SIOUX CITY COMMERCIAL REAL ESTATE DEFINITIONS
Absorption: The change in occupied space between the beginning and end of a period (total leasing and user sale activity).
Available Space: Total square footage being marketed for sale, or for lease by landlord and available within 90 days.
Asking Rental Rate: Annual rental rate per square foot as quoted from each building’s owner/management company. Full service rental rates are typical for office space, NNN rates for industrial and retail space.
Average Time On Market: Weighted average time on the market for available spaces, reflected in months.
Build-to-Suit: A method of leasing property where the landlord builds to suit a tenant according to the tenant’s specifications. The cost of construction is figured into the rental amount of the lease, which is usually for a long term.
$/PSF: Dollars per square foot per year, used as a unit of measurement.
Full Service: The landlord pays all of the property’s operating expenses.
Market Size: Includes all existing retail buildings over 15,000 sq.ft., industrial buildings over 5,000 sq.ft. and office buildings over 5,000 sq.ft. built since 1975.
Net Rent: The quoted asking rent, less total expenses.
Operating Expenses: The annual cost per square foot of all property operating expenses, including real estate taxes.
Rentable Area: The portion of the gross floor area in square feet on which rent can be obtained (BOMA Standard).
Speculative Space: A building constructed for lease or sale but without having a tenant or buyer before construction begins.
Sublease: An arrangement in which a tenant leases its rented space to another, and the tenant becomes the landlord to the subtenant.
Triple Net (NNN): The requirement for a tenant to pay for its share of the property’s taxes, insurance and operating expenses.
Vacant Space: The total square feet of unoccupied space, including sublease space and unimproved areas of completed buildings.
OFFICE BUILDINGS
Central Business District
Class A: Newer buildings in first class condition, design and décor with skyway linkage.
Class B: Seasoned buildings generally in good condition and over 20 years old.
Class C: Older, obsolete buildings with high vacancy rates.
Suburban
Class A: Newer buildings in first-class condition and décor with excellent visibility and street access. Prominence and identity are the key criteria for this group.
Class B: Older buildings, generally over 20 years old. Smaller in size with less than prime locations and amenities. Average quality finishes and a wide range of tenants.
INDUSTRIAL BUILDINGS
Manufacturing: Buildings typically used for manufacturing purposes, less than 3/1,000 parking, clear height less than 18’, usually 6% to 15% office build-out.
Warehouse: Buildings typically used for bulk warehouse purposes, less than 2/1,000 parking, clear height minimum of 16’, dock height and grade doors, minimal office build-out.
RETAIL BUILDINGS
Anchor Stores: The largest retail outlets, usually located at the ends or corners of shopping centers, and chosen for their potential to attract customers to the center. Generally, department stores usually anchor regional malls and supermarkets are typical anchors in neighborhood centers.
Big Box: A large stand-alone store that specializes in a single line of products, such as home improvements, toys, or office supplies. Discount stores that sell in volume and category killers are often big box stores.
Regional Center: A shopping center with 75 to 125 stores anchored by two or more department stores and has 400,000 to 800,000 square feet of retail space.
Community Center: A shopping center with 10 to 30 stores and 150,000 to 350,000 square feet of retail space. Typically anchored by a discount department, drug or home improvement store.
Neighborhood Center: A shopping center with fewer than 15 stores anchored by a supermarket and with 30,000 to 150,000 square feet of retail space.
Power Center: A center dominated by several large anchors, including discount department stores, off-price stores, warehouse clubs or category killers. Typically consists of several anchors, some of which may be freestanding, and only a limited number of small specialty tenants.
Strip Center: An open-air shopping center smaller than 15,000 square feet and with at least three stores. Typically arranged in a connected row facing a parking area, strip centers may also be L or U-shaped.