2010 Global Market Report - NAI Commercial Real Estate

■ Glossary■AcreArea of land equal to 43,560 SF (4,047 M 2 ).Bulk Warehouse (Warehouse)All modern distribution facilities 25,000 SF (2,500M 2 ) or greater. Quoted annual rate,net basis.CBD (City Centre)The central business district is a market’sprimary concentration of business activity, muchlike a traditional downtown.Class “A” Office (Prime)Excellent location (5,000 SF or 500 M 2 ), highqualitytenants, high-quality finish, excellentlymaintained; usually new, or old buildings that arecompetitive with new construction.Class “B” Office (Secondary)Good location (5,000 SF or 500 M 2 ), fairly highqualityconstruction and tenants. Buildings withonly minimal deterioration or obsolescence.Community Power Centers (Big Box)Retail centers over 250,000 SF – 600,000 SF(25,000 M 2 - 56,000 M 2 ), which include one ormore “category killers”, life-style centers and outletcenters.Development Land PricesBased on land sales recorded between October2006 and October 2007. The guide quotes therate paid for land with available utilities andzoning in place for the use noted.Downtown Office (City Centre)Sites in the market’s central business district.Downtown Retail (City Centre)Any prime ground floor retail space in the market’scentral business district, excluding spacein enclosed malls. United Kingdom and Irelandpresented on Zone A Basis.Education IndexThe Education Index was calculated bydividing the number of people with a college degreeand some college education by the totalpopulation in that Market and by then dividingthat quotient by the same figure for the UnitedStates. Data provided by SRC, LLC.Effective Average RentNet present value rate taking concessions, suchas free rent and escalations into account.Full Service BasisIndicates that the landlord pays all expenses.Government IndexThe Government Index was calculatedby dividing an estimate of totalgovernment services employment by total nonagriculturalemployment for a Market. This quotientwas then divided by the same data for theUnited States. Data providedby SRC, LLC.Health Services IndexThe Health Services Index was calculatedby dividing an estimate of total healthservices employment by total non-agriculturalemployment for a Market. This quotient wasthen divided by the same data for the UnitedStates. Data provided by SRC, LLC.High Tech/R&D (Flex)Modern buildings with space dedicated toresearch/product development, or buildingsin industrial settings with high percentage of office/showroomstyle finish.GLAGross leasable area.GSAGeneral Services Administration, the USGovernment’s property procurement agency.HectareArea of land equal to 2.47 acres.Highway/Commercial LandRefers to any commercially zoned land that hasfrontage along, and access to, a major state orinterstate highway.Income IndexThe Income Index was calculated by dividingper capita income in a Market by the averagenational per capita income. Data provided bySRC, LLC.Industrial RentsThis report quotes the annual rate on anet basis.Manufacturing SpaceAll facilities of 25,000 SF (2,500 M 2 ) or greater usedin the production or development of goods.Neighborhood Service Centers(Retail Units on Parks)Retail centers ranging in size from 75,000 to250,000 SF (7,500 M 2 to 25,000 M 2 ), anchoredby foot and/or drug stores providing generalservices to the local market—including padsites. United Kingdom and Ireland presented onZone A Basis.Net BasisIndicates the tenant pays for most of theoperating costs such as utilities, maintenance,repairs and cleaning.Office IndexThe Office Index was calculated by dividingan estimate of office employment by totalnon-agricultural employment for a Market.This quotient was then divided by the samedata for the United States. Data provided bySRC, LLC.Office RentsThis report quotes the annual rate asfull-service basis. Europe quoted as annualrates, net basis.Population Growth IndexThe Population Growth Index was calculated bydividing the projected five year populationgrowth rate for the Market by the sameprojected value for the United States. Data providedby SRC, LLC.Regional Mall(Regional Shopping Centres)Suburban or downtown properties over600,000 SF (60,000 M 2 ) with at least two majordepartment store anchor tenants.Retail RentsThis report quotes the annual rate on afull-service basis. Europe quoted as annualrates, net basis.Retail Services IndexThe Retail Services Index was calculatedby dividing an estimate of total retailservices employment by total non-agriculturalemployment for a Market. This quotient wasthen divided by the same data for the UnitedStates. Data provided by SRC, LLC.S.F.; s.f.Square foot or square feet, depending on thereference. 1 square foot = 0.093 M 2 .S.M.; sm; M 2Square meter. 1 S.M. = 10.764 square feet.Solus Food StoresStand-alone large supermarkets orhypermarkets from 50,000 SF (5,000 M 2 )and up. Quoted as annual rates, net basis.Suburban OfficeStand-alone buildings and business parks notwithin the metro city limits.Vacancy RateThe percentage of market space beingdirectly offered by the landlord or properties forlease and the amount of sublease space beingoffered by tenants. In cases where the space isunder lease but not occupied, count it as partof the vacancy.Wholesale IndexThe Wholesale Index was calculated bydividing an estimate of wholesale employmentby total non-agricultural employment for a Market.This quotient was then divided by the samedata for the United States. Dataprovided by SRC, LLC.Zone AThe area at the front of the shop at pedestrianlevel. It is usually 6.1 meters deep, thismeasurement equating 20 feet. In a verylimited number of locations, Zone A can be30 feet deep (9.1 meters.)2010 Global Market Report ■ www.naiglobal.com 138