The different types of uses of buildings or parts of builings in a development, eg in a shopping centre or on an industrial estate. Cf TENANT MIX.

A standard measure of value per unit, cacluated by an analysis of the actual (or assumed) rent or sale price of a property used as a comparable in the direct comparison method. For instance, the rental value of offices expressed as £x per sq ft, or the capital value of a hotel expressed as £y per room.

An open-ended investment vehicle which enables subscribers to participate by acquiring units. The total subscriptions, as varied up or down subsequently (less administrative costs), become a fund for investment by named professional managers on behalf of trustees, who own the investments for the unit holders. Unit trusts are owned and managed in accordance with rules and regulations issued by the Department of Trade and Industry and the appropriate self-regulatory organisation. The units are not quoted on the Stock Exchange but are traded at bid and offer prices fixed by the managers at a level justified by the market values of the assets held. Cf INVESTMENT TRUST COMPANY. See PROPERTY UNIT TRUST.

A company whose members have a liability for all the debts of the company regardless of the share structure or its total nominal value. Cf LIMITED COMPANY; COMPANY LIMITED BY GUARANTEE.

Damages the amount of which has not been pre-determined but is settled by the court. Cf LIQUIDATED DAMAGES.

A second-tier market in stocks and shares, established by the London Stock Exchange in 1980, to permit dealings by those companies (usually smaller and/or newer) not wishing to go for a full Stock Exchange listing, ie quotation. Cf OFFICIAL LIST; THIRD MARKET.

For rating purposes, a building on which rates may become payable after being unoccupied for a prescribed minimum period under the General Rate Act 1967, as amended. See UNOCCUPIED RATE.

The rate chargeable by a rating authority on empty commercial or residential property where that authority has adopted the provisions of section 17 of the General Rate Act 1967. For commercial properties, ie shops and offices, the amount is at present (1988) limited to a maximum of 50% of the occupied rate. However, empty residential property can be charged up to the full occupied rate. (The City of London has its own special provisions for rating of unoccupied property, which differ from the section 17 provisions. For over 100 years it has charged an empty rate and did not adopt the discretionary provisions of section 17.) Cf RATING SURCHARGE.

A rent for land upon which buildings have not yet been erected but where there is a lessee’s right or commitment to build. Cf SECURED GROUND RENT.

A commitment by a lender to provide long-term finance from the outset of a development. Cf FRONT MONEY. See FORWARD COMMITMENT: SPECULATIVE FUNDING.

The additional amount of rent payable under a lease which has terms giving the tenant benefits not prevailing in the market. For example, where a lease has a longer than usual rent review pattern, the uplift is the extra rent which initially, or on review, can be secured to reflect those benefits.

A rent which reflects lease terms which are more beneficial to the tenant than prevailing commercial terms, eg a higher rent to reflect, say, 14-yearly reviews, rather than the more common five-yearly reviews. See RENT; PREMIUM RENT.

The lowest acceptable or reserve price, eg at an auction. In Scotland, the term is usually applied in private treaty transactions to the price above which a vendor expects to receive bids.

The optimistic and pessimistic views of the outcome of a risk venture. For instance, in development feasibility studies, a calculation is made assuming minimum estimates of cost, shortest building programme and maximum estimates of rent, indicating a maximum value that could be placed on a site. This is the “upside” view. A different calculation may be made assuming maximum cost, longest likely building programme and minimum rents. This produces a lower value for the site and is the “downside” view. Commercial decisions may then be made according to the degree of credibility attached to each assumption.

A rent review calculated under a clause in a lease which requires that such rent becomes payable, regardless of whether this is equal to, greater than or less than the rent payable immediately before the review. Cf UPWARD-ONLY RENT REVIEW. See UPWARD/DOWNWARD RENT REVIEW SUBJECT TO A BASE.

A rent review which is the same as an upward/downward rent review, except that the rent payable cannot fall below a specified base rent. The base rent either remains constant throughout the term of the lease or may be adjusted at specified intervals. This type of arrangement usually arises in developments where the funding institution receives as a base rent an agreed minimum return on its funds committed to the property. Cf UPWARD-ONLY RENT REVIEW.

A rent review where the rent payable following a review date is the greater of the rent payable immediately before the review or the amount calculated upon review under the terms of the lease. Cf UPWARD/DOWNWARD RENT REVIEW; UPWARD / DOWNWARD RENT REVIEW SUBJECT TO A BASE.

An area of land designated for regeneration by order of the appropriate Secretary of State under section 134 of the Local Government, Planning and Land Act 1980. In England such an area must be within a metropolitan district or an inner London borough (including land partly in an adjoining outer London borough). See URBAN DEVELOPMENT CORPORATION.

A corporation, established by order of the Secretary of State under section 135 of the Local Government, Planning and Land Act 1980, for the purpose of regenerating an urban development area and with formal powers to acquire land to promote development, eg the Merseyside and the London Docklands Development Corporations. Various local government functions for an area, including control of development, may be transferred from the local authorities to an urban development corporation by the Secretary of State. See REGENERATION.

Under section 1 of the Local Government Specific Grants (Social Need) Act 1969, a central government cash subsidy for development on land in an urban area; it is intended to encourage the investment of private sector funds into projects which otherwise would be insufficiently attractive in commercial terms.