Lease Types
Lease type where LL takes care of all OPEX and is included in Base Rent, no addl rent charged to tenant
Gross Lease
Controllable Expenses
Suite Rentable Square Footage/Building Rental Square Footage
Pro Rate Share (PRS)
Revenue - Expenses
Net Operating Income (NOI)
Another term for operating expenses (OPEX)
Common Area Maintenance (CAM)
Lease type where Tenant pays 100% of their PRS of OPEX expenses
Triple Net
Real Estate Taxes, Insurance, or Utilities are what type of expense?
Uncontrollable Expense
Expenses that are passed back through to the Tenant
Reimbursable expenses
Amount of operating costs charged to a tenant based on that year's budget?
CAM Estimate
Another term for expense adjustments?
Manual Add Backs
Lease type where Tenant has an expense stop and only pays their PRS over the expense stop
Modified-Gross
Lease provision that allows a landlord to charge tenants for operating expenses as if the building were a certain percentage occupied
Gross Up
Expenses that cannot be passed back through to the Tenants
Non-Reimbursable expenses
The annual process landlords use to compare the estimated expenses charged to Tenants throughout the year with the actual, total expenses for shared property maintenance
CAM Reconciliation
What is the name of an account in the expense section of a budget used to offset an expense (example electricity)?
Contra Account
A lease by a tenant for part or all of leased premises to another person
Sub-lease
What is the term for a specific year used as a starting point to calculate a tenant's share of future increases in operating expenses?
Base Year
What type of expense is for acquiring, upgrading, or maintaining long-term physical assets
Capital Expense
Within how many days of calendar year end do most common lease languages say a CAM rec must be completed?
90 days
What does "Below the line" refer to?
Non-Reimbursable Expenses
Lease where Tenant is responsible for all property-related expenses,
absolute net lease
What type of CAM cap allows landlord to recover any unused increases from prior years?
Cumulative CAP
To gradually write off the initial cost of (an asset) over a period
amortize
A grouping of specific, recoverable property expenses that are allocated to tenants based on a predetermined formula
Expense Pool
What is the term used to describe the loss of income due to unrecoverable costs (due to vacancy, CAPs, lease exclusions, etc)?
Leakage