glossary
Market Fundamentals
A
Area Boma
Acronym for Building Owners and Managers Association. Today it is the most used in negotiations in the corporate market, mainly by foreign companies that feel more secure in adopting American standards. In short, the “Boma” standard applied in Brazil is the sum of the entire private and common area of the property prorated proportionally to the occupants.
Asset Class
Acronym for Building Owners and Managers Association. Today it is the most used in negotiations in the corporate market, mainly by foreign companies that feel more secure in adopting American standards. In short, the “Boma” standard applied in Brazil is the sum of the entire private and common area of the property prorated proportionally to the occupants.
B
BTS (Built to Suit)
From the English Built To Suit , the acronym BTS indicates a project built to measure for a specific tenant.
Built Area
In general built-up area is everything that has coverage.
C
Carpet Area
Based on the useful area of the property, but subtracts the “wet area” (which includes bathrooms, pantry, kitchen) and storage, if any. It is widely used in slab negotiations because it can calculate the efficiency of the office for the accommodation of furniture and employees.
Cap Rate
Cap Rate is the rate of return an investment property will generate based on its current market value. In literal translation, the English term “Cap Rate” means “capitalization rate” which, as it is calculated as a percentage, allows you to compare the investment made in real estate with other types of investment, such as savings, direct treasury, shares, real estate funds. and etc. SiiLA presents the analysis of the Cap Rate in its three forms: Cap Rate Stabilized, Cap Rate Year 1 and Cap Rate Brasileiro.
Common Area
Spaces that are outside the private area that may, or may not, be of free access to tenants. For example: halls, access areas, support and technical areas, among others.
Condominium
Value of condominium expenses, which include expenses with cleaning, security, among others of common use to the enterprise.
CBD (Centra Business District)
From the English Central Business District, a CBD region is a primary commercial region, that is, consolidated as a commercial region with offices in a certain city.
D
Developer
Company responsible for the work of an enterprise, and may be involved in one or more stages within the development of a property.
Delivery Date
Date from which the development is available to be occupied. In general, from the date on which all works are completed and with all government authorizations issued, including Habite-se.
F
Fundo de Investimento Imobilário (FII)
Real estate investment fund. The assets of a real estate fund can be composed of commercial, residential, rural or urban properties, built or under construction, for later sale, lease or lease. FIIs are traded through shares that are acquired by investors. The shares represent a fraction of the property and return to the investor the profit related to the rent.
G
GROCS
The GROCS rate is calculated as a percentage, and reflects the gross occupancy cost. This cost is calculated from the lease amount paid by the store owner, plus the condominium and the promotion and advertising fund (FPP), divided by sales.
Gross Absorption
Metric that indicates the total m² leased within a time interval.
Gross Leasable Area (GLA)
Leaseable area in square meters.
H
Habite-se
Document that certifies that the property was built in accordance with the standards established by the local City Hall.
I
Industrial
Type of enterprise with industrial purposes, which includes logistics condominiums, distribution centers, industrial warehouses, logistics warehouses and factories.
Inventory
Total amount of m² existing in a given market, considering all spaces available for lease and occupied. Allows you to scale the size of a market.
M
Market
region with established geographic limits in which commercial enterprises are located. Within each region, SiiLA also determines sub-regions, for the best study and analysis of a given commercial real estate market.
Mixed Use
Properties with more than one final purpose of use, which may be residential, commercial, industrial, among others.
Multi-Owner
Property that has more than 1 owner.
Multi-User
Property that is occupied by more than 1 tenant.
N
Net Absorption
Metric that indicates the difference between the areas effectively leased and returned during a given period.
New Stock
Is the total area of offices, condominiums, malls that will be delivered to the market. It allows to recognize the heating of the offer in the market.
NOI
Net Operating Income (NOI).
O
Offices
Type of enterprise with corporate purposes, which can be single-user or multi-tenant.
Occupancy Rate
Represents the areas occupied by tenants, in relation to the total stock.
P
Private Area
Area considered for the exclusive use of the owner or occupant, which may include the bathroom and kitchen area, when these are within the occupant's set and are available only to the occupant. In the case of balconies and technical areas, such as the space dedicated to air conditioning, they are included in the private area when they are also available only to the occupant, as well as private storage.
R
Region
Set of properties that are located in a certain geographic location.
Retail
Type of property that is used for point of sale.
Request Price
Represents the rent amount requested by the owner and not the actually practiced (transacted).
S
Single User
Property that has only 1 tenant.
Sustainability Certificate
There are several sustainability certificates that an enterprise can achieve, such as Leed. All attest that a given project was built with respect for the environment, such as energy efficiency, water reuse, among other sustainable issues.
T
Transated Price
Price actually paid for a property, both when buying and leasing.
Transaction
Act of selling or leasing a property.
U
Useful Area
It will be equal to or smaller than the private area because it excludes from the calculation some items, such as balconies, projection of the areas of walls and pillars. In this case, it is important to be aware when negotiating a property because the useful area gives a more accurate idea of the internal space than the private area.
V
Vacancy Rate
Represents the areas available for lease, in relation to the total stock.
