Offering memorandum (OM)
A marketing document for a commercial property for sale, with photos, location details, financials, rent roll and tenant information. Brokers often release it only after buyers sign a confidentiality agreement.
Also called: OM, offering memo, marketing package, investment summary
Related terms
A list of every unit or tenant in a property with rent, lease dates, deposits and other terms. Buyers and lenders use it to verify income and spot lease rollover risk.
A property's income and expense statement for the most recent 12 months, month by month. Buyers and lenders use it with the rent roll to judge actual net operating income.
A property's yearly income minus operating expenses, before mortgage payments and income taxes. It is the base number for cap rate and many commercial valuations.
Net operating income divided by the property's price or value. It shows the yearly return before financing and is used to compare properties and estimate value.
A commercial broker's estimate of what a property would sell for, based on its income, comparable sales and market conditions. It is used to pitch listings and set pricing, and is not a formal appraisal.