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Commercial Lease Terms A to B

Disclosure: Content is general information only. Information is not provided as advice for a specific matter, nor does its publication create any relationship between the writer and the reader. Neither this website nor Forrest Blake is qualified, licensed or soliciting  to give commercial real estate broker, commercial real estate agent, Los Angeles tenant broker, commercial office space, legal or accounting advice on any subject. Please consult with your real estate broker, attorney or accountant regarding any of the concepts written on this website. This website, Forrest Blake or any of his affiliated companies will not be liable for any actions you take as a result of reading anything contained within.

Abatement: Concessions offered to tenants in the form of free rent or early occupancy.

Above Building Standard: Many tenants need specialized finishes to their space that are higher than what is the building standard. The additional expense is typically paid by the tenant, amortized over the term of the lease or negotiated as an additional concession.

Absorption: The percentage rate in which available space in the market is leased during a specific time period.

Add-On Factor: Also known as the Load Factor. This is the difference between the Rentable and Useable square feet. Usable square feet is the actual square footage between the four walls of a tenant’s space. To get to the rentable number the pro-rata share of share of the Building Common Areas, such as lobbies, public corridors and restrooms is added to the usable square feet.

Amortization: Landlords have been known to amortize additional tenant improvements over the term of the lease with a reasonable interest rate.

Base Rent:  The rate per square foot paid before any escalations, net or operating expenses.

Base Year: In a Gross and Modified Gross lease, this is the established base level of building operating expenses. Any increase in over this base will be charged back to the tenant on a pro-rata share.

Building Standard: The landlord will establish their minimum standards for tenant improvements to be constructed in the building.

Build-To-Suit: Tenant establishes their needs and negotiates to push the responsibility for the cost and construction of the tenant improvements to the landlord.

Disclosure: Content is general information only. Information is not provided as advice for a specific matter, nor does its publication on this website create any relationship between the writer and the reader. Neither this website nor Forrest Blake is giving commercial real estate advise or soliciting if you are currently represented by another commercial real estate broker, or legal or accounting advice on any subject. Please consult with your real estate broker, attorney or accountant regarding any of the concepts written on this website. This website, Forrest Blake or any of his affiliated companies will not be liable for any actions you take as a result of reading anything contained within.

Copyright 2013 – Forrest Blake

Please contact me if you would like to use any tenant representation or expert commercial real estate information contained on the site. I promise to get  back to you within 24 hours if we don’t connect right away.

Forrest Blake
CA Real Estate License # 01054174
310-850-2381
fblake100@msn.com

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