Commercial Real Estate Terms You Should Be Familiar With
Renting a commercial real estate property can be a challenge if you are not familiar with their terminology. At Millyard Technology Park, the type of lease we offer is called a “modified gross lease.” This means all the utilities are included, and the only separate expense our tenants pay for is their phone/internet service. Additionally, we always make sure there is an on-site property manager who supervises all the building maintenance and is there if any of our renters need any assistance.
If you are considering a commercial lease, here are a few other terms you may come across and what they mean:
An absolute net lease is when the tenant is responsible for rent and all other property-related expenses, including taxes, utilities, operation, repairs, and maintenance costs.
ADA stands for the Americans With Disabilities Act. The ADA is a civil rights law that prohibits discrimination against individuals with disabilities and guarantees equal opportunity for individuals with disabilities in public accommodations, employment, transportation, state and local government services, and telecommunications.
Alternative workspace is a term used to embody a combination of nontraditional work practices, settings, and locations that are beginning to supplement traditional offices.
A broker is a person who arranges transactions between a buyer and a seller for a commission in a real estate deal.
Common areas are available for shared use by all tenants, (or) groups of tenants, and invitees. Examples of common areas include lobbies, kitchens, corridors, stairways, and parking lots.
Coworking spaces are often a popular alternative for tenants who aren’t looking for an entirely traditional commercial real estate lease and the upkeep that comes with it. Coworking spaces are designed to provide a productive and collaborative environment created without corporate constraints offering flexible memberships to suit most needs.
Double Net Lease
In a single net lease, the tenant pays a lower base rent in addition to property taxes. Double net leases include property taxes and insurance premiums with the base rent.
Exclusive Broker Agreement
An agreement between a broker and a tenant that specifies the broker will represent the tenant and their interests throughout the leasing process for a set length of time.
Full-Service (FS) Rental Rate:
A full-service lease, sometimes called a gross lease, is defined as a lease structure where the landlord is responsible for paying all operating expenses for the property.
An adjustment made to operating expenses to account for the occupancy level in a building. Many commercial leases contain a “gross-up” provision to amplify the property’s operating expenses to the number of operating expenses that would be incurred if the building was fully occupied.
The owner of a property that is rented or leased to a tenant.
Defined as the period of time in which a contracted lease is in place. The lease term establishes the time period for both the lessee and lessor.
Modified Gross (MG) Rental Rate:
A rental rate includes operating expenses such as electricity, utilities, taxes, janitorial services, and insurance, but not all.
Rentable Square Feet
Unless expressly stated otherwise in the lease, it is the date on which the tenant takes possession of its leased premises.
Property Manager. Property managers are hired to handle the operations, maintenance, and administration of property rentals for an owner.
Per Square Foot
A sublease is the renting of property by a tenant to a third party for a portion of the tenant’s existing lease contract.
A person, business, or group that pays rent to an owner or landlord for the right to use/occupy a property or space.
The vacancy rate is the percentage of all available units in a rental property, such as a hotel or apartment complex that is vacant or unoccupied at a particular time.
A virtual office is part of the flexible workspace industry that provides businesses with any combination of services, space, and technology, without those businesses bearing the capital expenses of owning or leasing a traditional office.
Zoning is a method of urban planning in which a municipality or other tier of government divides land into areas called zones, each of which has a set of regulations for new development that differs from other zones.
At Millyard Technology Park, we offer flexible office solutions in Nashua, NH. We offer flexible lease terms ranging from 1 to 3 plus years. If you are looking for new office space in this area, contact us today.