Landlord's warrant - A distress warrant; a warrant from a landlord to levy upon a tenant's personal property (e.g., furniture, etc.) and to sell this property at a public sale to force rent payment or the fulfillment of some other lease obligation.

Lead manager - An investment banking firm which handles the principal duty of coordinating the new issuance of securities.

Lease - A written contract in which the owner, landlord or lessor of real property provides the use of a property to another party for a specified time period and for a specified value.

Lease agreement - The formal legal contract entered into by a landlord and a tenant that captures the negotiated terms of a rental situation.

Lease assignment - An agreement between a property owner and a lender that assigns lease payments directly to the lender.

Lease commencement date - The date usually constitutes the beginning of a lease's term, regardless of whether the tenant actually occupies the property on that date, as long as beneficial occupancy is possible.

Lease expiration exposure schedule - A list of the total square footage of all current leases set to expire in each of the next five years, regardless of any options for renewal options.

Leasehold interest - The lessee's right to use the leased property for a fixed period of time at a given price, without transfer of ownership. Usually used in condemnation award determinations, where the current lease amount is less than the market rate. The difference between the total remaining rent under the lease and the rent lessee would have to pay for similar space for the same time period.

Leasehold improvements - The cost of improvements for a leased property, often paid by the lessee, and used in condemnation proceedings to establish the portion of the award to which a lessee is entitled.

Legal description - A geographical description of real property by government survey, metes and bounds, or lot numbers of a recorded plat, including a description of any portion thereof subject to any reservations or easements, such that the described real property can be located and identified.

Legal owner - The legal owner, in contrast to an equitable owner (not in contrast to and illegal owner) has title to a property, but may actually have no other rights to the property than a lien.

Letter of credit - A document issued by a bank, legal entity, or other person stating that the issuer will honor drafts or other demands for payment subject to full compliance with provisions specified in the document. Letters of credit are often used in lieu of cash deposited with the landlord to satisfy a lease's security deposit provisions.

Letter of intent - A preliminary agreement, usually non-binding, that puts in writing the proposed or discussed terms of a final contract.

Leverage - The ability to control an investment by a small amount of capital outlay, such as a deposit or down payment. The borrowing of funds to finance part of the purchase or development costs of a real estate investment. Positive leverage occurs when the interest rate on the borrowed funds is lower than the capitalization rate or projected internal rate of return. Negative leverage occurs when the current return on equity is smaller than the cost of servicing the debt.

LIBOR (London InterBank Offered Rate) - The interest rate offered on deposits of US currency held in banks outside the US (Eurodollars) traded between banks. The average of the inter-bank interest rates on Eurodollars offered in the London money market. Commonly used as an adjustable-rate mortgage index.

Lien - A charge, security, claim or encumbrance against property. Used to secure a debt, obligation, or a charge on property for the payment of some debt or obligation.

Lien waiver - Waiver of a mechanic's lien rights, signed by subcontractors, that is often required before the owner or general contractor can receive a draw under the payment provisions of a construction contract or loan.

Lifecycle - A property's developmental stages: planning, development, leasing, operating and redevelopment, renovation or rehabilitation.

Like-kind property - A term used in an exchange of similar investment properties held for productive use in a trade or business or for investment, but not including inventory, stocks or bonds. Section 1031 of the Internal Revenue Code postpones the tax consequences of the exchange unless cash is received.

Limited partnership - A partnership made up of one or more general partners and one or more limited partners. General partners manage the partnership's business and assume personal liability for the partnership's debts. Limited partners contribute capital and share in profits but remain "silent partners" who take no active part in running the business and limit their liability to their investment contribution.

Liquidity - The ability of a business or person to convert their assets into cash, preferably without any loss in value.

Listing agreement - An written contract between a real estate broker and a property owner giving the broker the authority to offer for sale or lease the property at a specified price or price range and terms in return for a compensation, such as a commission or set fee.

Loan-to-value ratio (LTV) - The ratio of a loan principal's value divided by the appraised value of the property.

Lock-box structure - An arrangement where rent or debt-service payments are sent directly to the trustee from the tenant or mortgagor.

Lockout agreement A clause in a loan agreement, normally a prime commercial loan, prohibiting a borrower from paying off the loan within a set period of time or before it comes to term.

Long-term lease - Commonly a lease whose term is three or more years from the date of initial signing to the date of expiration or renewal.

Loss severity - The amount of principal that is lost upon foreclosure of a loan.

Lot - Generally a fractional part of a subdivision; one of several contiguous pieces of land making up a subdivided part of a block, the boundaries of which are on recorded plat or survey maps.

Low-rise - A building four or less stories above ground level.

Lump-sum contract - A construction contract that requires a general contractor to finish a building or project at a fixed cost. Normally the fixed cost is established by competitive bidding and the contractor absorbs any loss or retains any profit.