Base rent
The stated rent for the premises before additional rent and other occupancy costs. It is only one input in a useful occupancy-cost comparison.
A DECISION TOOL, NOT A LEASE FORM
Definitions are useful when they lead to better questions.
These definitions are general educational context. Lease language, building facts, municipal rules and transaction terms vary. Use the term to sharpen the question, then confirm the answer with the relevant documents and appropriately qualified advisors.
LEASE ECONOMICS
Additional rent
Costs charged in addition to base rent under the lease structure, often connected to property operating costs, taxes or common-area items. Review its definition and reconciliation process.
Net rent
A rent structure where operating costs and other recoveries are generally separate from the base-rent figure. The actual allocation depends on the lease wording.
Gross rent
A rent expression that includes some or all property costs. Never assume two gross-rent quotations include the same things without comparing the inclusions.
Escalation
A scheduled change to rent during the lease term. It should be modelled across the full decision period, not read as an isolated annual percentage.
Free rent
A negotiated period with rent relief. It can affect cash flow and effective occupancy cost, but does not remove other obligations unless the agreement says so.
Tenant improvements
Work completed to adapt premises for an occupier. Scope, approvals, timing, ownership and reinstatement obligations should be made explicit.
Security deposit
Security held under a lease. Its amount, form, draw rights and replacement requirements are contractual details that should be reviewed in context.
SPACE AND BUILDING FUNCTION
Clear height
The usable vertical distance in a facility, measured according to the relevant building convention. It matters only alongside racking, sprinklers, equipment and operating layout.
Loading dock
A truck-loading position designed to align with a trailer floor. The count alone is incomplete; approach, apron, door dimensions and scheduling matter too.
Grade-level loading
A loading door at grade that allows a vehicle to enter or load from ground level. It can be critical for certain equipment, vehicles or smaller-format operations.
Cross-dock
A building layout with loading on more than one side, often used to support goods movement. The practical value depends on circulation, dock configuration and operating process.
Bay depth
The depth of an industrial unit from front to rear. It influences office placement, storage layout, loading and the efficiency of a particular operation.
Power
Electrical capacity and service characteristics available to a premises. Confirm existing capacity, expansion feasibility, timing and cost rather than relying on a headline number.
Office ratio
The portion of a premises dedicated to office or finished space. The appropriate ratio depends on how people, product, equipment and customer-facing uses actually function.
Site coverage
The share of a site occupied by building footprint. It can affect yard, parking, circulation, expansion and the physical flexibility of an industrial operation.
SITE, TIMING AND CONTROL
Yard
An outdoor area used for storage, parking, staging or movement. Its permitted use, dimensions, surface, access and exclusivity should be verified before it is treated as operational capacity.
Trailer parking
Dedicated or shared places for trailers. Confirm counts, circulation, time restrictions and whether the right is exclusive, licensed or simply informal practice.
Zoning
Municipal land-use rules that govern permitted uses and development. A zoning label is a starting point; the intended operation, approvals and conditions need their own review.
Possession date
The agreed date an occupier can take possession under the lease. It may differ from a target move date, opening date or date on which improvements are complete.
Fixturing period
Time allowed for an occupier to prepare premises before full operations. It should be aligned with construction, permits, equipment commissioning and the lease’s cost obligations.
Renewal option
A contractual right that may allow an occupier to extend a term on stated conditions. Notice windows, rent-setting mechanics and eligibility rules are material.
Assignment
A transfer of a tenant’s lease interest to another party, normally subject to the lease’s consent and other provisions.
Sublease
An arrangement where a tenant grants occupancy to another party while remaining responsible to the landlord under the head lease, subject to the applicable agreement.
DECISION PROCESS
Requirement brief
A structured record of what an operation needs: market, area, loading, height, yard, timing and constraints. It is more useful than a generic request for available space.
Due diligence
The investigation that tests whether a proposed premises and lease support the intended operation. It includes physical, financial, legal, planning and timing questions.
Letter of intent
A preliminary document that can frame principal business terms before a lease. Its legal effect varies; it should not be treated as a standard form or final agreement.
Inducement
A concession or contribution offered in connection with a transaction. Its value depends on timing, conditions, repayment triggers and the broader deal economics.
Effective rent
A planning measure that reflects stated rent together with selected concessions or costs over time. Its usefulness depends entirely on clear assumptions and comparable inputs.
Tour criteria
The agreed operational questions used to assess a premises during a visit: circulation, loading, ceiling, power, yard, access, condition and timing—not just appearance.
Decision readiness
A completeness measure for a requirement brief. It identifies unanswered operating questions; it is not a prediction that a particular property is suitable.
Permissioned introduction
A Commercially-managed introduction that happens only when the relevant information and disclosure path have been considered, rather than by publishing a private brief broadly.
PUT THE TERMS TO WORK
Start with the operation, not a listing headline.
Turn the relevant market, size, loading, clear-height, yard and timing questions into a private requirement brief—or model the assumptions first with the planning tools.
Build a private requirement →Use the lease calculator →