Welcome to our Comprehensive Real Estate Glossary—a valuable resource designed to deepen your understanding of the intricate language used in the world of real estate. This handy guide breaks down every term you might encounter, making real estate easy to understand. Whether you’re a broker, investor, or buyer, this glossary is your key to unlocking the secrets of real estate. Let’s dive in and build your knowledge of the property world.
CRE Leases –
Definitions given below apply to the words as applicable for commercial real estate across CRE Products (Leases/Sale/EDGE and other excel & pdf deliverables) They may have different meanings in other contexts.
- Active CRE Leases – Indicates the occupier is present or will be present (pre-commitment) in the demised premises as per the registered lease start and expiry date.
- Inactive CRE Leases – Indicates the occupier has left the demised premises
- Active Due to Renewal – Indicates the occupier is present in the demised premises ( via. market secondary sources) although available registered document lease has expired. of the current registered document has passed today’s date.
- Active as Co-working – Indicates the occupier has occupied the demised premises as a Co-working occupier, wherein, the landlord is a co-working operator and hence, the lease is a registered under sub-lease category.
- Inactive as Co-working – Indicates the occupier which was occupying the demised premises as a Co-working occupier, has vacated the space.
Lease ID /CRE ID (Merge) – The unique identifier ID which CRE Matrix team has assigned to each registered transaction. Please note, a single transaction could be bifurcated into two different CRE IDs if the team believes there are enough critical differentiating factors to break a transaction into two.
New / Renewal – New – the occupier has replaced a different occupier company to lease a space or wherein an occupier has taken a freshly built space for lease is considered as New.
Renewal – the occupier was occupying the same space earlier as well and has simply renewed the space is tagged as Renewal. In cases where the same occupier has added to an existing space, we categorize it as New if the ‘additional space’ is substantial in size.
Market – The City in which the transaction has taken place
Macro-market – CRE Matrix has categorized each Market / city into broad macro-market regions based on geographic similarity, similar market dynamics, local parlance etc.
Micro-market – Each Macro-market is further divided into micro-markets or localities based on subareas as defined by Government authorities at a district planning level.
Pin code – The 6-digit pin code to which the asset belongs to. Please note, one Pin code may belong to two or more different micro-markets / macro-markets
Grade – Every asset has been categorized by CRE Matrix into Grades based on 8 different parameters –
• Single Ownership vs Strata sold• Age of building
• Size of building
• Location of building
• Size of developer who built it
• Amenities in building
• Parking in building
• Facade of building
Area Leased – The chargeable area of the space which has been leased in sq.ft. Usually the builtup area as per transacted agreement.
Tenant – The Occupier/Lessee who has taken the space on lease in that transaction. Please note, we have grouped all brand names together e.g. all group companies of Accenture would be clubbed under the ‘Accenture’ name. Their registered entity name might be different from the brand name.
Brands Parent – The parent entity, In Retail leasing transactions, occupiers such as Reliance, Arvind Brands etc. often have different brand names under which they lease out the stores. Using this filter, you can view leases of the entire parent entity at one go.
Landlord – The Registered entity/subsidiary name of the landlord who owns the space which has been leased out to the occupier. This is the registered entity name of lessor so as an e.g. a DLF Cyber City Developer will be different from DLF Limited, even if both would be a part of the same brand parent ‘DLF’.
Sector – Based on Global Industry Classification Standard (GICS), we have categorized each occupier into a specific sector, based on the nature and domain of their business. E.g Uber is categorized as Industrials: Transportation because of the central domain of the company’s usual business.
Brand Category – Classification of retail occupier brands into a category, based on the major line of business or types of product/services being sold by the retailer.
Developer – The entity which has constructed the building or asset. Note: In many cases, the developer may have sold the building or specific units to another entity, hence Developer and Owner / Landlord should not be clubbed together.
Space Type – The space type in which the unit has been taken on lease. Multiple space types could be a part of a single type of Asset.
Eg. Retail banking space in ground floors of Residential assets or F&B spaces in ground floors of Office Assets.
Complex Name – Name of the property/asset in which the unit space has been leased.
Building / Tower Name – A building or a tower is a part of a larger complex/property/asset. A single asset may have multiple distinct buildings as their access, maintenance, ownership etc. could be common.
Building Category – The type of building based on its technical classification such as IT Park, IT SEZ, Bio park, Shopping Mall etc.
Floor – The floor at which the space has been taken on lease.
Complex Type – The type of Asset based on its technical usage classification or usage type such as Hospital, Office, Land, Retail etc.
Building Type – The type of Building based on its technical usage classification or usage type such as Hospital, Office, Land, Retail etc.
Property Condition – The physical condition of the premises being leased out.
Examples include Bare Shell, Warm Shell, Fitted Out etc. Wherever this parameter is not found, we mention ‘Not Given’.
Agreement Type – The type of registered agreement signed between the occupier and the owner –e.g. Leave and License, Sub Lease Deed, Lease deed etc.
Sign Date – The date on which the occupier and the owner / landlord signed the agreement
Commencement Date – The date on which the landlord gives possession to the occupier.
Absorption Date The lower of two dates between Commencement Date and Sign Date
Lease Lock-in Dates – The date till which the occupier is locked-in and shall be liable to pay as per the lease agreement if the occupier opts to vacate the space before the lock-in date.
Lease Expiry Date – The date till which the occupier and the landlord have agreed to provide the possession of the demised premises to the occupier
Lease Term – The difference (in months) between the lease commencement date and the lease expiry date – i.e. the duration of the lease.
Rent free Period – The period wherein the occupier is in possession of the demised premises but will not be paying any fee to the landlord / owner as per the terms of the lease agreement.
Lock-in Period – The difference between the lease commencement date and the lock in period in months.
Starting Rent – The rent per sqft per month which the occupier will be paying to the landlord /owner at the beginning of the tenancy period.
Security Deposit – The deposit is given to a landlord as proof of intent to move in a – it can be either be refundable or nonrefundable, depending on the terms of the transaction.
Current Rent (Chargeable) – The rent per sqft per month which the occupier will is paying as of Today to the landlord / owner on the basis of chargeable area occupied.
Current Rent (Carpet) – The rent per sqft per month which the occupier will is paying as of Today to the landlord / owner on the basis of carpet area occupied.
Lease Expiry Rent (Chargeable) – The rent per sqft per month which the occupier will be paying at lease expiry date to the landlord / owner on the basis of chargeable area occupied.
Lock-in Expiry Rental – The rent per sqft per month which the occupier will be paying at Lock-in expiry date to the landlord / owner on the basis of chargeable area occupied.
Ownership – Type The type of ownership of the complex / asset. Single ownership implies > 80% of the asset is owned by a single owner. Multiple owners or Strata implies more than one owner owning at least 80% of the combined share of the asset.
Inventory / Stock – The total sum of leasable area of all constructed assets till date or till the date /respective year mentioned in a table. This includes all those spaces which have received Occupancy Certificate, including partial completions. (sft.)
Gross Leasing – The total area leased in a particular period to occupiers including renewals.
Supply – New constructed area added to inventory (sft.) in respective time period.
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Gross Absorption – The total area leased in a particular period to occupiers excluding renewals. Please note, any expansion, or voluntary exits are not accounting in this calculation.
Occupancy – The occupied area w.r.t. the total available inventory by that time period represented in percentage.
Note: Excluding pre-commitments in future supply.
This does not include any pre-commitments i.e. neither the occupied area includes any pre-commitment, nor does the leasable area include any area which has not been completed yet.
Market Rent – The weighted average rent of the region / asset based on all leases signed in the last 12 months or within the period for which the data point is displayed.
Passing Rent – The weighted average rent of the region / asset based on all leases which are ACTIVE as on a specific date i.e. the rental being paid by all active occupiers as on that given date.
Efficiency – Carpet Area / Chargeable Area
Starting Rent (Carpet) – The rent per sqft per month which the occupier will be paying to the landlord /owner at the beginning of the tenancy period based on the carpet area occupied.
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