A-Z Leasing Terms Defined
For Leasing Office Space
Have you found yourself looking for definitions and trying to understand the Commercial Real Estate lingo? Here are some commonly used Commercial Terms Defined by Commercial Broker, Angela Skurka.
▪️ A specific individual mandated by another person or entity to conduct their business transactions and represent them in any matters relating to that particular business.
▪️ The person or individual whose name a specific contract is assigned to
▪️ The person involved in transferring a specific contract to another party, entity or individual
▪️ Refers to the interior construction or remodeling of a particular building. Build out often includes electrical wiring, plumbing, painting and general finishing on the interior walls and floors.
Certificate of Occupancy
▪️ A certification issued by the local authorities or the government that confirms a specific building is ready and safe for occupation. The Certificate of Occupancy is often shortened to CO.
Common area maintenance
▪️ Refers to additional fees charged to tenants on top of the agreed rent to help in maintaining the common surroundings of the given property in which all tenants benefit. The fees are often used to cater for outdoor lighting, the removal of snow, parking fees, taxes and sometimes even insurance.
▪️ A binding agreement recognized by law that spells out the responsibilities that each party signed to it should adhere to.
▪️ An instrument in law that is often executed by the mortgagor. The certificate may be signed by a tenant as requested by the landlord.
▪️ The forceful removal of a tenants from a specific premise or property.
▪️ Individual that are attached to the real property
▪️ A type of lease where the owner or landlord takes care of all the auxiliary property charges such as taxes and insurance. Tenants only have to pay the base rent.
▪️ Name accorded to a tenant who remains in possession of a property or space after the expiration of the set lease time frame.
▪️ The person who is mandated to rent a given property to a tenant.
▪️ A legal agreement where a landlord gives a tenant the right to occupy a specific space in a property or the entire property for a specific price and a specified time frame.
▪️ The interest held by a specific tenant as outlined in the lease agreement with the landlord.
▪️ The person or entity in whose name the property or space is leased to
▪️ The person or entity that rents out a space or a property to another person through a lease
Letter of intent
▪️ A letter of good will often non binding designed to express desire by the different parties to move into serious negotiations about a specific deal.
▪️ An agreement between a real estate agent and a principle or property owner that accords the former the right to undertake different tasks on behalf of the latter.
▪️ The total amount paid by the lessee including the base rent plus maintenance costs.
▪️ A contract signed by a tenant to protect him or her from evictions should the property owner default on their mortgage payments relating to that property.
▪️ Real property which includes the land on which it stands. Real property can also refer to land without any capital developments.
▪️ A term used to describe active members of a real estate board and its affiliates.
▪️ The amount of money paid by tenants to landlord in order to use their properties.
▪️ The standard measure of defining rental space in commercial real estate. One square foot is an area 12 inches wide by 12 inches long.
▪️ The type of lease where a tenant rents a space to another tenant
▪️ The process of lease cancellation through mutual agreement
Tenancy at Will
▪️ Leasing or occupying a property through the landlord’s will
Tenancy by the Entirety
▪️ Real estate ownership between a husband and his wife in which both have equal interest in the said property
▪️ The renovation or original construction and finishing work that is done in the interior of a given space for lease.
Triple Net Lease (NNN)
▪️ A type of lease where tenants have to pay additional costs on top of the base rent to cater for maintenance, insurances and taxes.
▪️ Legal and Binding
▪️ The process of developing property by the government or local authorities contrary to local zoning laws
▪️ Cannot be enforced
▪️ An area that is designated for specific uses by the government or local authorities
▪️ Laws or statutes set by local authority to ensure compliance of zoning regulations.
For more information or questions:
Contact Angela Skurka, Commercial Broker
BEI Properties is a locally owned property management, development and commercial real estate firm dedicated to investing in the communities. For 60 years BEI Properties has been an active supporter and participant in local community events and is proud to have helped many local non-for-profit organizations. With properties in Batavia, Geneva, St. Charles, West Chicago, Elburn, Elgin, Sugar Grove and Rockford, the company can provide quality space to help growth and expansion for all types of businesses.
Learn more at www.beicre.com