Gap analysis
An evaluation of the difference in the demand and supply of space (measured in terms of square footage) for a particular type of commercial property in a given market area where gaps are expressed as the amount of square footage demanded less the amount of square footage available in a given time period. Note that if demand exceeds supply, the gap will
be positive. A positive gap indicates that potential opportunities exist for successful commercial real estate transactions. However, transactions might be avoided when supply exceeds demand (or when a negative gap occurs), as there is an oversupply of available space in the market.
General market area gap analysis
A gap analysis that is carried out for a city or several cities (simultaneously) to identity one or more general market areas where a positive gap exists for a particular type of commercial real estate. Also see gap analysis.
General market factors
Factors influenced by the demographic, economic, and locational characteristics and the organizational aspects of a market.
Generic space
Commercial space that can be used for a variety of purposes, such as multiple-use office space.
Geographic Information System(s) (GIS)
System(s) (usually computer-based) used for capturing, handling, storing, retrieving, managing, manipulating, and displaying geographic information or geo-coded data.
Geographic submarket
The total number of households or housing units within a given area as defined by tenure, income, and other socio-economic attributes that are known to exist or estimated to be within specific geographic units or divisions (for example, in various census tracts).
Globalization
The condition of being or becoming globalized. A concept used to recognize crossjurisdictional interdependencies and the continuing integration of local, regional, and national economies which now form a larger economic and production system that is worldwide in scope and application; a trend that has greatly affected local economic change and real estate values.
Government incentives
Concession given or measures taken by local or regional government to attract firms or investment dollars to a given locality for the purposes of promoting economic growth and encouraging development.
Gravity model
A model that is used to account for a wide variety of flow patterns in human/economic systems, based on Newton’s gravity equation which defines gravity or the flow potential (between two sites or locations) as directly proportional to the product of their masses (or size) and inversely proportional to the square of the distance between them: gravity =
(mass × mass) ÷ distance2.
Gross area
The entire floor area of a building or the total square footage of a floor.
Gross leasable area (GLA) The total floor area designed for tenant occupancy and exclusive use, including basements, mezzanines, and upper floors, and it is measured from the center line of joint partitions and
from outside wall faces. GLA is that area on which tenants pay rent; it is the area that produces income.
Gross lease
A lease in which all expenses associated with owning and operating the property are paid by the landlord. Also see net lease.
Gross operating income
The total income generated by the operations of a property before payment of operating expenses. It is calculated from potential rental income, plus other income affected by vacancy, less vacancy and credit losses, plus other income not affected by vacancy. The Annual Property Operating Data form or the Cash Flow Analysis Worksheet can be used to calculate a property’s gross operating income.
Gross rent multiplier (GRM)
A method investors may use to determine market value. This method calculates the market value of a property by using the gross rents an investor anticipates the property will produce at end of year 1 multiplied by a given factor (known as the gross rent multiplier extracted from the marketplace).
Ground lease
A lease of the land only. Usually the land is leased for a relatively long period of time to a tenant that constructs a building on the property. A land lease separates ownership of the land from ownership of buildings and improvements constructed on the land.
Growth patterns
In reference to the patterns of urban or population growth in a geographic market, an important consideration in retail trade area analyses as growth patterns are known to affect sales/revenue potential within a market given the tendency of retail to follow population movement and income concentrations over time.