Glossary
Key terms and definitions for small bay flex industrial real estate. From CAM to cap rates, learn the language of the industry.
CAM (Common Area Maintenance)
Shared operating expenses for a commercial property that are passed through to tenants based on their pro-rata share of the building.
Cap Rate (Capitalization Rate)
A measure of a property's expected rate of return, calculated by dividing Net Operating Income by the property's value or purchase price.
Flex Space
Commercial buildings designed for maximum adaptability, combining warehouse, light manufacturing, and office space in configurable layouts.
NNN Lease (Triple Net)
A lease structure where the tenant pays base rent plus all operating expenses including property taxes, insurance, and maintenance.
NOI (Net Operating Income)
A property's total income minus operating expenses, before debt service and capital expenditures.
Pro-Rata Share
A tenant's proportional share of building expenses, calculated as their leased square footage divided by total leasable area.