Balloon Mortgage - A short-term fixed-rate loan with low payments for a set number of years and one large final balloon payment of the remainder of the principal.
Balance Sheet - A document showing the financial situation--assets, liabilities, and net worth--of a company at a specific point in time.
Bankruptcy - A special proceeding under federal, or in some instances state, laws by which the property of a debtor is protected by the court and may be divided among the debtor's creditors and the debtor.
Base Rent - The minimum monthly rent, usually computed on a per- square-foot-per-year basis, due under the lease (see percentage rent).
Base Year - A specific year of a lease against which certain rent escalations and additional expense reimbursements to landlord may be calculated.
Basis Points - One-100th of 1 percent. Used primarily to describe changes in yield or price on debt instruments including mortgages and mortgage-backed securities.
BOMA - Building Owners and Managers Association which, among other things, established widely-accepted methods of computing square footage in commercial buildings.
Bridge Loan - A loan which enables a buyer to purchase a property, then allow for time to rehab and/or increase NOI prior to placement of permanent financing or enables buyer to get financing to make a down payment and pay closing costs before selling the present property. Also called ˆ¨gapˆÆ financing.
Building Owners and Managers Association (BOMA) - An organization of practitioners who own and manage buildings, most often office space. Sets the basis by which most regional expense standards areestablished. Address: Building Owners and Managers Association 1221 Massachusetts Avenue NW Washington, DC 20005.
Building Standard - A list of materials and finishes used in the the build-out, repair or restoration of a tenant's suite.
Build-out - Refers to the interior construction of a tenant's space whether new construction or the reconfiguration of existing space.
Build-to-suit - A customized design and build approach to a tenant's space usually resulting in a single occupant building which is then leased or sold to the tenant.