Colocation
A data-center service that provides space, power, cooling and supporting operations for customers’ IT equipment.
Juniper Ridge supplies the facility; tenants bring their servers.
See it in context ↗EBG Studios · Development Atlas · DRAFT — For review & feedback
The field glossary
A shared language for the built world.
Plain definitions, concrete examples and a path back to the decision. 80 terms, without the jargon barrier.
80 terms
Contracted capacity
Capacity reserved under a customer agreement, distinct from installed equipment or actual metered load.
9 MW contracted out of 12 MW is a 75% contracted share, not proof of 9 MW actual demand.
See it in context ↗Data hall
A controlled space housing server cabinets and their supporting distribution and environmental systems.
The tour shows two simplified data halls.
See it in context ↗IT load
Electrical demand of information technology equipment within a stated measurement boundary.
The energy explorer assumes an average actual IT load of 6 MW, separate from 9 MW contracted.
See it in context ↗Kilowatt (kW)
A unit of power equal to 1,000 watts. Power is a rate; energy accumulates over time.
1 MW equals 1,000 kW. A capacity rent may be quoted per kW per month.
See it in context ↗Megawatt-hour (MWh)
A unit of energy: one megawatt sustained for one hour.
6 MW averaged over 8,760 hours uses 52,560 MWh.
See it in context ↗Power usage effectiveness (PUE)
Total facility energy divided by IT equipment energy for the same boundary and period.
Annual PUE of 1.35 means facility energy is 1.35 times IT energy; it is not an occupancy or reliability measure.
See it in context ↗Integrated systems testing
Coordinated testing of equipment and controls working together against agreed acceptance criteria.
A commissioning team records how the facility responds to approved failure-and-recovery scenarios.
See it in context ↗Long-lead equipment
Equipment whose procurement and delivery duration materially constrains the project schedule.
The required delivery date of a transformer must align with energization and testing.
See it in context ↗Absorption
The amount of space leased or occupied over a specified interval; state whether it is gross or net of departures.
10,000 SF leased and 3,000 SF vacated gives 7,000 SF net absorption.
See it in context ↗Amortization
Repayment of loan principal over time through scheduled payments.
A 25-year amortizing loan reduces its balance each month.
See it in context ↗Basis
The stated cost basis used for a calculation; distinguish accounting, tax and investment conventions.
The lab uses total project cost as the yield-on-cost denominator.
See it in context ↗Bridge loan
Temporary financing intended to be repaid or replaced after a transition.
Renovation debt is replaced after the property stabilizes.
See it in context ↗Buildable area
The portion of a site where development can occur after relevant physical and regulatory constraints.
An easement removes part of a parcel from the proposed footprint.
See it in context ↗Capital expenditure
Spending to create, replace or improve a longer-lived asset rather than operate it day to day.
Replacing a roof is shown below NOI in a capital plan.
See it in context ↗Capital stack
The layers of debt and equity that fund a project, with their priorities and rights.
Senior debt supplies 65% of cost and equity supplies the balance.
See it in context ↗Capitalization rate
A ratio relating stabilized annual NOI to an assumed property value.
$900K NOI divided by 6% implies $15M value.
See it in context ↗Cash-on-cash return
Annual cash flow to equity divided by the stated equity investment; definitions should specify reserves and capital spending.
$300K cash on $5M equity is 6% for that year.
See it in context ↗Certificate of occupancy
A jurisdiction-specific document authorizing an identified use or occupancy when applicable requirements are met.
A finished shell still awaits its occupancy authorization.
See it in context ↗Change order
An authorized modification to contractual scope, price, time or other terms.
A loading revision adds $180K after its entitlement is verified.
See it in context ↗Commissioning
A documented process for verifying that systems meet defined requirements and support operation.
Controls are functionally tested and the operator is trained.
See it in context ↗Concession
A negotiated reduction or deferral in the economic rent burden.
Two months of free rent lowers first-year collections.
See it in context ↗Construction draw
An advance of loan funds against eligible project expenditures under the loan terms.
A lender funds its share of verified monthly work.
See it in context ↗Contingency
An allowance for identified uncertainty within a stated scope and estimate basis.
A budget includes an allowance for uncertain ground work.
See it in context ↗Cost to complete
Forecast spending still required to finish the defined scope.
Paid cost plus forecast cost to complete gives an updated final cost.
See it in context ↗Credit loss
Expected or realized noncollection of amounts billed to tenants.
A tenant occupies space but does not pay part of the rent.
See it in context ↗Critical path
The sequence of dependent activities that governs the earliest project finish under a schedule model.
Late electrical equipment delays energization and occupancy.
See it in context ↗Debt service
Scheduled interest and principal payments for a stated period.
Monthly payments sum to the year’s debt service.
See it in context ↗Debt yield
Annual NOI divided by the outstanding or proposed loan amount.
$900K NOI on $9M debt is a 10% debt yield.
See it in context ↗Development spread
Yield on cost minus the comparison capitalization rate, expressed in percentage points.
6.67% yield on cost less 6% cap is about 0.67 percentage points.
See it in context ↗Discount rate
The required return used to translate future cash to value at a common date.
A 10% annual rate discounts a year-two receipt by 1.1 squared.
See it in context ↗Distribution
Cash actually allocated and paid to a capital provider under the agreement.
An investor receives returned capital at sale.
See it in context ↗DSCR
Debt service coverage ratio: NOI divided by scheduled debt service under the stated lender or model convention.
$900K NOI / $750K debt service = 1.20×.
See it in context ↗Due diligence
Investigation of a property, transaction and development assumptions before an irreversible commitment.
Title, environmental and utility reviews inform the acquisition decision.
See it in context ↗Easement
A legally defined right affecting use of another parcel; terms and enforceability need qualified review.
Access depends on an easement across an adjacent parcel.
See it in context ↗Effective gross income
Potential property income after vacancy, credit loss and concessions, plus modeled other income or recoveries.
$950K occupied rent less $20K concessions gives $930K before other income.
See it in context ↗Entitlement
A land-use or development approval under the relevant jurisdiction’s process.
A proposed use requires discretionary planning approval.
See it in context ↗Equity
Capital with the residual economic claim after prior-ranking obligations.
The owner funds costs that debt does not cover.
See it in context ↗Equity multiple
Total positive equity cash flows divided by total absolute equity contributions under a stated convention.
$1.5M returned on $1M invested gives 1.50×.
See it in context ↗Exit cap rate
The assumed capitalization rate applied to the exit valuation income.
A 6.5% exit cap values forward NOI at sale.
See it in context ↗Feasibility
An assessment of whether a proposed project can meet physical, commercial, financial and approval requirements.
A concept fits the site but fails the downside financing test.
See it in context ↗Gross building area
Total building area under a stated measurement convention, which may exceed rentable area.
100,000 gross SF at 95% efficiency yields 95,000 rentable SF.
See it in context ↗Gross potential rent
Rent that would be earned at full occupancy at the stated rents before vacancy and concessions.
100,000 SF × $10/SF/year = $1M annual potential rent.
See it in context ↗Hard costs
Direct physical construction costs under the budget’s category definitions.
Site work and building construction are hard-cost components.
See it in context ↗Hurdle
A defined performance threshold that changes distribution priority or sharing.
A residual split changes after an investor reaches a specified multiple.
See it in context ↗IRR
The periodic discount rate at which a specified series of cash flows has zero NPV, when a meaningful root exists.
A $1M contribution and $1.21M return two years later yield 10% annually.
See it in context ↗Lease-up
The process and period of moving space toward a target occupied and income-producing condition.
Occupancy rises from 50% to 90% over a year.
See it in context ↗Loan commitment
A lender’s defined funding obligation subject to its agreement and conditions.
A construction commitment excludes interest in the lab’s detailed mode.
See it in context ↗LTC
Loan-to-cost ratio: loan principal divided by the stated eligible or total cost basis.
$6.5M debt divided by $10M cost is 65% LTC.
See it in context ↗LTV
Loan-to-value ratio: loan principal divided by the stated property valuation.
$9M debt divided by $15M value is 60% LTV.
See it in context ↗Net rent
A rent convention in which specified property costs may be separately allocated to tenants; exact terms vary.
Riverton models net base rent and separately states owner expenses.
See it in context ↗NOI
Net operating income: effective property income less operating expenses, before debt service and income tax.
$950K rental income less $50K owner expenses equals $900K NOI.
See it in context ↗NPV
Net present value: the sum of cash flows discounted to a common date at a specified rate.
Positive NPV means the modeled cash flows exceed that return requirement.
See it in context ↗Occupancy
The share of space occupied under a stated physical or economic measurement.
95,000 occupied SF / 100,000 rentable SF = 95%.
See it in context ↗Operating expense
A cost associated with running and maintaining the property rather than its financing or major capital improvement.
Routine owner-paid maintenance reduces NOI.
See it in context ↗Option agreement
A contract granting a defined right to transact under specified terms within a period.
A buyer pays for time to investigate a site before purchase.
See it in context ↗Payoff
The amount required to settle an existing loan, including applicable principal and other charges.
Sale proceeds first satisfy the outstanding debt payoff.
See it in context ↗Permanent financing
Longer-term financing for an operating or stabilized asset under stated lender terms.
An amortizing loan replaces construction debt at completion.
See it in context ↗Preferred return
A priority return claim calculated under an investment agreement, subject to available cash and terms.
An 8% simple preference on $1M for a year accrues $80K.
See it in context ↗Pro forma
A forward-looking financial projection based on explicit assumptions.
Riverton’s budget and cash-flow forecast form its pro forma.
See it in context ↗Promote
A sponsor’s enhanced share of qualifying distributions after agreed priorities or hurdles.
A sponsor receives 20% of residual cash after capital and preference.
See it in context ↗Punch list
A recorded list of incomplete or deficient work to be corrected under the project’s closeout process.
Minor paint defects remain after other acceptance steps.
See it in context ↗Recoveries
Amounts tenants reimburse under applicable lease provisions for specified costs.
Expense reimbursements are shown separately from net base rent.
See it in context ↗Refinancing
Replacing existing debt with a new facility, potentially changing rate, term or proceeds.
A new loan repays a bridge loan after stabilization.
See it in context ↗Rent roll
A schedule of tenants, areas, rent terms and related lease information.
The acquisition team reconciles a rent roll to executed leases.
See it in context ↗Rentable area
The area used for rent calculation under an identified measurement convention.
The model applies annual rent to 100,000 rentable SF.
See it in context ↗Residual land value
Completed value less nonland costs and any stated required margin.
$15M value less $11.5M costs and $1.5M margin leaves $2M land support.
See it in context ↗Sensitivity analysis
A test of how changing selected assumptions changes an output, holding other inputs constant.
A table varies rent and cap rate to show value above cost.
See it in context ↗Soft costs
Nonconstruction development costs such as professional services and approvals under the budget convention.
Architectural design fees are included in soft costs.
See it in context ↗Sources and uses
A reconciliation of where funds come from and how they are spent.
Debt plus equity equals land, development costs and carry.
See it in context ↗Stabilization
A sustained operating condition near the defined occupancy and income targets.
The asset has durable leases and recurring income at the modeled level.
See it in context ↗Substantial completion
A contract-defined milestone concerning usability of the work; it is not automatically occupancy permission.
Contractual completion still requires separate applicable authority approvals.
See it in context ↗Tenant improvement
Work adapting space to an identified tenant’s requirements and lease terms.
A loading or office fit-out changes the tenant’s usable space.
See it in context ↗Title
The legal ownership and associated recorded rights or burdens affecting property.
A title review identifies restrictions requiring further investigation.
See it in context ↗Value above cost
Implied property value minus total development cost, before additional realization effects.
$15M value less $13.5M cost gives $1.5M, not realized investor profit.
See it in context ↗Waterfall
An ordered set of rules allocating available cash among investment claims and partners.
Return capital, pay preference, then split residual 80/20.
See it in context ↗XIRR
An annualized internal rate of return using actual dates and a stated day-count convention.
The lab discounts dated receipts using actual days / 365.
See it in context ↗XNPV
Net present value computed from dated cash flows rather than equal periods.
A receipt delayed by six months is discounted for the extra elapsed days.
See it in context ↗Yield on cost
Stabilized annual NOI divided by total development cost.
$900K / $13.5M is about 6.67%.
See it in context ↗Zoning
A jurisdiction’s framework for regulating land uses and development characteristics.
A site’s intended use may require an approval or a change in designation.
See it in context ↗