CREBuilder commercial real estate glossary

A property's annual return as a percentage of its sale price. Formula: Cap Rate = NOI ÷ Sale Price. A 6% cap means $6 of NOI for every $100 of price.

In the Cap Rate & NOI quick path, the selling price comes from Property Details. Enter NOI or cap rate and CREBuilder calculates the other.

Also called: capitalization rate

A multi-year model of the property's income, expenses, NOI, debt service, and cash flow after debt.

The Multi-Year Cash Flow rent roll type generates this projection. Pick it when growth and lease-up assumptions matter.

Also called: multi year, multi-year cash flow, DCF

Annual cash flow (after debt service) divided by equity invested. Shows the actual yield on the cash the buyer puts in, not on the full property price.

When financing is on, the cash-flow projection shows a Cash-on-Cash Return row: Cash Flow After Debt divided by selling price less loan amount. Closing costs are not included in the equity.

Also called: cash on cash, CoC

Annual loan payments of interest and, once the loan amortizes, principal. Interest-only years pay interest alone.

Turn on Financing on the Valuation step and enter Loan Amount, Rate %, I/O (yrs), Amort. (yrs), and Term (yrs). The projection shows Debt Service and Cash Flow After Debt.

Also called: P&I, amortization, interest only, loan payment

NOI divided by annual debt service. A value below 1.0x means NOI is less than the modeled annual debt payment.

The CREBuilder cash-flow projection shows NOI and Debt Service but no DSCR row. Divide NOI by Debt Service for any year to get it.

Gross potential rent minus vacancy and credit loss, plus expense reimbursements and other income such as parking or laundry. It is the revenue NOI is calculated from.

In the cash-flow projection, EGI equals Base Rental Revenue, less vacancy and the vacancy factor, plus Expense Reimbursements and other income.

Total cash returned to the equity investor divided by their equity invested. A 2.0x equity multiple means the investor doubled their money over the hold.

CREBuilder does not calculate equity multiple. Use the annual cash flows and exit price from the projection in your own model when needed.

Also called: EMx

The assumed capitalization rate at the end of the analysis period. Projected exit value equals the selected exit-year NOI divided by the exit cap rate.

Set this in Exit Pricing on the Valuation step. CREBuilder capitalizes the selected exit year's own NOI and shows the price before selling costs.

The cap rate at acquisition, generally calculated as in-place NOI divided by acquisition price.

This is distinct from Exit Cap Rate. In CREBuilder, In-Place and Year 1 are separate columns because Year 1 applies one growth period.

Total annual income if every unit or space were leased at full rent, including other income, before vacancy and credit loss.

CREBuilder builds the rent portion from your rent roll, including the rent vacant spaces would earn. See GPR.

Total annual base rent if every unit or space were leased: in-place rent on occupied space plus the rent vacant space would earn.

In the cash-flow projection this row is labeled Base Rental Revenue (Room Revenue for hotels and Gross Pad Income for mobile home parks). Vacancy is deducted on the rows below it.

Also called: gross potential rent, base rental revenue, scheduled rent

Sale price divided by annual gross income. A quick pricing check for apartments and other unit-based properties; a lower GRM means more income per dollar of price.

CREBuilder shows GRM for Multifamily, Self-Storage, and Mobile Home Park documents as selling price divided by effective gross income, or gross rental income when EGI is not available. Buyers who use gross scheduled rent get a lower multiple. On the Cap Rate & NOI valuation page, Est. GRM is estimated from NOI assuming a 35% expense ratio.

Also called: gross rent multiplier, gross income multiplier

The property's current income, rents, or NOI before planned increases or lease-up assumptions.

On the rent roll, in-place rents are the contract rents on existing leases. CREBuilder shows in-place vs pro-forma side-by-side when you pick the Pro Forma type.

The annualized return over a full hold period, accounting for the timing of annual cash flows and sale proceeds.

CREBuilder does not calculate IRR. Use the annual cash flows and exit price from the projection in your own model when a buyer asks for it.

Also called: internal rate of return

The period in which vacant space is leased until the property reaches stabilized occupancy. Also called absorption.

Set Lease-Up Scenario and Stabilized Year on the Valuation step. The default, 100% Immediate, counts every vacancy row as leased from Year 1; slower scenarios start at 75%, 50%, 25%, or 10% of vacant-space rent and ramp to 100% by the Stabilized Year.

Also called: absorption, lease up scenario, stabilized year

Effective gross income (EGI) minus operating expenses, before debt service, capital reserves and capital expenditures, depreciation, and income tax. It is the income that cap-rate valuation is based on.

CREBuilder calculates NOI from the rent roll, income, and expenses you enter. Reserves set on the Valuation step are deducted below NOI. In-Place is the current period; Year 1 in a cash-flow projection is one year of growth and lease-up later.

Also called: net operating income, in place NOI, pro forma NOI

Pro forma rents, income, and NOI are projected stabilized values. In-place values describe the current operating position.

Pick the Pro Forma rent roll type to show buyers current and stabilized numbers side by side. Pro Forma counts vacant space as leased at its Pro Forma rent and has no vacancy-factor input, so build any stabilized vacancy allowance into the Pro Forma rents.

Also called: proforma, stabilized analysis

Money set aside each year for capital items such as roofs, parking lots, tenant improvements, or leasing commissions. Underwriters usually deduct reserves below NOI.

Enter three annual reserve rates on the Valuation step, labeled for the property type. CREBuilder multiplies each rate by total SF, units, keys, or pads (occupied plus vacant) and deducts the result below NOI in every column.

Also called: replacement reserves, capex reserve, capital reserves

A property at its assumed long-term occupancy and rent level after the modeled lease-up, rent changes, and concessions.

Pro forma NOI represents stabilized performance. The gap between in-place and stabilized is the value-add upside.

An operating statement for the previous 12 months, with income and expenses by line item. It is historical source data and is not necessarily audited.

Enter T-12 income and expenses on Income & Expenses and compare the resulting NOI with the statement.

Income deducted from gross potential rent to account for empty units, tenant turnover, and uncollectible rent.

In a Multi-Year Cash Flow, vacancy rows deduct physical vacancy, and General Vacancy Factor % on the Valuation step adds a general allowance. The factor applies to base rent after vacancy rows, in In-Place and every projected year, and does not reduce reimbursements or other income. Pro Forma, Hospitality, and Single Tenant Net Lease have no vacancy-factor input.

Also called: vacancy factor, general vacancy, credit loss

The large, well-known tenant that draws foot traffic to a retail center (e.g., a grocery store at a strip center, a Target at a power center). Anchor presence drives the value of the whole center.

The space offered for lease within a property, separate from the size of the whole building.

Listing Hub summarizes the smallest suite size through the largest enabled upper limit from Spaces Available. This range is not the total of all suites. Individual suite sizes and rent units remain on the property page.

Also called: available square footage, suite availability, available SF

Shared property expenses (landscaping, parking lot upkeep, common-area utilities) that NNN tenants reimburse the landlord for.

Enter CAM recoveries per tenant in Reimbursements on the rent roll. Use the CAM Reimbursements suggestion in Additional Income only for recoveries not entered per tenant, so CAM is counted once.

Landlord incentives such as free rent, expanded tenant improvements, reduced parking charges, signage allowances, or moving allowances. They reduce effective rent below face rent.

Record concession terms in the rent-roll row Notes. Buyers discount face rents when concessions are unclear.

A tenant whose financial strength or public credit rating is relevant to lease risk. Credit status can change and must be verified from a current source.

Add credit facts, with the rating agency and date, in Tenant Profiles or Property Data.

A lease term, common in office, where the landlord pays operating expenses up to a set amount or up to the base-year level, and the tenant pays its share of anything above it.

Enter the tenant's share of expenses above the stop or base year as an Annual amount in the tenant's Reimbursements. CREBuilder does not derive it from your expense rows.

Also called: base year, expense stop, full service gross with stop

A lease where the landlord pays ALL operating expenses (taxes, insurance, CAM, utilities) out of base rent. Common in Class A office. Tenants like the simplicity; landlords bear inflation risk.

A lease where the tenant pays one fixed rent and the landlord covers all operating expenses. Common in multifamily.

A long-term lease of land where the tenant may construct or own improvements, subject to the agreement.

The gap between in-place rents (what current tenants pay) and market rents (what a new tenant would pay today). Positive loss to lease = upside; negative = property is renting above market and may face turnover pressure.

Pro Forma rent-roll mode places in-place and pro-forma values side by side so the reviewer can calculate and explain the difference.

A lease where the tenant pays base rent + their share of SOME expenses (typically utilities or CAM) but the landlord covers others (typically taxes and insurance). Common in office.

A lease where the tenant is responsible for property taxes, insurance, and common area maintenance in addition to base rent, subject to the actual lease terms.

Commercial rent rolls record recoveries per tenant in Reimbursements. The Single Tenant Net Lease form has no reimbursement input, so landlord-paid expenses go in Income & Expenses.

Also called: triple net, net lease

Extra rent a retail tenant pays when its sales pass a set breakpoint, calculated as a percentage of sales above that level.

Add percentage rent as an Additional Income row on Income & Expenses.

Also called: overage rent, breakpoint

A tenant's share of recoverable property expenses, usually its leased SF divided by the building's rentable SF.

Multiply the share by recoverable expenses and enter the result in the tenant's Reimbursements, as an Annual amount or divided by tenant SF as SF/Yr.

Also called: pro rata, proportionate share

A way for apartment owners to bill residents back for utilities by formula, such as by unit size or occupants. The bill-back is income that offsets utility expense.

Add RUBS income as an Additional Income row, since tenant reimbursements are hidden for Multifamily.

Also called: utility bill back, utility billback

TI = landlord-funded buildout for a new tenant (or renewal). LC = the broker commission paid to lease the space. Both are cash-out costs that reduce real returns and are usually expressed in $/SF.

Enter TI Reserve and Leasing Comm. as annual rates in Reserves on the Valuation step. They are deducted below NOI.

The average remaining lease term across a property's leases, weighted by square feet or by rent. Rent-weighted WALT is common for net lease.

CREBuilder does not calculate WALT. Compute it from the lease end dates in your rent roll.

Average revenue per occupied hotel room per night. Total room revenue ÷ rooms sold.

Captured per room category in the Hospitality rent roll. ADR × occupancy × room count × 365 = annual room revenue.

The county tax assessor's unique ID for a parcel of land. Different states use different formats: California uses APN, Texas uses Geographic ID, Hawaii uses TMK.

For land assemblages, list every parcel's ID on the Property Data step.

The distance from the property used to define the area for population, household, and income figures.

In a single-property Email Blast, use Area demographics to show or hide the section and choose a returned radius. The email labels the distance in miles for US data or kilometers for Canadian data.

Also called: trade area, mile radius, kilometer radius, email demographics

Rent actually collected as a share of gross potential rent. It is lower than physical occupancy when there are concessions, discounts, or unpaid rent.

Occupancy in CREBuilder is physical: occupied SF, units, rooms, or pads divided by the total.

Also called: physical occupancy, economic vacancy

Money a hotel sets aside to replace furniture, fixtures, and equipment, commonly about 4% of total revenue. Hotel NOI is normally stated after this reserve.

To follow hotel convention, enter the FF&E reserve as an operating-expense row and leave the FF&E Reserve field on the Valuation step blank.

Also called: FF&E, furniture fixtures and equipment

Total rentable square footage, generally excluding common and non-leasable areas. It is commonly used as the denominator for occupancy and rent calculations.

The use of a property that produces the maximum value, subject to what's legally allowed, physically possible, and financially feasible. For raw land deals and assemblages, HBU analysis is the heart of the underwriting.

For land assemblages, document current zoning, allowable use, and proposed HBU in your Property Overview narrative.

The leasable unit area of a self-storage facility, excluding hallways, offices, and other common space. Storage is usually priced and benchmarked per NRSF.

Price/SF on a Self-Storage document uses the Building SF in Property Data, so enter NRSF there when buyers compare price per NRSF.

Also called: net rentable square feet, net rentable area

Renovations a hotel brand requires, often at a sale or franchise renewal. Buyers price the PIP cost into their offer.

Enter a PIP as the PIP Reserve on the Valuation step, per key per year, so it reduces cash flow without changing NOI.

Also called: property improvement plan

Homes in a mobile home park owned by the park and rented to residents, as opposed to resident-owned homes that pay lot rent only.

Pad Inventory models lot rent. Enter POH rent as a separate Additional Income row so buyers see lot rent and home rent apart.

Also called: park owned homes

Sale price divided by site area in acres. The primary valuation metric for land. One acre equals 43,560 SF.

CREBuilder calculates it from the lot size or acreage in Property Data.

Also called: price per acre

Sale price divided by hotel room count ("key" = hotel room). Primary metric for hospitality deals.

Sale price divided by the total number of pads (home sites). The primary valuation metric for mobile home parks.

CREBuilder uses Total Pads as the denominator on Mobile Home Park documents.

Also called: price per pad, price per site, price per lot

Sale price divided by total unit count. The primary valuation metric for multifamily. Self-storage also shows Price/Unit, but storage usually trades on price per net rentable SF because unit sizes vary.

Room revenue divided by available room-nights, which equals ADR × occupancy. It combines rate and occupancy in one number and is the benchmark metric for hospitality.

CREBuilder calculates RevPAR in Room Inventory and on Hotel Rate Comps.

Total building square footage. Price/SF (sale price ÷ building SF) is the primary valuation metric for retail, office, and industrial. For example, a 10,000 SF building at $2.5M is $250/SF.

A directory order that places active properties before under-contract and unavailable properties.

Choose Full portfolio, available first in Listing Hub > Design & display to show all published properties in one directory. Featured properties lead only within each availability group. Apply changes saves the choice.

Also called: combined building directory, full portfolio, all published properties, show leased buildings

A broker-prepared valuation deliverable that may include a value range, comparable evidence, market analysis, and reconciliation. It is not a licensed appraisal.

An optional connection that sends your saved broker identity and professional expertise from CREBuilder to a prepared CREBrokerList profile.

Use Basics, Markets and Expertise with the private draft preview. Save professional details, then enable profile sync. Claim the prepared profile and submit it for publication review on CREBrokerList. After claim, manage public details there.

Also called: CREBrokerList, broker directory, service markets, professional expertise, profile syndication, private profile preview

A receipt confirming that your subscription renewal is off and stating your paid access end date, shown after cancellation or provided by email.

Use the paid access end date in Billing & plan to confirm how long access remains. A cancellation receipt sent by email is separate from marketing email preferences.

Also called: cancel subscription email, non-renewal confirmation, cancellation receipt

A commission calculated from verified cash allocated to the products and service period covered by an accepted agreement.

Taxes, noncash credits and excluded products do not earn commission. Refunds and disputes append separate corrections; payout initiation is not a confirmed payment.

Also called: creator earnings, affiliate commission

The finished confidentiality agreement with every included signature and its signature certificate.

Getting the executed copy doesn’t open the files by itself. Only signers you marked for file access get their own access link, after any approval the room requires.

Also called: completed NDA, signed copy, executed copy only

Your firm's branded, embeddable index of properties intentionally published through Listing Hub. Listed, Sync, inventory Status, and public visibility are separate controls.

Unapplied changes to the public Listing Hub theme, colors, portfolio defaults and visible facts.

Preview changes without updating the live website. Apply changes saves the whole presentation; Discard restores the last saved design. Availability, website visibility, access and Sync use their own controls.

Also called: Design & display, listing appearance, apply design, listing card fields

Your saved choice to distribute a listed property to eligible listing sites. The Sync switch stays checked while delivery is paused or needs attention, so you can still withdraw that choice. Turning on Listed does not turn on Sync.

One confidentiality agreement signed by several people, such as a buyer, the buyer’s agent, and the seller, each in their own role.

In CREBuilder you confirm who signs before invitations go out. Files open only after every included signer finishes and the executed PDF is ready, plus your approval when the room requires it.

Also called: multiple signer NDA, buyer agent NDA, seller countersignature

A detailed investment-sales marketing document that may include property information, financials, a rent roll, market data, photography, and comparables.

A one-time charge for additional paid seats during a term that has already been paid. The original renewal date stays the same.

For migrated prepaid terms, CREBuilder quotes the remaining whole calendar days in Eastern Time and shows the future renewal total before Stripe payment. Seats become available after payment and renewal verification.

Also called: whole day proration, annual seat payment, remaining term seat charge

The signed-in workspace for one property, with separate Listed and Sync controls plus its document, Deal Room, leads, matches, and outreach. The public property page is a separate Listing Hub surface.

The recorded relationship between an introduction and a new billing account.

An accepted code can replace provisional link attribution before the first paid conversion. Later assists remain separate and do not create a second acquisition reward.

Also called: affiliate tracking, creator referral

A concise deal summary with selected property information, financial facts, imagery, and contact details. It can be shared before a complete Offering Memorandum.

A paid monthly CREBuilder Mail subscription that replaces the included allowance with a larger number of recipient sends per billing period.

Choose the 10,000, 25,000 or 50,000 emails plan under Settings > Email & sending > Sending plan. Payment goes through Stripe, the daily allowance ramps toward the plan ceiling, each campaign still sends to up to 500 recipients, and the same limits apply on the shared sender or a verified domain.

Also called: mail plan, sending upgrade, add sending capacity, recipient send allowance

A secure payment page that has been opened without a completed payment.

When you change your plan, seats, or promotion code, CREBuilder closes the earlier unpaid order before opening the new one. A payment awaiting confirmation must be checked in Billing before you pay again.

Also called: abandoned checkout, checkout already open

A United States tax-deferred exchange of qualifying real property under Internal Revenue Code Section 1031. Eligibility and deadlines require current tax and legal guidance.

CREBuilder allocates portfolio value by gross-rent share and has no per-building override. Use a tax, appraisal, or legal allocation when the exchange needs one.

On a portfolio sale, the value assigned to each property from the total selling price.

The Valuation Summary allocates the asking price by each building's share of gross rent and labels it indicative. Expenses are not considered, so implied per-building cap rates differ when expense loads differ. Use an NOI-based or appraised allocation for 1031 or tax purposes.

Multiple buildings on the same physical site that are presented as one asset, such as an office park or mixed-use development.

Multiple contiguous parcels with separate APNs sold together as one development opportunity. Value usually comes from rezoning potential and combined size, not the sum of individual parcels.

Separate properties presented together as one offering, such as several shopping centers across a region. Each property retains its own record and address.

Portfolio-level cap rate: sum of every building's NOI divided by the total selling price. The right way to compare a portfolio's yield to a single-property's cap rate.

CREBuilder calls this "Weighted Average Cap Rate" or "Blended Cap Rate" on portfolio docs. It appears on the cover, exec summary, and valuation summary.