Guidebook for Developing and Leasing Airport Property (2011) / Chapter Skim
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Appendix C - Glossary
Appendix C - Glossary
Pages 106-122
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From page 106... ...
It is usually expressed as a percentage that can then be applied to the usable square footage to determine the rentable square footage upon which the tenant will pay rent. Air (or Aircraft)
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From page 107... ...
To agree to recognize a new owner of property and to pay the new landlord rent. In a lease, when the tenant agrees to attorn to the purchaser, 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.
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From page 108... ...
the lease term is equal to 75% or more of the estimated economic life of the property; or (d) the present value of minimum lease rental payments is equal to 90% or more of the fair market value of the leased asset, less related investment tax credits retained by the lessor.
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From page 109... ...
: Measures inflation by calculating the change in price of a "fixed market basket of goods and services," purchased by a specified population during a "base" period of time. CPI bears little direct relationship to actual costs of building operation or the value of real estate, but is commonly used to increase the base rental periodically, as a means of protecting the landlord's rental stream against inflation, in lieu of the landlord undertaking the record keeping necessary to determine the true change in operating expenses.
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From page 110... ...
Economic Rent: The market rental value of a property at a given point in time, even though the actual rent may be different. 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, usually expressed as an average rate over the term of the lease.
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From page 111... ...
Expense Stop: An agreed dollar amount to be paid for taxes and operating expense, which can be expressed for either the building as a whole, or on a square foot basis, over which the tenant will pay its pro rata share of increases. This terminology may be applied to specific expenses such as property taxes or insurances.
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From page 112... ...
Full Service Rent: An all-inclusive rental rate that includes operating expenses and real estate taxes for the first year. The tenant is generally still responsible for any increase in operating expenses over the base year amount.
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From page 113... ...
and basement space. Gross Lease: The tenant pays a flat rental rate, out of which the landlord must pay for all expenses including taxes, insurance, maintenance, and utilities.
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From page 114... ...
Money judgments, when recorded, become a lien on real property of the defendant. Judgment Lien: An encumbrance that arises when a judgment for the recovery of money attaches to the debtor's real estate.
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From page 115... ...
See also TENANT IMPROVEMENTS. Lease Term: A fixed, noncancelable period of time for which a lease agreement is in force.
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From page 116... ...
116 Guidebook for Developing and Leasing Airport Property
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From page 117... ...
In many leases, the tenant is not responsible for "normal wear and tear." O Obstruction: Any object or natural growth, terrain, or permanent or temporary construction or alteration, including equipment or materials used therein, the height of which exceed the standards established in Subpart C of Federal Aviation Regulations Part 77, Objects Affecting Navigable Airspace. Off-Airport Property: Property that is beyond the boundary of land owned by the airport sponsor.
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From page 118... ...
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 provided for in the option language. 118 Guidebook for Developing and Leasing Airport Property
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From page 119... ...
Rent Commencement Date: The date on which a tenant begins paying rent. The dynamics of a marketplace will dictate whether this date coincides with the lease commencement date, or if it commences months later (sometimes in a weak market, the tenant may be granted several months free rent)
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From page 120... ...
: One who rents real estate from another and holds an estate by virtue of a lease. 120 Guidebook for Developing and Leasing Airport Property
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From page 121... ...
V Vacancy Factor: The amount of gross revenue that pro forma income statements anticipate will be lost because of vacancies, often expressed as a percentage of the total rentable square footage available in a building or project. Glossary 121
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From page 122... ...
Requirements vary from district to district, but they must be uniform within districts. 122 Guidebook for Developing and Leasing Airport Property
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Key Terms
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