Glossary

A practitioner of property economy, the study of and administration of all land and property matters.

A tax payable annually in respect of the beneficial ownership of land, the rate of which is determined by the assessed valuation. Usually based on unimproved value of land.

A contract whereby possession and use of land or property is transferred for a limited period in return for rent and under certain specified conditions.

Possession and use of a property by virtue of a lease.

The value of the lessee’s interest. Where the rent paid is lower than the market rent, the capital value of the lessee’s interest is the Present Value of the profit rent for the unexpired lease term or until the next rent review.

Inducements offered by landlords to attract tenants to lease space. Typically occurs when supply exceeds demand but in order to maintain value by not lowering face rent or contract rent, tenants are given incentives such as rent free periods, cars and other gifts. Often such inducements are secret. The discount or contribution offered to the lessee at the commencement of a lease which may be applied at the start, during, or at the end of the lease term and is outside the lease terms. The incentive may include cash contribution, a tenancy fit-out or a rent free period.

A person/legal entity who receives the right to occupy and use a property under the terms of a lease.

The owner of a property who transfers the right to occupy and use property to another by way of a lease agreement.

The ability of an investment to be easily converted into cash with little or no loss of capital and minimum delay.

A term commonly used by agents for obtaining an instruction to sell or lease real estate.

The ratio of the whole loan principal dollar amount divided by the property’s appraised value amount.

Essentially governs the activities of local government and relevantly gives the councils power to require activity approvals (e.g. for erection or demolition of a building).

A characteristic of land referring to linkage and exposure relationships with other sites and their uses. (See Linkages and Exposure)