A AAA-Tenant, also referred to as a Triple-A Tenant, is a highly creditworthy and dependable tenant that typically includes large, established corporations or government entities. These tenants are deemed exceptionally low risk for defaulting on lease payments, making them highly desirable for property owners and investors.
Ancillary charges refer to additional rents incurred under a Triple-Net Lease to cover expenses such as Common Area Maintenance (CAM), real estate taxes, and insurance.
An ancillary tenant is a smaller, often specialty tenant within a shopping center, which contributes to the diversity and convenience of services available but does not generate as much foot traffic as an anchor tenant.
Assignment of Lease involves the transfer of rights to use a leased property. The new tenant, or assignee, acquires all the rights and privileges of the original lessee (assignor), who remains responsible to the landlord unless formally released.
A bond-type lease is a type of net lease requiring the tenant to pay rent for the entire lease term, providing a near-guaranteed income stream to the landlord and often resulting in favorable rental rates for the tenant. This lease arrangement continues regardless of any damage to the leased property.
A provision in a lease for an office or retail space that provides a certain sum or amount per square foot to the tenant to customize the space.
A graduated lease is a type of lease agreement that allows for periodic changes in rent at pre-determined intervals, providing a systematic way to adjust rent in accordance with certain agreed-upon conditions.
A 'Hell or High Water' lease is a provision in certain lease agreements that requires the lessee to continue making rent payments despite any circumstances affecting the lessee or the property involved. This assurance often includes a parent company guarantee to the lessor.
Junior anchors are stores in a community or regional shopping center that are smaller than the anchor tenant, yet larger than the inline stores. They typically range from 15,000 to 40,000 square feet.
A Lease Proposal is an offering made to a prospective tenant that outlines the key terms and conditions of a potential lease agreement, facilitating the leasing process.
Leasehold improvements refer to any changes or additions made to a rental space by a tenant that are intended to enhance or adapt the space for their particular use. These modifications are typically attached to the property, involve investment in fixtures or installations, and must comply with the terms of the lease agreement.
A national tenant is a lessee with a presence across many or most of the United States. These entities are typically well-known and have better credit compared to local tenants, making them desirable for commercial property owners and lenders.
Partial eviction occurs when a tenant is deprived of a portion of the leased property, often resulting in a reduced rent or relocated space within the property.
Pass-Throughs refer to operating expenses that a tenant may be required to pay in addition to base rent as detailed in the lease agreement.
A prime tenant in real estate is the tenant who occupies the most space within a shopping center or office building. These tenants are considered creditworthy and are essential in attracting additional customers or traffic.
A radius clause in a shopping center tenant's lease restricts the tenant from opening another store within a specified distance from the shopping center to prevent competition and reduced traffic to both the existing store and the shopping center. This is often crucial for anchor tenants and can also apply to ancillary tenants.
A sandwich lease is a real estate arrangement in which a lessee becomes a lessor by subletting the property. This intermediate leaseholder holds a secondary lease between the property owner and the end user, typically without owning or primarily using the property.
A step-up lease, also known as a graduated lease, involves periodic scheduled increases in rent at predetermined intervals over the lease term, allowing for predictable revenue growth for landlords and manageable rent for tenants.
A Utility Stop is a clause in a lease agreement that limits the landlord’s liability for the costs of utilities, such as electricity, water, and gas, by specifying a maximum amount that the landlord will cover. Any utility expenses exceeding this amount are passed on to the tenants.
