Agenda - Council - 04/11/2017 - Laserfiche WebLink

Home

A: GLOSSARY Glossary This glossary contains the definitions of common words and phrases, used throughout the appraisal industry,as applied within this document. Please refer to the publications listed in the Works Cited section below for more information. Works Cited: ■ Appraisal Institute. The Appraisal of Real Estate. 14th ed.Chicago:Appraisal Institute,2013. Print. ■ Appraisal Institute. The Dictionary of Real Estate Appraisal. 6th ed.2015. Print. As-Is Market Value center's common area. The charge that a The estimate of the market value of real property tenant pays for shared services and facilities in its current physical condition, use, and zoning such as electricity, security, and as of the appraisal's effective date. —Interagency maintenance of parking lots. The area Appraisal and Evaluation Guidelines(12/2010) maintained in common by all tenants, such as parking lots and common passages. Items Band of Investment charged to common area maintenance may A technique in which the capitalization rates include cleaning services, parking lot attributable to components of an investment are sweeping and maintenance, snow removal, weighted and combined to derive a weighted- security, and upkeep. (ICSC) (Dictionary, 6th average rate attributable to the total investment Edition) (i.e., debt and equity, land and improvements). (Dictionary,6th Edition) Debt Coverage Ratio(DCR) Common Area The ratio of net operating income to annual debt 1. The total area within a property that is not service (DCR = N00r,,), which measures the designed for sale or rental but is available for relative ability of a property to meet its debt common use by all owners,tenants,or their service out of net operating income; also called invitees,e.g.,parking and its appurtenances, debt service coverage ratio (DSCR). A larger DCR malls, sidewalks, landscaped areas, indicates a greater ability for a property to recreation areas, public toilets, truck and withstand a reduction of income, providing an service facilities. improved safety margin for a lender. (Dictionary, 2. In a shopping center, the walkways and 6th Edition) areas onto which the stores face and which conduct the flow of customer traffic. (ICSC) Depreciation (Dictionary,6th Edition) 1. In appraisal, a loss in property value from any cause; the difference between the cost Common Area Maintenance(CAM) of an improvement on the effective date of 1. The expense of operating and maintaining the appraisal and the market value of the common areas; may or may not include improvement on the same date. management charges and usually does not 2. In accounting, an allocation of the original include capital expenditures on tenant cost of an asset,amortizing the cost over the improvements or other improvements to asset's life; calculated using a variety of the property. standard techniques. (Dictionary, 6th 2. The amount of money charged to tenants for Edition) their shares of maintaining a [shopping] 1161