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Our glossary of industry terms is one of the most visited sections of our site. We work continually to keep it current and are always adding new terms. In addition, if you ever can't find an industry word you are looking for, let us know. We'll research it and add it for you.

  • Tag-Along Rights

    A contractual obligation used to protect a minority shareholder. If a majority shareholder sells his or her stake, then the minority shareholder has the right to join the transaction and sell his or her minority stake in the company. (See also Drag-Along Rights)

  • Taking

    A common synonym for condemnation, or any interference with private property rights, but it is not essential that there be physical seizure or appropriation.

  • Target date fund

    Target date funds are based on the premise that the younger the investor, the longer the time horizon he or she has to retirement (or some other goal) and the greater the risk he or she can take to potentially increase returns. A young investor's portfolio, for example, should contain mostly equities. In contrast, an older investor would hold a more conservative portfolio, with fewer equities and more fixed-income investments.

    Each family of target date funds will have a different glide path, which determines how the asset mix changes as the target date approaches (see “glide path”). Some have a very steep trajectory, becoming dramatically more conservative just a few years before the target date. Others will take a more gradual approach.

    The asset mix at the target date can be quite different as well. Some target date funds assume that the investor will want a high degree of safety and liquidity, because he or she might use the funds to purchase an annuity. Other target date funds assume that the investor will hold onto the funds, and will therefore include more equities in the asset mix, reflecting a longer time horizon. Still others will provide a provision for converting the nature of the vehicle from asset accumulation to income production and delivery.

    A number of consultants, like Casey & Quirk and Cliffwater have built a case to support the addition of alternatives like real assets to a target date fund’s asset mix, particularly at earlier stages in the fund’s glide path. Some asset managers, including Principal Global Investors and J.P. Morgan Asset Management actually already have started to use real assets in their target date fund strategies.

  • Tax base

    The assessed valuation of all real property that lies within a taxing authority's jurisdiction. When multiplied by the tax rate, it determines the amount of tax due.

  • Tax lien

    A statutory lien for nonpayment of property taxes that attaches only to the property upon which the taxes are unpaid.

  • Tax roll

    A list or record containing the descriptions of all land parcels located within the county, the names of the owners or those receiving the tax bill, assessed values and tax amounts.

  • Technical Risk Ratios

    There are five statistical measures or technical risk ratios used in applying modern portfolio theory (MPT): alpha, beta, standard deviation, R-squared, and the Sharpe ratio.   All of these indicators collectively are intended to help investors determine the risk-reward profile of a managed portfolio of equities or alternatives. 

  • Tenant (lessee)

    One who rents real estate from another and holds an estate by virtue of a lease.

  • Tenant at will

    One who holds possession of premises by permission of the owner or landlord. The characteristics of the lease are an uncertain duration and the right of either party to terminate on proper notice.

  • Tenant improvement (TI)

    Improvements made to the leased premises by or for a tenant.

  • Tenant improvement (TI) allowance

    Defines the fixed amount of money contributed by the landlord toward tenant improvements. The tenant pays any of the costs that exceed this amount.

  • Tenant mix

    A phrase used to describe the quality of a property's income stream. In multi-tenanted properties, institutional investors typically prefer a mixture of national credit tenants, regional credit tenants and local non-credit tenants.

  • Term

    The lifetime of a loan.

  • Time-weighted average annual rate of return

    The constant annual return over a series of years that would compound to the same return as compounding the actual annual returns for each year in the series.

  • Title

    The means whereby the owner has the just and full possession of real property.

  • Title insurance

    A policy issued by a title company that insures against loss resulting from defects of title to a specifically described parcel of real property, or from the enforcement of liens existing against it at the time the title policy is issued.

  • Title search

    A review of all recorded documents affecting a specific piece of property to determine the present condition of title.

  • Total acres

    All land area contained within a real estate investment.

  • Total assets

    The sum of all gross investments, cash and equivalents, receivables, and other assets presented on the balance sheet.

  • Total commitment

    The full mortgage loan amount that is obligated to be funded if all stated conditions are met.

  • Total inventory

    The total square footage of a type of property within a geographical area, whether vacant or occupied.

  • Total principal balance

    The total amount of debt, including the original mortgage amount adjusted for subsequent fundings, principal payments and other unpaid items (e.g., interest) that are allowed to be added to the principal balance by the mortgage note or by law.

  • Total retail area

    Total floor area of a retail center less common areas. It is the area from which sales are generated and includes any department stores or other areas (such as banks, restaurants or service stations) not owned by the center.

  • Total return

    The sum of quarterly income and appreciation returns.

  • Trade fixtures

    Personal property that is attached to a structure that is used in the business. Because this property is part of the business and not deemed to be part of the real estate, it is typically removable upon lease termination.

  • Tranche

    A class of securities. CMBS offerings are generally divided into rated and unrated classes, or tranches, according to seniority and risk. Higher-rated tranches allow for internal credit enhancements; lower-rated classes offer higher yields.

  • Triple net lease

    A lease that requires the tenant to pay all expenses of the property being leased in addition to rent. Typical expenses covered in such a lease include taxes, insurance, maintenance and utilities.

  • Trustee

    The trustee oversees the flow of funds through the CMBS structure on behalf of the bondholders. The trustee is responsible for collecting principal and interest from the servicer, distributing payments to bondholders and reporting to bondholders.

  • Turn key project

    The construction of a project in which a third party is responsible for the total completion of a building, or for the construction of tenant improvements to the customized requirements and specifications of a future owner or tenant.