|
TERMS
|
DEFINITIONS
|
|
ADA Requirements
(Americans with Disability
Act)
|
Businesses are required to ensure their
location is accessible to disabled persons.
Expenses incurred to comply with the ADA are frequently borne by the
Tenant unless negotiated.
|
|
Alterations
|
Changes made within your leased premises.
|
|
As-Is
|
Describes how the Tenant’s space will be turned over
after the lease is executed.
|
|
Assignment
|
Circumstances that would allow you to lease or not to
lease your space to another Tenant.
|
|
Attorney Fees
|
Agreement as to who pays the Attorney's fees if a
disagreement ends in court.
|
|
Attornment
|
To agree to be tenant to a new owner or Landlord of the
same property.
|
|
Breakpoint
|
Dollar figure used to reflect when additional rent will
be paid to Landlord.
|
|
CAM (Common Area
Maintenance) |
Expenses incurred by the Landlord to maintain the buildings common areas,
including but not limited to, lobbies, hallways, parking lots, lighting
expenses and requirements, security, advertising, etc
|
|
Condemnation
|
Government entity of a building to stop any type of
business or occupancy to be allowed to take place.
|
|
CPI (Consumer Price Index)
|
An index used to escalate rent or prorata charges to keep up with
inflation. A negotiated clause
with CPI is sometimes used and sometimes negotiated out of the lease form.
|
|
Cotenancy
|
Tenants rights
when a specified anchor or tenant vacates the shopping center property.
|
|
Defaults
|
Circumstances when Tenant or Landlord does not fulfill
the respective responsibility per lease.
|
|
Demised Premises
|
Area being leased. Typically measured as follows:
Outside of front wall to outside of back wall equals the depth of space
number. Middle of the left wall to
middle of the right wall equals width number. Multiply these two numbers together for total square
footage. Interior measurements do not
reflect the demised premises. If
free-standing or “end cap” (end tenant in a row of tenants) width of space
will include the entire width of outside wall thickness.
|
|
Deposit
|
Up-front money required by Landlord.
|
|
End Cap
|
End tenant in a row of tenants.
|
|
End of Term
|
The date you will no
longer be entitled to lease the space (unless an option is exercised).
|
|
Estoppels
|
Explains a tenants duty to provide a signed document that
compiles with the lease terms.
|
|
Exclusive
|
Tenants rights to be the only tenant within a shopping
center to sell a certain type of item
or items. Sometimes defined as
“price points”.
|
|
Grandfather Clause
|
Landlord or tenant allowed to keep or maintain something
that does not conform to current codes or standards. (Example: oversized
sign)
|
|
Gross Lease
|
Tenant pays a fixed amount per square footage and Landlord operating expenses (CAM, taxes, insurance) combined.
|
|
Holdover
|
Remain in space after the end of term expires without
negotiating or signing a lease extension.
|
|
Hours of Operations
|
Required hours to be opened based on day of week.
|
|
HVAC
|
Heating, ventilating and air conditioning.
|
|
Insurance
|
An insurance bill for the building the Landlord
owns. Will pass on the prorata share
of this expense to Tenant according to the size of the leased space.
|
|
Lease Gross
|
Tenant pays a fixed amount per square footage.
|
|
Lease Net
|
Tenant pays a fixed amount per square footage and Landlord operating expenses (CAM, taxes, insurance) not included.
|
|
Lease Plan
|
Lease exhibit which shows the entire shopping center
with all tenants and their respective
labeled spaces.
|
|
Lease Triple Net
|
CAM, Taxes, Insurance expenses explained separately.
|
|
Length of Term
|
Number of months or years in primary term of lease.
|
|
Lessee
|
Tenant.
|
Lessor
|
Landlord.
|
|
Letter of Intent
|
List of basic components (economic and legal) of a deal
which Landlord and tenant execute to confirm their understand and agreement
of initial terms. Basis for the lease
draft.
|
|
Non-disturbance
|
Landlord’s lender forecloses on a loan which is secured
by the building housing your leased premise.
|
|
OND (Option Notification Date)
|
A deadline in the lease to notify the Landlord that the Tenant intends to stay in
your space for the next negotiated period of time.
|
|
Options
|
A provision that covers your rights to extend the lease
past the current end of term. A
specific date is noted as a deadline to exercise this option. The deadline is commonly referred to a an
option notification deadline.
|
|
Percentage Rent
|
An agreed upon sales number when reached by tenant
within a specific period of time will be paid to the Landlord.
An additional amount of rent based on percentage.
|
|
Premises
|
Leased space.
May include square footage.
|
|
Prorata Charges
|
Combination of taxes, insurance and CAM (Common Area
Maintenance)
|
|
Pylon Sign
|
A sign that lists tenants of particular shopping center. Usually
located at entrance to shopping center.
|
|
Relocation Clauses
|
Negotiated clause based on the Landlord’s request for
relocation of your business.
|
|
Remedies
|
Circumstances when tenant or Landlord does not fulfill
the respective responsibility per lease.
|
|
Rent
|
Amount paying for rented space.
|
Rent Commencement Date
|
Date rent payments start for leased space.
|
|
Repairs
|
Changes made within your leased premises.
|
|
Security Deposit
|
Up-front money required by Landlord paid by Tenant.
|
|
Signage
|
Allowance of installation of business signs. (Size,
Location, etc) May include additional fees to be paid to the Landlord.
|
|
Subletting
|
Circumstances that would allow you to lease or not to
lease your space to another tenant
|
|
Subordination
|
Landlord’s lender forecloses on a loan, which is secured
by the building, housing your leased premise.
|
Taxes
|
Tax bill from Landlord based on the size of space being
leased.
|
|
Term
|
Length of time for leased space.
|
|
Triple Net Charges
|
Combination of taxes, insurance and CAM (Common Area
Maintenance)
|
|
Turnover |
Lease fully executed and the Landlord has
completed his required improvements to leased space. Then "Turnover"
takes place. |
|
Use |
What is permitted to be sold or activity within
leased premises. |
