Glossary   

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C
Cancellation Clause
A clause that may be included in a lease, granting the lessor or the lessee the right to terminate the lease term upon the happening of certain stated events or occurrences upon notification and in most cases consideration.

Capitalization Rate
The rate of interest used in calculating the present value of future periodic payments.

Carpetable Square Feet
The amount of square feet that can be utilized for people and furniture.

Center Core Configuration
A building structure where a core of elevator banks, emergency staircases, plumbing, electricity and HVAC is located in the center of the building. This center core allows for a traditional layout of perimeter offices on all sides of the building.

Certificate of Insurance
A document issued by an insurance company to verify coverage.

Certificate of Occupancy
A certificate issued by a governmental authority indicating that a building is fit for a specific type of occupancy and there are no building code violations.

Class A Building
These buildings are constructed of the highest quality materials and are very well designed. They are sought by prestigious tenants. These buildings are superbly maintained and very well managed.

Class B Building
These buildings offer useful space without special amenities. They are usually very functional in layout and design, though not unique. Generally, the maintenance and management is average to good.

Class C Building
These buildings are older and typically offer space without amenities. The maintenance, management and HVAC are average to below average.

Commission
A dollar amount paid by an owner to a broker for arranging a transaction.

Common Area
The areas of a property that are used by all tenants or owners, e.g. stairways, lobby, lavatories, mechanical shafts.

Competing Business Option
An agreement between a landlord and tenant X where the landlord agrees not to rent other units in a building to another tenant(s) for the same business purpose as tenant X.

Connectivity
A building's capability to provide high speed internet connections, contingent upon the building's wiring.

Construction Allowance
A financial inducement to a lessee that is provided by the lessor to cover the cost, in whole or in part of preparing a structure for the lessee’s occupancy. This allowance could cover costs, such as for partitions, wiring, lighting and standard carpeting.

Contiguous Space
A space that is adjacent to and/or adjoining to another space.

Conveyance
The transfer of title or an interest in real property by means of a written instrument such as a deed or an assignment of lease.

CPI Escalation
An escalation formula that increases the tenant's rent obligation for building operating expenses in proportion to changes in the Consumer Price Index (CPI).