriented or UNIX-based computer-software products, programs, and systems that are specifically geared toward large-scale applications, requiring large platforms and advanced programming skills and knowledge.
X
No glossary terms are available.
Y
Yield
A measure of investment performance that gauges the percentage return on each dollar invested. Also known as rate of return.
Z
Zoning
The designation of specific areas by a local planning authority within a given jurisdiction for the purpose of legally defining land use or land use categories.
--------
Source: