Glossary - A-B, C-E, F-K, L-O, P-R, S-U, V-Z

Vacancy Factor
The amount of gross revenue that pro forma income statements anticipate will be lost because of vacancies, often expressed as a percentage of the total rentable square footage available in a building or project.

Vacancy Rate
The total amount of available space compared to the total inventory of space and expressed as a percentage. This is calculated by multiplying the vacant space times 100 and then dividing it by the total inventory.

Vacant Space
Refers to existing tenant space currently being marketed for lease. This excludes space available for sublease.

Valid
A binding situation that is authorized and enforceable by law.

Valuation
Estimated price, value, or worth. Also, the act of identifying a property's worth via an appraisal.

Variance
Refers to permission that allows a property owner to depart from the literal requirements of a zoning ordinance that, because of special circumstances, cause a unique hardship. Included would be such things as the particular physical surroundings, shape or topographical condition of the property and when compliance would result in a practical difficulty and would deprive the owner of the reasonable use of the property.

Violation
Act, condition, or deed that violates the permissible use of property.

Void
Something that is unenforceable.

Voidable
A situation which is capable of being unenforceable but is not so unless direct action is taken.

Waiver
The intentional relinquishment or abandonment of a specific claim, privilege, or right.

Warranty of Possession
This is the old ""quiet enjoyment"" paragraph, which of course had nothing to do with noise in and around the leased premises. It provides a warranty by Landlord that it has the legal ability to convey the possession of the premises to Tenant; the Landlord does not warrant that he owns the land. This is the essence of the landlord’s agreement and the tenant’s obligation to pay rent. This means that if the landlord breaches this warranty, it constitutes an actual or constructive eviction.

Weighted Average Rental Rates
The mean proportion or medial sum made out of the unequal rental rates in two or more buildings within a market area.

Working Drawings
The set of plans for a building or project that comprise the contract documents that indicate the precise manner in which a project is to be built. This set of plans includes a set of specifications for the building or project.

Workletter
A list of the building standard items that the landlord will contribute as part of the tenant improvements. Examples of the building standard items typically identified include
style and type of doors, lineal feet of partitions, type and quantity of lights, quality of floor coverings, number of telephone and electrical outlets, etc. The Workletter often carries a dollar value but is contrasted with a fixed dollar tenant improvement allowance that can be used at the tenant’s discretion. See also Leasehold Improvements and ""Tenant Improvements.

Zone
An area, delineated by a governmental authority, which is authorized for and limited to specific uses.

Zoning Ordinance
Refers to the set of laws and regulations, generally, at the city or county level, controlling the use of land and construction of improvements in a given area or zone.

Zoning
The division of a city or town into zones and the application of regulations having to do with the structural, architectural design and intended use of buildings within such designated zone (i.e. a tenant needing manufacturing space would look for a building located within an area zoned for manufacturing).