Browse Commercial Real Estate Basics Terms
New to commercial real estate? Start here. These foundational terms cover how commercial and industrial properties are classified, measured, leased, and developed — everything you need before your first property search.
Commercial Real Estate
Property used for business purposes — including industrial, office, retail, and multifamily assets — held for income generation and distinct from owner-occupied residential property.
View definition →Industrial Real Estate
A subset of commercial real estate comprising warehouses, distribution centres, manufacturing facilities, cold storage, and related operational properties.
View definition →Commercial Property
A building or parcel of land held for business use and income, governed by commercial lease agreements rather than residential tenancy law.
View definition →Commercial Lease
A legally binding agreement governing the use, term, rent, and obligations of a tenant occupying a commercial or industrial property — distinct from residential tenancy agreements.
View definition →Landlord
The property owner who grants a tenant the right to occupy and use a property under an agreed lease, in exchange for rent and compliance with lease conditions.
View definition →Tenant
The party who occupies and operates from a commercial or industrial space under the terms of a lease agreement with the property owner.
View definition →Property Owner
The individual, company, or entity holding legal title to a commercial property and responsible for its maintenance, compliance, and financial performance.
View definition →Property Manager
A company or individual engaged by the owner to manage day-to-day operations — including tenant relations, maintenance coordination, vendor management, and expense reporting.
View definition →Asset Manager
A professional responsible for maximising the financial performance and long-term value of a property portfolio on behalf of an institutional investor or ownership group.
View definition →Commercial Real Estate Broker
A licensed professional specialising in the leasing, sale, or management of commercial and industrial properties, typically representing either the landlord or the tenant in a transaction.
View definition →Listing
A property currently being marketed for lease or sale, including published asking rent or price, specifications, photos, and contact information for the listing broker.
View definition →Off-Market Property
A commercial property available for lease or sale that is not publicly listed, accessible only through direct broker relationships or owner outreach.
View definition →On-Market Property
A property being actively marketed to the public through listing platforms, broker networks, signage, or direct outreach.
View definition →Square Footage
A measure of floor area, typically expressed as gross, rentable, or usable square feet depending on the measurement standard and context.
View definition →Rentable Square Footage
The area a tenant pays rent on, including their exclusive occupied space plus a proportionate allocation of shared common areas in multi-tenant buildings.
View definition →Usable Square Footage
The actual floor area exclusively controlled and used by the tenant — not including any common area allocation added under the building measurement standard.
View definition →Building Class (A/B/C)
A three-tier classification system rating industrial buildings by quality, age, location, and specifications — Class A being the highest, Class C the lowest.
View definition →Speculative Development (Spec)
Construction of a commercial or industrial building without a committed tenant, built in anticipation of market demand — if demand is strong, spec buildings are often pre-leased before completion.
View definition →Build-to-Suit (BTS)
A development arrangement where an industrial building is designed and constructed to meet a specific tenant's requirements, with a lease executed before or during construction.
View definition →Preleasing
Securing a lease commitment for a commercial or industrial space before construction is complete, reducing lease-up risk for the developer and guaranteeing occupancy for the tenant.
View definition →LoopNet / CoStar
The leading commercial real estate listing and data platforms used by tenants, investors, and brokers to search available industrial properties and analyse market data.
View definition →Net Leasable Area
The total area within a building that can be leased to tenants, excluding non-leasable space such as mechanical rooms, elevator shafts, and structural elements.
View definition →Triple Net Lease (NNN)
The most common industrial lease structure where the tenant pays base rent plus property taxes, insurance, and maintenance — making operating costs transparent and predictable.
View definition →Gross Lease
A lease where the tenant pays a single all-inclusive rent amount, with the landlord managing and covering operating expenses from that payment.
View definition →Ready to find your next warehouse space?
Search thousands of industrial and commercial listings across the United States.
Search Available Properties