Base rent refers to the minimum rent due under a lease that may also include a percentage or participation requirement based on sales revenue or other criteria.
A shopping center or office building tenant that is large enough, old enough, and financially strong enough to be rated at least investment grade by one of the major credit rating services. A property leased to such a tenant may obtain mortgage financing underwritten on the basis of the tenant's likelihood of honoring its lease.
A model unit refers to a representative product, such as a home, apartment, or office space, used as part of a sales campaign. It demonstrates the design, structure, and appearance of units in a development to potential buyers.
Preleasing involves obtaining lease commitments for a building or complex before it is available for occupancy. It is often a requirement for securing a permanent mortgage.
A prime tenant in a shopping center or office building is the lessee who occupies the most space. Prime tenants are typically credit-worthy and attract significant traffic to the venue.
A renewal option is a provision in a lease agreement that grants the tenant the right, but not the obligation, to continue renting the property under specified terms and conditions, including rent, for an additional period.
A Tenant Finish-Out Allowance, also known as a Tenant Improvement Allowance, is a sum of money provided by a landlord to a tenant for the purpose of customizing and improving the leased space to meet the tenant’s needs.
