Glossary - Gordon Commercial Real Estate Brokerage
Base Rent The minimum month-to-month lease due under the lease - typically computed on a per- square-foot-per-year basis.
Base Year First year of the lease.
Build-Out Describes the interior construction of a tenant's space whether brand-new building and construction or the reconfiguration of existing space.
Commission The charge paid to a realty broker for his/her services rendered in a real estate transaction.
Common Area Maintenance (CAM) An additional, yearly charge often evaluated to tenants for upkeep of the residential or commercial property's "typical location". Includes interior products; entranceways, corridors or restrooms, and outside products; parking locations, premises and exterior painting.
Cost of Living Increases Increase to base rent tied to boosts in US Department of Labor Consumer Price Index (CPI).
Consumer Price Index (CPI) A measure of inflation as figured out by the US Federal Government by utilizing a "basket of products". Used in leases as an objective criteria for the estimation of escalations.
Effective Rent Equals agreement rent less free rent and any cash allowances such as a lease buyout or moving allowance. Escalations composed into the lease are included in the calculation of reliable lease. Tenant enhancement allowances and brokerage commissions are not deducted from the contract rate in computing reliable lease.
Escalation Leases typically include escalations or stepped increases in rent to be paid by the occupant to the landlord at a specific future date. This can be yearly, for instance, year 5 of a 10-year lease, or set to an index such as CPI.
Full Service Lease Lease key in which property owner pays all expenses consisting of taxes, energies, janitorial, etc in the base lease. Tenant pays increases in operating expenses over the base year.
Base Rent The minimum month-to-month lease due under the lease - typically computed on a per- square-foot-per-year basis.
Base Year First year of the lease.
Build-Out Describes the interior construction of a tenant's space whether brand-new building and construction or the reconfiguration of existing space.
Commission The charge paid to a realty broker for his/her services rendered in a real estate transaction.
Common Area Maintenance (CAM) An additional, yearly charge often evaluated to tenants for upkeep of the residential or commercial property's "typical location". Includes interior products; entranceways, corridors or restrooms, and outside products; parking locations, premises and exterior painting.
Cost of Living Increases Increase to base rent tied to boosts in US Department of Labor Consumer Price Index (CPI).
Consumer Price Index (CPI) A measure of inflation as figured out by the US Federal Government by utilizing a "basket of products". Used in leases as an objective criteria for the estimation of escalations.
Effective Rent Equals agreement rent less free rent and any cash allowances such as a lease buyout or moving allowance. Escalations composed into the lease are included in the calculation of reliable lease. Tenant enhancement allowances and brokerage commissions are not deducted from the contract rate in computing reliable lease.
Escalation Leases typically include escalations or stepped increases in rent to be paid by the occupant to the landlord at a specific future date. This can be yearly, for instance, year 5 of a 10-year lease, or set to an index such as CPI.
Full Service Lease Lease key in which property owner pays all expenses consisting of taxes, energies, janitorial, etc in the base lease. Tenant pays increases in operating expenses over the base year.