When you look for commercial real estate in the Boston Metro, you’ll find yourself exposed to industry jargon. While your commercial real estate broker will provide you with information and guidance, it’s helpful to know some basic commercial real estate terms. Here are a few definitions to get started!
Commercial buildings are generally classified into A, B, and C categories:
Class A represents the most modern and well-appointed commercial space in the market; new buildings or updated buildings with excellent amenities in strong locations.
Class B refers to buildings that are older but well-managed. They may have good amenities, but be located outside of prime areas. Class B buildings with good locations may be upgraded to Class A buildings by investing in updates.
Class C buildings are older, and located in less desirable areas. They may have outdated layouts and/or mechanical systems and require renovation. On the plus side, they can be very affordable to lease or purchase.
Triple Net Lease (NNN): In a triple net lease, the tenant is responsible for all the costs relating to the property being leased, in addition to the rent. This type of lease includes the net amount of three types of costs: net real estate taxes, net building insurance, and net common area maintenance.
Common area maintenance (CAM): This can include outdoor lighting, parking lot maintenance, repairs to walkways and public areas, and so on. These costs are in addition to the base rent.
Concessions: Concessions are sometimes offered by property managers and landlords to attract tenants. Examples include a month of free rent, moving allowance, tenant improvement allowance or other incentives.
Tenant Improvements: Updates and customization made by the landlord to the tenant’s specifications, as part of the lease agreement. These can include changes to walls, floors, fixtures and aesthetics.
Rentable Square Feet: a combination of usable square feet, and a portion of the common area that is allocated to each tenant.
For more commercial real estate industry definitions, visit the glossary page of our website! If it seems a bit much to remember, don’t worry. We provide tenant representation to protect your interests and save you money.
Ready to begin, relocate or expand your business? Team up with an experienced commercial real estate broker at Jay Nuss Realty Group, LLC! Whether you are thinking of buying or leasing Boston Metro commercial real estate, we can help you find the ideal property. Please contact us today for expert guidance!