Commercial Real Estate Glossary
Clear definitions, formulas, and practical examples for every term you encounter during CRE underwriting. Each entry explains what the term means, how to calculate it, and why it matters for acquisition decisions.
Income & Revenue
Gross Potential Rent (GPR)
Total rent if 100% occupied at market rates.
Effective Gross Income (EGI)
Actual collected income after vacancy and concessions.
Loss to Lease
Gap between market rent and in-place rent.
Concessions
Free rent, reduced rent, or tenant incentives.
Net Operating Income (NOI)
Income after operating expenses, before debt.
Economic vs Physical Occupancy
Two ways to measure how full a property is.
Valuation & Returns
Debt & Lending
Expenses & Operations
Documents & Data
Deal Process
Buy Box
Investment criteria framework for deal screening.
Call for Offers
Broker deadline for submitting LOIs on a property.
Best and Final
Second round of competitive bidding after initial offers.
Retrade
Price renegotiation after due diligence findings.
Dead Deal Tax
Analyst time spent on deals that ultimately get killed.
Stabilized vs Value-Add
Two investment strategy categories with different risk profiles.