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Sale proceeds after tax

The sale proceeds before tax less the tax liability on the sale.

Sale proceeds before tax

The sale price less the sale costs and the mortgage loan balance.

Sale-leaseback

A leasing and financing strategy in which a property owner sells its property to an investor, then leases it back. This strategy frees capital that otherwise would be frozen in equity.

Sandwich lease

Also known as sublease.

Second mortgage

Another loan placed upon a piece of property.

Secondary mortgage market

A market of packaged home loans that are resold as securities to investors. Major players are Fannie Mae and Freddie Mac.

Secured loan

A loan backed by collateral.

Security

A piece of property designated as collateral.

Seller carry-back

An agreement in which the seller provides financing for a home purchase.

Servicing

A firm that collects mortgage payments and manages borrowers' escrow accounts.

Setback

The minimum distance a house or buildings must be from the lot line.

Settlement statement

A document that details who has paid what to whom.

Shared-appreciation mortgage

A loan that allows a lender or other party to share in the borrower's profits when the home is sold.

Shared-equity transaction

A transaction in which two buyers purchase a property, one as a resident co-owner and the other as an investor co-owner.

Shopping center

A group of commercial establishments designed, built and managed as a unit to serve the immediate trade area. It provides on-site parking in proportion to the size, type and number of stores in the center.

Simple average method

A technique for calculating the vacancy rate for a market area by calculating the vacancy rate for each building, then averaging these rates to get an overall rate.

Sinking fund

A fund designed to accumulate a designated amount of money over a specified time period. The periodic amount of money deposited plus compound interest will accumulate to the designated amount.

Slab foundation

A foundation built directly on soil with no basement or crawl space.

Soffit

An external area under the overhang of a roof.

Space Pocket

Part(s) of a leased premises set aside to accommodate tenant's future growth.

Space market

The supply and demand for the use of physical space.

Special deposit account

Rehabilitation mortgages require a special deposit account from which restoration and remodeling funds included in the loan are disbursed to the appropriate contractors as work is completed.

Standard Metropolitan Statistical Area

Areas designated by the U.S. Office of Management and Budget that contain a city of 50,000 or more.

Standard payment calculation

A calculation that is used to determine the monthly payment necessary to repay the balance of a home loan in equal installments.

Step lease

A lease in which the rental amount paid by the lessee changes by a present rate or set dollar amount at predetermined intervals. A step lease is a means for the lessor to hedge against inflation and future maintenance or operational expenses.

Step-rate mortgage

A loan that allows a gradual increase in the interest rate during the first few years of the loan.

Subdivision

The process in which the owner of a large piece of property divides it into smaller parcels.

Sublease

A lease in which the original tenant (lessee) sublets all or part of the leasehold interest to another tenant (known as a subtenant) while still retaining a leasehold interest in the property. Also known as a sandwich lease due to the sandwiching of the original lessee between the lessor and the subtenant.

Submarket

A segment or portion of a larger geographic market defined and identified on the basis of one or more attributes that distinguish it from other submarkets or locations.

Subordinate loan

A second or third mortgage.

Super-regional center

A retail property type similar to regional centers, but because of its larger size, a super-regional center has more anchors, a deeper selection of merchandise and draws from a larger population base. As with regional centers, the typical configuration is as an enclosed mall, frequently with multiple levels.

Survey

A document that illustrates the property boundaries and measurements, specifies the location of buildings on the property, and indicates any easements or encroachments.

Sweat equity

The non-cash value put into a piece of property by the owner, such as do-it-yourself improvements.

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