Glossary of Commercial Real Estate Terms

Space has not yet been built out for a Tenant.  There are no interior walls, the ceiling is unfinished, electrical circuits and lighting fixtures are not installed, the HVAC has not been distributed, etc.

A building that has extra technical capabilities to provide computer-enhanced building management and operating efficiency.

A preliminary sketch or CAD drawing supplied by an interior architect, a Space Plan provides an office Tenant with the proposed layout and dimensions of interior walls, doors and furniture. A “pricing level” Space Plan often includes further details including details of plumbing for break areas and/or coffee bars, details of lighting and electrical outlets, locations of shelving and counter surfaces, etc. Pricing level Space Plans are often provided to general contractors who will provide preliminary budget pricing for planned Tenant Improvements.

A rental rate which increases by fixed or “stepped” amounts during the term of a lease.

The ability to substitute non-standard materials for Landlord-supplied materials specified in the work letter, or to receive specific dollar credits for those materials not utilized by a Tenant in the interior construction of its space.

A lease document subordinated to another lease document. It refers to the lease given by a Sublessee to a subtenant for all or part of the office space the original Tenant or Sublessee occupied. The original Tenant remains liable for all terms and conditions.

The lessee of a sublease. See also Lessee.

The Lessor of a sublease. See also Lessor.

A region or divided area (usually divided by geographic factors or dominant landmark), which is a subset of a larger primary real estate market.

A lease provision in which the lease is stated to be less important, of lesser rank, and thereby junior to any deeds of trust, mortgages or ground leases on the building or property. Any covenants or provisions of these other documents are superior to, and will overrule any of the lease provisions.