Continued from…
Real Estate Glossary G [Part 2]
Gazumping
When a seller agrees to sell a property, but then sells it to someone else for a better price.
Gearing (Leverage)
A way to figure out how much debt someone or a company has. It shows how much money they owe compared to how much they own in an asset. Most often shown as a ratio. Positive gearing is the increase in profit that comes from borrowing money when the cost of capital (the money borrowed) is less than the return on capital. This increases returns to equity. Negative gearing is the same as positive gearing, but it means that the cost of capital is higher than the return on capital.
Green star
The Green Building Council of Australia’s (GBCA) Green Star suite of rating tools covers commercial offices at all stages of development, including design, construction, and operation.
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Gross current replacement cost (GCRC)
The starting point for figuring out value using the depreciated replacement cost approach. The GCRC is based on recent construction costs of similar assets. It should have parts that cover direct costs, like the costs that can be directly tied to a work unit, indirect costs, like design and engineering, support services, field operations, project management, and procurement costs, and overhead costs, like business services, finance, administration, support services, and indirect transport costs.
Gross lettable area (GLA)
Used to figure out tenancy areas in warehouses, factories, supermarkets that stand alone, and showrooms. 13 Property Council of Australia’s Method of Measurement is a good place to start.
Gross lettable area retail (GLAR)
Used to figure out retail tenancy areas in shopping centres, commercial buildings, and strip shops, free-standing shops, semi-detached shops, or terrace shops on suburban streets. 13 Property Council of Australia’s Method of Measurement is a good place to start. In some states or territories, lease laws may have rules that go against what the Property Council says.
Gross revenue
Total income from renters, which includes base rent, expenses recouped, percentage rent, and all other income.
Gross sales
The total amount of money the store makes in sales during a certain time period, usually a financial year. Usually used to figure out how much a percentage of rent is.
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Gross workspace ratio
Total square footage of the building, including any space that isn’t used for work, divided by the total number of employees.
Ground rent
The net rent paid for the right to use and live on a piece of unimproved land, or the part of the total rent that is thought to represent return on the land only.
Growth rates
The rate at which income and/or expenses are expected to change each year over a given period of time. The rate of income growth should be based on how rents are expected to change in the market. The growth rates for outgoings should be based on inflation or expected increases.
Geocodes
Geocodes are a set of coordinates that identify a particular address or place on the surface of the Earth.
Greater Capital City Statistical Areas (GCCSAs)
Greater Capital City Statistical Areas are areas of land created to represent each of Australia’s eight state and territory capitals.
Gross flipping profit
The difference between a property’s purchase price and its “flipped” or renovated price is known as the gross flipping profit.
Gross flipping ROI
By dividing the gross flipping profit by the cost of the property, one can calculate the gross flipping ROI.
G-20
The group of 20 finance ministers and central bank governors, founded in 1999, serves as a forum for discussion of global economic stability concerns between industrial and emerging market countries. The G-20 is made up of 19 countries as well as the European Union. Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom, and the United States are among the 19 countries.
G-7
The Group of Seven is an abbreviation for the Group of Seven, a forum for the world’s largest industrial nations to gather and debate global economic issues. The G-7 countries are Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.
G-8
The G-7 countries, plus Russia.
General/Multiline insurer
An insurer that does business in a variety of insurance classes. In contrast, consider Monoline Insurer.
Globally systematically important financial institutions (GSIFIs)
The Financial Stability Board’s list of financial institutions whose failure, in the Financial Stability Board’s opinion, might precipitate a global financial crisis.
GOEF
German Open-Ended Funds are important indirect real estate investment vehicles in Germany. Shares are directly backed by the fund’s properties and liquid assets; as an open-ended vehicle, the fund can create additional shares on demand, and investors purchase shares at net asset value.
Government national mortgage association (Ginnie Mae or GNMA)
This is a US government-affiliated entity that insures securities that employ mortgages originally provided by approved lenders as their underlying collateral.
Green property funds
Property funds that are socially responsible and/or invest in carbon-neutral property investments and developments.
Greenfield site
Formerly undeveloped land that is currently or potentially open for development, such as agricultural land.
Gross development value
The worth of a development based on the premise that it has been completed and the building has been fully leased.
Gross full service lease
A lease in which the landlord pays all building expenses. A full service lease is also known as a gross rent lease.
Guarantee
A third-party agreement to repay a debt if the original Borrower fails to do so. The Guarantee may extend beyond the duties to pay.
Guaranteed investment contract (GIC)
A financial institution’s bank account that guarantees a minimum rate of return, thereby mitigating interest rate risk.
Gross absorption
A measurement of the total square feet rented over a certain time period, without taking into account room that was vacated in the same area during the same time period.
Gross building area
The total square footage of the building’s floors, measured from the outside of the walls and windows and including all vertical openings like elevator shafts and basement room.
Gross up
A change made to running costs to account for the fact that a building isn’t as full as it would be if it were at 95% occupancy or more. When running expenses are “grossed up,” it means that the building’s variable costs have been adjusted (usually up) to the level they would be if the building was full or almost full (usually 95%).