The offering memorandum glossary
Plain-language definitions of the terms that go into a commercial real estate OM. What each one means, why it matters to a buyer, and where it shows up in the document.
Deal documents
Offering Memorandum (OM)
An offering memorandum (OM) is the marketing document that presents a commercial real estate investment to prospective buyers or investors.
Private Placement Memorandum (PPM)
A private placement memorandum (PPM) is the legal disclosure document used to raise capital through a private securities offering.
Rent Roll
A rent roll is a schedule of every lease at a property: tenant, space, rent, term, and key lease details.
Financial metrics
Cap Rate (Capitalization Rate)
A cap rate is a property's net operating income divided by its price or value, expressed as a percentage: a quick measure of unlevered yield.
Net Operating Income (NOI)
Net operating income (NOI) is a property's income after operating expenses, but before debt service and capital expenditures.
Cash-on-Cash Return
Cash-on-cash return is annual pre-tax cash flow divided by the total cash invested, expressed as a percentage.
Debt Service Coverage Ratio (DSCR)
DSCR is net operating income divided by annual debt service: a measure of how comfortably a property's income covers its loan payments.
Pro Forma
A pro forma is a forward-looking projection of a property's income, expenses, and cash flow over a hold period.
From an address to a finished OM.
Drop in a property address and omgen drafts the OM, with sections, maps, and demographics ready for you to edit and verify before export.