Charges recovered from tenants for maintaining shared areas of a building or scheme, such as lobbies, lifts, parking, and landscaping; the retail and commercial equivalent of a service charge.
Related terms
- Contracting out
Agreeing to exclude statutory security of tenure so the tenant has no automatic right to renew at lease end; the tenant gives up renewal protection at the outs…
- Covenant strength
The financial reliability of a tenant, a key determinant of the value of leased income.
- Dilapidations
Disrepair or breaches of a tenant's repairing and reinstatement obligations, and the landlord's claim for the cost of making them good at or during lease end.
- Effective rent
The rent after adjusting for incentives, giving the true economic value of a lease.
- Escalation
A pre-agreed periodic increase in rent, e.g.
- Estimated rental value (ERV)
The open-market rent a property would be expected to command if let at the valuation date on standard terms; the benchmark against which passing rent is judged…
- Fit-out
The work to make an interior space ready for occupation by a tenant.
- Grade A
The highest-quality specification of office or commercial space in a market.