Office Space Terms To Know Before Leasing

When you’re looking for the best office space near you, in the Capital Region or beyond, it’s important to know all the terms you may be reading in a lease. The Anderson Group is here to help with some key office rental terms you may see.

Common Area Maintenance (CAM)

Costs that derive from the care of building areas that are used by all tenants. CAM areas can include spaces such as hallways, lobbies, restrooms, sidewalks and parking lots.

Double Net Lease (NN)

Incorporates taxes and insurance into your lease payment, but the landlord is responsible for paying maintenance costs.

Gross Lease

When you sign a gross lease, you agree to pay for your space’s square footage, and your landlord agrees to pay for all other operating expenses, including utilities, maintenance, insurance and property taxes.

Leasable Area

A blend of your office square footage plus a percentage of the square footage in the building’s common areas.

Improvements and Alterations

Construction or modifications done to a space, sometimes as a response to a tenant’s request

Maintenance and Utilities

Included in a clause that spells out your responsibility to maintain your leased space. 

Net Lease

An agreement where the tenant pays rent along with of additional costs associated with the property

Permitted Use

How a tenant is allowed to use their premises during the terms of the lease

Premises

The exact area a tenant will be renting in their lease

Renewal Option

The right to extend the term of your lease for a fixed period of time

Term

The start and end dates of your lease

Triple Net Lease (NNN)

A lease agreement where the tenant (or lessee) is responsible for the property’s ongoing expenses, including real estate taxes, building insurance, and maintenance, in addition to paying rent and utilities.

Renters Insurance

Covers tenants’ personal possessions, liability and additional living expenses