Terms for Buyers
Buyer Proposals — Letters of Intent (the buyer provides it to the seller)
Cap Rate — The net operating income/weighted average cost of capital, debt, or equity
Cash on Cash — Return on an unleveraged transaction calculated as the amount the investor made on the property in relation to the amount invested in the same year.
Debt Service Coverage Ratio — The ratio of cash available to debt servicing for interest, principal and lease payments.
Rent Roll — Current income derived from the asset.
Operating Statement — The income and expenses of a property, also known as the profit and loss statement.
Lease Abstract — A summary of the key financial, business, and legal information defined in a commercial lease.
18-Foot Clear Height — The measurement taken from the floor to the underside of the roof deck, in this case 18 feet.
Truck Court — The exterior area next to an industrial building’s loading docks where trucks maneuver.