Definitions and Terms

Absolute NNN

Same as NNN except tenant pays for structural repairs or reimburses Landlord for those costs.

As Is

Landlord provides the space as is. Tenant must provide all other improvements. An “As Is” space may or may not be up to code and habitable.

Area

The square footage measured by the exterior surface of exterior walls and centerline of common walls. Excludes any space devoted to common use or exclusive Landlord use.

Common Area Factor

If a property contains interior spaces that are for the benefit of all tenants or the general public (common area) there may be a common area factor added to the Tenant’s square footage . This is usually the case in enclosed malls and office buildings. This is usually not the case in strip centers.

Depth

The distance in lineal feet from the interior surface of the front of the space to the interior surface of the rear of the space.

Frontage

The estimated lineal feet of the front of the space presented to the general public. This is typically where the door is located. Measured from interior surface of each wall.

Gross Lease

Tenant does not reimburse Landlord for common area costs, property taxes, or Landlord’s property and liability insurance. Landlord pays Tenant utilities. Tenant pays for their own interior light maintenance (typically) . Optional items : Janitorial

Modified Gross

Same as Gross Lease except that Tenant pays their own utilities.

NNN (triple net)

Tenant pays for their own utilities, interior cleaning, interior light maintenance. Tenant reimburses Landlord for their share of the costs of operating and maintaining the common areas of the entire property and Property Taxes for the entire property. Tenant reimburses Landlord for their share of the costs for property and liability insurance for the entire property. (Tenant must carry their own liability insurance) Usually these costs are allocated based on a square foot ratio of Tenant space to all Tenant spaces. Landlord pays for structural maintenance and is not reimbursed by Tenant(s). In a single Tenant building, Tenant may self perform certain items rather than the Landlord performing them.

White Box or Vanilla Box

Landlord provides the space in a legally habitable condition. That is to say that there will be code compliant HVAC, restroom(s) , ingress and egress. The walls will be prepared so Tenant can apply at Tenant’s cost, wall covering or paint. The floors are prepared so Tenant can install (at Tenant’s cost), floor coverings.