If you work with commercial real estate professionals, you have probably noticed that we speak in a special language of abbreviations and acronyms. Newcomers to the industry take their time wading through the sea of letters, googling behind the scenes to keep up with the lingo. Our new series, CRE Abbreviations Breakdown will do the work for you!
This week we are kicking things off with the Brokerage Edition of CRE Abbreviations. These short letter references feature professional designations and common lease terminology.
SIOR
Society of Industrial and Office Realtors
SIOR is a leading global professional office and industrial real estate association. Fun fact, Shannon Waltchack has three SIOR designees: Len Shannon, Seth Berry and John Hardin!
TI
Tenant Improvement
TI is the monetary allowance for any changes, repairs and customization that a landlord makes to the property as a part of the lease agreement. These improvements are typically negotiated by a broker and are often amortized into the tenant’s lease over time.
LOI
Letter of Intent
A letter of intent is a document declaring the preliminary commitment between two parties who are doing business with each other. The letter outlines the major terms of a potential deal, before resolving the finer details. LOI’s are non-binding, but they keep things moving and on schedule throughout the due diligence process.
CCIM
Certified Commercial Investment Member
CCIM is an elite professional designation for proven leaders in commercial real estate, requiring rigorous coursework and a certain level of experience. CCIM provides a tight knit network for members to share in trends, technology and advanced education. Fun fact, Shannon Waltchack has five CCIM designees: Len Shannon, Andrew Patterson, John Hardin, Michael Murray, Tyler Bradford!
NNN
Triple Net
With a triple net lease (NNN), the tenant agrees to pay the property expenses such as real estate taxes, building insurance, maintenance, rent, and utilities. Typically in NNN leases, the lessee’s rent typically is less, however they are responsible for most expenses including renovations, maintenance costs and tax increases. Stay tuned for our upcoming installments on Property Management and Investment abbreviations.
Stay tuned for our upcoming installments on Property Management and Investment abbreviations.
