Please Rotate Your Device
A specified period of time in which the tenant can occupy a premises prior to the commencement of their lease. Typically for the purpose of fixturing the space and to move in.
Right enjoyed by one tenement over another tenement. For example, an easement that comes with a property.
The net rent paid by a tenant, adjusted for incentives provided by a landlord (such as free rent, and tenant improvement allowances).
Tenant A leases space at $25 per square foot on an as-is basis. Tenant B leases space in the same building at $26 per square foot but achieves 6 months of gross free rent. The effective rent the landlord receives from Tenant A is $25, while the effective rent from Tenant B is much lower.
Also referred to as mark up factor or gross up factor. It is the ratio of usable area to rentable area. It is affected by the size of common areas of a building and the amount of usable area over which to amortize that common square footage.
Identical buildings will have an identical efficiency ratio. But if landlord A built another floor on top of his building, every tenant's square footage would decrease in his building. That is because the ground floor common area would now be divided equally amongst more tenants.
A series of elevators that serve only certain designated floors in an office building.
A governmental right to acquire private property for public use. Property is acquired through condemnation or expropriation in which the appropriate body determines the use is a public use and decides the price for compensation to be paid to the owner. Examples include highway and rail facilities.
|Errors and Omissions Insurance||
Insurance coverage relating to professional liability arising from the activities of professionals such as real estate practitioners. It is a standard requirement that comes with the real estate license.
Clauses in a lease contract that provide for increases (or decreases) in rent payment according to fluctuations of the operating costs and expenses as defined by the lease.
Used in commercial leasing to provide a new prospective purchaser of the building with accurate high-level details of each lease. Existing tenants are issued an estoppel certificate by the existing landlord and are asked to confirm the information contained within (rental rate, length of term, etc.).
|Exclusive Agency Agreement||
A written agreement between a real estate brokerage and a tenant in which the tenant will not further a trade in real estate with another real estate brokerage during the length of the exclusive contract.
Many tenants desire (and some require) an exclusivity clause. This provides the Tenant with an exclusive right to sell its product or service on the property (ex: pizza, eye glasses, insurance, etc.).
A business center type of space in which tenants lease a portion of a common space with shared access to a reception area, meeting rooms, kitchen and boardrooms.
The allocation of all building operating expenses in a triple net lease, or a proportionate share of the increases in building operating expenses to a Tenant on a gross lease.
A predetermined and identified dollar amount - either on a per square foot per year basis, or a pro rata share basis - of total building operating expenses that a Landlord is responsible to pay. Any increases in building operating expenses above the expense stop are the responsibility of the Tenant.
The act of a governing body legally claiming land for the purpose of serving the best interests of the general public. For the purposes of leasing, tenants would agree that the building and land may be expropriated beyond the control of the landlord, thereby terminating the lease agreement. Examples include the construction of a highway or hospital.