Management

Definition:
1. One form of a shell lease, a cold vanilla shell is a commercial or residential building with a minimally finished interior, usually with ceilings, lighting, plumbing, interior walls (painted or unpainted), electrical outlets, elevators, rest rooms, and a concrete floor. It is essentially the same as a vanilla shell or warm vanilla shell building, but without a heating and cooling (HVAC) system. A cold vanilla shell is considered ready to lease and ready for tenant improvements (TI's), including the installation of the HVAC system. In many cases, the landlord will offer financial incentives in the form of a tenant improvement allowance (TIA), which pays for or at least partially defrays the cost of any improvements necessary for the tenant to occupy the building itself. Tenant improvement allowances do not usually include furniture, fixtures, and equipment (FFE) or trade fixtures necessary for the tenant to conduct business. Usually tenant improvements and vanilla shell improvements (VSI), or those improvements necessary to upgrade the building from a cold shell or base shell state, are not completed until the lease agreement between the tenant and landlord has been negotiated and executed. This ensures that the landlord does not pay for improvements that are unnecessary or that the tenant does not want.

2. The lease agreement or contract for a cold vanilla shell building. A proper vanilla shell lease should describe in detail the tenant improvements (TI's) that are to be completed, and any other information necessary for construction of the building to be completed (commonly known as build-out) prior to tenant occupancy.

Also known as a Cold vanilla box.
More or less the same as Cold lit shell, Cold white box, or Cold white shell.


Discussion: Like many real estate terms and phrases, those associated with shell leases (e.g., vanilla shell, base shell, cold shell, warm shell, etc.) differ by location and situation, sometimes even within the same region or municipal area. As they say, the devil is in the details. The lease or sales contract should clearly and exactly specify the degree to which construction of any sort of "shell" building has been or will be completed prior to tenant occupancy.

Shell leasing and its various forms (warm, cold, base) are used primarily in commercial real estate, but are gaining popularity in upscale condominiums and townhouses and other high-end residential real estate transactions. The idea is to attract either tenants or buyers, or both, by offering customizable living units. Financial incentives in the form of tenant (or buyer) improvement allowances afford new residents the opportunity to select nearly all aspects of interior decor, including relatively large projects such as plumbing and fixtures, wiring, and interior walls.


Terms, Definitions, and Concepts: Real Estate, Construction and Building, Appraisal, Auction, Finance and Investment, Management

Definition:
1. One form of a shell lease, a cold white box is a commercial or residential building with a minimally finished interior, usually with ceilings, lighting, plumbing, interior walls (painted or unpainted), electrical outlets, elevators, rest rooms, and a concrete floor. It is essentially the same as a vanilla shell or warm vanilla shell building, but without a heating and cooling (HVAC) system. A cold white box is considered ready to lease and ready for tenant improvements (TI's), including the installation of the HVAC system. In many cases, the landlord will offer financial incentives in the form of a tenant improvement allowance (TIA), which pays for or at least partially defrays the cost of any improvements necessary for the tenant to occupy the building itself. Tenant improvement allowances do not usually include furniture, fixtures, and equipment (FFE) or trade fixtures necessary for the tenant to conduct business. Usually tenant improvements and vanilla shell improvements (VSI), or those improvements necessary to upgrade the building from a cold shell or base shell state, are not completed until the lease agreement between the tenant and landlord has been negotiated and executed. This ensures that the landlord does not pay for improvements that are unnecessary or that the tenant does not want.

2. The lease agreement or contract for a cold white box building. A proper white box lease should describe in detail the tenant improvements (TI's) that are to be completed, and any other information necessary for construction of the building to be completed (commonly known as build-out) prior to tenant occupancy.

Also known as a Cold white shell.
More or less the same as Cold lit shell, Cold vanilla box, or Cold vanilla shell.


Discussion: Like many real estate terms and phrases, those associated with shell leases (e.g., vanilla shell, base shell, cold shell, warm shell, etc.) differ by location and situation, sometimes even within the same region or municipal area. As they say, the devil is in the details. The lease or sales contract should clearly and exactly specify the degree to which construction of any sort of "shell" building has been or will be completed prior to tenant occupancy.

Shell leasing and its various forms (warm, cold, base) are used primarily in commercial real estate, but are gaining popularity in upscale condominiums and townhouses and other high-end residential real estate transactions. The idea is to attract either tenants or buyers, or both, by offering customizable living units. Financial incentives in the form of tenant (or buyer) improvement allowances afford new residents the opportunity to select nearly all aspects of interior decor, including relatively large projects such as plumbing and fixtures, wiring, and interior walls.


Terms, Definitions, and Concepts: Real Estate, Construction and Building, Appraisal, Auction, Finance and Investment, Management

Definition:
Law: 1. An agreement between two or more people to defraud another or to procure an illegal object; a conspiracy between two or more persons for a fraudulent, illegal, or deceitful purpose.
Auction: 2. A secret, illegal agreement between two or more auction bidders to place bids in such a way as to influence the auction outcome, as when two bidders agree to refrain from bidding against one another in order to keep the price of an item artificially low.
3. An illegal agreement between an auctioneer and a seller of an item to place and accept fictitious bids in order to artificially increase the price of the item.

Terms, Definitions, and Concepts: Auction, Legal (Law), Management, Real Estate

1. Usefuleness or desirability as a business, commodity, or investment. 2. A quality or characteristic of an investment, property, goods, or services such that it can be sold or traded at a profit.

A zoning classification that allows non-manufacturing and retail business-related activities, such as stores, offices, gas stations, hotels, restaurants, and other services (laundromats, dry cleaners, machine and appliance repair, etc.)

The disclosure document issued by the Arizona Department of Real Estate (ADRE) which allows a developer or subdivider to sell lots within a platted, recorded subdivision. Also known less formally as the public report, this document is issued only after the extensive subdivision application has been approved and the subdivision has been physically inspected. A demonstration of a 100-year water supply may also be required.

To damage, destroy, abuse, or otherwise cause the value of property to be diminished, especially by one whose interest in the property is less than fee simple, such as a tenant, life tenant, mortgagor, or vendee.

A form of ownership of units of a larger building, such as apartments or condominiums. Under this form of title, owners of individual units form a company, with property title in the form of shares of the company. These shares allow owners to occupy a unit in the building. Company title is cumbersome and often does not clearly define who owns a particular unit, leading to inaccuracies and confusion. Company title has largely been replaced by strata title in most areas.

A thorough and intensive master plan to guide the long-term physical development of a particular area based on identified objectives, strategies, and timelines for implementation. Includes plans for land use, housing, community facilities and utlities, transportation of goods and people, and energy use and conservation. Zoning ordinances and policies are developed for different areas or zoning districts based on the master plan.

The final step in the scientific method. After the experiment is conducted, the expected result is compared to the observed result, and a determination is made that the research hypothesis is either valid or invalid. If deemed invalid, a new or alternate hypothesis must be developed, and the scientific research process (scientific method) starts anew.

A judicial or administrative proceeding to exercise the power of eminent domain, which is the power of the government to take private property for public use.

Definition:
A stipulation by the grantor of an estate in qualified fee subject to condition subsequent specifying that the grantee or his heirs may not commit certain acts with or on the real property in question, or use the property for certain purposes. If the condition is violated, the grantor may exercise the right of reentry and recover fee ownership (a process known as reversion).

Example: If the condition subsequent is that a historic structure may not be removed from the property, and the grantee removes it, the grantor has the right to reacquire full ownership of the property, with no compensation paid to the grantee.


Terms, Definitions, and Concepts: Real Estate, Title and Title Insurance, Legal (Law), Management

Zoning regulations allowing land uses and activities not covered under other zoning classifications. Examples include detention centers and prisons, government buildings, sewer treatment facilities, cemetaries, churches, and landfills. Conditional zoning is often allowed through special-use permits, also known as conditional-use permits.

1. Permission from zoning authorities to deviate from existing zoning regulations. 2. Government authorization allowing land use that is currently not permitted within a specified zoning district, usually for the health and welfare of the community, such as a hospital in a residential zone.

An estate in real property consisting of an individual interest in an apartment or commercial unit, and an undivided common interest in the common areas such as the land, parking areas, elevators, stairways, and the like.

A condominium property regime (CPR) is a form of ownership of real property where the owner has title to a specific dwelling unit as well as an undivided interest in a proportion of the common areas as a tenant in common.

See also Title, Strata title, Company title, and Common areas.

1. An easement designed to preserve and protect open space or important natural areas.
2. A legal agreement between a landowner and either a land trust or government entity that restricts land use and development on a parcel of real property so as to preserve and protect its conservation and natural resource values.

The right to utilize real or personal property except as constrained by law; one of the bundle of rights.

A life estate that is intentionally and voluntarily created by an owner of real estate, either by deed if the owner is alive or through a will if he or she is deceased. The estate is conveyed to a life tenant, who holds the estate until his or her death. During the life of the life tenant, he or she enjoys all the rights and privileges of property ownership, except that he or she is prohibited from laying or committing waste to or upon the property (damaging the property or causing its value to diminish). A conventional life estate ends upon the death of the life tenant. Ownership of the property passes to another or reverts to the original owner or his heirs, depending on the provisions of the life estate.

If the conventional life estate is also an estate pur autre vie, the estate is held for the duration of the life of some other specified person rather than the life tenant.

1. Real or personal property that is visible and has physical form, as opposed to intangible property such as rights or patents.
Same as tangible property.
2. Real property consisting of land, improvements to the land (tenements), and physical appurtenances such as sidewalks.

Curtesy is the legal right or interest (estate) a husband acquires in property owned by his wife at any time during the marriage.

Dower and curtesy are legal life estates that are created upon the death of a spouse who owned real estate. Dower is the life estate that a wife acquires in the real property of her deceased husband, while curtesy is the estate a husband holds in real property owned by his wife following her death. Dower and curtesy entitle the surviving spouse to a portion (usually one-third to one-half) of the interest in the real property owned by the deceased spouse, even if that property was willed to someone else. Dower and curtesy are forms of tenancy by the entirety, and are only used in states that practice that system of common law. Tenancy by the entirety is contrasted with another common law system used by other states, known as community property.

Note that in some states, curtesy refers to either a husband's or wife's interest in the property of the other.

Definition: A structure acting as a barrier to hold back water, usually erected as a bank or wall across a free-flowing watercourse such as a stream or river. Dams may be constructed of earth, rocks, logs, or anything else that will create a reservoir; large modern dams are usually constructed almost wholly of concrete reinforced with steel. The purposes of dams include flood control, irrigation, navigation, recreation, and the generation of hydroelectric power. Nearly every major river in the world has at least one dam. Some of the drawbacks of dams include degraded habitat for fish, birds and other wildlife; reductions in water quality; reduced streamflows; and interruption of the natural sediment deposition cycle.

Terms, Definitions, and Concepts: Agriculture, Biology, Conservation and Sustainability, Construction and Building, Ecology, Forestry and Silviculture, Geography, Hydrology, Management, Science, Water

Definition:
1. One form of a shell lease, a dark shell is a commercial or residential building with an unfinished interior and lacking heating, ventilating, and air conditioning (HVAC), and usually without lighting, plumbing, ceilings, elevators, or interior walls. A dark shell is ready for warm shell or vanilla shell improvements (VSI) as well as tenant improvements (TI's), which are to be completed by the tenant once the lease agreement has been negotiated and executed. In many cases, the landlord will offer financial incentives in the form of a tenant improvement allowance (TIA), which pays for or at least partially defrays the cost of any improvements necessary for the tenant to occupy the building itself. Tenant improvement allowances do not usually include furniture, fixtures, and equipment (FFE) or trade fixtures necessary for the tenant to conduct business. Usually vanilla shell improvements (VSI), or those improvements necessary to upgrade the building from a cold shell or dark shell state, are not completed until the lease agreement between the tenant and landlord has been negotiated and executed. This ensures that the landlord does not pay for improvements that are unnecessary or that the tenant does not want.

2. The lease agreement or contract for a dark shell building. A proper dark shell lease should describe in detail the vanilla shell improvements (VSI) and tenant improvements (TI's) that are to be completed, and any other information necessary for construction of the building to be completed (commonly known as build-out) prior to tenant occupancy.

Same as Dark box. More or less the same as Arctic shell, Bare shell, Base shell, Cold dark shell, Cold dark box, Cold shell, Grey shell, or Grey box.


Discussion: Like many real estate terms and phrases, practical use and meanings of those terms associated with shell leases (e.g., vanilla shell, base shell, cold shell, warm shell, etc.) differ by location and situation, sometimes even within the same region or municipal area. As they say, the devil is in the details. The lease or sales contract should clearly and exactly specify the degree to which construction of any sort of "shell" or "box" building has been or will be completed prior to tenant occupancy. As either a tenant or landlord, you should not assume that the other party's definitions of shell lease terminology are the same as yours. Get it in writing, and make sure you understand and agree with all the terms and conditions of the shell lease agreement before you sign. If necessary, have a real estate attorney review the contract prior to its execution.

Shell leasing and its various forms (warm, cold, base, etc.) are used primarily in commercial real estate, but are gaining popularity in upscale condominiums and townhouses and other high-end residential real estate transactions. The idea is to attract either tenants or buyers, or both, by offering customizable living units. Financial incentives in the form of tenant (or buyer) improvement allowances afford new residents the opportunity to select nearly all aspects of interior decor, including relatively large projects such as plumbing and fixtures, wiring, and interior walls.


Terms, Definitions, and Concepts: Real Estate, Construction and Building, Appraisal, Auction, Finance and Investment, Management

Legal (Law): 1. Of minimal importance or significance. Minor issues that are too trivial to be considered by a court of law. An example of a de minimis issue is an act that is technically a violation of a contract, but causes no harm or damage and does not alter the fundamental nature of the agreement.
Real Estate 2. A property that derives little or no value from on-site facilities or amenities.

Terms, Definitions, and Concepts: Appraisal, Auction, Finance and Investment, Legal (Law), Management, Real Estate, Taxes and Taxation

Equal to the total liabilities of a company or business divided by the total amount of equity owned by its shareholders; a measure of the financial leverage of a business, usually determined from the previous fiscal year's financial statements. The debt-equity ratio identifies the portion of a company's assets that are financed through debt rather than shareholders' equity; a debt to equity ratio greater than 1 means that a larger proportion of assets are financed through debt, which may indicate a riskier investment.