CREBuilder commercial real estate glossary

A property's annual return as a percentage of its sale price. Formula: Cap Rate = NOI ÷ Sale Price. A 6% cap means $6 of NOI for every $100 of price.

In CREBuilder, sale price, NOI, and cap rate form a three-value relationship. Enter two known values and verify the derived third value.

Also searched as: capitalization rate

A multi-year model of the property's income, expenses, NOI, debt service, and cash after debt.

The Multi-Year Cash Flow rent roll type generates this projection. Pick it when growth assumptions matter.

Also searched as: multi year, multi-year cash flow, DCF

Annual cash flow (after debt service) divided by equity invested. Shows the actual yield on the cash the buyer puts in, not on the full property price.

The standard CREBuilder financial workflow shows debt service and cash after debt when financing assumptions are entered. Confirm any return ratio separately before using it in marketing material.

Also searched as: cash on cash, CoC

NOI divided by annual debt service. A value below 1.0x means NOI is less than the modeled annual debt payment.

The standard CREBuilder cash-flow projection shows NOI, debt service, and cash after debt, but it does not calculate a DSCR row. Calculate and verify the ratio separately when needed.

Gross potential income MINUS vacancy and credit loss, PLUS other income (parking, laundry, etc.). The actual top-line revenue used to calculate NOI.

Total cash returned to the equity investor divided by their equity invested. A 2.0x equity multiple means the investor doubled their money over the hold.

The standard CREBuilder workflow does not calculate equity multiple. Calculate and verify it in an external underwriting model when needed.

Also searched as: EMx

The assumed capitalization rate at the end of the analysis period. Projected exit value equals the selected exit-year NOI divided by the exit cap rate.

Set this in the Valuation assumptions. CREBuilder does not prescribe a spread from the going-in cap rate, so use the assumption approved for the assignment.

The cap rate at acquisition, generally calculated as in-place NOI divided by acquisition price.

This is distinct from Exit Cap Rate. In CREBuilder, In-Place and Year 1 are separate columns because Year 1 applies one growth period.

Total annual rent if every unit/space were 100% leased at full asking rents. CREBuilder calculates this from your rent roll and vacant unit projections.

The property's current income, rents, or NOI before planned increases or lease-up assumptions.

On the rent roll, in-place rents are the contract rents on existing leases. CREBuilder shows in-place vs pro-forma side-by-side when you pick the Pro Forma type.

The annualized return over a full hold period, accounting for the timing of annual cash flows and sale proceeds.

The standard CREBuilder workflow does not calculate IRR. Use the verified cash-flow and exit inputs in an external underwriting model if an IRR is required.

Also searched as: internal rate of return

Total property income minus operating expenses, before debt payments, taxes on profit, and depreciation. This is a core input to income-based valuation.

CREBuilder derives NOI from the income and expense values you enter. In-Place is the current period; Year 1 in a cash-flow projection is one full growth period later.

Also searched as: net operating income, in place NOI, pro forma NOI

Pro forma rents, income, and NOI are projected stabilized values. In-place values describe the current operating position.

Pick the Pro Forma rent roll type when you want to show buyers a side-by-side of current vs. potential. Cash Flow type shows multi-year growth projections instead.

Also searched as: proforma, stabilized analysis

A property at its assumed long-term occupancy and rent level after the modeled lease-up, rent changes, and concessions.

Pro forma NOI represents stabilized performance. The gap between in-place and stabilized is the value-add upside.

An operating statement for the previous 12 months, with income and expenses by line item. It is historical source data and is not necessarily audited.

When a T-12 is the approved source, enter its applicable values on Income & Expenses and reconcile the resulting NOI.

Income deducted from GPI to account for empty units, tenant turnover, and uncollectible rent.

Set as a percentage assumption on the Valuation step. Use the assignment's approved assumption rather than a generic range.

The large, well-known tenant that draws foot traffic to a retail center (e.g., a grocery store at a strip center, a Target at a power center). Anchor presence drives the value of the whole center.

Shared property expenses (landscaping, parking lot upkeep, common-area utilities) that NNN tenants reimburse the landlord for.

Tenant reimbursements may be entered with commercial tenant economics, while property-level additional income may also include reimbursement income. Use the approved source once and verify it is not counted in both places.

Landlord incentives such as free rent, expanded tenant improvements, reduced parking charges, signage allowances, or moving allowances. They reduce effective rent below face rent.

In CREBuilder, capture concession structure in the Tenant tenantNotes field. Buyers will discount face rents if concession patterns aren't clear.

A tenant whose financial strength or public credit rating is relevant to lease risk. Credit status can change and must be verified from a current source.

Use Tenant Profiles or approved narrative fields for verified credit information. Do not state or imply a rating without a current source.

A lease where the landlord pays ALL operating expenses (taxes, insurance, CAM, utilities) out of base rent. Common in Class A office. Tenants like the simplicity; landlords bear inflation risk.

A lease where the tenant pays one fixed rent and the landlord covers all operating expenses. Common in multifamily.

A long-term lease of land where the tenant may construct or own improvements, subject to the agreement.

The gap between in-place rents (what current tenants pay) and market rents (what a new tenant would pay today). Positive loss to lease = upside; negative = property is renting above market and may face turnover pressure.

Pro Forma rent-roll mode places in-place and pro-forma values side by side so the reviewer can calculate and explain the difference.

A lease where the tenant pays base rent + their share of SOME expenses (typically utilities or CAM) but the landlord covers others (typically taxes and insurance). Common in office.

A lease where the tenant is responsible for property taxes, insurance, and common area maintenance in addition to base rent, subject to the actual lease terms.

Generic commercial rent rolls can record reimbursements. The dedicated Single Tenant Net Lease form does not expose a separate reimbursement input, so confirm the workflow before entering the lease.

Also searched as: triple net, net lease

TI = landlord-funded buildout for a new tenant (or renewal). LC = the broker commission paid to lease the space. Both are cash-out costs that reduce real returns and are usually expressed in $/SF.

Set applicable tenant-improvement and leasing-commission reserve assumptions on the Valuation step using assignment-approved values.

The square-foot-weighted average remaining term across applicable leases.

The standard public guide does not claim that CREBuilder calculates a WALT output. Capture complete lease dates and calculate and verify WALT separately when the deliverable needs it.

Average revenue per occupied hotel room per night. Total room revenue ÷ rooms sold.

Captured per room category in the Hospitality rent roll. ADR × occupancy × room count × 365 = annual room revenue.

The county tax assessor's unique ID for a parcel of land. Different states use different formats: California uses APN, Texas uses Geographic ID, Hawaii uses TMK.

For land assemblages, list every parcel's ID on the Property Data step.

Total rentable square footage, generally excluding common and non-leasable areas. It is commonly used as the denominator for occupancy and rent calculations.

The use of a property that produces the maximum value, subject to what's legally allowed, physically possible, and financially feasible. For raw land deals and assemblages, HBU analysis is the heart of the underwriting.

For land assemblages, document current zoning, allowable use, and proposed HBU in your Property Overview narrative.

Sale price divided by hotel room count ("key" = hotel room). Primary metric for hospitality deals.

Sale price divided by total unit count. The primary valuation metric for multifamily and self-storage (where SF varies by unit type).

A hotel's revenue performance regardless of occupancy. Formula: RevPAR = ADR × Occupancy. The benchmark metric for hospitality.

Total building square footage. Price/SF (sale price ÷ building SF) is the primary valuation metric for retail, office, and industrial. For example, a 10,000 SF building at $2.5M is $250/SF.

A broker-prepared valuation deliverable that may include a value range, comparable evidence, market analysis, and reconciliation. It is not a licensed appraisal.

Your firm's branded, embeddable index of properties intentionally published through Listing Hub. Listed, Sync, inventory Status, and public visibility are separate controls.

A detailed investment-sales marketing document that may include property information, financials, a rent roll, market data, photography, and comparables.

The signed-in workspace for one property, connecting its document, listing, Deal Room, leads, matches, and outreach. The public property page is a separate Listing Hub surface.

A concise deal summary with selected property information, financial facts, imagery, and contact details. It can be shared before a complete Offering Memorandum.

A United States tax-deferred exchange of qualifying real property under Internal Revenue Code Section 1031. Eligibility and deadlines require current tax and legal guidance.

CREBuilder does not provide a standard per-building allocation override in the public portfolio workflow. Use separately approved tax, appraisal, or legal analysis when a transaction requires a different allocation.

On a portfolio sale, the value assigned to each property from the total selling price. The current portfolio summary allocates value by each building's share of gross rent and labels it indicative.

Multiple buildings on the same physical site that are presented as one asset, such as an office park or mixed-use development.

Multiple contiguous parcels with separate APNs sold together as one development opportunity. Value usually comes from rezoning potential and combined size, not the sum of individual parcels.

Separate properties presented together as one offering, such as several shopping centers across a region. Each property retains its own record and address.

Portfolio-level cap rate: sum of every building's NOI divided by the total selling price. The right way to compare a portfolio's yield to a single-property's cap rate.

CREBuilder calls this "Weighted Average Cap Rate" or "Blended Cap Rate" on portfolio docs. It appears on the cover, exec summary, and valuation summary.