Most often used in a yet-to-be constructed property, the tenant has a blank canvas upon which to customize the interior finishes to their specifications. This arrangement caps the landlord's expenditure at a fixed dollar amount over the negotiated price of the base building shell. This arrangement is most successful when both parties agree on a detailed definition of what construction …
Add-On Factor
Often referred to as the Loss Factor or Rentable/Usable (R/U) Factor, it represents the tenant's pro-rata share of the Building Common Areas, such as lobbies, public corridors and restrooms. It is usually expressed as a percentage which can then be applied to the usable square footage to determine the rentable square footage upon which the tenant will pay rent.
Ad Valorem
According to value. This is a tax imposed on the value of property (references a general property tax), which is typically based on the local government’s valuation of the property.
Absorption Rate
The net change in space available for lease between two dates, typically expressed as a percentage of the total square footage.
Absorption
The rate, expressed as a percentage, at which available space in the marketplace is leased during a predetermined period of time. Also referred to as "Market Absorption".
Above Building Standard
Upgraded finishes and specialized designs necessary to accommodate a tenant’s requirements.
Abatement
Often and commonly referred to as free rent or early occupancy and may occur outside or in addition to the primary term of the lease.