GLOSSARY OF TERMS - M

Generally used in reference to matters of economy or economic factors and forces portrayed or operating at the macro-level (as opposed to micro-level), used synonymously with national economy.

A change in market parameters or conditions brought about in response to one or more market signals (including price changes from shifts in supply and demand); typically characterized as cycles, fluctuations, or trends (categories that differ in terms of cause, duration, and impact on commercial real estate markets).

The process of examining market supply and demand conditions, demographic characteristics, and opportunities; identifying alternative locations/sites that meet specific objectives or satisfy various criteria; and assessing the financial feasibility of those locations/sites to facilitate decision making regarding the commercial potential or suitability of various locations/sites to support a given activity or use.

A geographical area in which supply and demand operate to influence the course of industrial and commercial activities, for example, a Metropolitan Statistical Area (MSA).

Example of a recent sale or lease of a property which is similar to another property.

The demand for space minus the supply of space for a specific type of commercial property in a given real estate market.

Current rental rate in a given market.

The possibility that downward market trends will reduce an investment's market value.

Reasonable opinion of a property's value based on an analysis of data; the most probable price a property would bring in an arm's-length transaction under normal conditions in an open market.

Used in Tenant in Common properties to provide even cash flows. Similar to triple net lease property in that sponsor or master lessee takes on the role of the tenant. Designed for investors looking for study income and are willing to forgo some or all of the benefit of appreciation over the hold period. Issues with master leases can be a lack of transparency, misaligned interest and lack of downside protection. Investor needs to pay close attention to how well reserves and master lessee are capitalized. Capitalization can range for a Hollow Master Lease with an unsecured IOU to a fully funded reserve accounts.

Institution that acts on behalf of the trustee for the benefit of security holders in managing funds and assets.

A measure of central tendency (for a distribution of values) defined as the average value of a variable in a sample and calculated by adding together all the values observed in a data set and dividing by the number of values observed.

Defined as the middle value of a data set when the values are arranged in order (by size ranking, in ascending or descending order).

Oldest type of legal description relies on a property's physical description to determine boundaries, starts at POB and ends at POB.

Generally, the area in and around a major city. The Office of Management and Budget (OMB) defines an MSA as having one of the following characteristics: a city with a population of at least 50,000, or an urbanized area with a population of at least 50,000 with a total metropolitan population of 100,000.

Debt or equity capital structure that has senior debt (or a first mortgage), above it and equity below it . Can be at the asset level, entity or company level, or it could be unrated tranch ( a part of a deal or structured financing) of a CMBS.

Tax rates expressed as mills. 1/1,000 of a dollar or $.001. (.03 = 3% = 30 mills or $3 per $100)