Real Estate Vocabulary And Office Lease Terms

ADD – ON FACTOR – Coefficient defining the portion of shared common areas (such as reception, lobby, corridors) that the Tenant pays in his lease.

BREAK – Tenant´s right to terminate its lease earlier than the standard leased contract is signed for. A break option is typically after three years in the case of five year lease contracts.

COMMENCEMENT DATE – start of the rent period

CONTRACTION – reduction of the leased premises

EFFECTIVE RENT – basic rent decreased by discounts and incentives

EXPANSION – enlargement of the leased premises

EXTENSION – prolongation of the lease contract

FIT-OUT CONTRIBUTION – Landlords´ contribution to the building of partitions and any other interior equipment in the leased premises

FIT OUT – partitions and other fittings of the leased space

FAN-COIL – cooling and/or heating unit

FLOOR BOX – box situated in the raised floor used for electrical, data and telephone cabling connectivity

GROSS LETTABLE/RENTABLE ARES – total rentable area including the portion of shared common areas

HANDOVER DATE – date of the return of the leased premises to the Landlord

HEADCOUNT – number of employees

HEADLINE RENT – basic rent with no discounts or incentives

HEADS OF TERMS (HOT) – written agreement on the key commercial lease terms

HOLDOVER – a short-term prolongation of the lease contract

INCENTIVES – bonuses offered by the Landlord (rent-free periods, fit-out contributions, any others financial contribution

INDEXATION – rental increases according to inflation, usually on an annual basis

LANDLORD – pronajímatel, majitel budovy

LEASE CONTRACT/LEASE AGREEMENT – formal document that identifies the lessor, lessee, and the leased asset of property

LEASE TERM – leased period

LEASED PREMISES – leased space

NET LETTABLE/RENTABLE AREA – the rentable area without any shared common areas

OPEN PLAN – working place without partitions

PARKING RATIO – proportion of parking spaces per office space (for example 1/40 means 1 parking lot for 40 sqm of office space)

RAISED FLOOR – raised floor for cabling.

REINSTATEMENT – renovation of the rented space before the lease termination

RENT – tenant’s regular payment to a landlord for the use of property

RENT FREE PERIOD – period when the tenant does not pay rent, only service charges

RfP/Request for proposal – tenant´s request for official written offer provided by the landlord

RfR/Right of first refusal – tenant´sright to be offerd free-up space before others

SUBLEASE – tenant offering part of its. Whole leased premises for further lease

SUSPENDED CEILING – a suspended ceiling is a type of finish system that is hung below the ceiling structure within a room or building.

SHELL & CORE – base build

SPACE PLAN – proposal for the best use of the leased premises.

SERVICE CHARGES – charges for services and energy added to the rent

TELEPHONE BOX/ TELEPHONE BOOTH/COCOON – small room to conduct uninterrupted phone call.

VIEWING – visit of the premises which of interest

WORKPLACE STRATEGY – study of how the interior working space is being used