Commercial real estate can sometimes seem overwhelming with the various terms that are used. Brush up on your leasing lingo with terms, phrases or words you may come across in your commercial real estate dealings.
A feature that provides comfort, convenience, or value to a property.
Overdue payments on a rental agreement where recurring payments are required.
A promise to pay Lessor an amount to cover losses
A Grade – Prime Building
B Grade – Secondary Buildings
C Grade – Older Buildings
A condition as part of a deed or title in property that prohibits someone from doing/using the property in a certain way
Consumer Price Index
Accounting method to write off the cost of an asset over its life
A summary of important commercial terms of the lease and financial obligations including rent, rent reviews, incentives, outgoings, make good, key provisions
Rent which includes outgoings
Heads of Agreement (a formal leasing proposal only)
Tenant (or its legal entity)
Landlord (or its legal entity)
An agreement on how a property should be left at the end of the lease term
National Australian Build Environment Rating System
Rent plus outgoings
Additional non mandatory lease term
Expenses associated with the property
Individual ownership of part of a property ‘a lot’
Weighted Average Lease Expiry
Calculation of the measurement of income. The yield is calculated annually as a percentage of the cost of the asset.