Some
leasing terms explained! — by Mark Kolke
Amortization:
Calculation to determine a regular-interval payment plan
over time, with interest, to pay a set sum.
Base
Year:
The year of a lease term which is used to compare subsequent
years; usually used when calculating operating expense
pass-through expenses.
Block
Layout: A
preliminary method of roughly laying out a tenant’s
internal office requirements. Gives an initial feel of the
space prior to preparing a more
detailed layout.
BOMA:
Building Owners and Managers Association.
BOMA
Standard:
An internationally published standard of measuring office
space.
Building
Core: The section of the building where
the restrooms, ventilation shafts, electrical distribution,
elevator shafts,
and stairwells are located.
Building
Shell: Usually refers to
a partially completed building with roof, walls, foundation,
and may or may not include restroom
cores, HVAC. Usually does not include any tenant improvements
such as floor or wall coverings, drop t-bar ceilings, interior
walls, or partitioning.
Building
Standard: The project specifications
set out by the owner, usually in conjunction with the project
architect. Details
the type, quality, and color selection available with respect
to carpet, paint, light fixtures, wall coverings, and other
project finishes.
Category
5: Wiring specification for computer
cabling.
Ceiling
Plenum: The totally enclosed area above the ceiling used
for the distribution of the air conditioning system (as
opposed to fully-ducting the supply and return air system).
Coring:
Drilling or removing a section of the flooring to provide
access to the electrical distribution system.
CPI: Consumer
Price Index. Sometimes used to index rental rate escalations.
Default: The failure to meet an obligation, including
lease clauses (i.e. timely rent payment, tenant use of premises,
etc.)
EMS: Energy Management System. Computerized system to
minimize the cost of operation while maintaining specified
temperature
and comfort parameters. May include integration of HVAC,
electrical, and lighting systems.
Gross
/ Fully Serviced Lease: Type of
lease where landlord pays as part of the base rental rate
utilities, sewer, water,
garbage, landscaping, realty taxes, and insurance, janitorial,
maintenance.
Gross
Square Foot: Usually the total building square
footage, including elevator shafts, vertical penetrations,
equipment
areas, ductwork shafts, and stairwells.
HVAC: Heating, Ventilating,
and Air Conditioning.
ISDN: Integrated
Services Digital Network. A high-speed data and media communication
system, as much as ten or more times
faster than conventional phone lines.
Live
Load: The variable
weight per square foot to which a building is subjected.
Typical suburban live-loads may be in the 50-70
lbs. per square foot range, while class A high-rises may
offer 75-120 lbs. per square foot.
Load/
Gross Up Factor: The common
area calculation used to convert usable square foot measurements
(usually, the physical
space actually occupied by the tenant) to rentable square
foot calculations. Usually includes a prorata share of restrooms,
lobby, and common hallways.
Net
Lease: Type of lease where the
Tenant pays for part or all of the operating expenses which
may include but not limited
to utilities, janitorial, insurance, management , realty
taxes.
Net
Net Net (NNN) Lease: Type of lease where Tenant generally
pays for all operating expenses. May even include responsibility
for roof and structural repair or replacement.
Office
Hoteling:
Office space plan to house more people in less space by eliminating
permanent offices for many employees.
Allows organizations to reduce space costs by relying on
technology to create the appearance of a permanent office.
Rentable
Square Feet: Usually the space measurement which incorporates both
the “usable square foot” measurement as well
as the common area. The difference between usable and rentable
is generally between 10-15%.
Stacking
Plan: Schematic illustrating
tenancies on a floor-by-floor basis. Useful in forecasting
how to accommodate growth tenants
and identifying larger blocks of space.
Turn
Key: Landlord-provided
tenant improvements, usually including everything (walls,
doors, floor and window coverings, electrical)
except telecommunications wiring and tenant furniture.
UPS:
Uninterruptible Power Supply. A special power source which
takes over in the event of a failure in the main power system.
Useable
Square Feet: That space measurement actually contained within
the demised premises. If the entire building is occupied
by a single user, the rentable and usable square foot calculations
may be the same.
Walker
Duct/Cable Tray: An electrical distribution
system, usually a metal trough running along set distances
across the
floor. Allows easier access for electrical and telecommunications
wiring.
Wet
Columns: Columns where the pipes are accessible
for wet-bars, kitchens, and drinking fountains.
