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Freight elevator is a service elevator intended for carrying goods and other large items rather than transporting passengers. In a lease, the amount of freight elevator time and the hours of operation the elevator can be operated are often negotiated between the landlord and the tenant.
A fuel escalation is the amount of fossil fuels that are allowed to be used in a work space during a certain time frame.
Generally Accepted Accounting Principles (“GAAP”) are the common set of standards, rules, procedures, and principles accepted by professionals in the accounting industry.
A “go dark” provision, most commonly found in a retail lease, is a clause that grants a tenant the right to cease operations at a leased space while still being obligated to pay rent to its landlord.
A good guy guaranty (“GGG”) is an agreement whereby one or more of the principals of a corporate or LLC tenant will guarantee to the landlord that it will pay all base and additional rent payments provided for under the lease up until the day the space is surrendered to the landlord – whether or not prior to the expiration of the lease term.
Gray shell is a phrase commonly utilized in commercial leases relating to the condition that a particular system or item must be in at a certain time, generally as of the date a tenant takes possession of a leased space.
A ground lease, at its basic level, is an agreement whereby a tenant leases the fee interest (i.e., the land) owned by a landlord permitting the tenant to (1) develop a particular property on the land or (2) lease the land upon which the building the tenant owns is situated on.
A gross lease is a type of commercial lease whereby a tenant leases the fee interest (i.e., the land) owned by a landlord permitting the tenant to (1) develop a particular property on the land or (2) lease the land upon which the building the tenant owns is situated on.
A guarantor is a person or entity that agrees to be responsible for another’s debt or performance under an agreement (such as a lease).
Hard costs are the readily quantifiable costs of a construction project that become part of the improvements made such as land, a building, inventory, systems, equipment, or machines. These hard costs involve the actual physical construction of a development and could include grading, excavation of a site, the materials used, landscaping, and carpentry.
A hazardous material refers to any hazardous or toxic substance, material, or waste, which is or becomes regulated by any local governmental authority or the United States government.
Holdover is when the tenant leaves the premises early and moves all of their possessions out before the landlord notices.
Hours of operation are the hours in which an entity does not conduct, or is not required to conduct, its business operations in the demised premises.
HVAC maintenance is a provision contained in a lease requiring a tenant to not only repair, maintain, and replace (if necessary) the HVAC system or air conditioning unit servicing the premises, but to also maintain a service contract on such system.
HVAC major components include compressors, evaporators, condenser fan motors, shafts and bearings, replacement of evaporator coils, and replacement of condenser coils.
Improvements can refer to any permanent structure or work, such as planting trees or building a wall, that has the effect of increasing the value of the property itself.
Interest on late payments is a contractual agreement made between two parties, in which one party agrees to pay for potential losses or damages caused by the other party.
Industrial clean is generally referred to as, in addition to the basic requirements of “broom clean” condition, the comprehensive cleaning (and in most cases disinfecting) of any and all surfaces contained in a space.
Interest on late payments is the interest charged on a payment made after the date in which the original rent payment was due under a particular contract (e.g., a lease).
Key money is the sum of money paid to (1) an existing tenant by a person or entity in consideration of, and in exchange for, an assignment of a lease, or (2) a landlord by a prospective tenant, generally for a fully furnished or “turnkey” restaurant space.
A kiosk provision is a clause in a retail lease allowing a landlord to lease or license space in the common area of a building or mall to tenants who want to sell easy to carry items and merchandise.
Landlord approval and landlord consent are situations in which a tenant must get the permission of its landlord before proceeding with its course of action. Generally, situations that require the landlord’s approval include an assignment of the lease, a sublet of all or a portion of the space or the tenant making alterations to the premises.
A landlord’s statement is an instrument or instruments prepared by a landlord comparing an economic item such as taxes or operating costs for the base tax year or base operating year with taxes or operating costs (as the case may be) for the comparison year in question, setting forth the additional rent due from a tenant for such comparison year pursuant to the provisions of the lease.
Landlord work (also referred to as the landlord work section or landlord work letter) is a lease provision wherein the landlord agrees to perform work – generally prior to the lease commencement date – to a tenant’s space at the landlord’s sole cost and expense.
A latent defect is generally considered to be a defect that a reasonable tenant should have discovered when inspecting the premises prior to the execution of a lease.
The lease commencement date is the date in which the lease term commences. In many cases, the lease will not commence until such time as the landlord substantially completes its work to be performed to the premises.
A lease renewal option is a clause, which gives the tenant (and in some cases its related entity and a permitted assignee) the option to extend the lease term for a specified period of time, on prior written notice to the landlord.
Leaseback is a landlord’s right to leaseback a tenant’s space if and when a tenant wishes to assign its lease or sublease its space.
Leasehold improvements are improvements or alterations to the leased space (such as carpeting, painting, installing light fixtures, upgrading electric, installing a new HVAC system or building additional offices and/or a private bathroom).
A leasehold mortgage is secured by ownership of property.
A letter of attornment is a written agreement wherein an existing tenant recognizes a new property owner as their landlord for the property they are renting.
A letter of credit is an agreement by the tenant to keep the property clean and functional, and in the same condition as it was on the commencement date.
A letter of intent (“LOI”) is a non-binding term sheet which outlines the basic terms of a lease transaction between a tenant and a landlord.
A lien waiver is a document executed by a landlord that says that the landlord waives the right to protest a lien against its property.
A lien is a legal claim on real property granting the holder of the lien a specified amount of money upon the sale of a property as a means of ensuring the payment of a debt, with the property acting as collateral against the amount owed.
A liquor license contingency is an “escape clause” in a lease that allows a tenant to terminate its lease in the event that a tenant’s liquor license application is rejected by the state liquor authority.
Loss factor is the “loss” due to the percentage of the space in a building “lost” to the common areas of the building and the proportional share of common areas attributed to a specific space.
Local Law 11 is the Façade Inspection Safety Program (“FISP”) requiring building owners possessing buildings with six or more stories to have their exterior walls and appurtenances inspected periodically by a licensed architect or professional engineer.
A master lease (or over lease) is the primary lease that all other leases (e.g., a sublease) are subordinate to.
Material inducement refers to a representation by a party to perform or refrain from performing a certain action that causes the other party to enter into an agreement as a consequence thereof (and would not have entered but for that inducement).
Material interruption abatement is where a tenant receives some type of compensation, usually in the form of a rent abatement, in the event there is an interruption at the premises that materially hinders or prevents the tenant from operating its business in the space beyond a pre-established amount of days.
Measurement, with regards to a commercial lease, refers to determining the amount of usable and/or rentable square footage of a space.
A compliance with law provision within a lease generally requires a tenant to (1) give to its landlord prompt notice of any written notice it receives from any governmental agency of the violation of any and all present and future laws, orders and regulations of all federal, state, municipal and local governments, departments, commissions and boards or any direction of any public officer pursuant to law, with respect to the building or the premises and (2) promptly comply with all legal requirements affecting the premises other than with respect to structural repairs (except such structural repairs as would not have been applicable but for tenant’s particular use or manner of use of the premises which is contrary to the use permitted in the lease).