A glossary of common real estate terms used for leases and purchase agreements.

1. Glossary of Terms– Linda L. Zelm
SMALL BUSINESS COMMERCIAL REAL ESTATE GLOSSARY
Terms, Words, Jargon often used by landlords, sellers and real estate agents.
A
“As Is Condition”
The acceptance by the tenant of the existing condition of the premises at the time the lease
is executed. This would include any physical defects. May also be stated as “Broom Clean
Condition”
Abatement (Free Rent)
Usually base or minimum rent that is not charged in the first few months of a lease as an
incentive. Usually does not include CAM and Tax charges.
Anchor Tenant
A large tenant that stabilizes a property and draws traffic to the center. May be as small as
a restaurant or coffee shop in a small center or large as Super Target in a community
center.
Assessment
A fee imposed on property, usually to pay for public improvements. May be paid over a
period of years with interest.
B
Base Rent (Minimum Rent, Net Rent)
A set amount in a lease which does not include operating expenses, real estate taxes or
common area insurance. See Gross Rent.
Base Year
Actual taxes and operating expenses for a specified base year, most often the year in which
the lease commences. Once the base year expenses are known, the lease may call for
payment of various items that increase above the base year. For instance real estate taxes.
Building Standard
A list of construction materials and finishes that represent what the Tenant Improvement or
Finish Allowance/Work Letter is designed to cover while also serving to establish the
landlord’s minimum quality standards. Tenant may wish to ask for an allowance to upgrade
materials to a higher standard or quality. The Standard determines the minimum.
Build-Out (Leasehold Improvements)
The space improvements put in place determined by Tenant’s specifications within the
Tenant Finish Allowance. Additional build-out may be at Tenant’s cost above the allowance.

2. C
Capital Expenses
As part of Common Area Maintenance, those costs that are considered to be a major
improvement or addition to a property that are commonly expensed via depreciation over
the life of the improvement. Generally Accepted Accounting Principles (GAAP) does not
always provide definitive guidelines and accountants will often disagree on whether an
expense such as a new roof or parking lot overlay are to be considered capital or not.
Tenants should be concerned about the definitions in their leases as they would wish to
avoid an extra charge for a large expense that should have been capitalized.
Capitalization Method of Determining Rental Property Value
A method of determining value by dividing net operating income (NOI) by a predetermined
annual rate of return (CAP Rate). Example: A property has an NOI before taxes of $150,000
in base rents. If the market is indicating a CAP Rate of 8%, the math is: $150,000 divided
by .08 equaling $1,875,000 which would be the value of the property if sold at that CAP
rate.
Capitalization Rate (CAP Rate)
The percentage that is considered a reasonable return on investment. Used to determine
and value real property through the Capitalization Method of Net Operating Income. Also
called in some areas the Free and Clear Return.
Certificate of Occupancy
A document presented by a local government agency or building department certifying that
the premises, leased or owned, has been inspected and is a condition suitable for
occupancy.
Chapter Eleven
That portion of the bankruptcy code that deals with business reorganizations under court
supervision.
Chapter Seven
That portion of the bankruptcy code that deals with business liquidation.
Common Area
There are two components of the term. If referred to in an office building in association with
the RENTABLE/USABLE/LOAD FACTOR calculation, the common areas are those areas within
a building that are available for common use by all tenants and their customers (i.e.
lobbies, corridors, restrooms, elevators). When referred to in relationship to the calculation
of the building operating expenses, it would be the cost of maintaining parking facilities,
malls, sidewalks, landscaped areas, public toilets, truck and service facilities, lighting. This
number would be used in calculating the tenant’s pro-rata share.
Common Area Maintenance: (CAM)
Based upon a pro-rata share, this is the amount of Additional Rent charged to the tenant
above the Base Rent to maintain the common areas of the property as noted above. It may
include Real Estate Taxes, Assessments and Insurance but many times is quoted separately.
Most often, it does not include Capital Expenses (see above). Gross Rents include CAM.
Usually quoted as an annual per square foot number but is billed monthly based on annual

3. estimates and then is reconciled at the end of the calendar year with either an extra billing
for overages or a credit for underages.
Concessions
Cash or Cash equivalents such as free rent, allowances, moving allowances or other
incentives expended to persuade a tenant to sign a lease. Amounts vary depending upon
creditworthiness of the tenant, length of the term, competitiveness of the market or
condition of the building or space.
Consumer Price Index (CPI)
Measures inflation in relation to the change in the price of a market basket of goods and
services purchased by a specified population during a “base” period of time. It is not a true
Cost of Living factor and bears little direct relation to the actual costs of building operation.
The CPI is commonly used to increase the base rental rate periodically as a means of
protecting the landlord’s stream of income against inflation or to provide a cushion for
operating expense increases for a landlord unwilling to undertake the record keeping
necessary to bill for expense escalations.
Core Factor
Represents the percentage of the Net Rentable square feet devoted to the building’s
common area (lobbies, rest rooms, corridors, elevators, etc…). Also know as the R/U Factor
(rentable/usable) Factor. It is calculated by dividing the rentable square footage by the
useable square footage. So rent is charged on the space that you can use plus a percentage
of the core areas.
Covenant of Quiet Enjoyment
(Warranty of Possession) It provides a warranty by the Landlord that it has the legal ability
to convey the possession of the premises to the Tenant; the Landlord does not warrant that
he owns the land. This means that if the Landlord breeches this warranty, it constitutes an
actual or constructive eviction.
D
Deed
A legal instrument transferring title to real property from seller to the buyer upon closing of
the escrow for the sale of the property.
Deed in Lieu of Foreclosure
A deed given by an owner/borrower to satisfy a mortgage debt and avoid foreclosure
Default
The general failure to perform a legal or contractual duty or to discharge an obligation when
due. Some examples: 1) failure to make a rent payment when due, 2) failure to perform
any of the terms of a lease, 3) failure to close on the sale or make an earnest money
deposit
Demising Walls
The partition wall that separates one tenant’s space from another or from the building’s
common areas.

4. Depreciation
Spreading out the cost of a capital asset over its estimated useful life or a decrease in the
usefulness, and therefore value, of real property improvements or other assets caused by
deteriorating or obsolescence. Rates, useful life and other tools related to income taxes are
determined artificially by the IRS and are changed from time to time.
E
Earnest Money
The monetary advance by a buyer of part of the purchase price to indicate the intention and
ability of the buyer to carry out the contract. Usually is required to be placed in an escrow
account of a real estate company or a title company. May require interest be paid. In some
cases is in the form of a promissory note.
Easement
A legal right of use over the property of another owner created by grant, reservation,
agreement, prescription or government. It is either for the benefit of adjoining land such as
the right to cross A to get to B, or for the benefit of a specific individual such as a public
utility easement.
Effective Rent
The actual rental rate to be achieved by the landlord after deducting the value of
concessions from the base rental rate paid by a tenant expressed over the total term of the
lease.
Equity
The fair market value of an asset less any outstanding debt or other encumbrances such as
liens.
Escalation Clause
A clause in a lease which provides for the rent to be increased to reflect changes in
expenses paid by the landlord.
Escrow Agreement
A written agreement made between the parties to a contract and an escrow agent (such as
a title company or bank). The agreement sets forth the basic obligations of the parties,
describes the monies to be deposited in escrow and instructs the escrow agent concerning
the disposition of those monies deposited. Can also be other valuables such as jewelry, art
etc…
Estoppel Certificate
A signed statement certifying that certain statement of the fact are correct as of the date of
the statement and can be relied upon by a third party, including a prospective lender or
purchaser. In the context of a lease, a statement by a tenant indentifying that the lease is
in effect and certifying that no rent has been prepaid and that there are no known
outstanding defaults by the landlord except for those specified in the statement. No changes
can be made to the certificate by writing over or erasing. Must be a clean, signed
statement. Certificates are often signed as part of a lease document exhibit.

5. F
Fair Market Value
The actual sale price at which a property would change hands between a willing buyer and a
willing seller, neither being under any compulsion to buy or sell and both having reasonable
knowledge of the relevant facts.
First Refusal Right or Right of First Refusal (adjacent space)
A lease clause giving a tenant the first opportunity to lease additional space that may
become available in a property. Usually the right is given at the same price and on the same
terms as those contained in a third party offer that comes in on the same space. Sometimes
the pricing is spelled out in the lease.
First Refusal Right or Right of First Refusal (Purchase)
A lease clause giving a tenant the first opportunity to buy a property at the same price and
on the same terms as those contained in a third party offer that is acceptable to the seller.
Usually there is a time deadline as to when these rights must be used or refused.
Flex Space
A building providing is tenants the flexibility of utilizing the space. Usually provides a
configuration allowing a flexible amount of office or showroom space in combination with
manufacturing, lab, warehouse, etc…
G
Gross Rent (Full Service Rent)
An all inclusive rental rate that includes operating expenses (CAM) and real estate taxes for
the first year. The tenant may be responsible for any increases in operating expenses
and/or taxes over the base year amount. Does not generally include any utility costs except
for those included in CAM such as sewer and water.
Gross Building Area (GBA)
The total floor area of the building measuring from the outer surface of exterior walls and
windows and including all vertical penetrations and basement space.
Gross Leaseable Area (GLA): (Gross Rentable Area)
The total floor area subject to tenant occupancy excluding such areas as sprinkler rooms,
trash rooms. The GLA compares to the GBA in that it is less and is used in computing such
things as pro rata share of CAM and Taxes in net leases.
Ground Rent (Lease)
Rent paid to the owner for use of land. Generally it is a long term lease with the lessor
retaining ownership of the land. Any buildings built by tenant revert to lessor upon the
termination of the lease.
Guarantor
One who makes a guaranty.

6. Guaranty
Agreement where the guarantor undertakes to assure satisfaction of a debt of another or
perform the obligation of another if and when the debtor fails to do so. May also be a
Personal Guaranty of a lease whereby the tenant assures satisfaction of the rent if the
business should fail.
H
Hard Costs
The cost of actually constructing the improvements.
Holdover Tenant
A tenant retaining possession of the leased premises after the expiration of a lease. In many
cases, the tenancy becomes month to month and the tenant pays a premium above the
previous rent to maintain its holdover status. Sometimes as much as twice the normal rent.
HVAC
The acronym for Heating Ventilating and Air Conditioning
K
Kickout Clauses
A shopping center lease clause that allows the tenant to terminate the lease if the tenant’s
sales do not reach a certain level by a certain date. These clauses are not common but are
used in certain cases as an inducement to obtain a particular tenant. In general, rents
obtained from these leases are excluded from Net Operating Income by most lending
institutions and buyers unless the kickout period is longer than three years.
L
Landlord’s Lien
A type of lien that can be created by contract or by operation of law. Some examples are:
(1) a contractual landlord’s lien as might be found in a lease agreement; (2) a statutory
landlord’s lien; and (3) landlord’s remedy of distress, which is not truly a lien but has the
same effect. It is a warrant from a landlord to levy upon a tenant’s personal property and to
sell this property at a public sale to compel payment of the rent or other past due
obligations.
Lease Commencement Date
The date usually constitutes the commencement of the term of the Lease for all purposes,
whether or not the tenant actually takes possession or pays rent so long as occupancy is
possible. In reality, there could be other agreements such as early occupancy agreements
which have an impact on this definition.
Leasehold Improvements
Physical improvements or upgrades made to the leased premises by or for a tenant.

7. Denoted in a Exhibit of a lease in a detailed manner and may include a bid or drawings. In
some cases, a cash allowance in lieu of actual improvements is used. Can be paid for by
either party to the lease in part or whole.
Lease Plan
A detailed plan of the buildings in a development and all of the individual space sizes noting
the square footage of rentable and usable. Usually suite numbers are used.
Legal Description
A geographical description identifying a parcel of land by government survey, metes and
bounds or lot numbers of a recorded plan including descriptions of any easements or
reservations.
Letter of Attornment
A letter from a grantor to a tenant stating that a property has been sold and directing rent
to be paid to the grantee (buyer).
Letter of Credit
A commitment by a bank or other person made at the request of the customer that the
issuer will honor drafts or other demands for payment upon full compliance with the
conditions specified in the letter. Letters of Credit are often used in place of cash deposited
with the landlord for a security deposit or other guarantees of a lease such as the financial
condition of the tenant.
Letter of Intent
A preliminary agreement stating the proposed terms for a final contract. They can be
“binding” or “non-binding”. This is used commonly today to begin negotiations on a final
draft of a lease or purchase. They are generally non binding but it must state in the LOI that
it is non binding.
Lien
A claim or encumbrance against property used to secure a debt, charge or the performance
of some act.
Lien Waiver (Waiver of Liens)
A waiver of mechanic’s lien rights, signed by a general contractor and his subcontractors,
that is often required before a general contractor can receive a draw from financing or a
payment from an owner. In many leases, a tenant will need to furnish such a waiver in
order to receive an Improvement Allowance from a Landlord.
M
Master Lease
A primary lease that controls subsequent subleases. An Executive Suite operation is a good
example in that a primary lease is signed with the landlord and then individual offices within
the premises are leased to other individuals.
Mechanics Lien
A claim created by state statutes for the purpose of securing priority of payment of the price
of work performed and materials furnished in constructing, repairing or improving a building

8. and which attaches to the land as well as to the buildings. Liens must be paid in full before a
building can be mortgaged or sold.
N
Natural Breakpoint
Used in some shopping center leases to compute Percentage Rent. See Percentage Rent for
example. It is the dollar point where the base rent equals a percentage of the gross sales of
a retailer in the lease above which additional rent is owed. It constitutes a point where
minimum rent stops and percentage rent begins annually.
Net Lease
A lease in which there is a provision for the tenant to pay as additional rent certain costs
associated with the operation of the property. These costs may include real estate taxes,
insurance, repairs, utilities and maintenance but no capital expenses. There are also NN
(double net) and NNN (triple net) leases. The difference is the degree to which the tenant is
responsible for operating costs.
Net Rentable Area
The floor area of a building that remains after the square footage represented by vertical
penetrations such as elevator shafts, etc… has been deducted. Common areas such as
hallways and lobbies are included and there are no deductions made for necessary columns
and projections of the building.
Exclusive or Non-Compete Clause
A clause that can be inserted into a lease specifying that the business of the tenant is
exclusive in the property and that no other tenant operating the same type of similar type
of business can occupy space in the building. Usually an allowance of 10% of total square
footage of a companion tenant can be allowed for competing merchandise.
O
Operating Expenses: (CAM, Insurance, Real Estate Taxes)
The actual costs associated with a property including maintenance, repairs, management
fees, utilities, taxes and insurance but not capital costs. A landlord’s definition is likely to be
broad, covering most aspects of operating the building. Many of these are reimbursed by
the tenants. Sometimes called the “net=nets” or “pass-throughs”.
Option to Renew
A clause giving a tenant the right to extend the term of a lease, usually for a stated period
of time and at a rent amount as provided for in the lease.
P
Parking Ratio
The intent of this ratio is to provide a uniform method of expressing the amount of parking

9. that is available at a given building. Dividing the total rentable square feet by the total
number of parking spaces.
Example: Building a has 9500 rentable square feet with 95 spaces of parking. So it has a
ration of 95/9500 or 10. So it has 10 spaces per 1000 square feet of space. Most metro
areas require between 4 and 6 spaces per 1000 for a common office or retail tenant.
Restaurants may be higher.
Pass-throughs
(CAM, Taxes, Operating Expenses) Refers to the tenant’s pro rata share of operating
expenses for the shopping center common to all tenants. Paid as additional rent.
Percentage Leases
Common in shopping centers where there is a substantial anchor. refers to the provision of
the lease calling for payment of additional rent as a percentage of the tenant’s gross sales.
Example: Base Rent, Annually: $50,000
% Rent: 4% over a Natural Breakpoint
$50,000 / by .04= $1,250,000 (Natural Breakpoint where the base rent is equal to 4% of the gross
sales)
Percentage Rent would then be 4% of all sales in excess of the $1,250,000 per year.
Leases may also use an artificial breakpoint. Occasionally leases will be written with
percentage rent only. Example would be 4% of all gross sales from Commencement Date
with no floor or minimum rent.
Pro Rata
Proportionately, according to measure, interest or liability. In the case of a tenant, the
proportionate share of expenses for the maintenance and operation of the property.
Example: Leased Space = 1200 square feet
Total Gross Leaseable Area = 9600 square feet.
Pro Rata Share would be: 1200/9600 = 12.5% of operating expenses or CAM assigned to
this 1200 sf space.
Punch List
An itemized list, typically prepared by the architect or construction manager, documenting
incomplete or unsatisfactory items after the contractor has notified the owner that the
tenant space is substantially complete. Many times a portion of the bid price is held back
until Punch List items are satisfactorily completed.
R
Real Property
Land and whatever is erected or affixed to the land, such as buildings, fences, driveways
and whatever items are affixed to the building such as light fixtures, plumbing or other
items that would be Personal Property if not attached. It is important for a buyer to fix a
value to the real property and a separate value to the Personal Property at the time of the
purchase because of different tax treatments for each type.
Recapture
As used in leases, a clause giving the lessor a percentage of profits above a fixed amount of
rent: or in a percentage rent lease, a clause granting the lessor a right to terminate the
lease if the tenant fails to realize minimum sales.

10. Recourse
The right of a lender, in the event of the default of a borrower, to recomer against the
personal assets of a party who is secondarily liable for the debt, (eg…endorser, guarantor).
Recourse: The right of a lender, in the event of a default by the borrower, to recover
against the personal assets of a party who is secondarily liable for the debt (e.g. an
endorser or guarantor.
Renewal Option
A clause giving a tenant the right to extend the term of a lease, usually for a stated period
of time and at a rent amount as provided for in the option language.
Rent
Compensation of fee paid usually periodically such as monthly for the occupancy and use of
any rental property, land, buildings, equipment etc… (See Base Rent or Minimum Rent)
Rent Commencement Date
(See Lease Commencement Date) Date on which tenant begins paying rent or additional
rent such as operating expenses. Many times it is after the Lease Commencement Date
because of a period of reduced or no rent for buildout. It may or may not be the same date
as the lease commencement date or the occupancy date which may occur months earlier
than the date rent payments begin. In some cases depending upon negotiations, the base
rent will begin later than the additional rent (operating expenses).
Rentable/Usable Ratio
That number obtained when the Gross Leasable Area (GLA) area in a building is divided by
the Usable Area in the building. When taken as a percentage, it describes the proportion of
the space that a tenant can actually physically occupy. In office leases and enclosed malls,
the usable area is smaller than the rentable. In some strip centers, it is the same.
Rental Concession
A reduction in rental terms or other lessening of terms (concessions) that a landlord will
offer a tenant below the stated terms, in order to secure their tenancy. There are many
forms this can take such as improvement allowances, free rent, moving allowances, kickout
clauses, etc…
REO (Real Estate Owned) (Special Assets)
Known by many terms it is real estate that has come to be owned by a lender usually taken
to satisfy a debt through foreclosure or deed in lieu or some kind of settlement or
obligation.
Representation Agreement
(1) Listing Agreement is between the owner of a property and a real estate broker giving
the broker the authorization to attempt to sell or lease the property at a certain price and
terms in return for a commission, set fee or other form of compensation. The listing may be
exclusive or not. The agreement creates an agency relationship requiring certain ethical
standards, rules and duties. (2) Tenant or Agency Agreement is between a tenant or
purchaser and a real estate broker giving the broker the authorization to attempt to secure
a property on behalf of the client in return for compensation. Traditionally the owner of the
property pays the broker a fee but not in all cases and is not required by law.
Request for Proposal: (RFP)
This formalized request represents the compilation of the many considerations a tenant

11. might have and should be customized to reflect their specific needs. Just as the building’s
standard form lease document represents the landlord’s “wish list”, the RFP services in that
same capacity for the tenant.
S
Sale-Leaseback
An arrangement by which the owner occupant of a property agrees to sell all or part of the
property to an investor and then lease it back and continue to occupy space as a tenant.
Although the lease technically follows the sale, both will have been agreed to as part of the
same transaction.
Second Mortgage
A mortgage on a property that ranks below a first mortgage in priority of claim upon the
asset for payment. Legal sequence of claim indicated by date of recording determines the
designation. May also have a third or more mortgage, deed of trust, land contracts,
contracts for deed or liens on a property at the same time and may be in value totally more
or less than the market value.
Security Deposit
An amount of money given by tenant to landlord to secure performance of a lease. This
deposit can take many forms from a simple IOU to a Letter of Credit or other financial
instrument. Also in some cases can be hard assets such as jewels or art.
Setback
The distance from a curb, property line or other reference point within which building is
prohibited. May be set by city ordinance or deed restrictions.
Shell Space
The interior condition of either a new or existing building without improvements or finishes
such as flooring, sheetrock, lighting or bathrooms. Building owner will define condition of
shell space.
Site Plan
A detailed plan which depicts the location of improvements on a parcel of land which also
contains all the information required by the zoning ordinances. (See also Lease Plan)
Soft Cost
That portion of an equity investment other than the actual cost of the improvements
themselves (such as: architectural and engineering fees, commissions, etc…) and which
may be tax-deductible in the first year.
Space Plan
A graphic representation of a tenant’s space requirements, showing walls and doors, room
sizes and sometimes furniture and fixture layouts. It must be accurate enough to estimate
construction costs and will be an actual exhibit of the lease.
Special Assessment
Any special charge levied against real property for public improvements such as sidewalk,
streets, water and sewer that benefit the assessed property. Usually amortized within the

12. Common Area Maintenance over the amount of time the assessing entity allows for
payment.
Specific Performance
A requirement compelling of the parties to perform or carry out the provisions of a contract
into which he has entered including purchase agreements and leases.
Step-Up or Graded Lease
A lease specifying set increases in rent at set intervals during the term of the lease. Maybe
a dollar or percentage figure.
Straight or Flat Lease
A lease specifying the same, a fixed amount, of rent that is to be paid periodically during
the entire term of the lease.
Sublease
A lease between a subtenant and a master tenant usually at rents equal to or less than the
stated rent in the lease. The master tenant is the person or entity that has a direct lease
with the landlord. A subtenant must adhere to all of the terms of the master lease and the
terms of the sublease. It is important to note that the subtenant is subject to the financial
health of the master tenant so that if the master tenant should become bankrupt and the
master lease is no longer in effect, the subtenant does not have any rights to the space and
may be required to move or to pay the rent stated in the master lease. An attorney’s advice
should always be sought before entering into a sublease as there are ways to protect the
interests of the subtenant.
Subordination Agreement
As used in a lease, the tenant generally accepts the leased premises subject to any
recorded mortgage or deed of trust lien and all existing recorded restrictions and the
landlord is given the power to subordinate the tenant’s interest to any first mortgage or
deed of trust lien subsequently placed upon the leased premises.
T
Time is of the Essence
Means that performance by one party within the period specified in the contract is essential
to require performance by the other party.
Tax Base
The assessed valuation of all the real property that lies within the jurisdiction of a taxing
authority, which is then multiplied by the tax rate or mill levy to determine the amount of
tax due.
Tenant Improvement Allowance (TI) or Work Letter
Defines the fixed amount of money contributed by the landlord toward tenant
improvements. The tenant pays any of the costs that exceed this amount. In some cases,
the TI’s are amortized into the lease above the base or minimum rent with a designated
interest amount.

13. Title
The means whereby the owner of lands has the just and full possession of real property.
Title Commitment
A document provided by the title insurance company showing the condition of the title and
the terms under which the title company would insure the title for a property. Usually there
are items on the commitment that need to be cleared or removed or cured.
Title Insurance
A policy issued by a title company after searching the title history and which insures against
loss resulting from defects of title to a specifically described parcel of real property or from
the enforcement of liens existing against it at the time the title policy is issued.
Title Search
A review of all recorded documents affecting a specific piece of property to determine the
present condition of the title.
Trade Fixtures
Personal property that is attached to a structure that are used in the business. Since this
property is part of the business, it is deemed not to be part of the real estate. Typically it is
removable upon lease termination. It is sometimes referred by the acronym FF&E which
means Furniture, Fixtures and Equipment.
Triple Net (NNN) Lease
A lease in which the tenant pays, in addition to rent, certain costs associated with the
leased property and applicable to the common areas of the property. A true triple net lease
would charge the tenant for every expense including such things as roof maintenance and
repairs, HVAC replacement and repairs and all other costs including real estate taxes and
insurance. The landlord would pay for very little and maybe nothing. There are also Net
Leases and NN leases which are variations on this theme. The term net lease is used loosely
and tenants are wise to check just what they are expected to pay and what the landlord will
pay.
Turnkey Project
The construction of a project in which a third party usually a developer or general contractor
is responsible for the total completion of a building or the construction of tenant
improvements to the customized requirements of a tenant or owner.
V
Variance
Refers to permission from a government entity that allows a property owner to depart from
the literal requirements of a zoning ordinance that because of special circumstances cause a
unique hardship.

14. W
Workletter
A list of the building standard items that the landlord will contribute as part of the tenant
improvements. Examples include: style and type of doors, lineal feet of partitions, type and
quantity of lights, floor coverings, telephone and electrical outlets, etc… the workletter often
carries a dollar value but is contrasted with a fixed dollar tenant improvement allowance
that can be used at the tenant’s discretion.
Z
Zoning and Zoning Ordinances
The division of a city, town or county into zones and the application of regulations
(ordinances) having to do with the structural, architectural design and the intended use of
buildings within such designated zone. Such zones might include an Industrial, Residential,
Retail, Multi-Family, Commercial and subzones within those classifications. It is important to
check on the zoning before deciding to buy a building or parcel of land for a particular use.
For more information, please contact:
Small Business Real Estate Advisors
Linda L. Zelm, SCLS
310 Kiowa Avenue
St. Paul, MN 55112
Phone: (612) 868-5561
E-Mail: linda@lindalzelm.com