FAQ's

  1. What is a lease term?
  2. What does the term Class mean in reference to commercial properties?
  3. What are Operating Expenses?
  4. What are Pass Throughs?
  5. What is a Triple Net lease?
  6. What’s a Gross Lease and how does it differ from a Net Lease?
  7. What are TICAM charges?
  • What is a lease term?

    A lease term is the specific period of time in which the Landlord grants to the tenant the right to possession of real estate.

  • What does the term Class mean in reference to commercial properties?

    Class is usually used to describe an office property and refers to the quality of property. Class definitions fall within the following guidelines:

    Class A+: Landmark quality, high-rise building with prime central business district location (the best of the Class A buildings).
    Class A: Generally 100,000 sf or larger (five or more floors), concrete and steel construction, built since 1980, business/support amenities, strong identifiable location/access.
    Class B: Renovated and in good locations. Newer building are smaller in size, wood frame construction, and/or in non-prime location.
    Class C: Older, un-renovated of any size in average to fair condition.

  • What are Operating Expenses?

    In a lease, Operating Expenses refer to the cost of operating an office building, such as janitorial, management fees, utilities, and similar day to day expenses, as well as taxes, insurance, and a reserve for replacement of items which periodically wear out. They should not include capital expenses such as roof replacement nor expenses associated with the production of income such as leasing commissions and legal fees.

  • What are Pass Throughs?

    A Pass Through is an increase in operating expenses over the base year amount that is billed to the tenant as additional rent.

  • What is a Triple Net lease?

    A Triple Net lease is a lease requiring the tenant to pay, in addition to a fixed rental, the expenses of the property leases such as taxes, insurance, maintenance, utilities, cleaning etc. The terms “net net”, “net net net”, “triple net”, and other such repetitions are also used to describe this type of lease.

  • What’s a Gross Lease and how does it differ from a Net Lease?

    A Gross Lease is a lease in which the stated rent includes the operating expenses of the building. It can also be called a Fully Serviced Lease and is the opposite of a Net Lease.

  • What are TICAM charges?

    Taxes, Insurance & Common Area Maintenance charges. Those charges levied on or the expenses incurred in taxes, insurance and maintaining the common areas of a building.