An arrangement where a landowner funds the construction of a building tailored to a tenant's specifications on their land, subsequently leasing the land and building to the tenant.
Gross Leasable Area (GLA) is the total floor area of a building available for rental to tenants, usually measured from the outside walls without deducting for hallways, lobbies, or other common areas.
An Islamic finance concept where leasing agreements transition into ownership upon repayment of the rental payments.
A financial transaction where one party sells a piece of land to another party and then leases it back for a long-term period. This arrangement allows the seller to continue using the land while freeing up capital.
A lessor is an individual or entity that grants a lease to another party, allowing them to use an asset for a specified period in exchange for periodic payments. Lessors are commonly involved in real estate, equipment leases, and other forms of property or assets.
In real estate, 'let' refers to granting the use of realty (real estate) for compensation. The term does not always imply the act of leasing but can also refer to the granting of a license.
Understanding the net investment in a lease involves considering the total amount of funds that a lessor has invested in a leased asset. This includes the cost of the asset, received grants, rental payments, taxation implications, residual values, and various interest payments and receipts.
Net Leasable Area (NLA) refers to the portion of a commercial building that is available for lease to tenants. It excludes common areas such as lobbies, restrooms, and utility rooms.
OPT, short for 'decide or make a choice,' is a term used in decision-making processes where an individual or entity selects one alternative over another. For example, an individual may opt to lease rather than purchase facilities.
Additional consumer value created by transferring a product's ownership.
Property management involves the operation of real estate as a business, including activities such as rental, rent collection, maintenance, and numerous other tasks related to the ownership and oversight of properties.
Rentable area refers to the total space a tenant can lease in a commercial property, including both usable space and a proportion of common areas like lobbies, restrooms, and hallways.
Residential rental property refers to rental units utilized for dwelling purposes, excluding transient lodging like hotels or motels. To qualify as residential for income tax purposes, at least 80% of a building’s income should come from dwelling units. This type of property is eligible for a 27½-year life for tax depreciation purposes, compared to a 39-year life for nonresidential property.
A subtenant is an individual or entity that leases a part or whole of a rented property from the original lessee for a period that is equal to or shorter than the term of the original lease. The original lessee, in this arrangement, becomes the sublessor.
A tenant is an individual or entity who leases or occupies a premises, land, or estate under various terms and rights.
Tenant reimbursements are payments made by a tenant to a landlord for the tenant's share of property-related expenses. These are commonly encountered in net leases and leases with stop clauses, especially in shopping centers and office buildings.
A Triple-A Tenant refers to a tenant with an excellent credit record, typically used in commercial real estate to indicate high financial stability and reliability.
A True Lease is a leasing arrangement in which the lessor retains the risks and rewards of ownership, distinguishing it from other lease types like Financial Lease and Synthetic Lease.
