CRE (or commercial real estate) is an industry with a LOT of lingo. In 2017, NAIOP Research Foundation has released a very comprehensive 52 page document with CRE terms. CoreNet Global has an incredible CRE Glossary with hundreds of essential words to know. 

• Available Space – This is the total amount of space currently being marketed for lease. Available Space includes vacant space and also space that is currently occupied but will be vacant in the future.  
• Absorption – This is the rate at which rentable square footage is leased in a given market over a period of time. The term ‘net absorption’ is used to calculate the change in inventory over time… this is positive when inventory increases and negative when it decreases. Total Net Absorption includes subleased space and Direct Net Absorption excludes it.  
• Common Areas – These are spaces that are owned by the landlord but not rented. They are often used by all tenants and their guests. These can include shared entrances, hallways, bathrooms, parking, rec centers, elevators, vending, janitorial, mechanical and others. It’s worth nothing that from a furniture perspective, there is an opportunity to furnish many of these common areas. 
• CAM Expenses – Common Area Maintenance Expenses. These are the operating experiences incurred by the landlord to maintain and service the common areas I just described. Examples include parking lot lighting, landscaping, snow removal, security and utilities.  
• Floor Area Ratio (or FAR) – This is also sometimes called the land-to-building or plot ratio. This compares the built (or man made building) space to the actual land dimensions that it sits on. It considers building codes, zones and permits and is usually expressed in a decimal form (like 0.4). 
• Furniture, Fixtures and Equipment (FF&E) – This is property that is movable with regards to a building or space. These are things that typically need to be replaced sooner, or more often then other components of a space. They are often accounted for differently on financial statements as it relates to how they depreciate and how they can be expensed.  
• Lease – A lease provides exclusive possession of a property for a specified term… most often for a rent. The landlord or lessor provides the lease to a tenant or lessee.  
• Occupied Space (or Total Occupied Space) – This is space that is occupied by a tenant, subtenant or owner. This is calculated by Total Space – Vacant Space.  
• Tenant Improvements (also called TI) – These are new, fixed, remolded and associated improvements defined in a lease. They can be funded by the landlord, tenant or both. Often, these are negotiated when the lease is agreed upon and sometimes this is called Fit Out.   
• Usable Area – This is the area available in a space that is provide exclusively for the tenant to use. This can be measured from inside finish of outer walls to office side of corridors. Common areas are not included in usable square footage.  

As stated, this only scratches the surface of the vast number of terms that CRE professional’s use. But since these influencers are so important to the contract furniture industry, having a basic, or even better advanced understanding of how they communicate will make you a better partner on your next project.