HVAC:
Acronym for heating, ventilation and air conditioning.
Hold Over:
The condition that results when a tenancy exists beyond the end of the term of a lease.
Improvements:
See “leasehold improvements”.
Lease Commencement Date:
The date upon which the lease commences and the obligations of the parties begins (see also “rent commencement date”).
Leasehold Improvements:
Construction or improvements for the purpose of preparing the premises for the conduct of tenant’s business. Improvements permanently attach to the premises unless they are trade fixtures, and they remain with the premises after the end of term of the lease.
Letter of Attornment:
see “attorn”.
Lien Waiver:
A waiver of mechanic’s lien rights signed by a general contractor and his subcontractors.
Load Factor:
The amount of square footage is a lease, in addition to a tenant’s usable square footage, which represents tenant’s pro rata share of the building’s common area/s. May also be referred to as a percentage of building’s rentable square feet.
Mechanic’s Lien:
A claim provided for under state statutes securing the priority of payment for the value of work and materials furnished in the construction or repair of real property.
Month-to-Month:
A lease for a specific period of time, usually one month, which automatically renews itself for the same period of time, unless landlord or tenant provide notice to terminate.
NNN:
See triple-net below.
Net Lease:
Structured such that a base rent for a rental property is paid to landlord. In addition, other charges such as utilities and building property taxes, insurance and maintenance are also payable by tenant. Sometimes referred to as triple net or absolute net lease.
Notice of Commencement:
Legal notice to the county’s register of deeds that remodeling/improvements will be undertaken at an address.
Notice of Furnishing:
Legal notice by a subcontractor or supplier that it furnished labor or materials, subsequent to the notice of commencement, thereby establishing the legal right to be paid for the services rendered.
Operating Expenses:
The costs associated with operating income producing property usually before interest and income tax expense, but including property taxes, insurance, repairs and maintenance, replacement reserves.
Option:
A term in a lease for the rights either tenant or landlord may have with respect to one another, usually with stipulations regarding timing of those rights.
Partition Wall:
A wall constructed to create work areas such as offices or conference rooms. Depending on security needs, a partition wall may not be constructed to the roof or floor decking, but may terminate at lower point such as a suspended ceiling.
Party Wall:
Usually located in a fraternity house.
Pass-Through Expense:
An expense associated with tenancy in which landlord “passes through” to tenant certain increases in building operating expenses occurring after a base year in the lease.
Percentage Rent:
Provides for a rent to be paid as a percentage of retail sales, usually quarterly or annually. Often coupled with a base rent.
Planned Unit Development (PUD):
A zoning category in which each of the proposed buildings or uses are approved in advance as a part of a parcel’s overall use. Usually preserves large common or open areas on a site.
Premises:
In commercial real estate, the description of the leasehold and the specific square footage for which the parties enter into a lease.
Punch List:
A list of incomplete or unacceptable construction items which upon remedy and completion will usually complete the obligations of the contractor under a construction contract.
Real Estate Broker:
A person licensed to act as an agent for another person or business to negotiate a lease or purchase of a leasehold or property, respectively, for a fee.