-1-
-5-
Assessed Valuation The value placed
upon a property by the local taxing
authority for the purpose of assessing ad
valorem property taxes. In most
jurisdictions, the assessed valuation need
not be the fair market value of the
property. See: Assessment Ratio; Fair
Market Value.
Assessment Ratio In many taxing
jurisdictions where the Assessed Valuation
is not required to be the Fair Market Value
of a property, a mathematical formula,,
commonly called the Assessment Ratio, is
applied by the local assessor in accord with
statute or policy. This formula may be for
the purpose of providing an equitable
allocation of the local tax burden, to
provide differing tax costs for residential
or commercial property, to make urban and
rural communities more comparable within
a state, or for a number of other public
policy purposes. See Assessed Valuation;
Fair Market Value.
Asset Allocation The allocation of
investment capital among various classes
of assets in order to optimize return.
Investment managers may use various
models to determine what portion of their
assets are invested in stocks, corporate
bonds, government bonds, real estate, and
other asset classes, changing the mix of
assets as market conditions change.
Asset Class A term used to describe
categories of investments such as stocks,
corporate bonds, government bonds, real
estate, et cetera.
Asset Management The various
disciplines involved with managing real
property assets from the time of
investment through the time of disposition.
The process essentially is tactical in
nature. Asset managers oversee and
coordinate all of the following activities:
property acquisition; property
management; leasing; operational and
financial reporting (including operating
budgets); appraisals; audits; market review;
accounting and reporting procedures, as
well as refinancing and asset disposition
plans.
Asset Management Fee (also
Investment Management Fee) A fee
charged to the investors based on the
amount invested into real estate assets for
the fund or account. Typically stated as a
percentage either of gross (after debt
financing) or net (before debt financing) of
total dollars invested.
Assets under Contract See: Assets under
Management.
Assets under Management Used by
investment managers and advisors to
define the size of their firms’ activities and
commonly expressed as the total fair
market value of all assets under the control
of the manager, regardless of encumbering
debt or other financing structure. See:
Capital under Management.
Assignee Name The individual or entity
to which the obligations of a lease,
mortgage or other contract have been
transferred.
Assignment The transfer of title, right or
interest in a contract, lease or other
tangible or intangible item of value.
Assignment may involve the complete
transfer of all rights or the transfer of only
some rights. The act of assignment does
not necessarily relieve the assignor of his
obligations under a lease or contract. See:
Assumption.
Assumption The act of assuming the
obligations of another person or entity in a
contract or lease.
Attornment The act of a tenant formally
agreeing to become the tenant of a
successor landlord. Commercial leases
generally include an attornment provision
