Before-tax investment value

Balloon payment

The final payment of the balance due on a partially amortized loan.

Base (in lease terminology)

A face, quoted, dollar amount representing the rate or rent in dollars per square foot per year and typically referred to as the base rate.

Base rent

The minimum rent due to the landlord. Typically, it is a fixed amount. This is a face, quoted, contract amount of periodic rent. The annual base rate is the amount upon which escalations are calculated.

Basic employment

Employment that is considered to be export-oriented or export-driven, associated with activities that generate income from the sales of products and services in markets outside the local economy.

Basis

The total amount paid for a property, including equity capital and the amount of debt incurred.

The sum of the present values of the mortgagor and mortgagee of property.

Break-even point

The stage at which an investment produces an income that is just sufficient to cover recurring expenditure. For an investment in real property, the point at which gross income is equal to normal operating expenses, including debt service (the stage at which the next cash flow becomes positive). Also known as the default point. (Encyclopedia of Real Estate Terms 2nd Edition, Damien Abbott)

Breakpoint

The sales threshold over which percentage rent is due. It is calculated by dividing the annual base rent by the negotiated percentage applied to the tenant’s gross sales.

Business risk

The uncertainty associated with the possible profit outcomes of a business venture.

Buy/rent threshold

The point at which there is a recognizable shift of expenditure allocations away from owner- occupied housing and to the rental housing market (or vice-versa) as a result of changing market conditions.