Leasee: the tenant.
Lessor: the landlord/owner of property.
Base year: the year from which a tenant’s charges are measured, usually the year that occupancy begins.
Real estate taxes: the taxes assessed to the property. A tenant pays a proportionate share of any increase in the taxes over a base year.
Swing space: space that provides a short-term need, usually under a two-year period.
Lease back: when a property is sold and then leased by the original owner. Many large corporation use this technique to get the properties off their books. The lease is then treated as an operating expense.
Operating expenses: amounts paid to maintain property, such as utilities, hazard insurance, property taxes and building personnel. A tenant pays a proportionate share of an increase in operating expenses over a base year.
Build-out: renovation of a space to suit the tenant’s needs.
Landlord concessions: incentives offered by the landlord as part of the overall leasing transaction. Benefits can include free rent for a year and build-out of space.
Look Before You Lease
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