Commercial leasing terms you need to know

There are a few commercial leasing terms you need to know before signing that lease. Here's what they mean:

1. Gross leasable area - This is the total size of the property that is available for tenants to use.

2. Net leasable area - This is the usable space within the property, minus any areas that are not accessible or usable, like hallways and common spaces.

3. Base rent - The base rent is the amount you will pay each month, regardless of how much or little space you actually use.

4. Tenant improvement allowance - The landlord may give you money to improve your tenancy, which can be used for anything from painting to new furniture. Be sure to ask the landlord what the allowance is for, especially if you are planning to make structural changes or major renovations.

5. Rentable square footage - This number accounts for the size of your space once it has been divided by the number of floors in your building. It's important because it may affect how much you're paying per square foot if other spaces in the same building are larger than yours. 

6. Operating expenses - This covers all of the costs that go into running a property that are not included in the other costs associated with leasing. These can include services like trash removal and landscaping, utilities like electric and water, and supplies like cleaning products and toilet paper. The tenant is responsible for some costs, while others costs will be included in the rent.

7. CAM - This stands for common area maintenance and is one of the costs that may be included in your monthly payment along with rent and other expenses like utilities and repairs. These costs will vary based on how much space you're using and if your landlord has hired a property manager to handle building operations.

8. Security deposit - Most landlords require tenants to leave their security deposit with them before signing the lease, but they can't keep it indefinitely or hold onto it until you leave unless there are damages that have not been fixed within 30 days of moving out of your old place. Once all necessary repairs have been completed, landlords must send renters their security deposits, minus any damages incurred during occupancy, within 30 days. 

9. Holdover clause - Most leases will include a holdover clause, which is essentially an eviction notice that the landlord can serve you if you do not leave your space when it's time to renew your lease or end your tenancy. A holding period of 30 days is typical in most states; however, specific rules may vary by location. If you're having trouble finding a place to live, ask for more time- it certainly won't hurt! 

10. NNN lease - This stands for triple net and means that tenants are responsible for all taxes, insurance, and repairs associated with their spaces on top of their monthly rent payments. Operating expenses are included in the rent rate so they are not required to be paid on top of the monthly rent.

11. NNN charges - This stands for net-net-net, which means you are responsible for all taxes, insurance, and repairs associated with your space. Operating expenses are included in the rent rate so you will not be required to pay them on top of your monthly rent expense. Be sure to ask the landlord what specific repairs and services fall under this category since it varies by location and property condition.