Glossary

All actions necessary to keep an item or asset in operational condition.

A major shopping centre typically incorporating at least one full line department store, one or more full line discount department stores, one or more supermarkets and around 150 specialty shops. Total Gross Lettable Area Retail (GLAR) generally ranges between 50,000 and 85,000 square metres.

The obligation of a lessee at the end of occupation to ensure that premises are returned in the same condition as at the commencement of the lease; for example painting, partitions, etc.

A method of valuation whereby the evidence derived from the analysis of sales or leasing of similar assets is used to demonstrate value.

The price actually paid, or agreed in a contract to be paid, for an asset. It differs from market value in that it relates to an accomplished fact, whereas market value is and remains an estimate until proved. Market price may involve circumstances not normally included in market value.

The likely market rent that an asset could command on the open market as indicated by current rents being paid for comparable assets. Can also be known as open market rent or fair market rent. Were rent control legislation exists, fair rent may be determined arbitrarily by reference to specified limitations on returns, etc. (See Market Rental Value)

The estimated amount for which an asset should rent, as at the relevant date, between a willing lessor and a willing lessee in an arm’s length transaction, wherein the parties had each acted knowledgably, prudently and without compulsion, and having regard to the usual terms and conditions for leases of similar assets.

A review of rental levels under the terms of the lease (often periodic) with reference to prevailing market rents. Market review varies from lease to lease due to the specifics in the lease which state what factors are to be incorporated into the market review.

Market value is the estimated amount for which an asset should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s length transaction after property marketing, wherein the parties had each acted knowledgably, prudently and without compulsion.

All those services in buildings that involve motors, machines, or the flow of heated or cooled fluids, usually in conjunction with electrical or electromechanical controls. The terms ‘building services’ and ‘mechanical services’ overlap to some extent.

The middle number when data is arranged from the lowest to the highest. If there are two median scores, they are averaged to provide the true median. The median is also known as the 50th percentile.

The process by which a third party assists two disputing parties to reach a mutually agreeable solution. A recommendation made by the mediator is not necessarily binding on the parties.

A lease of property from month to month and determinable on a month’s notice. Often arises after a longer lease expires.

Documentation of a property loan. The conveyance or transfer of real or personal property of the person conveying as security for payment of a debt or performance of an obligation.

Sale of a property where in the case of a default of payments by the mortgagor, the mortgagee can sell the property over which the mortgage has been held.

Financier who lends money against property as security.

One who owns an interest in real estate and who executes a mortgage on that interest as security for a loan or for the advantages of credit.