Glossary
Common leasing terms and definitions
Term
Asking Rental Rate
Definition
As stated by the broker or property owner, the rate per square foot for a particular space being marketed for lease
Available space
The total amount of space that is currently being marketed as available for lease in a given time period. It includes space that is available, regardless of whether the space is vacant, occupied, available for sublease, or available at a future date
Capital expenses
Cost incurred by acquiring or upgrading an asset, expected to produce a return in the form of increased profit. Example: major building improvement such as a new roof. Often referred to as "CapEx"
ENERGY STAR Certification
A building certification based on an ENERGY STAR score of 75 or higher on a 1-100 energy performance scale, indicating that the facility performs better than at least 75% of similar buildings nationwide
Green Globes
A building environmental design and management tool which delivers an online assessment protocol, rating system and guidance for green building design, operation and management. It provides market recognition of a building’s environmental attributes through third-party verification
Gross lease
Tenant pays only base rent and not operating expenses (although, in some markets, tenant may be responsible for future increases in operating expenses above base year). Also referred to as "full service" lease
Leased space
Leased space includes all space under contract, regardless of whether the space is currently occupied by a tenant
LEED
LEED, or Leadership in Energy and Environmental Design, is a building certication developed by the U.S. Green Building Council to provide building owners and operators with a framework for identifying and implementing practical and measurable green building design, construction, operations and maintenance solutions through a suite of rating systems
Net lease
The most common net lease is a "triple net (NNN)" lease, whereby in addition to base rent, the tenant pays for taxes, insurance, and sometimes even minor repairs and maintenance
Occupied space
Space that is occupied by a tenant, sub-tenant, or owner
Operating expenses
Ongoing costs for operating a property such as payroll, repairs and maintenance, and utilities; often referred to as "OpEx"
Owner occupied office building
A building that is at least 90 percent occupied by its owner
Percentage rent
The amount of space in a building that has been leased prior to its construction completion date, or certificate of occupancy date
Pre-leased space
The total amount of space that is currently being marketed as available for lease in a given time period. It includes space that is available, regardless of whether the space is vacant, occupied, available for sublease, or available at a future date
Single-tenant office building
A building for which there is a single lease obligation or is 100 percent owner occupied
Shadow space
The portion of leased space which is vacant but not available space
Tenant improvement (TI)
Construction or alteration of space to meet a tenant's needs, according to the terms of the lease. Also called tenant build-out
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