The existing shell condition of a building prior to the installation of tenant improvements. This condition varies from building to building, landlord to landlord, and generally involves the level of finish above the ceiling grid.
A specific amount used either as a minimum rent in a lease which uses a percentage of sales or overage for additional rent or sets a base onto which is added expenses and taxes in a net lease or increases in those items in a fully serviced lease.
The 12 month period upon which a direct expense escalation of rent is based. Typically the calendar year the lease commences.
The annualized amount per rentable square foot that a landlord pays toward the operating expenses of a building. Amounts exceeding the expense stop are billed to the tenant. Expense stops are often set following the first year ("Base Year") of the lease.
An industry acronym for Common Area Maintenance. CAM charges usually represent fees and expenses incurred during the maintainence of the common areas of a building.
A statement issued by a local government verifying that a newly constructed building is in compliance with all codes and may be occupied.
The date usually constitutes the commencement of the term of the lease, whether or not the tenant has actually taken possession, so long as beneficial occupancy is possible.
The area used in common by the tenants of an office or retail building. In an office building, the Common Area includes building and elevator lobbies, restrooms and the corridor leading from an elevator lobby to a tenant space. In a retail building Common Area usually encompasses the parking lot, public corridors and restrooms, as well as any other area which benefits more than any one tenant.
Rent charged to the tenant in addition to the base rent to maintain the common areas. Examples include snow removal, outdoor lighting, parking lot sweeping, elevator maintenance, etc.
Cash or cash equivalents expended by the landlord in the form of rental abatement, additional tenant finish allowance, moving expenses, cabling expenses or other monies expended to influence or persuade the tenant to sign a lease.
The actual construction process is overseen by a qualified construction manager who ensures that the various stages of the construction process are completed in a timely and seamless fashion, from getting the construction permit to completion of the construction to the final walk-through of the completed leased premises with the tenant.
Measures inflation in relation to the change in the price of goods and services purchased by a specified population during a base period of time. The CPI is commonly used to increase a rental rate periodically as a means of protecting the landlord's rental stream against inflation or to provide a cushion for operating expense increases for a landlord.
Represents the percentage of Net Rentable Square Feet devoted to the building's common areas (lobbies, restrooms, public corridors, etc). This factor can be computed for an entire building or a single floor of a building. Also known as a Common Area Factor or Rentable/Useable Factor, it is calculated by dividing the rentable square footage by the useable square footage.