s m G r e ADDITIONAL RENT T Additional rent refers to the charges to a tenant not included in the base rent, such as common area maintenance t N (CAM) fees, after-hours service, parking fees, etc. n I e ARBITRATION m S Arbitration refers to a non-judicial dispute resolution process that involves a hearing and determination of a disputed e issue by one or more neutral third parties whose decision is binding. e r A g ASSIGNMENT A E An assignment refers to the transfer of an interest (e.g., a leasehold interest) in real property. e s L a BASE RENT e The base rent is the minimum rent due under a standard commercial lease agreement. Additional rent may be required, L in addition to the base rent, depending on the lease structure. d L e BUILD-OUT s A The build-out refers to any work required to make the premises ready for the business to operate out of the space on the U first day of their lease agreement. I y l t COMMON AREA MAINTENANCE (CAM) n C e The common are maintenance (CAM) expense is an amount charged to tenants on top of the base rent as additional u rent. It is mainly used to cover the cost of maintenance fees for work performed to maintain the common areas of the property. CAM fees are assessed to tenants on a prorated basis depending on occupiable square feet. q R e r COMMON AREA MAINTENANCE (CAM) CAP F E The maximum amount the tenant can be charged for its share of common area maintenance expenses. DUE DILIGENCE M The process of examining and investigating a property by or for the potential tenant, lender or purchaser of a property. Failure to exercise due diligence may sometimes result in unanticipated costs or liabilities. M EASEMENT An easement is a publicly-recorded legal agreement that gives one party the authority to use another person’s property O for a specific purpose. The current owner maintains ownership of that property, but grants use to the other party for a period of time (sometimes indefinitely). For example, a property owner may provide another owner with an easement to use a strip of land as a driveway if there was no space on his own property for that driveway. C EXCLUSIVITY Prohibiting an owner from leasing to another tenant with similar business uses. Exclusivity provisions are common in retail leasing situations. FIT-OUT Fit-out typically refers to activities making a commercial tenant interior space suitable for occupation. Often, a tenant’s own contractor does fit-out construction, as opposed to the landlord’s construction company. MINIMUM RENT (“BASE RENT”) In the context of commercial lease agreements, the minimum rent refers to the base, fixed rent applicable for a certain period. Minimum rent can be subject to adjustment periodically, based on negotiated terms. REHI 843.300.5387 www.rehouseintl.com