Lease terms you should know:
Lessor: Landlord
Lessee: Tenant
Right of First Refusal: Before vacant space is rented to someone else,
landlord must offer it to the current tenant with the same terms that
will be offered to the public.
Gross Lease: Tenant pays flat monthly amount; landlord pays all operating
costs, including property taxes, insurance and utilities.
Triple Net Lease: Tenant pays base rent, taxes, insurance, repairs
and maintenance.
Percentage Lease: Base rent, operating expenses, common area maintenance,
plus percentage of tenant's gross income (most common for retailers
in shopping malls).
Sublet: Tenant rents all or part of space to another business; tenant
is still responsible for paying all costs to landlord.
Assign Lease: Tenant turns lease over to another business, which assumes
payments and obligations under the lease.
Anchor Tenant: Major store or supermarket that attracts customers to
a shopping center.
Exclusivity Provision: Shopping center can't lease to another who provides
the same product or service that existing tenant does.
CAM: Common area maintenance charges including property taxes, security,
parking lot lighting and maintenance; may not apply to anchor tenants
in retail leases.
Nondisturbance Clause: Tenant cannot be forced to move or sign a new
lease if building or shopping center is sold or undergoes foreclosure.
