How To Negotiate A Lease

Learn The Lingo

Lease terms you should know:

  • Lessor: landlord
  • Lessee: tenant
  • Right of first refusal: before vacant space is rented to someone else, landlord must offer it to the current tenant with the same terms that will be offered to the public
  • Gross lease: tenant pays flat monthly amount; landlord pays all operating costs, including property taxes, insurance and utilities
  • Triple net lease: tenant pays base rent, taxes, insurance, repairs and maintenance
  • Percentage lease: base rent, operating expenses, common area maintenance, plus a percentage of tenant's gross income (most common for retailers in shopping malls)
  • Sublet: tenant rents all or part of space to another business; tenant is still responsible for paying all costs to landlord
  • Assign lease: tenant turns lease over to another business, which assumes payments and obligations under the lease
  • Anchor tenant: major store or supermarket that attracts customers to a shopping center
  • Exclusivity provision: shopping center can't lease to another tenant who provides the same product or service that existing tenant does
  • CAM: common area maintenance charges, including property taxes, security, parking lot lighting and maintenance; may not apply to anchor tenants in retail leases
  • Nondisturbance clause: tenant cannot be forced to move or sign a new lease if building or shopping center is sold or undergoes foreclosure

Loading the player ...

For Better Conversations, Replace 'How Are You?' With This One Phrase

Ads by Google

Share Your Thoughts

Most Shared Stories

1
15 Signs You're an Entrepreneur
2
Want Media Attention? Target Trades First
3
The One Habit That Can Make or Break Your Success
4
Is It That Important to Be Nice?
5
Tip for Student 'Treps: Tap into Resources at Your College