Glossary Topic: Lease Structures

The transfer of a tenant’s lease rights and obligations to another party, usually subject to landlord consent.

A hybrid lease in which landlord and tenant split operating expenses.

The fixed minimum rent owed under a lease, before escalations, percentage rent, or expense reimbursements.

Any lease in which the tenant pays some or all property expenses in addition to rent.

A renegotiation in which the tenant extends its term in exchange for a blended, often lower, rental rate.

A tenant’s right to extend the lease for additional periods, usually at pre-set rent increases.

A lease with no tenant termination or rent abatement rights, even after casualty or condemnation — rent behaves like a bond coupon.

Additional rent based on a share of tenant sales above a set breakpoint.

A property developed to a specific tenant’s requirements, typically with a long-term lease signed before construction.

A tenant’s right to match a third-party offer before the owner can sell to that buyer.