Real Estate Business Glossary 

A covered way or gallery for pedestrians, usually flanked by shops on one or both sides. Historically the roof was arched.

To transfer an interest in a property, especially a lease. 

A clause in a lease (or other contract) which gives the landlord and/or the tenant (or one of the parƟes to the contract) a right, in specified circumstances, to terminate the lease (or contract) before its normal expiry date. It usually defines the length of noƟce to be given and may (or may not) be subject to contractual or statutory financial provisions. Statutory provisions may affect contractual enforcement.

 

A tenancy of premises used for a ‘business’ by an occupier who enjoys security of tenure under Part II of the Landlord and Tenant Act 1954.

 

One of a series of retail outlets under a single ownership, but now more commonly called a multiple retail outlet. Each store with such a group will probably sell the same range of goods and have the advantage of central buying. 

 

Unencumbered title to real property, against which there are no claims, mortgages, 
voluntary liens, etc. 

The final stage in the legal process of transferring ownership of property, eg where the documents in connection with the sale of land are signed, sealed and delivered

 

A legally binding agreement. Two situations concern the disposal of land, namely: 

Goods normally purchased without making any comparison with alternatives, other than 
by price, including food and drink, tobacco, matches, newspapers, cleaning materials.

 

A retail outlet selling convenience goods. In the case of the larger outlets a limited range 
of comparison goods may also be included.

 

The process of buying one or more articles, not necessarily confined to convenience 
goods, either under one roof or from a number of units in close proximity to each 
other, providing for consumers’ specific regular shopping needs.

 

 

A, usually, multi‐level retail property varying in size from one selling an extensive, but not 
comprehensive, variety of goods to one selling a full range of different lines. A distinctive 
feature of a department store is that it stocks a significant amount of clothing and 
household goods. 

A group of shops typically anchored by at least one supermarket. It is often supplementary to a main town shopping centre and usually has an emphasis on the sale of convenience 
goods, but also offers a limited range of comparison goods.

 

For any business, those steps taken, eg by prospective buyers or their professional 
advisers, to ensure operations are lawful and in accord with proper professional practice, 
including taking positive action rather than none.

 

An individual retail outlet or one attached to a factory where goods may be sold. Depending on the circumstances, the prices will be either at a level not exceeding the manufacturer’s recommended minimum or at a special lower level. 

 Retail premises for the sale, often under franchise, of light, fast‐cooked food for eating 
on the premises or taking away.

 

 The aggregate superficial area of an individual floor or of a building, taking each floor into 
account. The RICS Code of Measuring Practice distinguishes the following categories and 
should be consulted for full details: 

 

The number of pedestrians passing through a building or area, eg a shopping centre.

 

A business in which a franchisor licenses a franchisee to undertake certain business 
activities, usually under the trade or business name of the franchisor. The franchisor may 
provide: 
a. Initial services, which may include selection of site and premises, fittings, staff training and sales promotion; and 
b. Running services such as bulk purchase of stock. The franchisee undertakes to pay a capital sum or royalties or both.

 

In general parlance this is used as a shorthand for the tenure of an estate in fee simple 
absolute in possession. Strictly speaking, however, freehold includes fee simple, 
entailed interests (formerly ‘fee tail’) and tenancies for life. 

A term sometimes used in relation to managed shopping schemes to correspond 
broadly with the definition of gross internal area in the RICS Code of Measuring Practice. 

A method of applying a unit of rent to the zones of the area of a shop for rental valuation purposes, usually confined to the ground floor area. The principle is that the most valuable area of a traditional shop is to be found at the front, ie the display area, and that the value then declines with increasing depth. The shop is divided into zones, usually of equal depth, with the value of the first, ie the front zone, being €x per annum per sq ft or m2. Each successive zone is then ‘halved‐back’ in value, ie €x/2, €x/4, and so on, but where the depth is considerable a larger rear zone (‘remainder zone’) may be valued at a flat rate per sq  or m2 without further halving back. If there is a rear or return frontage with direct access and possibly with window displays giving the prospect of additional custom, the value in relation to zoning will be modified.

Fundamental points of an agreement intended to form the basis of a formal contract. In a 
letting these usually include duration of the lease, the initial rent and obligations and 
rights of the respective pares, such as rights of assignment, subletting, maintenance, 
insurance and use.

 

 A lease under which all or some internal (but no external) repairs are the responsibility of 
the tenant. The extent to which external repairs are the responsibility of the landlord 
depends upon the wording of the lease.

 

A small enclosed retail outlet, normally without toilet facilities and occupying less than 
15 m2 of retail floor space, frequently located on a public concourse or other place where it may remain open only during peak mes and be closed securely when there are no 
customers. Kiosks are now sometimes included in managed shopping schemes. 

 

 In a building of several storeys, an intermediate floor extending to a lesser area than the main floors. A structure within a single storey warehouse providing addional floor area, of lesser area than the main building. 

 A retail outlet operated by an organisation with 10 or more branches.

 

Generally an out of town centre featuring high quality brand manufacturing and vertically 
integrated retailers selling their excess stock, overruns, last season’s stock and quality 
seconds, direct to the public at discounts of around 30% to 50% of the recommended 
retail price, in well presented and actively managed environments.

 

 The rent which is currently payable under the terms of a lease or tenancy agreement.

 

Colloquial term for a legally enforceable agreement for a letting to take effect at a future date, often upon completion of the development that is proposed or under construction at the time of the agreement.

 

A retail store selling non‐food goods occupying a warehouse. 

 

The amount payable by a tenant on account of services provided by his landlord.

 

 A central location where shops are grouped together to serve a local or wider population. 
Centres are classified in hierarchies order by function and/or size, and by the area served.

 

A document which lists and describes all items of construction in a building or engineering 
project in sufficient detail to ensure that a contractor has enough information to enable 
the project to be carried out. The specification describes the materials, form of construction intended and the standard required in accordance with such plans and drawings as are provided.

 

A lease for three years or less, not under seal.

 

 A lease where the lessee is under an obligation to maintain and repair the whole, or 
substantially the whole, of the premises comprised in the lease. This meaning is also 
adopted for the purpose of Schedule A income taxation.

 

A rent review where the rent payable following a review date is the greater of the rent payable immediately before the review or the amount calculated upon review under the 
terms of the lease.

 

The attribute of an empty property which can legally be exclusively occupied and used by the owner or, on a sale or letting, by the new owner or tenant. 

 

 
In the zoning method, the unit of comparison for rental purposes attributed to the frontal 
zone of retail premises, eg €x per square metre.

 

A method of analysing the rental value of retail space (usually on the ground floor) by dividing it into strips parallel with the main frontage.
Return to top