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Backup offer

A secondary bid for a property that the seller will accept or negotiate if the first offer fails.

Balloon mortgage

A mortgage in which monthly installments are not large enough to repay the loan by the end of the term. As a result, the final payment due is the lump sum of the remaining principal.

Balloon payment

The final lump sum payment due at the end of a balloon mortgage.

Base Rent

The minimum rent due to the landlord. Typically, it is a fixed amount. This is a face, quoted, contract amount of periodic rent. Escalations are calculated from the annual base rate.

Basis Point

A basis point is one one-hundredth of one percentage point. For example, the difference between a loan at 7.25 percent and a mortgage at 7.35 percent is 10 basis points.

Bill of sale

A document that transfers ownership of personal property.

Biweekly mortgage

A mortgage that requires payments every two weeks and helps repay the loan over a shorter term.

Blanket insurance policy

A policy that covers more than one person or piece of property.

Bond

An agreement that insures one party against loss by acts or defaults of another party.

Break-even point

The point in which the owner's rental income matches expenses and debt.

Breakpoint

The sales threshold over which percentage rent is due. It is calculated by dividing the annual base rent by the negotiated percentage applied to the tenant’s gross sales.

Build-to-suit

A contract in which the owner agrees to develop or finish a property or space to the specifications of the tenant. The tenant may partly carry the cost in the form of increased rent.

Building code

A comprehensive set of laws that controls the construction or remodeling of a home or other structure.

Building inspector

A city or county employee who enforces the building code and ensures that work is correctly performed.

Building line or setback

Guidelines that limit how close an owner can build to the street or an adjacent property.

Building moratorium

A halt on construction to slow the rate of development.

Building restrictions

Regulations that limit the manner in which property can be used.

Bulk

Industrial space category that describes properties consisting of little more than four walls, a roof, and a floor.

Some definitions come from the Certified Commercial Investment Member Institute (CCIM).