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46 Cards in this Set
- Front
- Back
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Quiet Enjoyment
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right to uninterrupted use of property without interference from owner
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Essential elements of lease (4)
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names of landlord and tenant, adequate description of leased premises, agreement to transfer possession from landlord to tenant, start and end dates of agreement
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Essential elements of lease (3)
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descriptions of rental payments, written form, signatures of all parties
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TI Allowance
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amount landlord agrees to spend to build out/refurbish space to meet needs of tenant's business
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Flat rent
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level rent payments, more likely with shorter term
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graduated rent/fixed escalation
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clause providing for prespecified increases in contract rental rate
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indexed lease
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rent increases tied to changes in regularly reported index, usually CP
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percentage lease
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rent tied to tenant's sales revenue
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base rent
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in percentage lease, flat/fixed component of rent
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percentage rent
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in percentage lease, owner receives percentage of revenue past a minimum amount
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gross lease
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owner pays all of property's operating expenses
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net lease
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tenant responsible for paying defined portion of operating expenses
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operating expense escalation clause
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only increases in operating expenses relative to base year are tenant's responsibility
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concessions
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offered to incentivize tenant's rental in lease; reduces lease cash flows
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trade fixtures
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unlike fixtures, usually paid for and installed by tenant, may be removed by tenant at lease termination
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sublease
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tenant transfers only subset of his/her rights to another individual
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renewal option
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grants tenant right to renew lease
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cancellation option
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right to cancel a lease if tenant's revenue doesn't meet or exceed a certain amount
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expansion option
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obligates property owner to offer tenant adjacent space, either at end of term or during specified period
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right of refusal
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less costly for owner than expansion option, gives tenant first choice to lease adjacent space if it becomes available
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relocation options
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right to relocate tenants within property
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effective rent
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level monthly payment over entire term that has same present value as lease
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interlease risk
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risk associated with replacement of one lease by another of uncertain terms and conditions
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high rise apartment
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apartment of 10-15 stories
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mid-rise apartment
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4-9 stories
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garden apartments
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usually consist of many 2-3 story units
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condominium
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multi-unit property with individually owned dwellings
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statement of condition
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written form recording any damage to the property at move-in
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12 fundamental criteria for office buildings
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location, ease of access, prestige, appearance, lobby, elevators, corridors, office interiors, tenant services, mechanical systems, management, tenant mix
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usable area
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square footage of space bounded by walls
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rentable area
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usable area plus tenant's prorated share of common areas
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land factor
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rentable area over usable area
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expense stop
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makes owner directly responsible for most or all of operating expenses up to specified amount per SF
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neighborhood shopping center
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located for nearby population's convenience, retail establishments offer convenience goods and services
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community shopping center
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larger version of neighborhood shopping center, possibly anchored by discount department store
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power shopping center
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leasable area between 250,000 and 1,000,000 square feet, with high ratio of anchors to ancillary tenants
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regional shopping center
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has at least two anchors and at least 200,000 SF for nonanchor tenants
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specialty shopping center
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characterized by dominant theme in image, such as certain product or historical building
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superregional malls
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five or six major tenants, hundreds of minor tenants, typically 1 million SF and may exceed 2 million
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outlet mall
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variation of specialty shopping center that sells cheap ****
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gross leasable area
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equivalent of usable area for retail
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gross floor area
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total GLA plus common areas
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anchor tenants
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large, well-known retailers drawing majority of center's clients
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common area maintenance
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charges billed to each of tenants, usually cost of security, fees for common area management
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warehouses
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space for temporary goods storage
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flex space
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single-story structures that can take single or multiple tenants
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