Breakeven Occupancy: the rate of occupancy at which the property's revenue equals its expenses.Buyers Market: an economy favoring commercial property buyers typically characterized by more available property than potential buyers.Capitalization rate (aka cap rate) = Net Operating Income Divided by Sales PriceCash on Cash Return = (Net Operating Income - Debt Service)/Acquisition CostsCash on Cash Return tells us what the overall return on our investment is as a percentage. Effective Gross Income = Gross Potential Income - lost income due to vacanciesEstoppel Letter: a letter sent to tenants to verify the rents the tenants are payingA Buyers Market: an economy favoring commercial property buyers typically characterized by more available property than potential buyers.Escrow Agent: Third party that holds a sum of money pending the formal close of the commercial real estate property and facilitates the closing. Eminent Domain: When a government purchases a parcel of land without the owner's consent.Gross Lease: A lease where the tenant's rent covers all operating expenses in one lump sum.Land-Use: Zoning ordinances restricting the use of a particular property.Letter of Intent (LOI): a formal offer to purchase a propertyMoratoria: A limit or ban on further development of a particular type of property.Net Lease: Tenants pay to maintain their portion of the building or property in addition to rent.Net Operating Income (aka NOI) = Effective Gross Income - Operating Expenses aka - what you actually take homeObsolescence: The stage at which a commercial property degrades to become unusable. Operating Statements: These documents show the profit and loss of a property across a specific period of time.Pro Forma: Predicted revenue model based on the anticipated results of the property - typically provided by the seller as a way to entice a buyerProperty Class: A rating system running A=D where A class represents a high quality property (new building/good area) and D class represents a low quality property (very old building/bad area of townPurchase and Sale Agreement (aka P&S): A formal letter detailing your intent to purchase the property under a specific set of termsRent Roll: A document summarizing occupancy. This typically includes lease rates, terms, and expirations for each tenant.Replacement Reserves: Money set aside to cover the replacement of capital items (i.e. heaters/roofs/windows/sidewalks).Sellers Market: An economy favoring commercial property sellers typically characterized by less available property than potential sellers.Tenant at Will: A tenant currently occupying a property without a lease - generally (laws vary by state) this means the tenancy is renewed every month.