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Commercial Lease Terms J to M

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.

Lease buyout: A tenant negotiates to terminate the lease and remaining term for monetary consideration.

Leasehold Improvements: Tenant Improvements made as a part of a lease for the benefit of the tenant.

Lessee: Commonly called the tenant and is the person or entity leasing the property.

Lessor: Commonly called the landlord and is the person or entity who leases the property.

Letter of Credit: A letter from bank guaranteeing that a tenant’s payment to a landlord will be received on time and for the correct amount. In the event that the tenant is unable to make payment on the lease, the bank will be required to cover the full or remaining obligation.

Letter of Intent: The preliminary agreement outlining the major business points. Further negotiations will be conducted around the final contract.

Load factor: The ratio of rentable area to useable area. Also, known as the Core Factor.

Master Lease: The original lease prior to any subsequent leases.

Modified Gross Lease: Is the Base rent with a base year for operating expense plus utilities and janitorial.

Moving expenses: The expense incurred by the tenant to move to new space.

Must Take: This is when a company looking to commit to additional space for future growth upon the execution of the lease.  It is a very good strategy and can provide built in expansion space at lease terms consistent with the original space.

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
fblake1000@gmail.com

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