Additional rent
Amounts payable beyond net or base rent, which may include property taxes, insurance, operating expenses, management charges and other lease-defined recoveries.
Definition, why it matters and what to request →OfficeBuildings.ca / Office lease glossary
Office lease glossaryCommercial office terms, defined for the decision.
Use each definition as a starting point, then read the lease, measurement, proposal and evidence for the specific premises.
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Rent, measurement, improvements, flexibility and building operations.
Additional rentBase rentGross rentNet rentTriple net leaseRentable areaUsable areaOffice load factorTenant improvement allowanceLeasehold improvementsFree rentEffective rentOperating cost reconciliationGross-upProportionate shareBOMA office measurement standardOffice building classOffice subleaseLease assignmentRenewal optionRestoration clauseAfter-hours HVACOffice parking ratioRight of first refusalRight of first offerExpansion optionRelocation clauseFixturing periodLetter of intentLease indemnity
Base rent
The stated rent for the premises before separately charged additional rent and other tenant costs. It is often quoted per rentable square foot per year.
Definition, why it matters and what to request →Gross rent
A rent structure in which some or most property operating costs are included in one stated rent, subject to the lease definitions and adjustment rules.
Definition, why it matters and what to request →Net rent
The rent paid for use of the premises before lease-defined operating costs, property taxes and other additional rent.
Definition, why it matters and what to request →Triple net lease
A lease structure commonly described as passing property taxes, insurance and maintenance or operating costs to the tenant, subject to the actual wording.
Definition, why it matters and what to request →Rentable area
The area used for rent billing under the stated measurement basis, often including an allocation of building service or amenity areas.
Definition, why it matters and what to request →Usable area
A common market term for the area available within a tenant premises for its use, distinct from the billed rentable area. Exact terminology depends on the measurement standard.
Definition, why it matters and what to request →Office load factor
A relationship between rentable and occupant or usable area under a stated measurement method. Terminology and calculation depend on the applicable standard.
Definition, why it matters and what to request →Tenant improvement allowance
A landlord contribution toward eligible design, construction or related costs for tenant premises, governed by negotiated conditions.
Definition, why it matters and what to request →Leasehold improvements
Alterations and fixtures installed in leased premises for the tenant’s use, subject to lease, approval, permit, ownership and restoration rules.
Definition, why it matters and what to request →Free rent
A negotiated period when one or more rent components are abated. The lease determines which amounts stop and which continue.
Definition, why it matters and what to request →Effective rent
A calculated rent measure that reflects selected incentives or costs over a stated period and methodology.
Definition, why it matters and what to request →Operating cost reconciliation
The process of comparing operating-cost amounts paid on estimate with the actual recoverable amount for a period.
Definition, why it matters and what to request →Gross-up
A lease mechanism that adjusts certain variable operating expenses to a stated occupancy level for allocation purposes.
Definition, why it matters and what to request →Proportionate share
A tenant allocation percentage used for specified building costs, often based on a relationship between premises and building areas.
Definition, why it matters and what to request →BOMA office measurement standard
A published standard method used to calculate and communicate office building areas. BOMA maintains specific standards and editions for different property types.
Definition, why it matters and what to request →Office building class
A relative market classification commonly expressed as Class A, B or C using factors such as rent, finishes, systems, amenities, location and perception.
Definition, why it matters and what to request →Office sublease
An arrangement under which an existing tenant grants a subtenant rights to use some or all of its premises, subject to the head lease and required consent.
Definition, why it matters and what to request →Lease assignment
A transfer of a tenant’s lease interest to another party, subject to the lease, consent and applicable law.
Definition, why it matters and what to request →Renewal option
A lease right that may allow the tenant to extend the term if stated notice, timing and other conditions are satisfied.
Definition, why it matters and what to request →Restoration clause
Lease language addressing removal of improvements, repairs and the condition required when premises are surrendered.
Definition, why it matters and what to request →After-hours HVAC
Heating, ventilation or air-conditioning service provided outside the building’s standard operating hours, often by request and at extra cost.
Definition, why it matters and what to request →Office parking ratio
A way to express parking supply relative to office area, commonly as stalls per stated square feet.
Definition, why it matters and what to request →Right of first refusal
A negotiated right that may allow a tenant to match a third-party transaction for specified space, subject to detailed conditions.
Definition, why it matters and what to request →Right of first offer
A negotiated process requiring the landlord to offer specified space to a tenant before marketing it more broadly, subject to the lease terms.
Definition, why it matters and what to request →Expansion option
A lease right or process concerning additional premises, which may identify exact space, timing, rent and conditions or remain less specific.
Definition, why it matters and what to request →Relocation clause
Lease language permitting the landlord to move a tenant to different premises under stated conditions.
Definition, why it matters and what to request →Fixturing period
A period before rent commencement when the tenant may access premises to complete approved work, subject to the lease.
Definition, why it matters and what to request →Letter of intent
A preliminary document recording proposed commercial terms, often with a stated mix of binding and non-binding provisions.
Definition, why it matters and what to request →Lease indemnity
A contractual allocation of responsibility for specified claims, losses, liabilities or costs.
Definition, why it matters and what to request →