From the glossary · 14 of 88 terms
Speak the language before you sit at the table
Nobody tells you the vocabulary is the gate. Learn these fourteen and you will follow ninety percent of a real deal conversation. The book defines all eighty-eight, in plain words, with the math attached where it matters.
Economic occupancy
The rent you actually collect as a share of what a full building at market rent would pay. Physical occupancy flatters you; this one tells the truth.
RevPAF
Revenue per available square foot. The single number that scores a storage facility, because it catches both price and fill at once.
ECRI
Existing customer rate increase. Raising rent on tenants already in place. Done with care, it is the most powerful lever in storage.
Forced appreciation
Value you create by raising income or cutting expense, rather than waiting on the market. The only appreciation you control.
BRRRR
Buy, rehab, rent, refinance, repeat. Force value, pull your capital back out at the higher appraisal, keep the asset, go again.
Cash-on-cash
Annual cash flow divided by the cash you actually put in. What your own money earned this year, leverage included.
Debt yield
NOI divided by the loan amount. The return a lender earns if it takes the keys tomorrow, and increasingly the test that sizes your loan.
Break-even occupancy
The fill rate where income just covers expenses and debt. Know it before you close; it is your margin of survival.
Waterfall
The written order in which money is distributed among partners. Most partner fights are a missing sentence here, not a missing dollar.
GP and LP
General partner runs the deal and carries the liability; limited partner supplies capital and stays passive. Pick your seat before you pick your deal.
Cost segregation
A study that splits a building into components with shorter depreciation lives, front-loading deductions. Educational only; bring a real CPA.
Assumable loan
Existing debt a buyer can take over. In a high-rate market, a below-market assumable loan is worth real money on its own.
Buy box
Your written filter: asset, geography, price band, minimum return, automatic disqualifiers. It turns every deal into a fast yes or a faster no.
Trade area
The real ring your customers come from, usually three to five miles, bent by highways and commutes. Draw it before you trust any market statistic.