| A | B |
|---|
| the process of converting periodic income into a value estimate | Income capitalization |
| Under current economic conditions, but adjusted to show current market rents, average vacancy and collection losses, and normal operating and capital expenses for this type of property in this location and market | Stabilized Net Income |
| The proportion of potential gross income not collected - even when the use (rental) market is in equilibrium | Natural Vacancy Rate |
| Replacements and alterations to a building that materially prolong its life and increase its value | Capital Expenditures |
| the process of estimating a property's market value by dividing a single-year stabilized NOI by a "capitalization" rate | Direct Capitalization |
| Using comparable property sales to estimate an appropriate cap rate | Direct Market Extraction |
| The proceeds from a real estate sale | reversion |
| The sale price at the end of a expected holding period | Terminal Value |
| The capitalization rate when real estate is sold. | Terminal Cap rate or going-out cap rate |
| Compensation paid to agent to find new tenants | Leasing Commissions |
| Improvements designed to customize space for the tenant, usually paid for at least partly by the landlord, and generally incurred as tenant move in or upon renewal of a lease | Tenant Improvements |
| Capital Expenditures + Leasing Commissions + Tenant Improvements | CAPEX |
| The final estimate produced by one approach is called | Indicated Value |
| An overall cap rate R0 is divided into what type of income or cash flow to obtain and indicated market value? | Net Operating Income (NOI) |
| The methodology of appraisal differs from that of investment analysis primarily regarding: | Point of view and types of data used |
