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Glossary Of Terms
Assign (the right to)
The right to assign allows you to transfer your entire lease and financial responsibilities to another tenant.
Business Incubator
Business incubators are environments that nurture the growth and success of entrepreneurial companies.
Common Areas
Areas of a property used by all owners or tenants. (i.e a hallway, lobby or an elevator)
Coworking
Coworking is the social gathering of a group of people, who are still working independently, but who share values and who are interested in the synergy that can happen from working with talented people in the same space.
Double Net Lease
In a double net lease the lessee or tenant is responsible for real estate taxes and building insurance.
Eco-friendly
An eco-friendly good or service is one that poses little or no harm to the environment.
Energy Efficient
A term applied to products that contain special features and equipment designed to reduce the cost of energy for heating, cooling and hot water.
Executive Suite
A serviced office also known as ‘executive suite’ is an office or office building that is fully equipped and managed by a facility management company, which then rents individual offices or floors to other companies.
Friendly Sublease
A friendly sublease is one that does require any destruction of existing walls.
Full Service Lease
An all inclusive payment covering rent, operating expenses, taxes and lessor’s insurance, subject to escalations when these expenses increase after the first year of the lease.
Gross Lease
A gross lease, as distinguished from a “Net Lease,” includes real estate taxes, heating and building services in the base rent. Office and loft leases are nearly always of this type.
HVAC System
HVAC is an acronym for the heating, ventilation and air-conditioning systems.
Landlord Incentives
Motivational offers intended to help sweeten deals.
Lease Term
The amount of time a lease is in effect.
Listing Agent
A commercial real estate broker representing the interests of the building owner.
Monthly Rent
The base monthly rent for a property.
Rent Increase
A lease of more than one year will typically include an annual rent increase as part of the lease. The amount of the annual increase is usually determined as a percentage of the original rent.
Rentable Square Footage
The rentable square footage is calculated by adding the usable square footage (the amount of square footage to be used exclusively by you, the tenant) to a portion of the common area (areas shared by all tenants such as the lobby, restrooms, shared hallways, etc.).
Security Deposit
A portion of the rent paid in advance to protect the building owner in case a space holder defaults on their rent payments, or there are damages to the property during the term of the lease.
Shared Office Space
When a company has unused space within their existing office, they will sometimes elect to re-rent this space to a smaller company looking for flexible workspace.
Single Net Lease
In a single net lease the lessee or tenant is responsible for paying property taxes as well as the base rent.
Standard Sublease
A standard sublease requires walls to separate spaces. Each space needs to provide access to a fire exit.
Sublease
A right to sublease your space allows you to re-rent all or a portion of your space to another tenant.
Tenant Improvement Allowance
The amount the building owner is willing to contribute towards the construction of a tenant’s space.
Tenant Mix
A commercial real estate broker representing the interests of the tenant.
Tenant Representative
A commercial real estate broker representing the interests of the tenant.
Traditional Lease
A traditional lease is one that involves leasing space directly from the landlord.
Triple Net Lease
A triple net lease is a lease agreement on a property where the tenant or lessee agrees to pay all real estate taxes, building insurance, and maintenance (the three ‘Nets’) on the property in addition to any normal fees that are expected under the agreement (rent, etc.).
Usable Square Footage
The usable square footage is the amount of square footage to be used exclusively by the tenant.
VOC’s
VOC’s are the toxic fumes emitted from most synthetic-based paints and can have negative effects to people and the environment.
