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Commercial Lease Administration
Additional Rent
Additional Rent is a lease-defined category for amounts due beyond base rent, which may include CAM, taxes, insurance, utilities, administrative fees,...
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Commercial Lease Administration
Commercial lease value is protected through disciplined administration of the executed agreement. These definitions connect lease language, expense recovery, critical dates, notices, reconciliations, options, and supporting records to stronger cash flow and fewer preventable disputes.
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Commercial Lease Administration
Administrative Fee
An Administrative Fee is a lease-authorized charge applied to certain operating or recovery expenses to compensate for administration, accounting, or...
Commercial Lease Administration
Anchor Tenant
An Anchor Tenant is a large or important tenant whose presence materially supports traffic, visibility, leasing demand, or the identity of a shopping center.
Commercial Lease Administration
Artificial Breakpoint
An artificial breakpoint is a negotiated sales threshold that is not derived from base rent and the percentage rate.
Commercial Lease Administration
Assignment
An Assignment transfers a tenant’s lease interest and obligations to another party, subject to the lease’s consent, conditions, continuing liability,...
Commercial Lease Administration
Audit Rights
Audit rights define a tenant's ability to review records supporting CAM or operating-expense charges.
Commercial Lease Administration
Base Rent
Base Rent is the core rent charged for the tenant’s right to occupy the premises before additional rent, reimbursements, percentage rent, utilities, or...
Commercial Lease Administration
Base Year
A Base Year is the reference year of operating expenses included in rent under certain gross or modified gross leases.
Commercial Lease Administration
BOMA Measurement Standard
A BOMA Measurement Standard is a published method from the Building Owners and Managers Association for measuring and allocating commercial building areas.
Commercial Lease Administration
Breakpoint
A Breakpoint is the sales level at which percentage rent begins.
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Commercial Lease Administration
CAM Reconciliation
CAM Reconciliation is the periodic true-up of estimated tenant CAM payments against actual recoverable expenses and the lease’s allocation rules.
Commercial Lease Administration
Co-Tenancy Clause
A co-tenancy clause gives a retail tenant remedies when specified anchor tenants, occupancy levels, or operating conditions are not maintained.
Commercial Lease Administration
Cold Shell
Cold Shell describes largely unfinished commercial space, often without completed interior systems, finishes, ceilings, distribution, or tenant-specific...
Commercial Lease Administration
Common Area Maintenance
Common Area Maintenance refers to the costs of operating, maintaining, repairing, and servicing areas or systems used by multiple tenants, as defined by...
Commercial Lease Administration
CPI Escalation
A CPI escalation is a lease provision that increases rent using a defined Consumer Price Index formula.
Commercial Lease Administration
Critical Date
A Critical Date is a lease deadline or event that requires action, such as commencement, rent escalation, renewal notice, option exercise, insurance...
Commercial Lease Administration
Delivery Condition
Delivery Condition is the physical and legal state in which the landlord must provide the premises to the tenant.
Commercial Lease Administration
Double-Net Lease
A Double-Net Lease generally requires the tenant to pay base rent plus two major expense categories, commonly property taxes and insurance, while the...
Commercial Lease Administration
Estoppel Certificate
An Estoppel Certificate is a tenant-signed statement confirming specified lease facts, such as rent, term, amendments, deposits, defaults, and claims.
Commercial Lease Administration
Exclusive-Use Clause
An exclusive-use clause limits the landlord's ability to lease other space in the property to competing businesses.
Commercial Lease Administration
Expense Cap
An expense cap limits the amount or annual growth of specified operating expenses passed through to a tenant.
Commercial Lease Administration
Expense Pass-Through
An Expense Pass-Through is a property cost that the lease permits the landlord to allocate and bill to the tenant in addition to base rent.
Commercial Lease Administration
Expense Stop
An Expense Stop is the amount of operating expense included in the tenant’s rent before the tenant begins paying increases or excess costs.
Commercial Lease Administration
Full-Service Gross Lease
A Full-Service Gross Lease generally includes base rent and a broad package of operating expenses, such as taxes, insurance, utilities, janitorial, and...
Commercial Lease Administration
Gross Lease
A Gross Lease is a lease structure in which the landlord pays most or all property operating expenses from the rent received.
Commercial Lease Administration
Gross Sales
Gross sales are the sales receipts included in a retail lease's percentage-rent calculation, subject to negotiated inclusions and exclusions.
Commercial Lease Administration
Gross-Up
Gross-Up is the adjustment of certain variable operating expenses to the amount they would have reached at a stated occupancy level.
Commercial Lease Administration
Holdover
Holdover occurs when a tenant remains in possession after the lease expires.
Commercial Lease Administration
Lease Abstract
A Lease Abstract is a structured summary of the key business and operating terms in an executed lease.
Commercial Lease Administration
Lease Administration
Lease Administration is the disciplined execution of lease data, billing, critical dates, options, recoveries, insurance, notices, amendments,...
Commercial Lease Administration
Lease Agreement
A Lease Agreement is the binding contract that defines the parties, premises, term, rent, operating responsibilities, remedies, options, insurance,...
Commercial Lease Administration
Lease Commencement Date
The lease commencement date is the date the lease term legally begins.
Commercial Lease Administration
Lease Rollover
Lease Rollover is the scheduled expiration or reset of leases across a property or portfolio.
Commercial Lease Administration
Letter of Credit
A letter of credit is a bank-backed form of lease security that the landlord may draw under specified conditions.
Commercial Lease Administration
Letter of Intent
A Letter of Intent summarizes the proposed business terms of a commercial lease before the full lease is drafted.
Commercial Lease Administration
Load Factor
Load Factor is the ratio used to convert usable area into rentable area by allocating a share of common space.
Commercial Lease Administration
Modified Gross Lease
A Modified Gross Lease divides operating expenses between landlord and tenant according to negotiated terms.
Commercial Lease Administration
Natural Breakpoint
A natural breakpoint is calculated by dividing annual base rent by the percentage-rent rate.
Commercial Lease Administration
Non-Recoverable Expense
A Non-Recoverable Expense is a property cost that cannot be charged to a tenant under the lease or applicable law.
Commercial Lease Administration
Operating Expense Reconciliation
An operating expense reconciliation compares estimated expense payments collected from tenants with the actual recoverable expenses for the period.
Commercial Lease Administration
Option to Renew
An Option to Renew is a tenant right to extend the lease if stated conditions, timing, notice, and performance requirements are satisfied.
Commercial Lease Administration
Percentage Rent
Percentage Rent is additional rent based on a tenant’s sales, usually after sales exceed a defined breakpoint.
Commercial Lease Administration
Percentage-Rent Audit
A Percentage-Rent Audit is the review of a retail tenant’s reported sales and supporting records to verify percentage-rent calculations under the lease.
Commercial Lease Administration
Permitted Use
Permitted use is the lease-defined activity the tenant may conduct in the premises.
Commercial Lease Administration
Possession Date
The possession date is when the tenant receives access to the premises for occupancy, fixturing, or construction.
Commercial Lease Administration
Pro Rata Share
Pro Rata Share is the tenant’s contractual percentage of specified property expenses, often calculated using the tenant’s rentable area divided by the...
Commercial Lease Administration
Recoverable Expense
A Recoverable Expense is a property cost the lease allows the landlord to allocate to one or more tenants.
Commercial Lease Administration
Rent Abatement
Rent abatement is a temporary reduction or suspension of rent under a lease.
Commercial Lease Administration
Rent Commencement Date
The rent commencement date is the date a tenant's obligation to pay base rent begins.
Commercial Lease Administration
Rentable Square Feet
Rentable Square Feet is the area used to calculate rent after adding the tenant’s allocated share of common areas to its usable area, according to the...
Commercial Lease Administration
Right of First Offer
A right of first offer requires the landlord to offer specified space or property to the tenant before marketing it to others.
Commercial Lease Administration
Right of First Refusal
A right of first refusal gives a tenant the opportunity to match a bona fide offer for specified space or property before the landlord accepts it.
Commercial Lease Administration
Single-Net Lease
A Single-Net Lease generally requires the tenant to pay base rent plus one major property expense, commonly property taxes, while the landlord retains...
Commercial Lease Administration
SNDA
SNDA stands for Subordination, Non-Disturbance, and Attornment Agreement.
Commercial Lease Administration
Sublease
A Sublease allows the tenant to grant another occupant rights to use all or part of the premises while the original tenant remains under the primary lease.
Commercial Lease Administration
Submetering
Submetering measures a tenant's actual utility consumption through a dedicated meter.
Commercial Lease Administration
Surrender Condition
Surrender condition describes the required state of the premises when the tenant returns it at lease expiration.
Commercial Lease Administration
Tenant Improvement
A Tenant Improvement is a construction or alteration made to prepare commercial premises for a tenant’s use.
Commercial Lease Administration
Tenant Improvement Allowance
A Tenant Improvement Allowance is the landlord’s agreed contribution toward tenant build-out costs.
Commercial Lease Administration
Tenant Mix
Tenant Mix is the combination of tenant uses, brands, sizes, traffic patterns, customer bases, operating hours, and lease economics within a property.
Commercial Lease Administration
Tenant Sales Report
A tenant sales report provides the gross sales information required under a retail lease.
Commercial Lease Administration
Triple-Net Lease
A Triple-Net Lease generally requires the tenant to pay base rent plus its share of property taxes, insurance, and maintenance or operating expenses.
Commercial Lease Administration
Usable Square Feet
Usable Square Feet is the area within the tenant’s premises that it can exclusively occupy, measured under the applicable standard.
Commercial Lease Administration
Utility Reimbursement
Utility reimbursement is the amount a tenant or resident repays for utilities paid initially by the property.
Commercial Lease Administration
Vanilla Shell
Vanilla Shell generally refers to a basic finished commercial space with standard walls, ceiling, lighting, HVAC distribution, and utilities ready for...
Commercial Lease Administration
Warm Shell
Warm Shell describes commercial space with some base-building systems and improvements in place, such as HVAC capacity, electrical service, walls,...
Commercial Lease Administration
Weighted Average Lease Term
Weighted Average Lease Term is the average remaining lease term weighted by rent, area, or another stated measure.
Commercial Lease Administration
Work Letter
A Work Letter is the lease exhibit or agreement that defines how tenant improvements will be designed, approved, funded, constructed, delivered, and...