Additional Rent Elements
This is any amount paid by the tenant to the landlord in addition to the base rent.
This is the amount charged a tenant exclusive of contributions to property operating expenses or revenue percentages. It is often calculated in relation to the square footage of the premises.
Double net lease (NN)
This is a type of lease agreement under which the base rent plus maintenance costs. The property taxes and property insurance premiums are paid by the tenant as separate payments.
Flat rent is a fixed rent level throughout the lease term
The mechanism for rent updating according to which the rent will increase on a priori specified dates by upfront specified amounts during the lease term.
This is a type of lease agreement under which the rent payed by the tenant to the landlord covers the base rent and all operating cost.
A type of commercial properties used for the purposes of production, distribution and logistics (e.g. industrial production facilities, warehouses, distribution and logistics facilities).
The lessor or owner of the leased property.
A type of commercial properties primarily used as professional or business offices.
The operating costs of running a CRE asset, including property taxes, property insurance and maintenance costs. The tenant or the landlord may be responsible for these costs depending on the type of lease agreement.
This is a type of lease agreement where the tenant pays a base rent amount each month plus a negotiated percentage of their monthly sales or monthly sale volumes above a certain amount. This type of agreement is typically seen in a commercial retail lease agreement.
A rent is (partly) adjusted to a publicly observable and regularly recorded index, like the consumer or producer price index
The rent will change on a priori specified dates, however the amount of rent adjustment is unknown. The rent may be adjusted to market level or another `fair value’ by independent appraisers. Depending on the rent agreement the adjustments can be upward-only or either direction
A type of commercial properties used for selling goods and services (e.g. shops of all kinds, shopping malls).
Single Net lease
This is a type of lease agreement under which the rent payed by the tenant to the landlord covers the base rent and property insurance premiums and maintenance costs. The property taxes are paid by tenant as separate payments.
A lease in which the original tenant (lessee) sublets all or part of the leasehold interest to another tenant (known as a subtenant) while still retaining a leasehold interest in the property
A person or entity who leases the use of the space of a real estate asset from its legal owner. A tenant also may be referred to as a lessee.
Triple net lease (NNN)
This is a type of lease agreement under which the rent covers only the base rent. The property taxes, property insurance premiums and maintenance costs are paid by tenant as separate payments.
Commercial Real Estate (CRE)
Commercial real estate (CRE) is property that is used exclusively for business-related purposes or to provide a workspace rather than as a living space, which would instead constitute residential real estate. Most often, commercial real estate is leased to tenants to conduct income-generating activities. This broad category of real estate can include everything from a single storefront to a huge shopping center.
The percentage of all available units or space in a rental property that are vacant and available for occupancy at a particular point in time.