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Anchor Tenant Large national or
regional retailer that serves as primary
draw for a shopping center. At regional
malls, anchor tenants are typically
department stores; at community and
power centers, they are food/drug stores,
discount department stores, etc.
Annual Management Fee This fee also is
referred to as an account management fee,
investment management fee, or asset
management fee. Typically stated as a
percent of gross or net asset value based on
annual or other appraisals, either net or
including cash reserves. May be stated as a
percentage of total capital contributions,
cost of real estate assets (net or gross of
mortgage indebtedness), or some
combination of the above. Declining fee
schedules (lower percentages for higher
total assets under management) commonly
are used for individually managed
accounts.
Annualized Return Expressing the
return on an investment for a period other
than one year as an equivalent return on an
annual basis. Because Annualized Return
is computed on a time value basis, it is not
the same as an arithmetic average. Under
some circumstances, such as when the total
amount invested varies over the period,
Annualized Return may provide a
misleading or meaningless number.
Apartment House Applied facetiously to
any office building with a large number of
small, non-credit tenants. The appellation
stems from such buildings typically having
a high turnover among tenants and the
need for considerable day-to-day
management involvement.
Appraised Value An opinion of value
formally expressed in writing by an
independent appraiser based upon one or
more of the three traditional analytic
approaches: the cost approach, the market
approach, the income approach.
Appraisal Date The date for which the
appraised value is determined. This date
need not be the date on which the appraisal
report is prepared but may be a prior date
or a date slightly in the future. Also called
the "as of date."
Appreciation An increase in value of an
asset. Appreciation may be attributable to
improvement in the financial performance
of the asset or changes in the market for
the asset. Appreciation should not be
confused with an increase in nominal value
due solely to inflation.
Appreciation Return The portion of the
total return due to appreciation rather than
current income, inflation, or (in the case of
taxable entities) tax benefits.
Arbitrage Buying an asset in one market
and then selling it at the same time in
another market to make a profit on the
price discrepancy.
Architectural & Engineering Services
Technical services provided by architects,
civil engineers, structural engineers,
mechanical engineers, electrical engineers,
and other design and construction
professionals related to the design,
construction, maintenance and repair of the
physical real estate asset. While some
investment firms provide some or all of
these services with in-house staff, most
firms contract with outside providers.
Area Economic Analysis An analysis of
the area immediately surrounding a
property for the purpose of assessing the
economic effect on the property of the local
physical, locational, demographic,
economic and regulatory environment.
"As of Date" The date upon which as
event or transaction is to be effective. In
the case of a real estate closing, it is the
date upon which prorations are made.
