HIGHEST AND BEST USE: The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value over a given time. The four criteria the highest and best use must meet are:
- Legal permissibility
- Physical possibility
- Financial feasibility
- Maximum profitability
HOLD OVER TENANT: A tenant who retains possession after the expiration of a lease.
HVAC: The acronym for Heating, Ventilating, and Air-Conditioning. Refers to the equipment used to heat and cool a building.
IMPROVED VALUE: Is an appraisal term that encompasses the total value of land and improvements, rather than the separate values of each.
IMPROVEMENTS: Generally, the term refers to buildings, but may include any permanent structure or other development, such as a street, utilities, etc… with amelioration. It is an addition made to property in its condition, amounting to more than mere repairs or replacement, costing labor or capital, and intended to enhance value, beauty, or utility or to adapt it for new or further purposes.
INDIRECT COSTS: Development costs other than direct material or direct labor costs, including administrative and office expenses, title, legal, survey, financing costs, and property taxes.
INVERSE CONDEMNATION: Is the term used to describe a situation in which the government takes private property but fails to pay the compensation required, by the 5th Amendment of the Constitution. Some states also include damaging of property as well as taking it. (See also Taking.)
- In order to be compensated, the owner must sue the government.
- In such cases the owner is the plaintiff and that is why the action is called inverse – the order of parties is reversed, as compared to the usual procedure, direct condemnation.
- In direct condemnation, the government is the plaintiff who sues a defendant-owner to take his or her property.
INVENTORY: When referring to a market of office or industrial space, the total amount of rentable square feet of existing and delivered space in a given category; for example, prime office space. Inventory refers to all space within a certain proscribed market without regard to its availability or condition, and can include office, flex and warehouse space.
INVOLUNTARY CONVEYANCE: An involuntary transfer of real property without the consent of the owner, such as by a divorce decree, condemnation, etc.
JUDGMENT: The decision of a court of law. Money judgments, when recorded, become a lien on real property of the defendant.
JUDGMENT LIEN: A lien placed against the property of a judgment debtor, or an involuntary lien.
JUST COMPENSATION: In a condemnation proceeding, the term refers to the amount paid by the government agency to the property owner. The theory is that in order to be just, the property owner should be no richer or poorer than before the taking.