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RETAIL STRATEGY & FINANCE

Name	Description
4-Wall Contribution	This can have numerous meanings, but typically refers to the EBITDA that the store generates.
ASC 842	An accounting standard issued by the Financial Accounting Standards Board (FASB) that requires companies to recognize most leases on their balance sheets as both a Right of Use (ROU) Asset and a Lease Liability.
Comp Store Sales	Shorthand for comparable store sales. This refers to the year over year growth rate of just the subset of stores that has been open for at least one year.
Deferred Rent	Rent that has been paid or received in advance, but has not yet been earned or recognized as rental income. This occurs when rent payments are made in advance, and needs to be recognized over the term of the lease.
GAAP Rent	The rent amount that is recognized under Generally Accepted Accounting Principles (GAAP) for financial reporting purposes, and is often different from the cash rent actually paid.
Gross Capital	Refers to the total amount of capital required to build a space, before accounting for tenant allowances or inducements.
Long Range Plan (LRP)	A strategic plan that outlines a company's goals and objectives for the next several years, typically 3-5 years. In retail real estate, an LRP may include plans for leasing, development, and investment in properties.
Net Capital	Refers to the total amount of capital required to build a space, after accounting for tenant allowances or inducements.
Occupancy Costs	Occupancy Costs are the costs associated with occupying and maintaining a property or space, and include rent, utilities, taxes, insurance, and maintenance expenses.
Occupancy Rate	The Occupancy Rate is the percentage of space that is currently leased or occupied in a property, and is typically used to measure the performance of a retail property.
Open to Buy (OTB)	More commonly used in merchandising teams, and in a real estate context refers to the remaining capital budget for new stores.
Operating Lease	An operating lease is a lease agreement where the lessee rents a property or asset for a limited period of time, and the lessor retains ownership of the property or asset. This type of lease is typically used for short-term leases.
Productivity	Calculated as Sales Per Square Foot (SPSF). This metric is used to determine how productive a real estate asset is for a retailer, normalizing its sales given its unique size.
Right of Use (ROU) Asset or Liability	The Right of Use (ROU) Asset or Liability is a concept introduced by ASC 842, and represents the value of the leased property or asset that is recognized on the balance sheet. The ROU Asset represents the lessee's right to use the leased property or asset, while the Lease Liability represents the lessee's obligation to make lease payments.
Straightline Rent	An older method of recognizing rental income on a straight-line basis over the term of a lease, in order to provide a more accurate representation of the rental income earned during the lease term.
Trade Area	This generally refers to the area from which 80-90% of a store’s foot traffic or sales come from.
Unit	Synonymous with “store”

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REAL ESTATE & LEASE ADMINISTRATION

Name	Description
Amendment	A change or modification to an existing lease agreement, made with the agreement of both the landlord and tenant.
Anchor Tenant	A major tenant in a retail center or complex, typically a large national or regional retailer, that serves as a draw to attract other tenants and customers to the center.
Base Minimum Rent	The minimum rent amount specified in the lease agreement, typically based on the square footage of the leased property.
Blend and Extend	A lease renegotiation strategy in which a landlord and tenant agree to extend the lease term at a lower rent rate than the current market rate. This strategy allows the landlord to retain the tenant and avoid the costs associated with searching for a new tenant, while providing the tenant with reduced rent payments. The name "blend and extend" refers to the blending of the old and new lease terms to create a new lease agreement.
Broker Fee	refers to the commission or fee paid to a real estate broker or agent for their services in assisting with the lease or sale of a property. The fee is typically a percentage of the total lease or sale price, and is negotiated between the broker and the property owner or tenant.
Buildout Period	The period of time during which the tenant is permitted to make improvements or modifications to the leased property before the lease term begins.
CAP rate	Capitalization rate, which is a measure of the expected return on an investment in a property, calculated as the net operating income divided by the purchase price. Often referred to by landlords and brokers as they discuss building valuations.
Co-tenancy	A lease provision that requires a certain mix or number of tenants to be present in a retail center or complex in order to attract customers and maintain the viability of the center.
Critical Date	A specific date in a lease agreement on which certain obligations or actions must be completed by one or both parties, and failure to comply may result in default or other penalties.
Date of Possession (DOP)	The date on which the tenant takes possession of the leased property and assumes responsibility for the rent and other obligations.
Default	A breach of the lease agreement by the tenant, such as failure to pay rent or maintain the property, that may result in legal action by the landlord.
Early Termination	The right of either the landlord or tenant to terminate a lease agreement before the end of the lease term, subject to certain conditions or penalties as specified in the lease agreement.
Effective Rent	The actual amount of rent paid by the tenant, taking into account any incentives, allowances, or other concessions provided by the landlord.
Estoppel	A legal document that verifies the terms and conditions of an existing lease agreement, and is used to prevent disputes or misunderstandings between the landlord and tenant. Generally issued to tenants when the landlord is refinancing or getting acquired.
Execution Date	The date on which a lease or other legal document is signed and becomes legally binding.
Extras (or NNNs or "triple nets")	Additional expenses associated with the leased property, such as taxes, insurance, and maintenance costs, which are passed on to the tenant in addition to the base rent.
Free Rent Period	A period of time, typically at the beginning of a lease term, during which the tenant is not required to pay rent.
Gross Leasable Area (GLA)	The total floor area in a retail property that is available for lease.
Gross Lease	A lease agreement in which the landlord is responsible for paying all expenses associated with the property, such as taxes, insurance, and maintenance costs, and the tenant pays only the base rent.
Gross Rent	The total amount of rent charged by the landlord to the tenant, including all expenses associated with the property such as taxes, insurance, and maintenance costs.
Gross Sales	The total amount of revenue generated by the tenant's business operations, typically used to calculate percentage rent payments.
In-line Tenant	A tenant that occupies a retail space between two other tenants.
Kickout	A provision in a lease agreement that allows the landlord or tenant to terminate the lease before the end of the lease term if certain conditions are met, such as the tenant's failure to achieve certain sales thresholds.
Lease	A contractual agreement between a landlord and tenant that outlines the terms and conditions of the rental of a property, including the rent, lease term, and other important details.
Lease Abstract	A summary of the key terms and conditions of a commercial lease. It typically includes information such as the parties involved, the lease term, rental rate, and any special provisions or requirements.
Leaseable Square Feet (LSF):	The total area of a building that is available for lease to tenants. LSF includes all interior space, including common areas such as lobbies and corridors, as well as any exterior space, such as patios or balconies that are exclusive to the tenant. LSF is often used to calculate the rentable area of a building.
Letter of Intent (LOI):	A non-binding document that outlines the preliminary terms and conditions of a proposed lease agreement between a landlord and tenant, and is used to initiate negotiations.
Market Development Plan (MDP):	The roadmap/list of target locations, usually organized by market.
Minor Tenant:	•  A smaller tenant in a retail center or complex, typically a local or regional business, that leases a smaller amount of space and relies on the presence of anchor tenants to attract customers.
Net Lease:	A lease agreement in which the tenant is responsible for paying certain expenses associated with the property, in addition to the base rent, such as taxes, insurance, and maintenance costs.
Net Operating Income (NOI):	A measure of a property's income after deducting all operating expenses. It is calculated by subtracting operating expenses from the property's gross income, and is used to evaluate the profitability of a commercial property.
Notice Date:	The date on which a notice or other communication is sent by one party to another, often used to establish a timeline or deadline for action.
Notice of Delivery:	A document that confirms the delivery of possession of the leased property to the tenant, and is typically required before rent payments commence.
Occupancy Rate:	The percentage of available space in a shopping center or mall that is currently leased.
Operating Covenant:	A clause in a lease agreement that requires the tenant to operate their business in a certain manner or to meet certain performance standards, often used to maintain the quality and image of the retail center.
Option:	A provision in a lease agreement that grants the tenant the right to renew or extend the lease for a specified period of time, typically at a predetermined rent rate.
Penalties:	Fees or charges imposed on a party for failing to comply with the terms and conditions of a lease agreement, such as failure to pay rent or maintain the property.
Percentage Rent:	A form of rent payment in which the tenant pays a percentage of their gross sales revenue to the landlord, in addition to the base rent.
Protected Area:	A clause in a lease agreement that restricts the landlord from leasing space to certain types of competing businesses within a certain radius of the leased property, in order to protect the tenant's business.
Rent Commencement Date (RCD):	The date on which the tenant is required to begin paying rent, typically specified in the lease agreement.
Retail Use:	The specific type of business or commercial activity that is permitted to operate within the leased retail space, as specified in the lease agreement.
Right of First Refusal (ROFR):	A provision in a lease agreement that grants the tenant the right to match any offer or proposal made by a third party to lease the property, before the landlord can accept the offer.
Sales Weeks:	The number of weeks during which the tenant's gross sales are measured for the purpose of calculating percentage rent payments.
Selling Square Feet (SSF):	The total area of a retail space that is dedicated to the display and sale of merchandise to customers. SSF excludes areas such as storage, offices, and restrooms, as well as any other areas that are not used for selling. SSF is often used to calculate the productivity of a retail space, such as sales per square foot.
Tenant Allowance (TA):	A financial incentive provided by the landlord to the tenant, typically in the form of a cash payment or rent credit, to offset the cost of tenant improvements or buildout. Sometimes also referred to as Tenant Inducement (TI).
Tickler Date:	A reminder date or deadline in a lease agreement that triggers an action or obligation by one or both parties, such as a renewal or termination notice, rent increase, or other important event.
Trade Name:	The name or brand under which a tenant's business operates, often used as a way to identify the tenant's presence within a retail center.
Triple Net Lease (NNN):	A type of net lease in which the tenant is responsible for paying all three types of property expenses - taxes, insurance, and maintenance costs - in addition to the base rent.
Vacancy Rate:	The opposite of Occupancy Rate.

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STORE DESIGN & CONSTRUCTION

Name	Description
As-built Drawings	Drawings created after construction is complete that show the actual dimensions, location, and details of the constructed elements.
AutoCAD	A computer-aided design software used for creating 2D and 3D drawings and models of buildings and objects.
Bids	Offers from potential vendors or contractors to provide goods or services for a project or job, often submitted in response to an RFP or other request for quotes.
Building Code	A set of regulations and standards that govern the design, construction, and occupancy of buildings. Building codes typically cover a wide range of areas, including fire safety, structural integrity, electrical and plumbing systems, and accessibility, among others. The purpose of the Building Code is to ensure that buildings are safe, healthy, and suitable for their intended use.
Building Department	A government agency responsible for enforcing local building codes and regulations. The department is typically responsible for issuing building permits, inspecting construction sites, and ensuring that new construction meets all applicable safety and building standards.
Certificate of Occupancy (CO or C of O)	A document issued by a government agency or building department that certifies that a building or space complies with applicable building codes and is safe for occupancy.
Change Order	A written document that modifies the original construction contract, often used to account for unforeseen circumstances or design changes.
Construction Drawings (CDs)	Also known as blueprints or working drawings, these are detailed technical drawings that provide information and instructions for the construction of a building or structure. These drawings typically include plans, elevations, sections, and details that show the layout, dimensions, and specifications of various building components, such as walls, doors, windows, and mechanical systems. Construction drawings are used by contractors, architects, engineers, and other construction professionals to ensure that the building is constructed according to the design and specifications.
Contingency	An amount of money or time set aside in a project budget or schedule to account for unforeseen events or costs.
Demising Wall	A partition or wall that separates one retail space from another.
Design Drawings (DDs)	Also known as concept drawings or schematic designs, these are initial sketches or plans that are created during the early stages of a building or construction project. These drawings typically show the overall layout, form, and function of the building, as well as any special features or design elements. Design drawings may include floor plans, elevations, site plans, and 3D renderings, and are used by architects, designers, and engineers to communicate their design concepts and ideas to clients and other stakeholders. Design drawings are often revised and refined as the project progresses and more detailed information becomes available.
Due Diligence	The process of investigating a property's physical, legal, and financial aspects before making a decision to purchase or lease it.
Expeditor	A professional who assists in the process of obtaining necessary permits and approvals for construction projects. They work with local governments and regulatory agencies to ensure that all necessary permits are obtained in a timely manner and that construction projects are in compliance with applicable laws and regulations. Permit expeditors typically have a strong understanding of building codes and regulations and are able to navigate the permit approval process efficiently.
Facilities & Maintenance	The ongoing management and upkeep of a building or property, including tasks such as cleaning, repairs, and equipment maintenance.
Furniture, Fixtures, and Equipment (FF&E)	This refers to the movable items within a space that are not part of the structure or building itself. This includes items such as chairs, tables, lighting, and artwork.
Heating, Ventilation, and Air Conditioning (HVAC)	The systems and equipment used to regulate temperature, humidity, and air quality in a building.
Lease Outline Drawing (LOD)	A type of architectural drawing used to outline the specific dimensions and configuration of a leased space within a larger building or development. The LOD includes details such as the overall layout of the space, the location of walls, doors, and windows, and any fixed elements such as plumbing or electrical outlets. The LOD is typically created during the leasing process to help the tenant visualize the space and make decisions about how to configure it for their specific needs.
Leasehold Improvement, also known as Tenant Improvement (TI)	Refers to any alterations or additions made to a rental property by a tenant to fit their specific needs. This may include improvements to the structure, layout, or amenities of the space, and can include things like partitions, flooring, lighting, and HVAC systems. The cost and responsibility of leasehold improvements are typically negotiated between the landlord and tenant as part of the lease agreement.
Material Safety Data Sheet (MSDS)	A document that provides information about the properties, hazards, and safe handling procedures for a particular chemical or material.
Mechanical, Electrical, and Plumbing (MEP)	The three main systems in a building that are responsible for heating, cooling, lighting, and water supply and drainage.
Permit	A legal authorization from a government agency or other authority to carry out a specific activity, such as construction or renovation.
Personal Protective Equipment (PPE)	Such as gloves, goggles, and hard hats, used to protect workers from workplace hazards.
Punch List	A document that lists incomplete or unsatisfactory work that needs to be corrected or completed before final payment is made to the contractor.
Request for Proposal (RFP)	A document that outlines the requirements for a project or service and solicits proposals from potential vendors or contractors.
Scope	The defined set of goals, tasks, and deliverables for a project, including specific timelines and budget constraints.
Scope Creep:	The gradual expansion of a project's scope beyond its original goals or objectives.
Site Survey:	A detailed inspection of a property that provides information about the site's physical characteristics, utilities, zoning, and other relevant factors.
Store Development:	The process of creating a new retail store or expanding an existing one, including site selection, design, construction, and opening.
Store Planning:	The process of designing the layout and fixtures of a retail store to optimize customer flow and product placement, often including CAD drawings and 3D renderings.
Task Lighting:	Lighting that is specifically designed and placed to provide illumination for a particular task, such as reading or cooking.
The Americans with Disabilities Act (ADA):	A federal law that requires businesses to make their facilities accessible to people with disabilities.
Value Engineering (VE):	A process of analyzing a project's design and specifications to identify opportunities for cost savings without sacrificing performance or quality.
Waterproofing:	The process of making a building or structure resistant to water intrusion or damage, often through the use of specialized membranes or coatings.
Zoning:	The process of dividing land into designated areas for specific uses, such as residential, commercial, or industrial, and regulating the types of activities and structures allowed in each zone.

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STORE OPERATIONS & MANAGEMENT

Name	Description
Back of House (BOH)	Refers to the areas of a business that are not accessible to customers, such as kitchens, storage rooms, and offices
Backstock	Inventory that is kept in storage or off the sales floor, often used to replenish stock as it sells or to support seasonal fluctuations in demand.
Conversion Rate	The percentage of store visitors who make a purchase, often calculated by dividing the number of transactions by the number of visitors.
Endcap	A display fixture located at the end of a store aisle, often used to showcase featured products or promotions.
Front of House (FOH)	Refers to the areas of a business that are visible and accessible to customers, such as dining rooms, lobbies, and sales floors.
Going Dark	Refers to a retail store that has closed its doors permanently, either due to financial issues, a decision by the parent company, or other reasons. The term can also be used to describe a store that has gone out of business without prior notification or warning.
Key Performance Indicator (KPI)	A measurable value used to track and evaluate the success of a particular business process or strategy.
Markdown	A reduction in the selling price of a product, often used to clear out slow-moving or overstocked inventory.
New Store Opening (NSO)	Refers to the process of opening a brand new retail location, which typically involves a variety of tasks and processes such as site selection, design and construction, merchandising, staffing, and marketing.
Planogram	A visual representation of the layout and placement of products on store shelves or displays, often used to optimize sales and customer experience.
Point of Sale (POS)	The location in a store where customers pay for their purchases, often referring to the electronic system used to process transactions.
Sales Performance Incentive Fund (SPIF)	A type of bonus or incentive program offered to sales employees to motivate them to achieve certain performance targets or goals.
Shrinkage	The loss of inventory due to theft, damage, or other reasons, often expressed as a percentage of sales.
Shutter	Refers to the process of closing a retail store, usually for a temporary period of time, such as during a holiday or a renovation. The store may have its doors physically covered by shutters or other barriers.
Standard Operating Procedure (SOP)	A documented set of guidelines or instructions for carrying out a specific task or process.
Stock Keeping Unit (SKU)	A unique identifier used to track inventory and sales of a specific product.
Traffic	The number of people who enter a store during a specific period of time, often measured hourly, daily, or weekly.
Turnover	Refers to the time leading up to a store’s formal opening, during which employees are setting up inventory, interior decor, and other services.