Podcast
Boots on the Ground: Episode 6
Navigating Commercial Real Estate Terminology
with Lacy Beasley
Navigating the world of commercial real estate can be a daunting task, especially for those new to the industry. From unfamiliar acronyms to industry-specific jargon, the language of commercial real estate can seem like a foreign language.
In this insightful conversation, Lacy Beasley, the president of Retail Strategies, sits down with Ryder Richards to demystify the terminology and provide a crash course in the key concepts and phrases used in the industry. Whether you’re a seasoned real estate professional or just starting to explore the world of commercial properties, this discussion offers valuable insights that will help you communicate more effectively and confidently in the commercial real estate space.
From acronyms like GLA (Gross Leasable Area) and QSR (Quick Service Restaurant) to industry-specific phrases, this episode aims to demystify the language used in real estate conversations. Lacy Beasley assists Ryder Richards in understanding key terms, shedding light on the nuances of shopping center terminology such as end cap, in line, elbow, and hard corner, as well as the importance of AM or PM sides of the road for optimal business locations.
Listeners will gain valuable insights into how these terms help consumers navigate shopping centers and make informed decisions about business locations. Lacy also explains crucial industry concepts like triple nets (taxes, insurance, and CAM (common area maintenance)) and the various restaurant types including fine dining, casual dining, fast casual, QSR, and beverage establishments. The discussion extends to restaurant leasing terms, covering tenant improvement allowances (Ti), cap rates, and furniture, fixtures, and equipment (FF&E).
Further, the episode explores Real Estate Investment Trusts (REITs) and their role in the industry, emphasizing how they distribute profits to shareholders tax-free. Lacy provides an in-depth explanation of cap rates, a critical metric for investors, detailing how they are calculated (net operating income divided by property value) and their significance in assessing property risk and return. She also discusses how improving tenant mix and financial backing can enhance cap rates and property value.
Lastly, the episode touches on the difference between Letters of Intent (LOI) and lease terms, and commonly used industry phrases like “hair on the deal,” which indicates complicated deal terms. This episode is a must-listen for anyone looking to gain a deeper understanding of commercial real estate and its unique vocabulary.
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Boots on the Ground
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