Commercial Lease Glossary
Definitions for the terms you actually meet in office, retail, and industrial leases. Curated, not exhaustive.
CAM Charges
What CAM charges are, how landlords calculate them, what to challenge during audits, and how they show up in HK / SG / JP commercial leases.
Common Area
What common area means in a commercial lease, how its scope drives CAM charges, and what to clarify before signing.
Estoppel Certificate
What an estoppel certificate is, why lenders and buyers demand them, what the tenant should and should not certify, and APAC practice.
Gross Lease
What a gross lease is, how the landlord absorbs operating costs, when it makes sense for the tenant, and APAC equivalents.
Holdover Tenancy
What happens when a tenant stays past lease expiry — holdover rent multipliers, the difference between sufferance and sufferance-with-consent, and APAC practice.
Letter of Intent (LOI)
What a commercial lease LOI does, which terms are binding vs non-binding, what to include, and how APAC lease LOIs differ.
Modified Gross Lease
How a modified gross lease splits costs between landlord and tenant, why base year matters, and how it shows up in APAC office leases.
Rentable vs Usable Square Feet
Why the rentable / usable distinction matters, how the load factor is calculated, BOMA / IPMS measurement standards, and APAC norms.
SNDA (Subordination, Non-Disturbance, and Attornment)
What an SNDA is, why lenders require subordination, what non-disturbance protects, and how attornment works after a foreclosure.
Sublease
What a sublease is, how it differs from assignment, what the prime lease usually requires, and how APAC landlords treat sub-letting.
TI (Tenant Improvement) Allowance
How TI allowances work in commercial leases — fixed dollar vs turnkey, what counts as eligible cost, draw mechanics, and APAC fit-out norms.
Triple-Net Lease (NNN)
What a triple-net (NNN) lease is, what the three nets cover, how it differs from gross and modified gross, and when it shows up in APAC.