# Common Lease Terms

Leasecake University

October 14, 2024

# Essential terms that every multi-unit operator should be familiar with:

1. **Base Rent**  
​ The fixed amount you pay to occupy the space, typically on a monthly or yearly basis.

2. **Percentage Rent**  
​ Additional rent based on a percentage of your gross sales, usually paid once your sales exceed a certain threshold.

3. **CAM (Common Area Maintenance) Charges**  
​ Fees for maintaining shared areas like parking lots or landscaping, paid by tenants according to the size of their leased space.

4. **Triple Net Lease (NNN)**  
​ A lease where you pay base rent plus property taxes, insurance, and maintenance costs.

5. **Rent Escalation**  
​ Scheduled rent increases, which may be tied to the Consumer Price Index (CPI) or a fixed percentage.

6. **Tenant Improvement Allowance (TIA)**  
​ Money from the landlord to cover the cost of customizing the space for your business.

7. **Lease Renewal Option**  
​ A clause that gives you the right to extend your lease for another term, typically with pre-set rent increases.

8. **Exclusive Use Clause**  
​ A provision that prevents the landlord from renting nearby space to competitors.

9. **Co-Tenancy Clause**  
​ A clause allowing reduced rent or lease termination if a key tenant in the property leaves.

#### Disclaimer

The information provided is for general guidance and should not be taken as legal advice. Lease agreements can vary, and we recommend consulting with a legal professional for advice specific to your situation.

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