This fixed rate mortgage expires at pre-established times, which allows for renegotiation of the terms of the mortgage. Also referred to as a rollover mortgage, this mortgage comes due in a balloon payment, which may be paid or refinanced at current rates.
Floor space in a building that is actually under lease and able to be rented to tenants. Non-leasable space would be hallways, building foyers, areas devoted to utilities, elevators, etc. Also referred to as net leasable area.
Discounts and reduction in rental charges to attract new tenants or to keep present ones. Concessions may also be in the form of some free rental or a large allowance to adapt the space to the needs of the tenant. High occupancy will induce a large retailer to relocate or a bank to offer better financing.
Method used to compute the price of an income-producing property by dividing the asking or market price of the property by the current gross rental income. If the current gross rental income is $30,000 and the asking price is $300,000, the gross income multiplier is 10. Also referred to as Gross Rent Multiplier.