The Ultimate Glossary: Commercial Real Estate (CRE) Terms

Common Terms You Must Know

• CAP Rate: The capitalization rate used to estimate the investor's potential return on investment.
• NOI (Net Operating Income): Total income minus all operating expenses.
• LOI (Letter of Intent): A non-binding document outlining the primary terms of a deal.
• Common Area Maintenance (CAM): Fees paid by tenants for shared spaces like lobbies and elevators.