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464 Cards in this Set

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  • Back
A standard fire policy is called a ____ _________ policy; it is often written with an __________ coverage endorsement and a ______________ and ____________ endorsement?
Fire insurance is often written with an extended coverage endorsement and a vandalism and malicious mischief endorsement
The sole negligence agreement (a type of hold-harmless agreement) flowing from the tenant (party A) to the landlord (party B) does what three things?
(1) Relieves LL or responsibility for tenant's personal property, regardless of "fault". (2) Avoids duplication of insurance coverages (3) Clearly places responsibility for protecting the tenants' property on the tenants.
A deduction of specific expenses or investments from all or a portion of percentage rent.
A transfer of use or occupancy rights for a given period of time.
Rent that is based on a percentage of a tenant's sales. This is usually paid in addition to a minimum or base rent.
Percentage rent
Money that is advanced to the tenant by the property owner to allow the tenant to finish construction on the tenant's leased space. Also known as a tenant allowance.
Tenant investment (TI)
A negotiated sales volume for the payment of percentage rent other than dividing the minimum rent by the percentage rent rate. Name both variations.
Artificial breakpoint or negotiated breakpoint
What is CPI-U
CPI-U is the consumer price index for all consumers and covers 80% of the population.
A person employed by the owner of a particular shopping center or centers to lease space to tenants on terms acceptable to owner.
Leasing agent
Parcels of land contiguous to a shopping center. Created by the owner of the shopping center and usually sold for reimbursement of equity.
The determination of the total income needed to finance and build a shopping center. This is a document.
Pro forma
A fixed amount of rent paid by a tenant to the property owner that is not directly based on the tenant's sales. This is also known as minimum rent.
Base rent
To pay for or write off an expense over a fixed period.
The obligatory content of a lease agreement. A weak ______ gives little recourse should the other party fail to honor the terms of the _______: a strong _______ provides better recourse in the event of defaults.
A failure to honor the terms of a lease agreement. Nonpayment of rent, for example, is a _________.
Proper examination of necessary information, to satisfy oneself as to its accuracy.
Due diligence
The leasing representative's responsibility to use information conscientiously when dealing with tenants.
Duty of care
A letter signed by tenants certifying the dates of the beginning and end of their leases, and certifying that there are no liens on their properties.
Estoppel certificate
Charges shared among tenants for the property owner's maintenance and operation of the common areas.
Common area maintenance charges (CAM)
A letter from the tenant to the property owner setting out the basic financial terms along with any contingencies.
Lease request
A trust established by a group of investor's that owns a piece of real estate such as a shopping center.
Real estate investment trust (REIT)
Synonym with Tenant Investment (TI) and Tenant Allowance (TA).
Construction allowance
A center whose tenants are not doing well in terms of sales volume and one which is suffering a serious vacancy problem.
Delicate center
A letter which outlines the business terms of a proposed lease, which is signed by both landlord and tenant prior to the execution of a lease document.
Letter of intent (LOI)
A lease stipulation in which management states that only one store of a certain type (a bookstore, for example) will be permitted in the center.
Exclusives or exclusive use clause
A order by a court, which may be either mandatory (requiring tenant or landlord to comply with a certain course of action) or prohibitory (forbidding a certain course of action.
A clause in some leases giving the tenant the right, if certain conditions are not met by a certain time, to walk away from the lease or giving the landlord the right to terminate the tenant's lease.
Kick out
An independent commitment by a third party (such as a bank) to honor obligations agreed upon by the landlord and tenant under certain conditions.
Letter of credit
A letter of credit whose total commitment is reduced upon fulfillment of certain conditions.
Reducing letter of credit
A proportionate share of payments
Pro rata
Reduction in amount, usually of rents or other payments due under the lease.
Provision whereby a lender or landlord may declare the entire unpaid amount due and payable upon an event such as default.
Acceleration clause
Declaration by a person who has signed a document that the execution of the document is a voluntary act, made before a duly authorized person.
Gradual paying off of a debt by periodic installments, generally in equal payments at regular intervals over a specific period of time.
Something that is outside of the property itself, but is considered to be a part of the property and adds to its greater use or enjoyment, such as an easement or right of way.
Method by which a right or contract is transferred from one person to another.
Witnessing of the execution of a document by observation and signature.
Tenant's formal agreement to be the tenant of a landlord.
Minimum rental due under a lease that has a percentage or overage rental provision.
Base rent
Financial process whereby the anticipated future income is converted into a single lump sum value.
Personal property.
Clause or provision of an insurance policy that states that a minimum percentage of the value of the property being insured be insured in order to collect the full amount of the loss, even if that loss is less than the insured value.
Area of property that is or may be used by all of the owners or tenants of the property.
Common area
The body of law that has grown out of the legal customs, practices, and court decisions. This primarily relates to English law in absence of statutes or precedents.
Common law
An agreement that the law will enforce. The essential elements of a _______ are mutual assent (offer and acceptance), consideration, competent parties, legal subject matter, it must meet the requirements of the Statute of Frauds.
Promises written into agreements whereby a party agrees to the performance or nonperformance of certain acts, or which may require or prevent certain uses of the property.
Amount of money recoverable by a person who has been injured in any manner through the act, failure to act or default of another.
Failure to fulfill an obligation or promise, or to perform certain specified acts.
Right, privilege, or interest that one party has in the land of another.
Right of a governmental body to acquire privately held real property for public use by use of condemnation. The owner must receive fair and equitable compensation for the taking.
Eminent domain
Unauthorized physical intrusion of a fixture or real property improvement onto the property of another.
Any claim, lien, charge or liability which affects or limits the fee simple title to real property.
Legal form under which property is owned or operated.
Interest or value that the owner has in real property over and above the liens against it.
Doctrine of law that stops one from later denying facts that the person once acknowledged were true and that others accepted upon good faith.
Provision of a lease which allows a party the right to not be held personally liable for damages. Usually limits the tenant's right of recovery to the equity that the landlord has in the property.
Exculpatory clause
Absolute ownership of real property.
Fee simple
Improvements or personal property attached to the land so as to become part of the real property.
Generally, a non-binding document submitted prior to a formal lease that delineates the intentions of both the property owner and the tenant.
Letter of intent
Total tenant sales from all transactions.
Gross sales
A fixed amount of rent that is not based on a tenant's sales. This is also known as base rent, after a tenant's sales have reached a certain level.
Minimum rent
The name under which a tenant operates a business.
Trade name
The variables that contribute to determining rent for a space are C.L.A.S.S.; they are:
Category, Location, Amount (of frontage), Allowance, Size, and Situation (owner's).
Periodic increase of minimum rent which when averaged provides the owner with an average rent over the term.
Graduated rent
Guaranteed annual rent a tenant must pay during the term of the lease.
Minimum rent
Total rent is a product of:
Land costs, Building costs, Soft costs (legal, engineering, environment, etc.), and return to owner.
Synonym for Tenant allowance and Tenant investment. It is a type of allowance.
Construction allowance
FF&E is the acronym for:
Furniture, fixtures, and equipment
The major up-front costs paid by the property owner. The majority of these costs are the physical costs of acquiring a property and of doing construction work on the site.
Hard costs
Synonym for base rent
Minimum rent
Costs that the owner cannot pass through to the tenants, such as special legal fees or some types of marketing expenses.
Non-reimbursable owner costs
Improvements made by the property owner on the shopping center site.
On-site improvements
The tenant's portion of a shopping center's expenses. This portion is composed of common area maintenance, taxes, insurance, and any other expenses that the property owner and the tenant have agreed will be paid by the tenant.
Pass-through expenses
Leasing a project to tenants before construction has begun.
A measure of annual return that shows what percentage return the property owner is receiving on the project. How is it calculated?
Return on investment is calculated by dividing the net operating income by the project investment.
Money advance to the tenant by the property owner to allow the tenant to finish construction on its leased space. Also known as Construction allowance and Tenant Investment.
Tenant allowance
The amount a property is worth -- ie the amount it will sell for. How is this determined?
Project value or Value of project is determined by dividing the property's net operating income by the capitalization rate (CAP rate).
The mutually beneficial effect created when two stores complement each other in terms of engendering sales and shopper traffic in the mall.
Information pertaining to population characteristics such as age, income, and family size.
Renting space to a tenant who will pay rent and open for business in the shopping center.
The proportion - usually expressed as a percentage - of total sales in a center that falls into a particular category.
Sales capture rate
An unavoidable cause of a delay in, or of the failure of, the performance of a contractual obligation on a timely basis.
Force majeure
Total floor area of a building.
Gross area
Total floor area of a building available for lease. It excludes common areas and certain areas not offered for lease to a specific party.
Gross leasable area
A lease of property whereby the landlord is responsible for paying all property taxes, insurance, maintenance and the tenant pays a fixed rental.
Gross lease
Protection of another person against loss or damage.
One who rents property to another.
Contract between the landlord and tenant whereby the possession of property is granted by the landlord to the tenant for specified period of time in exchange for the payment of a specified amount of rent.
Interest or estate on which the tenant has a lease.
Person to whom the property is rented under a lease.
Person who rents the property to another under a lease.
Permission to use or occupy property, which may either be expressed or implied and which may not be sold or transferred to another.
Charge against a property making it a security interest for payment of a debt, judgment, mortgage or taxes. It is a type of encumbrance.
Stipulated amount of money that is agreed upon in a contract that one party will pay to the other party in the event of a breach of the contract.
Liquidated damages
A lien granted by law upon a building or other improvement upon land, and upon the land itself, as security for the payment for labor done and/or materials furnished for improvement.
Mechanic's lien
Written instrument that creates a lien upon real estate as security for the payment of a specified debt.
A lease whereby, in addition to the payment of an agreed rental, the tenant assumes the responsibility for the performance and payment of all other expenses relating to the operation and maintenance of the property.
Net lease
Official communication of one party to another.
Three party agreement whereby one party is released from its obligations under the contract and another party is substituted.
Promise of the tenant to open and to operate its business in the leased premises for a specified period of time.
Operating covenant
Rental to be paid by the tenant, based upon gross sales (as defined), over and above the base rent.
Overage rent
Money that one will pay for breaking a law of violating part or all of the terms of a contract.
Rent to be paid by the tenant for the lease of property which is determined and based upon a stated percentage of the gross sales made by the tenant in the operation of its business in the leased premises.
Percentage rent
In law, an entity having legal responsibility. Legally, a ________ may be a human being, corporation, limited liability company, partnership, governmental entity, or certain other statutory entities.
Diagram showing the proposed or existing use of a specific parcel of land.
Plot plan
Holding, control, or custody of property for ones use, either as owner or as a person with another right.
Allocation between the parties of their proportionate share of an obligation paid or due.
In law, the land and everything attached to it. Generally synonymous with the term "real property".
Real Estate
Contractual clause or provision which permits the party who granted an interest or right to take it back under certain specific conditions.
Recapture clause
The right, but not the obligation, of a tenant to continue to lease property at a specified term and rent.
Renewal option
Charge for the use of property as specified in the lease.
An amendment or attachment to a contract.
An interest in real estate in which the real estate serves as collateral.
Security interest
Document or diagram which describes the manner in which a parcel of land is to be or has been improved.
Site plan
Legal action in which the court will require a party to a contract to perform the terms of the contract when he has failed or refused to fulfill his obligations.
Specific performance
A law that provides that certain contracts must be in writing in order to be enforceable. Applicable to all real estate contracts except for leases or licenses for periods of less than one year.
Statute of frauds
A lease from a lessee to another lessee.
Moving to a lower priority.
A clause or document that permits a mortgage or other lien recorded at a later date to take priority over an existing right of another party.
Subordination clause or Agreement
Substitution of one creditor for another, with the substituted person succeeding to the legal rights and claims of the original creditor.
A license to use or occupy lands and buildings at the will of the owner for which there is no specific term of possesion.
Tenancy at will
One who is given possession of real property for a fixed period of time or at will.
Period of time during which something is in effect.
When a new tenant assumes all the obligations of the former tenant with the permission of the property owner.
Assurance of performance by one party of another party's obligations.
The tenant's portion of a shopping center's expenses; this portion is composed of common area maintenance, taxes, insurance, and any other expenses that the property owner and the tenant have agreed will be paid by the tenant.
Pass-through expenses
A rent that increases in steps by previously agreed-upon amounts over a period of years.
Stepped-up rent
Refers to a tenant's cost net of taxes, insurance, and common area maintenance charges.
Triple net
A measure of the average change in prices over time in a fixed market basket of goods and services.
Consumer Price Index (CPI)
Guaranteed annual rent a tenant must pay during the term of the lease.
Minimum rent
A breakpoint mutually agreed to without utilizing base rent or minimum rent as the basis.
Negotiated breakpoint or Artificial breakpoint
The annual sales volume used to determine whether or not the tenant must pay percentage rent. Also what is the formula?
Neutral breakpoint. Divide the annual rent by the percentage rent rate. Example. If tenant pays $20,000 per year and the natural break point used is 4% then divide $20,000 ÷ 4% = Neutral breakpoint which is $500,000.
A percentage sales volume which represents the maximum a tenant can pay for rent and extra charges.
Occupancy rate
A rental based on a percentage of sales volume.
Percentage rent
In legal terms, this is consideration for the execution of a lease. In practical terms this is the most material covenant in the lease; that is, it is the only covenant whose breach allows termination.
Applied to new centers. The assignment of a rent to each space in the shopping center which when totaled should equal the rent set forth in the pro forma.
Rent schedule
Priority money given to partners in the development project as a return on their investment.
Accrued equity preferred return
The rate of return that a potential buyer of the property is willing to accept on the investment.
Capitalization rate (CAP rate)
Charges shared among tenants for the property owner's maintenance and operation of the common areas.
Common area maintenance charges (CAM)
Revenue derived from reimbursement to the property owner of all expenses that the property owner pays initially and then passes through to the tenant.
Expense reimbursement revenue
The sum of base, percentage, and expense reimbursement revenue paid by the tenant to the property owner.
Gross projected income
HVAC stands for:
Heating ventilation and air conditioning
The income received by the property owner after vacancy expenses, operating expenses, management fees, and non-reimbursable costs have been subtracted from gross revenue.
Net operating income (NOI)
Improvements made by the property owner to the community near the site. These improvement sare usually requested by the local government authority.
Off-site improvements
The expenses paid by the owner to operate the shopping center. Most of these expenses are passed on to the tenants.
Operating expenses
Rent based on a percentage of a tenant's sales. This is usually paid in addition to a minimum or base rent.
Percentage rent
All the costs incurred by the property owner that are not hard costs.
Soft costs
The percentage of leasable retail space in a shopping center that is unleased at any given moment in time.
Vacancy rate
The number of percentage of the population that forms the audience for a particular type of advertising medium, such as the number who read a particular periodical.
Advertising reach
The process of recovering all or part of a leased premises for the remaining term of a lease through a voluntary agreement between landlord and tenant.
The percentage of a shopping center's sales produced by a given merchandise category or tenant divided by the percentage of the center's GLA that is occupied by that tenant or tenants in that category.
Efficiency ratio
Renting space to a tenant who will pay rent and add something positive to the center. This sets a shopping center apart from the competition through a unique ____________.
Merchandising sets a shopping center apart from the competition through a unique tenant mix.
The degree of increase or decrease expressed as a percentage between two figures.
Percentage change
Renting space to tenants in an existing mall, with a view to adjusting the tenant mix to better benefit the center.
The percentages reflecting the proportions of square footage and/or number of leasable units in a particular merchandise category. General term.
Tenant mix
The geographic territory in which a shopping center's customers reside. These may be classified as __, __, __, depending on the number of shopper trips made to the mall in a given period by residents of tha area.
Trade area may be classified as primary, secondary, or tertiary.
Costs incurred in altering and finishing merchandise to meet the needs of retail customers at the time of sale.
Alteration costs
What the business owns.
What are two types of assets?
Fixed and Current
An average of the stock on hand at representative dates throughout the year or season.
Average inventory
Report showing the business's financial position on a specific date.
Balance sheet
The discounts for prompt payment by retail companies of purchases earned on the goods sold during a specific period.
Cash discounts
The price at which goods are purchased in the wholesale market.
Assets that can be converted into cash within 12 months.
Current assets
Those items owed and due within 12 months.
Current liabilities
Charges involved with running the business. Two types of these include?
Expenses (types include fixed expenses and variable expenses)
Things used in the business that are not for sale.
Fixed assets
Operating expenses that are not affected by increases or decreases in sales volume. These are also called?
Fixed expenses or Indirect expenses
Total amount before deductions have been made.
The difference between the sales and the total cost of merchandise sold.
Gross margin
Gross profit formula
Markup multiplied by sales price
Report showing the business's financial performance over a specific period of time.
Income statement
Average national sales figures for a given retail category (broker down by year, month or season).
Industry averages
First markup placed on an item
Initial markup
The goods on hand at a specified accounting date. The term may refer either to the physical good or to their value.
An average of the stock on hand at representative dates throughout the year of season.
Inventory average
The level of debt against assets.
Those things that can be claimed against the business; what the business owes.
The ability to convert assets into cash.
The manufacturer's suggested retail price.
List price
Those things owed after 12 months.
Long term liabilities
A selected item that is deliberately sold at less than cost in order to attract customers.
Loss leader
The difference between the net sales and the gross cost of merchandise sold. It is the margin on sales before making adjustments for cash discounts earned and alteration costs.
Maintained markup
Retail price reduction caused by the inability to sell goods at the original or subsequently determined retail price.
The difference between the retail selling price of the merchandise and the cost of the merchandise to the retailer.
The executive in charge of the merchandise division of a store.
Merchandise manager
A forecast, usually by months for a six-month season, of the major elements that enter into gross margin. It normally includes the planning of __, __, __, __, & __.
Merchandise plan normally includes the planning of sales, stocks, purchases, markups, and markdowns
The planning involved in marketing the right merchandise, in the right place, at the right time, in the right quantities and at the right price.
What remains after specified deductions from the gross amount.
Sometimes called retailer's cost price. The amount a retailer must pay for a particular item.
Net price
The amount of money left after all expenses have been paid.
Net profit (or loss)
What the owner actually owns in the business.
Net worth
Monies needed to operate the business, as distinct from outlays to finance the business.
Operating expenses
Income from sources other than the sale of merchandise.
Other income
A synonym for fixed expenses.
The gain a business realizes over a period, measured in terms of money.
The price at which goods are offered for sale.
Synonym for Net price
Retailer's cost price
The amounts received or accrued to the store in exchange for merchandise sold to customers during an accounting period.
A number of discounts offered by the manufacturer to the retailer.
Series discounts
The degree of balance between the retailer's inventory and sales, and the speed with which merchandise moves into and out of a department store.
Stock turnover
The manufacturer's or supplier's discount from the suggested list price; it is expressed as a ______?
Trade discount is expressed as a percentage.
Also called direct expenses; operating expenses that are affected by increases or decreases in sales volume.
Variable expenses
A description of the message, themes and creative elements of your advertising campaign. It includes a budget for creative and production services.
Advertising plan
Basic objective data about the shoppers in your market area. _______ statistics includes __, __, __, __, & __.
Demographics include age, sex, income, education, and occupation.
A benefit -- feature, location or concept -- that will distinguish your shopping center in the mind of the consumer. A ______ may be __ or __?
Differential advantage may be real or perceived
The merchant who is recognized by peers as an informal leader among the shopping center's tenants is called the __________. This individual is likely to become the tenant's ___?
Mall mayor is likely to become the tenant's spokesperson
Established by a fee paid to the landlord, this is a pool of monies for which shopping center landlords are totally responsible. The fund has a tenant advisory board.
Marketing or promotion fund
An outline of the various media that you have determined to be most efficient for reaching your target market. It defines exactly which media will be used and when. The plan includes the media buying budget.
Media plan
A not for profit, independent corporation with a board of directors who vote and sign checks. The members pay dues. Monthly meetings and an annual report are required.
Merchants' association
An interpretation of life style issues; how people are influenced and what they spend their money on.
Newsworthy information that, when released to the media, will be published or broadcast as news. It is used as free advertising.
The geographic community from which your shoppers come.
Trade area
A selected item deliberately sold at a price lower than the one at which the largest total profit on the item could be realized, in order to attract customers.
Leader or loss leader
Articles of personal property placed within the lease premises by the tenant for the purpose of carrying out its trade or business.
Trade fixtures.
Right of a person legally entitled to possession to the use of the property without interference.
Quiet enjoyment
Sales capture rates are typically used to compare:
The relative sales performances of merchandise categories in general within a shopping center or of different areas of the shopping center.
The factor that when divided into the NOI establishes the value of the income for financing purposes. May vary from lender to lender.
CAP rate
The unfinished tenant space before the tenant completes construction of the space. This usually consists of what basic elements.
The "Shell" usually consists of walls, roof, basic plumbing and electrical to a point.
Refers to tenants offering better quality and/or exclusive merchandise at higher prices.
High end
A report showing a business's financial position on a specific date.
Balance sheet
Money from the tenant to the landlord for the right to operate a business in the center.
Key money
The number or volume of shoppers who visit a shopping center during a specific period of time.
Charge that a tenant pays for shared services and facilities such as electricity, security and maintenance of parking lots.
Common area maintenance (CAM)
An administrative system that has the characteristics of both decentralized and centralized admin. systems.
Hybrid decentralized system
An itemized listing and/or allotment of all estimated revenues anticipated and a listing (and segregation) of all estimated costs and expenses that will be incurred in obtaining those revenues over a fixed period of time.
An outline of expenditures for physical improvements to the property.
Capital budget
A description of the message, themes and creative elements to be used in an advertising campaign.
Advertising plan
An administrative system in which all financial systems, including payroll, accounts receivable and payable, purchases, etc., originate from a home office rather than from individual shopping centers.
Centralized system
An approach that uses all of a shopping center's strengths, both tangible and intangible, in order to achieve the LL'stated objectives.
Asset management
A document that is evidence that an insurance policy has been issued.
Certificate of insurance
A broad form of third-party insurance that covers the policyholder in the event of bodily injury, personal injury and property damage.
Commercial general liability policy
An administrative system maintained at individual shopping centers (bookkeeping, accounting, purchasing, etc.). Each center is responsible for its work but may follow a standardized system.
Decentralized system
The amount the value of property deteriorates in a year - how much the total value is reduced by wear and tear.
A report showing the business's financial performance over a specific period of time.
Income statement
The area surrounding a shopping center from which the center draws its customers.
Market area
A detailed document explaining all the steps and activities a shopping center will use to promote itself during a one-year period.
Marketing plan
The planning involved in marketing the right merchandise, in the right place, at the right time, in the right quantities and at the right price.
An outline of how much income a shopping center has and how that income will be spent.
Operating budget
Monies needed to operate a business, as distinct from outlays to finance the business.
Operating expenses
A management statement that provides net sales, costs, expenses and net operating profit or loss for a fixed period.
Operating statement
The fee paid to an insurance company as an inducement for assuming part of the insured's risk.
A first-party insurance covering the insured for damages to personal or real property or the loss of its use.
Property insurance
The types and price levels of retail and service businesses within a shopping center.
Tenant mix
Insurance which protects the insured against liability arising out of property or bodily damage to others caused by another party.
Third-party insurance
The geographic area from which a center draws its shoppers. Limits that define this area may be distance, natural barriers such as rivers or man-made obstructions such as a highway that is difficult to cross.
Trade area
Usually part of the financial package provided to managers on periodic basis. It shows the difference between budgeted expectations and actual results.
Variance report
How can a waiver of the coinsurance clause be arranged?
By adding an agreed - or stipulated - amount endorsement to the policy.
What are two kings of risk?
(1) Business: These are entrepreneurial and cannot be insured against. You cannot, for example, insure against not making sales projections of people not coming to a new center.
(2) Static, or nonbusiness: These are external hazards, and they can be insured against. They include, for example, flood, fire and slips and falls.
What are two methods of transferring risk?
Noninsurance: This involves transferring risk to others and includes the use of leases, which transfer risk to tenants. Other options include contracts and agreements with vendors, contractors, and special event organizers that make these entities liable for risk.
Insurance: This allows you to transfer risk to a professional risk bearer - an insurance carrier.
A retail tenant who operates one or more stores exclusively in a local market.
Local tenant
Unusual portions of a shopping center's site that constitute the perimeter areas, not including the center facility or parking lot, that may be used or developed for similar or non-similar purposes.
Landlord builds and finishes out a retail space; tenant shows up with merchandise and is ready for business. This is what type of deal?
Turn key
Liability occurring when a person is harmed by someone who is breaking the law. Redress for criminal liability is argued in a criminal court of law.
Criminal liability
An alarm that indicates a holdup is in progress. This type of alarm is usually silent.
Holdup alarm
A device that detects the physical movements of an intruder in a protected area.
Motion detector
Weapons used by center security that, in normal use, cannot kill a human being.
Non-lethal weapons
Written documentation, based on investigation, describing events that took place during an incident.
Written documents that show how a security officer was trained. Includes documentation of written and videotaped security articles viewed and training seminars attended.
Training record
The pooling and distribution of money paid by tenants for the overall marketing of the SC. The ________ ____ is overseen by the center's marketing director and staff and is used for advertising and promotion activities.
Marketing fund
A retailer who operates stores in a particular region of the country.
Regional tenant
What are the three basic types of hold-harmless agreements? explain the types.
(1) Basic agreement: Party A hold party B harmless from losses emanating from A's negligence (2) Intermediate agreement: Party A holds party B harmless for A's negligence and claims for which they are jointly negligent. (3) Sole negligence agreement: Party A holds party B harmless for all losses, including those arising out of B's sole negligence.
A clause inserted into a shopping center retail lease that restricts the category of merchandise or items that a retailer is allowed to sell.
Use clause
A long, slender but sturdy stick used by center security a as a non-lethal weapon. Also know as a bill club or night stick.
The written or taped recording of the results of an investigation, survey, patrol or any other activity performed by a security officer in a SC.
An emergency created by an act of God.
Natural disaster
Devices designed to protect the exterior openings of a shopping center-- for example, door locks and window bars.
Perimeter protection
Forcibly taking property directly from another person.
An event that is caused by the forces of nature; one that humans could not have prevented by reasonable effort, e.g., an earthquake.
Act of God
(Insurance term) The cost, with a deduction for depreciation, of restoring or replacing destroyed property with property of similar like and quality. Usually defined as replacement cost less actual physical depreciation.
Actual cash value
An additional person or entity, other than the primary person covered by the policy, who has certain rights and coverages under the policy.
Additional insured
A person licensed to represent one or several insurance companies.
Insurance covering loss from all perils and causes unless specifically excluded in the policy. It is broader than a specified perils policy, which covers only those causes of loss enumerated in the policy.
All-risks insurance
Excess liability protection for the policy hold against accidents caused by others operating their own (or hired) vehicles on the holder's behalf.
Automobile nonownership coverage and hire car automobile liability
The company that quantitatively and qualitatively evaluates the financial condition of insurance carriers. It provides management with an alphabetical rating ranging from A+ down to C. These letters are followed by a financial numerical rating, which reflects the size of the carrier's surplus (equity).
Best Co. ratings or A.M. Best Company ratings
Part of general liability coverage that insures the policyholder against physical injury, including injury to one's body, sickness, disease or death to a third party.
Bodily injury
Coverage for damage caused by or to boilers and machinery including business interruption caused by damage or breakdown.
Boiler and machinery insurance
A licensed insurance professional who represents and acts on behalf of clients rather than an insurance company.
Insurance Broker
An addition to property policies that includes coverage for work that might have to be done to comply with building codes enacted after construction.
Building code endorsement
Insurance covering loss of net income, other than rents, that would have been earned, including any expenses incurred to reduce that loss.
Business interruption insurance
An insurance company that is sponsored or owned by another entity whose primary purpose is to insure the exposures of its founders.
Captive insurer
An insurance company is referred to as a(n) ?
An extreme loss due to an extreme happening such as hurricane, earthquake, or flood.
Document that verifies the type and amounts of insurance carried by policyholder.
Certificate of Insurance
A demand to recover payment under an insurance policy; the amount of the loss.
A broad form of third-party insurance that covers the policyholder in the event of bodily injury, personal injury and property damage claims.
Commercial general liability policy
A clause penalizing the insured for under insuring.
Coinsurance clause
The part of a policy that lays down the policy's ground rules - for example, how the policy is audited and to whom a holder should present a claim.
A comprehensive analysis of a center's consumer market. The customers, the demographics and the competition are all components of a ______ _____.
Market study
A clause inserted into a SC retail lease establishing the distance from the center (beyond which) the retailer may operate another, similar store.
Radius clause
The extent of the insurance provided by a given policy.
A space partially completed by the landlord based on negotiations between tenant and landlord. Although every landlord's definition is different, a ________ ___ normally means HVAC, walls, floors, stockroom wall, basic electrical work, basic plumbing work, rear door and store front.
Vanilla box
Forcible entry into a building to commit theft.
The "housekeeping" page on the front of a policy that identifies the policy holder, policy dates and type and limits.
Declaration or declarations page
The portion of first dollar loss assumed by the insured.
The section of an insurance policy that defines the terms used.
A separate insurance package written to cover catastrophic risk.
Difference in conditions
An insurance company whose sales force represents only that one company.
Direct writing company
Protects a company's directors and officers in the event of a suit brought on by stockholders or the public for negligence in the performance of their responsibilities.
Directors and officers liability
A written addition to a policy
Protects against liability arising out of mistakes or oversight in the performance of professional services.
Errors and omissions coverage
A provision of a policy identifying those things not covered by that policy.
An endorsement found on a fire insurance policy that extends fire coverage to include seven named perils? Also what are the 7 perils?
Extended coverage - smoke, windstorm, explosion, hail, riot, falling aircraft and non-owned-vehicle damage
Employee theft insurance
Fidelity bond
Provides contingent coverage for short term vehicle rental
Hired care automobile liability insurance
An indemnity agreement in which one party's legal liability for damages is assumed by the other party to a contract. It protects one against losses from someone else's failure to fulfill an obligation.
Hold-harmless agreement
Indemnity agreement is a synonym for _______?
Hold-harmless agreement
A contract between risk taker and another party who assumes certain risks due to named hazards or perils (causes).
The section of an insurance policy that states what the policy covers.
Insuring agreement
Usually a financial obligation and the cost of meeting it (insurance term).
The relative worth of a center based on the income that center generates through its leases with tenants.
Asset value
In the event of loss, the maximum amount the insurer is required to pay.
Liability limit
The injury or damage sustained by the insured; in liability policies, it means the payments made by the insurer on behalf of the insured.
Person or business entity designated on a policy as being insured.
Named insured
Coverage that specifies the perils that it covers.
Named-peril insurance
Broadens the definition of an "accident" to include incidents that occur over a period of time.
Inherent things, such as windstorms or explosions, that can cause a loss or injury.
A nonstandard part of liability coverage insuring the policyholder, on a named-perils basis, against such things as libel, slander, unlawful detention, etc.
Personal injury
The written insurance contract
The person or company having an insurance contract.
The amount paid for an insurance policy.
Part of liability coverage defined as direct damage to physical property and loss of use thereof.
Property damage
First-party insurance covering the insured for damage to his or her personal or real property or the loss of its use.
Property insurance
Today's cost of construction, without considering depreciation.
Replacement cost
The variety and categories of merchandise offered by the retail tenants assembled in a particular shopping center.
Merchandise mix
The branch of management that is concerned with protecting a business against the risks of accidental loss.
Risk management
This 1986 federal act permitted industries to jointly set up insurance vehicles that were licensed in a single state and then to write business in other states.
Risk Retention Act companies
The right of an insurance company to recover its loss from the responsible party after paying the policyholder's claim. In order to avoid this potential a lease may contain a _______________.
Subrogation. In order to avoid this potential, a lease may contain a waiver of subrogation which ofter protects the tenant against the LL's insurance company going after the tenant of the tenant's ins. co.
Payment and performance bonds usually used on significant construction jobs.
Surety bonds
Type of insurance that protects the insured against liability arising out a property or bodily damage to others caused by another party.
Third-party insurance
Form of insurance that protects against losses in excess of amounts covered by other liability insurance policies. It is used to protect against catastrophic losses.
Umbrella excess liability insurance
The surrender of a right that is legally yours.
A statement that conditions will exist during the policy term and if found untrue, or not in existence, would invalidate the policy.
A social insurance that entitles an employee to medical care and replacement of at least part of his or her wages if injured on the job. In return for this the employee gives up the right to sue the employer. Claims for this are generally paid by private insurers, but rates are set by state boards.
Worker's compensation
A term that refers to a clause inserted into a tenant's lease stipulating that a reduced rent or no rent be paid until an agreed-upon percentage of the center is occupied.
The specific dollar amount paid by a tenant for the amount of square footage leased.
Minimum rent
Term for the unfinished space a tenant is given in a shopping center; the tenant is responsible for paying all costs of store construction.
Warm brick
An order of security force by rank or importance.
Chain of command
Rents that are pegged to rises in the consumer price index.
CPI rents
A store whose owners own only that single store.
The tenant pays a specific amount of money over any minimum and percentage rents for the LL's cost of building the space.
Reverse allowance
A written record of openings, closings and alarms for a protected area over a set period of time. The report is usually compiled by the security staff.
Activity report
The legal responsibility one citizen has to another. It is liability law which applies to an individual who is considered a victim even though no law has been broken. Civil liability is decided in a civil court of law.
Civil liability
Procedure that defines type of dress a security officer is to wear while on duty.
Dress code
Process by which center security officers determine the cause of a crime or accident. This usually is accomplished by interviewing and documented by eyewitnesses.
The act of being extremely careless. The failure to use such care as a reasonably prudent and careful person would use under similar circumstances. If found negligent in a court of law, a center can be held liable for the actions of a guard or a criminal.
Police officers or security staff allowed to patrol in normal, everyday clothing.
Plainclothes officers
Step-by-step instruction on how to search an entire shopping center.
Search procedure
(1) The actual depreciation of a property at a given date; the difference between the cost of replacement new as of the date of appraisal and the present appraised market value. (2) In accounting, the amount reserved each year on the books of an owner to provide for the retirement and replacement of an asset.
Accrued depreciation
The price that property will bring in a fair market, after fair and reasonable efforts have been made to find the purchaser who will give the highest price. Also called fair cash value.
Actual cash value
This is the cash throw-off less expenses and income tax liability. Taxable income will vary from yr. to yr. as mortgage interest payments and depreciation charges vary. These are deductions from cash throw-off to obtain taxable income. Income taxes themselves will vary accordingly. Thus, _________________ will be different each year by at least the tax differential caused by constantly declining interest deductions. Also called net spendable income.
After-tax cash flow
A combination of the minimum and percentage rent paid by a tenant.
Effective rent
A retailer who operates a chain of stores on a nationwide basis.
National tenant
Rents that are structured so that percentages paid on total sales by a tenant decrease as sales grow.
Step-down rents
The network of alarms or monitoring devices designed to detect and alert guards to abnormalities within a center or retail space.
Alarm system
Procedures to be implemented by security and center staff during an emergency.
Contingency plans
List of candidates for police employment compiled by local police departments. Candidates most likely to become police officers are at the top of the list. The lists are available, upon request, to the public.
Eligibility list
Guidelines by which security officers are to acquire, use, care for and be trained in lethal weapons.
Lethal-weapons policy
Careless hiring on the part of a shopping center that directly or indirectly causes a crime or accident. If a center is guilty of negligently hiring an employee, it may be held liable for all negative actions by that employee.
Negligent hiring
In-house security developed, managed and maintained by the center manager or landlord.
Proprietary security
The guidelines by which a proprietary security program is established and maintained.
Standard Operating Procedures Manual (SOP)
The process of recovering, over a stated period of time, a capital investment; the provision for the gradual liquidation of an obligation, usually by equal payments at regular intervals over a specified period of time.
The annual amount required to pay interest on and provide for the ultimate return (depreciation or amortization) of the investment.
Capital expense
The process of converting into a present value (obtaining the present worth of) a series of anticipated future annual installments of income.
The rate used to convert income into value.
Capitalization rate
The area maintained in common by all tenants, such as parking lots and common passages. This area is often defined in the lease and may or may not include all physical areas or be paid for by all tenants.
Common area maintenance
The interest on interest; interest earned during a given period is added to the principal and included in the next period's interest calculation.
Compound interest
Various statistical indexes gathered and published by the federal govt. as economic indicators.
Consumer price index (CPI)
A method in which the value of a property is derived by estimating the replacement cost of the improvements, deducting the estimated depreciation, and adding the value of the land, as estimated by use of the market data approach.
Cost approach
The payments consisting of amortization of and interest on a loan.
Debt service
A loss from the upper limit of value caused by deterioration and/or obsolescence.
An interest rate commensurate with perceived risk; used to convert future payments or receipts to present value.
Discount rate
The net value of a property, obtained by subtracting from its total value all liens and other charges against it. The term is frequently applied to the value of the owner's (as opposed to the lender's) interest in property in excess of all claims and liens.
The square footage of a shopping center that is designated for rental.
Gross leasable area (GLA)
An appraisal technique in which the anticipated net income is processed to indicate the capital amount of the investment that produces it. The capital amount, called the capitalized value, is, in effect, the sum of the anticipated annual rents less the loss of interest until the time of collection.
Income approach
Money paid for the use of capital. It is usually expressed as a rate or percentage of the capital, called the interest rate.
The use of borrowed funds to complete an investment transaction. The higher the proportion of borrowed funds used to make the investment, the higher the ___________ and the lower the proportion of equity funds.
An appraisal technique in which the market value estimate is predicated upon prices paid in actual market transactions and current listings. It is a process of correlation and analysis of similar recently sold properties. Also called the __________ _________ or ___________ ________ _______
Market sales approach
The price expectable if a reasonable time is allowed to find a purchaser and if both seller and prospective buyer are fully informed. __________ __________ connotes what a property is actually worth and what it might sell for.
Market value
The total annual payment of principal and interest (annual debt service) on a level-payment amortized mortgage, expressed as a percentage of the initial principal amount of the loan. It is used in mortgage-equity analysis as well as in estimating cash flows generated by income-producing real estate.
Mortgage constant
A lease agreement in which the percentage rent rate changes at various increments of sales.
Multiple percentage rates
A term referring to a store's being given the exclusive right to sell a particular category of merchandise within a SC.
Shopping center tenants, primarily service oriented tenants, who do not fit into the traditional category or retailers; a tenant selling services, not goods.
Nonretail tenant
Rents that are structured so they increase at specific times during the life of a lease.
Step-up rents
An examination to determine a recruit's physical and mental capability to perform security or other kind of work.
Aptitude testing
An outside security force hired by the center manager.
Contract security
Use of too much force by a guard during the apprehension or search of a criminal suspect. Determined case by case in a court of law.
Excessive force
A detection device that, when activated, sounds a noise alarm.
Local alarm
Retaining the services of an employee despite a poor work record. The center may be held liable for an employee's action if it is determined that the employee should have been terminated prior to an incident or accident.
Negligent retention
A shopping center that has had an alarm system installed.
Protected premises
Small, hand-held device that momentarily incapacitates an intruder through the use of an electrical current or charge. Illegal in many states.
Stun gun
A deduction of specified expenses or investments from all or a portion of percentage rent.
Rent paid in addition to an agreed-upon minimum rent.
The annual rate at which capital investment is returned to an investor over a specified period of time; the annual amount, apart from interest or return on interest (compound interest), that can be recaptured from an investment, divided by the original investment. Also called capital recovery rate.
Recapture rate
The safety of the investment and the certainty of profitable yield in a given time.
The concept underlying compound interest: that a dollar received today is worth more than a dollar in the future, due to opportunity cost, inflation, and certainty of payment.
Time value of money
The price an informed person is willing to pay on the open market.
Store offering merchandise direct from the manufacturer at prices lower than standard retail.
Factory outlet stores
The peril insured against is the ______; the chance of loss.
The safety of the investment and the certainty of profitable yield in a given time.
A tenant fee charged by the LL to compensate for the development and operation of a shopping center center maintenance program. The fee is a percentage of the total CAM (common area maintenance) budget for a center, and it is passed on to the tenant in the CAM charges.
Administrative fee
The final blueprints used by an architect when constructing a shopping center. __-_____ contain the most up-to-date information about a center.
As-built plans
A variety of sealer used to coat an asphalt parking lot. The emulsion is usually a diluted mixture of water, mineral filler, ash and rubber added to a coal, tar or asphalt sealer.
Asphalt emulsion
A hydrocarbon-based substance that is used as the waterproofing element in built-up roofs. _________ are either coal tar or asphalt based and are the by-products of the oil-to-gasoline production process.
A ______ is the amount of heat required to raise one pound of water one degree Fahrenheit.
British thermal unit (BTU)
A roofing membrane made of alternating layers or plies of felt adhered and made waterproof by the application of asphalt or coal tar bitumens.
Built-up roof (BUR)
A structural repair such as the replacement of a storm sewer system. Depending on the lease, most of these type expenses are the responsibility of the landlord.
Capital expense
What are the two types of bitumen used to construct built-up-roofs.
Coal tar and Asphalt - these are both used to make the multi, alternating layers of felt waterproof.
The squeezing of a layer of asphalt by the addition of another asphalt layer or lift. Dense asphalt is usually required for parking lots and roadways.
The workhorse of an HVAC unit. The __________ is the hardware that "pushes" hot or cold air out of the system and into the center space.
Laborers who are hired by center managers for certain tasks. They are called ____________ because the work is done according to a written agreement or contract.
A testing process used to determine the condition of roofs or asphalt parking lots and roadways. A ____________ is used to take a vertical sample of the roof or parking lot in question. An expert then surveys the layers to determine if the work was completed as agreed.
Core samples
A roof slope or swell designed to run rainwater in a certain direction.
A brace system designed to keep HVAC units from touching a roof.
Curb stone
A pamphlet given to new tenants that gives important telephone numbers and outlines procedures for various emergencies.
Emergency book
Name of a measurement used for the installation of a drainage system in a parking lot. A ____ is the slope or grade from one point usually to a drain.
A fabric manufactured in a plant that brings fiberglass and binders together. Usually the binders are asphalt.
Type of lighting commonly found in a shopping center. Light is produced when current is passed through low-pressure mercury vapor inside a ______________ coated bulb.
Fluorescent light
A measurement of light. The equivalent of illumination produced by a ______ at the distance of one foot.
Metal reservoirs placed near ventilation units to catch grease before it touches the roof membrane.
Grease pans
The measurement used to define how much space a tenant has leased in a center. _______ is determined by measuring the distance between the middle walls of a space, and the distance between front outside wall to back outside wall.
Gross leasable area (GLA)
A type of HVAC unit, named for its internal mechanism, which runs on electricity.
Heat pump
A lamp in which light is produced by electricity heating a filament. Used sparingly because of its inefficiency.
Incandescent lighting
A detailed examination of the various physical assets of a shopping center.
A vessel used to heat bitumen for roof application.
The signed agreement between landlord and tenant that establishes responsibility, sets standards and states what is recoverable from tenants for the maintenance process.
The laying of a layer of asphalt on a prepared subgrade or another layer of asphalt.
The upkeep of the various physical assets and common area of a shopping center.
A tenant and/or landlord charge. The __________ is calculated from a negotiated percentage of the gross collectible income of a shopping center. The fee usually includes the CAM charge.
Management fee
A type of built-up roof. Basically, a _________ _________ membrane consists of a combination of roofing felts and bitumen that has been modified by the addition of synthetic rubber or plastic compounds.
Modified bitumen
A procedure used in both roof and asphalt repair. In both cases, it involves repairing a tear, hole or other type of defect by filling with an appropriate compound.
A name for the layers of felts and bitumen formed during the creation of a built-up roof.
Water that lies undrained on a roof or in parking lots over an extended period of time.
Procedure in both roof and parking lot maintenance in which a deteriorated surface is rejuvenated by a coat of,usually, a petroleum-based product.
The placing of a new roof over an existing roof. This procedure may be done one time without the tearing off of an existing roof membrane. Local codes will dictate re-roofing policies.
The tearing off of an old roof and substitution of a new roof.
Formula used to determine the relative worth of a shopping center asset. There are many different kinds of analysis; they're usually used to determine if an asset should be repaired or replaced.
Return on Investment (ROI) analysis
The prepared subsurface of a roof on which a membrane is laid.
Roof deck
A hole in a parapet wall of a roof that allows water to flow into the roof drain. A __________ also acts as an overflow precaution in case of a gutter blockage.
Liquid coatings used to protect asphalt parking lots and roadway.
A type of roof made from a single layer of specially reinforced rubber or plastic.
Single ply
Part of a bracing system that keeps HVAC units anchored and off the roof and limits vibrations to the premises.
Name for the type of lawsuit brought against a shopping center when a consumer is hurt by slipping on a defective surface.
Slip and fall litigation
A type of asphalt sealer. There are different types, and usage depends on the kind of roadway and desired protection.
A lamp in which light is produced by an electrical current passed through sodium vapor. Available in both high and low pressure application.
Sodium light
A daily, weekly or monthly examination of mechanical systems or other shopping center assets.
Standard inspection
Course of action that states precisely how a particular system of maintenance policy is to be conducted.
Standard Operating Procedure
Booklet that outlines the center's maintenance policy.
Standard Operating Procedures manual
The prepared surface on which asphalt is laid.
A roofing and asphalt procedure in which an old membrane or surface is removed as a prelude to replacement with a new product.
A measurement that determines the strength of an HVAC system. Also used as a determinant to gauge air requirements for a tenant space. One ______ of air is equivalent to 12,000 BTUs.
Lease in which 100% of all taxes, insurance and maintenance associated with the SC is paid by the Tenant.
Triple net lease
Pamphlet given to tenants after signing a lease; it explains the ownership philosophy and introduces them to the center.
Welcome book
A specific rent on square footage paid by a tenant for a specified period of time -- say five years.
Flat rents
The minimum and percentage rent paid by a tenant, coupled with any extra charges that the tenant must pay.
Total rent
Policy by which center security is able to bar a lawbreaker from the shopping center for a finite amount of time.
Cardiopulmonary resuscitation
In the shopping center context, it means that the LL should be aware that a particular type of crime is likely to occur on shopping center property.
A noxious combination of organic chemicals in spray form that is used to disable people. Chemical Mace is a trade name. Illegal in many states.
The careless training or lack of training of an employee for security work. If it is found in a court of law that a center did not adequately train a security officer who causes an accident or fails to perform adequately, the shopping center may be held liable.
Negligent training
An examination performed by a psychologist to determine the emotional stability of a person.
Psychological testing
The firing of an employee.
A type of break point. Opposite of Neutral break point. Two names for it.
Negotitated breakpoint or Artificial breakpoint
A hybrid of the land lease and build to suit lease. The LL agrees to provide both the land and a contribution toward construction. The tenant is responsible for development and funds are forwarded based on a draw schedule. Annual rent is computed based on the value of the land plus the contribution. This type of lease is used for highly specialized buildings such as a themed restaurant or a megaplex with stadium seating.
Contribution lease