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Commercial Lease Terms C to E

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.

Capital Expenses: Any improvements to the building that has a useful life of more than five years or that conforms to GAP accounting standards.

Certificate of Occupancy: Certifies that a building and leased premises is suitable for occupancy.

Common Area: The common areas are those areas within a building that are available for common use by all tenants, including but not limited to, lobbies, corridors and restrooms.

Common Area Maintenance or CAM: This expense is charged back to the tenant on a pro-rata share above any base year. Typically, this does not include capital expenses.

Consumer Price Index or CPI: Measures inflation in relation to the change in the price of a fixed market basket of goods and services purchased by a specified population during a “base” period of time. This is commonly used to annually increase the base rent.

Contiguous Space: Adjacent spaces that can be combined and lease by a single tenant.

Core Factor: Represents the square feet allocated to the building’s common areas.

Default: Failure to perform a legal or contractual duty.

Demising Wall:  A full height wall that separates two tenants.

Effective Rent: Base rent with increase for the term of the lease minus landlord concessions achieved by the landlord.

Efficiency: A way to measure the effectiveness of the tenant’s use of space.

Escalation Clause:  The increase in operating expenses over the base year to be paid by the tenant.

Estoppel Certificate:  A document signed by the tenant for the benefit of a lender confirming the rent and any other agreements between the landlord and tenant.

Expense stop: Any expenses above the maximum level, “Stop,” to which a landlord will pay certain operating expenses are to be paid by the tenant.  Amounts above the stop are the responsibility of the tenant.

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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