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Above building standard Upgraded finishes and specialized designs necessary to accommodate a tenant's requirements. Absorption rate The rate at which rentable space is filled. Gross absorption is a measure of the total square feet leased over a specified period with no consideration given to space vacated in the same geographic area during the same time period.
Net absorption is equal to the amount occupied at the end of a period minus the amount occupied at the beginning of a period and takes into consideration space vacated during the period. Ad valorem Meaning "according to value," this is a tax imposed on the value of property that is typically based on the local government's valuation of the property.
The most common adjustment to FFO is an estimate of certain recurring capital expenditures needed to keep the property portfolio competitive in its marketplace. Administrative fee Usually stated as a percentage of assets under management or as a fixed annual dollar amount.