CRE Terminology // Grand Rapids Submarket Map

We know the intricacies of the commercial real estate world can be overwhelming. As experts in the industry, we believe it’s important to give our clients the resources to best understand the basic lease and sale terminology and how that relates to each CRE sector (retail, office, industrial) and the local submarkets. Read on to get a taste of our every day!
Terms Definition
ABSORPTION (NET) The change in occupied space in a given time period.
AVAILABLE SQUARE FOOTAGE Net rentable area considered available for lease; excludes sublease space.
AVERAGE ASKING RENTAL RATE Rental rate as quoted from each building’s owner/management company. For office space, a full service rate was requested; for retail, a triple net rate requested; for industrial, a NNN basis.
BUILDING CLASS Class A product is office space of steel and concrete construction, built after 1980, quality tenants, excellent amenities, and premium rates. Class B product is office space built after 1980, fair to good finishes, and a wide range of tenants.
COMMUNITY CENTER Typically offers a wider range of apparel and other soft goods than neighborhood centers. Among the most common anchors are supermarkets, super drugstores, and discount department stores.
DELIVERIES Buildings that have their certificate of occupancy and are allowed to be moved into by the tenant/purchaser.
HIGH TECH FLEX This type of space is only found in Flex buildings. It can be used as office, medical, industrial, warehouse, distribution, quasi-retail, or research and development space.
MANUFACTURING A sub-type of industrial building primarily used for manufacturing products may also include warehousing or distribution areas.
NEIGHBORHOOD CENTER Provides for the sales of convenience goods (food, drugs, etc.) for day-to-day living needs of the neighborhood with a supermarket being the principal tenant.
RBA Rentable Buildable Area – mainly used for office and industrial.
SF/PSF Square foot/per square foot – used as a unit of measurement.
STRIP CENTER An attached row of stores or service outlets managed as a coherent retail entity, with on-site parking usually located in front of the stores.
UNDER CONSTRUCTION Buildings in a state of construction, up until they receive their certificate of occupancy.
VACANCY RATE All physically unoccupied lease space, either direct or sublease.
WAREHOUSE A secondary type of industrial building generally used for storage and/or distribution.