Real Estate Vocabulary You Might Know

Landlord, Tenant, Leased Premises, Rent, Lease contract/Lease agreement, Shell & core premises, HVAC/Heating, ventilation, air-conditioning, Suspended ceiling, Telephone box/ telephone booth/cocoon

Headline rent – basic rent with no discounts or incentives

Effective rent – basic rent decreased by discounts and incentives

Incentives – bonuses offered by the Landlord (rent-free periods, fit-out contributions, any other financial contribution)

Rent free period – period when the Tenant does not pay rent, only service charges

Fit-out contribution – Landlords´ contribution to the building of partitions and any other interior equipment in the leased premises

Workplace strategy – Study of how the interior working space is being used

Headcount – Number of employees

Heads of terms (HoT) – Written agreement on the key commercial lease terms

Viewing – Visit of the premises which are of interest

Space plan – Proposal for the best use of the leased premises – e.g. open space , closed offices, meeting rooms, kitchens, reception and archives etc.

Service charges – Charges for services and energy added to the rent

Add-on factor – Coefficient defining the portion of shared common areas (such as reception, lobby, corridors) that the Tenant pays in his lease.

Gross lettable/rentable area – total rentable area including the portion of shared common areas.

Net lettable/rentable area – the rentable area without any shared common areas.

Fit out – partitions and other fittings of the leased space

Fan-coil – cooling and/or heating unit

Reinstatement – renovation of the rented space before the lease termination

Lease term – lease period

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.

Expansion – enlargement of the leased premises

Contraction – reduction of the leased premises

Extension – prolongation of the lease contract

Holdover – a short-term prolongation of the lease contract

RfP/Request for proposal – Tenant´s request for official written offer provided by the Landlord

RfR/Right of first refusal – Tenant´s right to be offered freed-up space before others

Sublease – Tenant offering part of its / whole leased premises for further lease

Parking ratio – proportion of parking spaces per office space (for example 1/40 means 1 parking lot for 40 m2 of office space)

Raised floor – raised floor for cabling

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

Open plan – working space without partitions

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

Commencement date – start of the rent period

Handover date – date of the return of the leased premises to the Landlord