Glossary

Beginner-first definitions for real estate ops, procurement, finance, and carbon

FoundationsCoreReference

How to use this glossary (don't overthink it)

This glossary is not meant to be "studied." Use it like a tool.

  • When you hit jargon in a resource, search here first.
  • When a vendor uses vague language, check the definition here.
  • When two teams are arguing, use this to align on what a term actually means.

Beginner rule: If a term affects money, risk, or reporting credibility, it belongs here.

Quick start (2 minutes)

Bookmark this page
If you're running renewals: read Renewals and Contract Terms
If you're running utilities/carbon: read Carbon + Utility Data Terms
If you're in leasing/PM: read Real Estate + Leasing Terms
Add 3 new terms each week based on real conversations (template at the bottom)

Renewals and Contract Terms

Auto-renewal

A contract renews automatically unless you send notice by a deadline.

Why it matters: Miss the deadline, lose leverage.

Notice window vs notice deadline

Notice window: "60 days prior"
Notice deadline: the actual date you must send notice

Beginner trap: People track the end date and forget the notice deadline. The notice deadline is what matters.

Evergreen contract

A contract that renews continuously (often month-to-month or annually) unless terminated.

MSA (Master Services Agreement)

The legal umbrella agreement (terms, liability, indemnities, insurance, confidentiality).

SOW (Statement of Work)

The operational agreement (what gets done, where, how often, and pricing mechanics).

Beginner rule: SOW controls what you pay. MSA controls how you get hurt.

Exhibit / Schedule / Addendum

Attachments that often contain the real terms (pricing, SLA, insurance requirements, site list).

Beginner trap: The price is often in an exhibit, not the main contract body.

Amendment

A change to a signed agreement. It can override original terms.

Term

How long the contract lasts (e.g., 12 months).

Renewal term

How long the contract extends if renewed (e.g., 12 months, 24 months).

Termination for convenience

A clause allowing you to end a contract without cause (usually with notice).

Why it matters: It restores leverage if the vendor is underperforming.

Termination for cause

You can terminate if the vendor breaches terms (usually requires cure period).

Cure period

Time given to fix a breach before termination (e.g., 30 days).

SLA (Service Level Agreement)

Defined performance requirements (response time, uptime, completion time, etc.).

Beginner trap: "We'll do our best" isn't an SLA.

KPI (Key Performance Indicator)

A measurable performance metric (e.g., completion time, repeat work rate).

Escalator clause

A rule that increases price over time (fixed %, CPI-based, "market adjustment," fuel surcharge).

Beginner trap: "Market adjustment" with no cap is a blank check.

CPI (Consumer Price Index)

An inflation index sometimes used in escalators.

Pass-through

A cost the vendor can bill you for, usually requiring documentation (materials, disposal fees, fuel).

Beginner trap: Pass-throughs without documentation rules become profit centers.

Change order

A written approval for work not included in the base scope.

Beginner rule: If it's not in the base scope, it needs a change order ID before invoicing.

Scope creep

Work expands beyond original scope without explicit approval, causing cost creep.

Three-way match (3-way match)

Controls that verify:
1) approved work/scope
2) approved pricing
3) invoice matches both

Variance

Difference between expected and billed cost. Requires reason code and action.

Procurement and Vendor Management Terms

Vendor governance

How you manage vendors: cadence, scorecards, QBRs, issue logs, renewal strategy.

Vendor scorecard

A structured rating of vendor performance (quality, responsiveness, billing integrity, compliance).

QBR (Quarterly Business Review)

A structured quarterly meeting reviewing performance, issues, and improvements.

RFP (Request for Proposal)

Competitive process where vendors propose solutions and pricing.

Rebid

Re-opening competition for a service to validate price and performance.

Sole source

Only one vendor is used. Requires a higher standard of justification and controls.

Supplier engagement (carbon context)

Requesting activity data or emissions data from suppliers to improve Scope 3 quality.

Beginner rule: Start with activity data suppliers already track.

Real Estate + Leasing Terms

NNN (Triple Net) lease

Tenant pays property taxes, insurance, and operating expenses (often including utilities), in addition to rent.

Why it matters: Tenant may control utility accounts → landlord may not have energy data.

Gross lease

Landlord pays most operating expenses. Tenant pays rent (and possibly limited pass-throughs).

Modified gross

Hybrid of gross and NNN; responsibility varies.

CAM (Common Area Maintenance)

Costs to maintain common areas (lobbies, hallways, shared systems).

Operating expenses (OpEx)

Ongoing costs to operate a building (repairs, janitorial, utilities, security, etc.).

Base year

In some leases, operating expense increases are measured relative to a base year.

Submeter

A meter that measures usage for a specific tenant space or system, separate from the master meter.

Master meter

Whole-building meter. Without submeters, tenant allocation becomes necessary.

Allocation

Splitting a total (e.g., whole-building kWh) across tenants/areas when direct measurement isn't available.

Rentable area vs usable area vs gross floor area

Rentable: what is leased (often includes a share of common areas)
Usable: the space you can actually occupy
Gross: total building area

Beginner trap: Mixing area definitions breaks allocation math.

Green lease

A lease that includes clauses supporting energy efficiency, sustainability cooperation, and/or data sharing.

Split incentive

Owner pays for upgrades; tenant gets the utility savings (or vice versa). This blocks investment unless addressed.

Cost recovery clause (efficiency upgrades)

A lease mechanism to recover efficiency capex through operating expenses when it reduces total costs.

Carbon + Utility Data Terms (beginner-first)

GHG (Greenhouse gases)

Gases that trap heat in the atmosphere. Reporting typically focuses on CO₂e.

CO₂e (carbon dioxide equivalent)

A way to express different gases in a comparable unit.

Scope 1

Direct emissions from sources you control (on-site fuel combustion; refrigerants if you control equipment).

Scope 2

Indirect emissions from purchased energy you consume (electricity, steam, heating, cooling).

Scope 3

Other indirect emissions in your value chain (suppliers, purchased services, capital goods, waste, etc.).

Category (Scope 3 categories)

Scope 3 is split into categories (like Purchased Goods & Services, Capital Goods, Waste, Leased Assets).

Scope 2 location-based vs market-based

Location-based: average grid emissions where you consume energy
Market-based: based on contractual instruments (where defensible)

Beginner rule: Always compute location-based. Only publish market-based if you can defend the instruments.

kWh

Kilowatt-hour. Unit of electricity energy consumed.

kW

Kilowatt. Unit of power demand (how fast energy is being used). Not the same as kWh.

Beginner trap: People confuse kW with kWh and report the wrong thing.

Therm / CCF

Common units for natural gas consumption (region/provider dependent).

Billing period

The start/end dates of a utility statement. Do not assume "calendar month."

Evidence link

The source document that proves the number (bill PDF, portal export, meter report).

Beginner rule: No evidence link = not accepted (or clearly marked as estimated).

Data quality score

A simple rating of how trustworthy data is (measured vs allocated vs proxy).

Proxy

Estimated value using typical averages when you lack real measurements.

Beginner rule: Proxy is temporary; it should shrink over time.

Double counting

Counting the same emissions in more than one place (common when allocations and tenant data overlap).

Control System Terms (how you keep work from falling apart)

Single source of truth

One canonical place for contracts, renewals, or data (not spread across inboxes).

Cadence

A repeatable schedule (weekly renewal review, monthly utility closeout, quarterly vendor QBR).

Owner

The person accountable for completion (not "the team").

Definition of done

The exact deliverable required (e.g., "kWh with billing dates + evidence link + QA pass").

Escalation ladder

A predictable follow-up path (friendly reminder → firm reminder → leadership/leasing escalation).

Copy/Paste Templates

Template 1 — Add a new glossary term

Term:
Plain-English definition:
Example:
Common confusion:
Why it matters (money/risk/reporting):
Related resources:
Owner (who maintains this term):

Template 2 — 'What do you mean by X?' vendor clarification email

Subject: Clarification needed on [term] in our agreement/invoice

Hi [Name],
Can you clarify what you mean by "[term]" in [document]? Please include:
1) The exact definition (in writing)
2) How it is calculated (formula or method)
3) What documentation supports it
4) When it applies (and when it does not)

Thanks,
[Name]

Change log

  • v1.0 (2025-12-21): Initial release