An Absolute Net Lease is a highly exhaustive type of Triple-Net Lease in which tenants bear almost all property-related expenses.
Additional Rent refers to the amounts of rent that are due above the minimum or base rent. This covers a variety of potential extra charges that a tenant may be responsible for, depending on the lease agreement.
Base rent is the minimum rent due under a lease that has a percentage or participation requirement.
A ground lease is an agreement in which a tenant leases land for a long period, usually spanning several decades. The tenant can develop and use the land during the lease term, but at the end of the lease, ownership and any improvements revert to the landowner.
Key money refers to amounts paid at the outset to lease a property, especially in regions where desired property types are scarce.
A lease purchase agreement, also known as a lease with option to purchase, is a contractual arrangement that combines elements of a traditional rental lease with an option to buy the property within a specified timeframe. It can provide benefits for both buyers and sellers.
A lease-own hybrid model is a commercial real estate lease arrangement in which a tenant leases space in a property and simultaneously gains an ownership stake in the entity owning the property. This model allows tenants to participate in annual profits and appreciate in the property’s value while committing to long-term, above-market rent payments.
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An operating lease is an agreement where the lessee leases an asset from the lessor for a certain period but does not assume risks and rewards of ownership.
A percentage lease is a lease of property in which the rental is based on a percentage of the volume of sales made upon the leased premises. It usually includes a minimum base rental amount and is commonly used for retailers who are tenants.
The Rent-Free Period is a portion of the term of a lease during which no rent is required. It is typically offered by a landlord as a rental concession to attract tenants.
Rentable Area, often referred to as Net Leasable Area (NLA), is the total space for which rent is charged to tenants, including private areas occupied by tenants and a share of common areas.
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.
