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Occupancy Rate

Definitions

The ratio of rented or used space to the total amount of available space.

Operating Expense Risk

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The risk of a negative impact associated with the continuous financial obligations incurred in the daily operation of the business.

Operating Expenses

Definitions

Cash outlays necessary to operate and maintain a property, such as real estate taxes, property insurance, property management and maintenance expenses, utilities, and legal or acco ...

Operating Partner

Definitions

The partner that is responsible for operating the property and making daily decisions.  Usually the partner with a minority investment in a joint-venture agreement.  

Operating Property

Definitions

Includes any asset which has been completed and/or placed into service for 12 months or is at least 60% leased, whichever occurs sooner  

Operational Risk

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The risk of loss resulting from inadequate or failed internal processes, people, and systems, or from external events.

Opportunity Cost

Definitions

The principle that the cost of a resource for one use is the value of the resource in its best alternative use.

Outliers

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Observations that have unusual values, that is, they differ markedly from a measure of central tendency.

Outsourced Chief Investment Officer (CIO)

Definitions

In its broadest application, a form of discretionary investment consulting which comprises elements of policy formation, manager structure and selection, and performance monitoring ...

Outsourcing

Definitions

A practice of a firm hiring third-party labor to replace services previously performed in-house.

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