Common Area Maintenance (CAM) – Maintenance charges for the upkeep of a building’s common areas, such lighting, insurance, and property taxes.

Capital Appreciation – A property’s or a group of properties’ change in market value adjusted for capital improvements and any partial sales.

Capital Expenditures – Investment of cash, or the borrowing of funds, for the expenditures resulting in the acquisition of or addition to fixed assets.

Capital Gain – The difference between the net proceeds from the sale of an asset or property and the asset’s or property’s book value.

Capital Improvements – Expenditures necessary to repair a property or to add new improvements and thus increase its life.

Cap Rate – An investor’s rate of return if the investor was to pay cash for a property with commercial income.

Carrying Charges – Incidental property ownership costs that a landlord absorbs during a building’s initial lease-up and during any vacancy periods afterwards.

Cash Flow – The net amount of cash generated by a company’s or property’s operation.  Net post-tax revenue minus expenses.

Certificate Of Occupancy – A local government agency’s or building department’s document certifying that a building and/or the leased area was inspected and found in a condition satisfactory for occupancy (usually after original construction or after a natural disaster).

Chain Of Title – An analysis of the history of a piece of property’s transfers of title.

Clear Title – A title to property that is free of liens or any legal questions or disputes as to the property’s ownership.

Cloud On Title – Any condition revealed by a title search that adversely affects the real property’s title despite the merits. Normally a cloud on title can’t be eliminated except by a quitclaim deed, release, or court action.

Co-Investment – Co-investment occurs when two or more pension funds or groups of funds share ownership of a real estate investment.  In co-investment vehicles, relative ownership is always based on the amount of capital contributed. It also refers to an arrangement in which an investment manager or adviser co-invests its own capital alongside the investor.

Commercial Evaluation – A commercial appraiser will use Market Approach, Income Approach, or Cost Approach to Valuation to arrive at an opinion of value.

Commission – An amount, usually a percentage of the property sales/lease price, that is earned by a real estate professional as a fee for negotiating a real estate transaction.

Common Area – For lease purposes, the areas of a building and its grounds that are available for the non-exclusive use of all its tenants, such as stairwells, restrooms, lobbies, hallways, exterior walkways, and parking lots.

Comparables (Comps) – Other real estate properties with similar characteristics used to determine the fair market lease rate or sale price.

Comparative Market Analysis (CMA) – An estimate of the real estate value based on an analysis of sales of comparable properties in the same or similar geographical area.

Concessions – Cash or its equivalent, such as rental abatement, additional tenant finish allowance, or moving allowance, used by the landlord to persuade a potential tenant to sign a lease agreement.

Condemnation – A government’s process of taking private property through the power of eminent domain, without the consent of the owner, for public use.

Condominium – A form of property ownership in which buyers purchase and own a unit of housing in a multi-unit complex and share financial responsibility for the maintenance, taxes and insurance expenses of the common areas.

Condominium Hotel – A condominium that has rental units for short-term occupancy that is operated as a hotel with eating, cleaning and telephone connections as well as units that are owned by individuals.

Construction Management – The act of ensuring that all the stages of the construction project are completed on time and according to all the construction documents (sometimes performed by architects).

Contiguous Space – Multiple rental units that are next to each other on the same floor of a building, or a block of space located on multiple adjoining floors in a building, that can be combined and rented to a single tenant.

Contract Rent – The lessee’s monetary rental obligation, sometimes called face rent, specified in a lease.

Contract Sale Or Deed – A real estate agreement that does not take effect or transfer the title until certain conditions are met.

Cost-Approach (Improvement Value) – The current cost to build a replacement for an existing structure minus any accrued depreciation

Cost-Approach (Land Value) – The estimated value of the fee simple interest in land as if vacant and able to be developed to its best and highest use.

Cost-Of-Sale Percentage – The total cost of selling an investment property, denoted as a percentage of sales price, including broker’s commissions, fees, closing costs and other expenses relating to the sale.

Covenant – A written agreement inserted into a property’s deed or other legal instruments dictating a property’s uses, restrictions, or performance of certain acts or obligations related to the property.

Current Occupancy – The percentage of a property’s currently leased area or units out of the property’s total area or units.