Lessor: The Landlord
or property owner
Lessee: The Tenant – Person or company that rents or leases a space or building.
TI: Tenant Improvements
Tenant Improvement Allowance: the negotiated amount, often stated in dollars per square foot, that a landlord is willing to spend to customize the space for a particular tenant.
CAM: Common Area Maintenance - A CAM charge is an additional rent, charged on top of base rent to cover costs for maintenance of common areas such as parking lots and landscaping.
NOI: Net Operating Income – The annual income generated by an income-producing property after deducting expenses associated with the property.
NNN – “Net-Net-Net,” pronounced “Triple Net” a net lease, on a property in which the tenant is responsible for paying a pro rata share of the three major expenses associated with commercial real estate ownership; property tax, insurance and maintenance.
Right of First Refusal: A Tenant’s right to buy property in the event an acceptable offer (from another party) is received by the owner.
Option to Renew: A tenant’s right to extend the term of the lease at pre-negotiated points.
LOI: Letter of Intent - a document outlining a tentative agreement between two or more parties before the agreement is finalized. An LOI is often non-binding on either party.
Due Diligence: A period of time negotiated in a purchase and sale agreement for the purpose of studying the property to determine its suitability for financing, occupancy, title, etc.
Loan Contingency: A period of time used for securing financing, the clause specifies certain requirements and conditions that must be met for the buyer to proceed. If the contingencies are not met, the buyer can usually walk away without penalty and are entitled to full refund of any earnest deposit that was put down with the initial offer.