Managing Director
Cushman & Wakefield | Oklahoma
100 N Broadway, Suite 3130
Oklahoma City, OK 73102
(405) 297-9913
@ bmurphy@commercialoklahoma.com
Parking Ratio
A ratio of allocated parking spaces per square foot leased. For example, 1:300, one parking space for every 300 square feet of leased space. Alternately, can be quoted as number of spaces per 1,000 square feet leased.
Pass Throughs
An increase in operating expenses over the base year amount that is billed to the tenant as additional rent.
Premises
Typically the entire rentable area leased by lessee. Sometimes used to designate solely the useable area leased by lessee, i.e. that for which the lessee has exclusive occupancy as opposed to the common areas.
Present Value
Present value usually is employed to evaluate the relative merits of two or more financial alternatives. As it relates to evaluating alternative lease scenarios, it is calculated as the sum of the total present value of incremental future cash flows, less any landlord credits and incentives over the lease term.
Reasonable Consent
A standard applied in a lease (most often in a sublease clause) which limits the landlord's ability to withhold consent in its sole discretion. If a reasonable person would give consent to an action given the circumstances, so must the landlord.
Renewal Option
A clause giving a tenant the right to extend the term of a lease
Rent
Consideration paid for the occupancy and use of real property. Also a general term covering any consideration, not just money.
Rent Abatement
Often referred to as free rent or early occupancy and may occur outside or in addition to the primary term of the lease
Rentable Area
The area or square footage for which rent can be charged. Generally it is the gross area of the full floor less the area of all vertical penetrations (elevator shafts, stairwells, mechanical shafts etc.) Rentable area can be measured in many ways, but the most common measurement for office buildings is according to BOMA standards.
Rental Rate
The amount of Rent paid for the occupancy and use of real property. Typically stated on a per square foot per month or per year basis.
Rent Commencement Date
The date on which a tenant begins paying rent.
Rent Concessions
What landlords offer tenants to secure their tenancy. While rental abatement is one form of a concession, there are many others such as increased tenant improvement allowance, signage, below-market rental rates and moving allowances.
Rent Escalation
A clause in a lease which provides for the rent to be increased.
Request For Proposal (RFP)
A document typically issued by a tenant's agent to an owner(s) of real property, inviting the owner(s) to submit a proposal to the tenant for the leasing of a vacant space. The RFP sets forth the specific areas of concern to the tenant, such as the space in question, the lease term, expansion and renewal options, rental rate, and tenant improvements and other allowances to be provided by the owner.
Right of First Offer (ROFO)
A right, usually given by an owner to a tenant, which gives the tenant a first chance to buy the property or lease a portion of the property if the owner decides to sell or lease. Unlike under a Right of First Refusal, the owner is not required to have a legitimate offer which the tenant can then match or refuse. If the tenant refuses to make an offer or if the parties cannot agree on terms, the property can then be sold or leased to a third party.
Right of First Refusal (ROFR)
A right, usually given by an owner to a tenant, which gives the tenant a first chance to buy the property or lease a portion of the property if the owner decides to sell or lease. The owner must have a legitimate offer which the tenant can match or refuse. If the tenant refuses, the property can then be sold or leased to the offeror.
Right of Offset
A specific clause in a lease where the tenant has the right to deduct from the rent certain costs which are due to the tenant from the landlord. Included may be the costs incurred by tenant to cure defaults of the landlord, after notice and failure by landlord to cure the defaults. These are called "self help"". "
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