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A condition in which more space available for lease is being added to a market than is being leased during a given time period. For example, if in a downtown district tenant expansions equalled 100,000 square feet but renewing tenants gave back 205,000 square feet, then the negative absorption is 105,000 square feet. There is now 105,000 square feet more available for lease than last quarter and this is a negative absorption of 105,000 square feet for the quarter.
Total square footage leased, minus space given back to the market. For example, if a tenant demand absorbs 100,000 square feet of vacant space but 90,000 square feet comes back to the market, the net absorption is 10,000 square feet.
|Net Leasable Area||
Floor space in a rental property that is available for rent to tenants. Net leasable area normally excludes such areas as corridors, equipment rooms, and other common areas and should be clearly differentiated from gross leasable area that represents the total floor space. Also referred to as usable area.
A lease in which the tenant pays, in addition to rent, all operating expenses such as real estate taxes, insurance premiums, and maintenance costs.
|Net Net Net Lease||
Same as a triple net or NNN lease. This is a lease in which the Tenant is totally responsible for all operating expenses associated with its proportionate share of the building. This is particularly common in retail and industrial leases and for any type of single user building.
|Net Present Value||
The lump sum amount paid today that is equivalent to a cash flow over a period of time. For the purpose of leasing, the amount the landlord would be indifferent to receiving as a one time payment today instead of receiving rental payments over the term of the lease.
Same as a triple net or net net net lease. This is a lease in which the Tenant is totally responsible for all operating expenses associated with its proportionate share of the building. This is particularly common in retail and industrial leases and for any type of single user building.
A tenant's inability to publicly promote a rental rate on their sublease advertisements.
A right for a tenant's use to be exclusive to the building or property. For instance, a restaurant in a plaza with a non-compete in their lease would not allow the landlord to lease any space to other restaurants.
|Non-Standard Leasehold Improvements||
See also atypical leasehold improvements. Those of the tenant's improvements that are not deemed to be industry standard and will be required to be restored to original condition prior to vacating the premises.
|Normal Wear and Tear||
Referring to the tenant's ability to use a rented premises and return the space in a good condition to the landlord, subject to standard usage and damage by a reasonable tenant. The tenant is not responsible for loss in value that occurs, from such normal atrophy.