Some Key Leasing Terms: Anchor tenant: major tenant or store that attracts customers to a building, shopping center or other development. Assign lease: (assignment) tenant turns lease over to another business, which assumes payments and obligations under the lease. Common Area Maintenance (CAM) charges, including property taxes, security, parking lot lighting and maintenance; may not apply to anchor tenants in retail leases. Exclusivity provision: shopping center or office park can't lease to another tenant who provides the same product or service that existing tenant does. Gross lease: tenant pays flat monthly amount; landlord pays all operating costs, including property taxes, insurance and utilities. Lessor: landlord Lessee: tenant Nondisturbance clause: tenant cannot be forced to move or sign a new lease if building or shopping center is sold or undergoes foreclosure.  Also, the tenant has the right to use the space for which it was intended. Percentage lease: base rent, operating expenses, common area maintenance, plus a percentage of tenant's gross income (most common for retailers in shopping malls). Right of first refusal: before vacant space is rented to someone else, landlord must offer it to the current tenant with the same terms that will be offered to the public.  A tenant that wants to preserve the ability to expand into adjacent space will usually seek this right. Sublet: tenant rents all or part of space to another business; tenant is still responsible for paying all costs to landlord. Triple net lease: tenant pays base rent, taxes, insurance, repairs and maintenance.

Before You Sign a Lease: Source: 327 Questions to Ask Before You Sign a Lease, by B. Alan Whitson Does the lease specifically state the square footage of the premises? The total rentable square footage of the building? Is the tenant's share of expenses based on the total square footage of the building or the square footage leased by the landlord? Your share may be lower if it's based on the total square footage. Do the base year expenses reflect full occupancy or are they adjusted to full occupancy (i.e., base year real estate taxes on an unfinished building are lower than in subsequent years)? Must the landlord provide a detailed list of expenses, prepared by a CPA, to support increases? Does the lease clearly give the tenant the right to audit the landlord's books and records? If use of the building is interrupted, does the lease define the remedies available to the tenant, such as rent abatement or lease cancellation? If the landlord does not meet repair responsibilities, can the tenant make the repairs, after notice to the landlord, and deduct the cost from the rent? Is the landlord required to obtain non-disturbance agreements from current and future lenders? Does the lease clearly define how disputes will be decided?