Partial Lien Waiver: A document executed by a contractor or subcontractor notifying not only the party making payment to the contractor or subcontractor but also to the property owner, bank, insurance companies, and other interested parties that partial payment has been made to those providing services to a construction project (and as a consequence thereof, the property has been relieved of any threat of a lien against it for the dollar amount paid and/or percentage of work completed indicated within the partial lien waiver).
Partial Sublet Clause: A provision contained in a lease permitting a tenant to sublease part of its space to a subtenant.
Pass-Throughs: Tenant’s proportionate percentage of building operating expenses.
Payment Bonds: A contract bond which guarantees, in the event the contractor on a project defaults on its obligations under the construction contract, that subcontractors, labor, and material suppliers will receive payment (in essence guaranteeing the completion).
Payment and Performance Bond: A bond that essentially guarantees that: (1) material suppliers and workers on a project will be paid (i.e., the payment bond); and (2) the work specified in a contract is done according to the specifications, conditions, and terms of the contract.
Percentage Lease: Commonly executed in retail leases, it is a lease where the tenant pays base rent along with a percentage of its gross sales (generally subject to certain carve outs and over and above a pre-determined monetary threshold).
Percentage Rent: Commonly found in leases for retail tenants, it is a provision found in a lease that states if a tenant achieves a certain amount of gross sales in a given time period, the tenant will pay a certain percentage to landlord as additional rent.
Performance Bond: In short, a performance bond guarantees that all work provided for in a construction contract is in fact completed pursuant to the terms and specifications of the AIA or other contract. For example, many landlords will reduce the perceived risk on a tenant’s construction project by requiring its tenant to secure a performance bond, which essentially guarantees that work commenced on such contract will in fact be completed.
Permitted Occupant or Desk Sharing (Provision): A provision which allows a tenant to sublease or license out offices or desk space within its space, subject to specified terms and conditions, without the necessity of having to go through the process and cost associated with securing the landlord’s consent.
Personal Guarantee | Personal Guaranty | Straight Personal Guarantee | Straight Personal Guaranty: An agreement in which an individual agrees to be personally liable for the obligations of a party (i.e., the tenant) to a lease.
Physical Culture Establishment(s) (“PCE”): Generally stated, a health club or other establishment where a tenant’s customers exercise.
Pop-Up Store: Temporary retail spaces that are leased anywhere from one day to a few months. Many pop-up shops are seasonal or are used to test out products.
Porter’s Wage Escalation: A provision that passes on the porter’s salary increases on to the tenant over a pre-determined base year.
Power of Attorney: A legal document giving someone the authority to act on another’s behalf in a specific instance or for all legal and financial matters. A document used to appoint someone to make decisions on your behalf.
Profit Sharing (Rights): The right of a landlord to split (i.e., generally 50/50) the proceeds from a sublet or an assignment with its tenant over and above the rent provided for within a lease, after deduction for costs incurred in connection with the sublet or assignment.
Punch List: In the context of substantially completing a landlord’s work to a tenant’s space, it is landlord’s agreement to repair and/or complete at its sole expense, minor items (after tenant has taken possession of the premises), within a period of up to thirty (30) days after tenant has provided landlord with a list of such punch list items.