Glossary

Paved, open area adjacent to an industrial premises (normally on the same site), used to store material, equipment, products or containers. The hard stand area is distinct from any driveway, parking space or lading bay.

A lease between the freeholder of land and buildings and the main lease holder, who may not be the occupier.

A building normally defined in excess of three storeys.

The permissible property use that at a given point of time is deemed likely to produce the greatest net return in the foreseeable future, whether or not such use is the current use of the property. The most likely use of an asset which is physically possible, appropriately justified, legally permissible, financially flexible and which results in the highest value of the asset being valued.

The actual cost or first cost of an asset at the time it was originally constructed.

Often used to refer to a property awaiting further development. Expenses, charges or costs which are met in order to keep real property from year to year, including both fixed charges and variables such as taxes. (Also known as Carrying Charges).

The time period for which an asset is held by an investor.

A method of feasibility analysis in which the development of land is envisaged in a hypothetical exercise and all the estimated costs of the proposed development are taken into consideration. The probable net returns from the development are then calculated as a test for its economic viability.