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Commercial Real Estate Glossary

Common terms used in commercial property types

(iHomefinder provides commercial listings for your IDX website when they're available in the RETS-IDX data for your local board. At this time, we do not have advanced search options in our system for commercial listings as we do for house and condo property types.)

Building total area - measurement of all floor area, with the outside walls included in the measurement.

Business income listing or business opportunity listing - a subtype of commercial listings that includes the assets of the business (for example, equipment, the business name, or a client list) in addition to the property or space.

Cap rate (capitalization rate) - annual net operating income divided by the cost or value of the property. (The anticipated percentage of the property value that will be generated as profit per year.)

Net operating income - estimated annual revenue from the property less its estimated annual expenses.

Operating expense - estimated annual cost to maintain and manage the property.

(This info is for general reference only, and is not real estate or legal advice. It might not apply in all areas or for particular properties. You should investigate the facts as appropriate for a specific listing.)

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