Base Rent The minimum monthly rent due under the lease - normally computed on a per- square-foot-per-year basis.

Base Year First year of the lease.

Build-Out Refers to the interior building and construction of a tenant's space whether brand-new construction or the reconfiguration of existing area.

Commission The charge paid to a realty broker for his/her services rendered in a real estate transaction.

Common Area Maintenance (CAM) An extra, annual charge often examined to tenants for maintenance of the residential or commercial property's "common location". Includes interior items; entryways, hallways or restrooms, and exterior products; parking lot, premises and outside painting.

Cost of Living Increases Increase to base lease connected to boosts in US Department of Labor Consumer Price Index (CPI).

Consumer Price Index (CPI) A step of inflation as identified by the US Federal Government by utilizing a "basket of products". Used in leases as an impartial criteria for the estimation of escalations.

Effective Rent Equals agreement lease less complimentary lease and any money allowances such as a lease buyout or moving allowance. Escalations composed into the lease are consisted of in the calculation of reliable rent. Tenant improvement allowances and brokerage commissions are not deducted from the contract rate in calculating efficient rent.

Escalation Leases often include escalations or stepped boosts in lease to be paid by the occupant to the proprietor at a specified 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 type in which landlord pays all expenses consisting of taxes, energies, janitorial, etc in the base rent. Tenant pays boosts in business expenses over the base year.

Gross Square Feet Usually refers to gross location of a building by measuring from the beyond its outside walls and including all vertical penetrations, such as elevator shafts. Also includes basement space.

HVAC Acronym for heating, ventilation and air conditioning.

Industrial Gross (IG) Lease Lease key in which tenant pays most but not all operating costs in the base rate. In addition to base lease, occupant pays utilities, typical area upkeep, and often the increase in residential or commercial property taxes and insurance over base year.

Industrial Space Space in buildings zoned for industrial usages. Not available for office use unless a change of usage permit is filled and authorized by the preparation department.

Lease Type of legal contract developing a residential or commercial property owner-tenant relationship.

Lease Commencement Date Date upon which the lease starts and the commitments of the parties begin (see also "rent commencement date").

Lease Term Length of the lease.

Leasehold Improvements Construction or enhancements for the purpose of preparing the premises for the conduct of occupant's service. Improvements completely connect to the premises unless they are trade fixtures, and they stay with the properties after the end of regard to the lease.

Lessee Tenant.

Lessor Rental residential or commercial property owner or proprietor.

Load Factor The quantity of square video footage in a lease, in addition to a renter's functional square video, which represents occupant's pro rata share of the building's common area/s. May likewise be referred to as a percentage of structure's rentable square feet.

Workplace Category Workplace is loosely categorized based upon the quality of construction, functions and the status of area:

Class A. Most distinguished structures completing for leading office users with rents above average for the area. Buildings have high quality basic finishes, state of the art systems, remarkable accessibility and a certain market presence.

Class B. Buildings completing for a wide variety of users with rents in the average variety for the area. Building finishes are reasonable to great for the area and systems are sufficient, but the structure can not take on Class A at the very same rate.

Class C. Buildings competing for occupants needing functional area at leas listed below the location average.

Operating Expenses Costs associated with earnings producing residential or commercial property normally before interest and earnings tax cost, however including residential or commercial property taxes, insurance, repair work and upkeep, replacement reserves.

Pass-Through Expense An expense associated with occupancy in which property owner "travels through" to occupant specific boosts in building business expenses taking place after a base year in the lease.

Permitted Uses Consult City to see what's permitted at the area.

Quotas A zoning system supervised by the City of Berkeley where just a specific number of certain usages are allowed in the district at any one time, and some of these usages are also subject to square video limits. Quotas are in impact in the Elmwood, Telegraph Avenue and Solano Avenue areas.

Real Residential or commercial property Taxes Taxes due on structure and structural elements.

Renewal Option Lease language that provides the means for occupant to offer landlord notification of its intent to restore (extend) the lease.

Rent Basis Designates what operating expenses are included and left out in the rent. The most common rent bases are:

Full Service: All expenses of operation are paid by the landlord as much as a base year. Tenant pays boosts in business expenses over the base year.

Triple Net (NNN): All costs of operation consisting of, however not limited to, property tax, insurance and typical location upkeep are borne by the occupant on a professional rata basis.

Modified Gross (MG): any arrangement whereby the tenant pays several of the costs covered by the property owner in a Complete lease, however not all of the expenditures as in a Triple Net lease. Modified Gross leases cover a variety of lease types and terms used in various markets around the country. A few of the more typical are Industrial Gross, Single Net and Double Net. The meanings of these bases differ from market to market depending upon the expenditures they consist of or exclude.

Net of Electric: A popular form of Modified Gross, this resembles a Complete lease, but the renter spends for his or her electric charges either to the utility company (according to a meter) or to the proprietor on a pro rata basis.

Rent Commencement Date Date upon which the rent and normally the term of the lease begins. May be different from the lease commencement date when specific commitments should be satisfied such as the construction of occupant improvements.

Rentable Area Denotes the variety of square feet in an industrial structure considered to be rentable. May include a common location load aspect or allowance for developing facilities such as hallways and bathrooms.

Retail Space usually reserved for retail use. May likewise be readily available for office use.

Down payment Deposit of cash by an occupant with a proprietor to secure performance of a lease. Generally equal to one month of rent.

Setback Zoning requirement that requires a building or an improvement to be set back a certain number of feet from the residential or commercial property line.

Sublease Sublease area is provided on the market by the present occupant for sublease, regardless of whether the space is inhabited or vacant. Often a sublease renter goes through property manager approval.

Triple Net (NNN) Lease key in which the lessee spends for its share of the residential or commercial property's taxes, insurance, common area upkeep, and their own operating costs.