Grapevine CRE
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Glossary

Commercial real
estate glossary.

Plain-English definitions of 30 of the terms that show up in Texas retail and office leases, LOIs, and investment-sale offering memoranda. Bookmark this — it's the reference Daniel sends clients before their first deal.

Index

Jump to a term.

1031 ExchangeAnchor TenantAssignmentBase RentBOVCAMCAM CapCap RateCo-TenancyCold Dark ShellEstoppelExclusive UseFree Rent (Abatement)GLAGross LeaseGround LeaseHoldoverLOIModified GrossNNN (Triple Net)NOIPad SitePercentage RentPro Rata ShareRelocation ClauseRent CommencementRight of First Refusal (ROFR)SNDATI / TIAVanilla Box
Terms

A–Z.

  1. 01

    1031 Exchange

    IRS Section 1031 — defers capital gains tax when sale proceeds are reinvested in like-kind real estate within 45 days (identification) and 180 days (close). Common in Texas net-lease investing.
  2. 02

    Anchor Tenant

    A large, traffic-generating tenant (grocery, big-box, junior anchor) whose presence drives co-tenancy clauses and inline shop demand in a shopping center.
  3. 03

    Assignment

    Lease clause governing whether and how a tenant can transfer the lease to a new entity — critical for any tenant who may sell their business mid-term.
  4. 04

    Base Rent

    The contractual minimum rent, before pass-through expenses (NNN), percentage rent, or escalations.
  5. 05

    BOV

    Broker Opinion of Value — a written, comparable-driven estimate of market value for a commercial property. Less formal than an appraisal; standard pre-listing deliverable.
  6. 06

    CAM

    Common Area Maintenance — the operating expense pool for shared areas (parking, landscaping, lighting, trash, exterior repairs). Reconciled annually against estimates.
  7. 07

    CAM Cap

    A tenant-favorable lease clause limiting the year-over-year increase in controllable CAM expenses (e.g., 5% per year compounding).
  8. 08

    Cap Rate

    Capitalization rate — NOI divided by purchase price. Primary metric for pricing income-producing CRE. Grapevine multi-tenant retail typically trades in the 6.5–8.5% cap range; single-tenant credit NNN tighter.
  9. 09

    Co-Tenancy

    Lease clause tying a tenant's obligations (rent, opening) to the presence of named anchor tenants or a minimum occupancy threshold.
  10. 10

    Cold Dark Shell

    Delivery condition with no HVAC, no electrical distribution, no demising walls, no finished floor. Tenant builds out everything.
  11. 11

    Estoppel

    A signed certificate from a tenant confirming key lease terms (rent, term, options, defaults) — required by lenders and buyers during due diligence.
  12. 12

    Exclusive Use

    Lease clause preventing the landlord from leasing other space in the center to a competing use (e.g., a coffee shop's exclusive on hot brewed coffee).
  13. 13

    Free Rent (Abatement)

    A negotiated period at lease commencement when no base rent is payable — typically used to offset build-out cost or downtime. 1 month per year of term is a common starting point.
  14. 14

    GLA

    Gross Leasable Area — total square footage tenants can occupy and pay rent on. Grapevine Mills GLA is ~1.6M sf.
  15. 15

    Gross Lease

    A lease where the landlord pays all operating expenses out of base rent. Common in office; rare in modern Texas retail.
  16. 16

    Ground Lease

    A long-term lease (typically 30–99 years) of land only, where the tenant owns improvements during the lease term. Common on pad sites and QSR.
  17. 17

    Holdover

    Lease clause governing rent and obligations if a tenant remains in possession after lease expiration — typically 150–200% of base rent.
  18. 18

    LOI

    Letter of Intent — a non-binding (in most clauses) term sheet outlining the economic and major business points of a lease or sale before drafting the long-form document.
  19. 19

    Modified Gross

    Hybrid lease where the landlord pays some operating expenses and the tenant reimburses others (often utilities, janitorial). Common in suburban office.
  20. 20

    NNN (Triple Net)

    Lease structure where the tenant pays base rent plus their pro-rata share of property taxes, insurance, and common area maintenance (CAM). Standard in Texas retail.
  21. 21

    NOI

    Net Operating Income — gross income minus operating expenses, before debt service and capex. The numerator in cap-rate math.
  22. 22

    Pad Site

    A freestanding outparcel within a larger shopping center, typically ground-leased or sold to single-tenant users (QSR, bank, urgent care).
  23. 23

    Percentage Rent

    Additional rent calculated as a percentage of tenant gross sales above a negotiated breakpoint. Common in mall and lifestyle-center retail; rare in strip centers.
  24. 24

    Pro Rata Share

    A tenant's percentage of operating expenses, based on their square footage divided by total leased GLA.
  25. 25

    Relocation Clause

    Landlord-favorable clause allowing relocation of a tenant within a center, typically at landlord cost. Push back hard in negotiation.
  26. 26

    Rent Commencement

    The date the tenant's rent obligation begins — often after a free-rent period and a build-out period following lease execution.
  27. 27

    Right of First Refusal (ROFR)

    Tenant's right to match a third-party offer on adjacent space (lease ROFR) or on a sale of the building (sale ROFR).
  28. 28

    SNDA

    Subordination, Non-Disturbance, and Attornment Agreement — protects a tenant's lease in the event of landlord foreclosure or lender takeover.
  29. 29

    TI / TIA

    Tenant Improvement allowance — dollars per square foot the landlord contributes toward build-out of the tenant's space. Typical Grapevine retail range: $20–$60/sf depending on second-gen condition.
  30. 30

    Vanilla Box

    Delivery condition with HVAC, basic lighting, restrooms, and finished floor/walls — tenant completes final fit-out.
Related

Keep exploring.

The 8-step process →How these terms show up in a real engagement.Tenant representation →Where the negotiation happens.Market data →Grapevine CRE rents, vacancy, and comps.

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