A

Accounting Standard

The principle that guides and standardizes accounting practices and is used for financial accounting i.e. FASB Topic 840, FASB Topic 842, IFRS.

 Accruals are earned revenues and incurred expenses that have an overall impact on an income statement. They also affect the balance sheet, which represents liabilities and non-cash-based assets used in accrual-based accounting. These accounts include, among many others, accounts payable, accounts receivable, goodwill, future tax liability and future interest expense. It also allows a company to show assets that do not have a cash value.

Rents payable to the landlord other than the Base Rent or Minimum Rent and Percentage Rent.  These are expenses and charges to operate the property such as municipal taxes, insurance premiums, repair and maintenance costs, utilities, etc.

Admin Fee Percentage

The percentage of the administration fee applicable to some or all costs within a lease

payment thus will be calculated as a percentage of each line item amount. 

Allocation BU

The division, facility or department of an organization to which costs need to be allocated to.

Amount/Cost/ Penalty

The amount either party is obligated to pay upon exercising the option.

Area Measure

The unit of measurement used to the describe the rentable area stated in the lease i.e. square feet, square meters, acres, etc.

Auto-Renewal

The Lease will be renewed or extended for another term after the expiry of the current term unless one of the parties gives notice to the other of its intent to terminate the lease.

B

Base Index

The figure arbitrarily used as the initial value of an index. All future values of the index are compared against the base.

Base Year

The year used for comparison in the measure of a business activity or economic index. The reference base year refers to the period in which the index is set to 100.0. (Most common is 1982- 84=100).  The base year is typically specified in the Lease which is more common in Operating Expenses related to office or corporate space (i.e. Realty Taxes). This is the starting point for increases where increases above this base year could be capped. This is an alternative way to control expenses.

Batch Rent

A group of approved recurring rent costs, single lease payments or billings available for generation or posting.

Breakpoint

The point at which percentage rent is payable after a certain amount of gross sales are met as defined in the Lease.  If the breakpoint is not met, the tenant is only obligated to pay the fixed/minimum rent. There are two types of Breakpoint: Natural and Artificial.

Breakpoint Artificial

A static predefined breakpoint type with set minimum and maximum thresholds as defined in the Lease.

Breakpoint Factor

An alternative denominator for natural breakpoint calculations. This is typically used if the tenant is using different percentages (i.e. one factor to calculate overage sales and a different % to calculate percentage rent).

Breakpoint Natural

A dynamic breakpoint type that is determined based on a percentage applied against Base Rent.  A natural breakpoint is calculated by dividing the fixed annual rent amount by the overage percentage that is specified in the Lease.

C

Change History

This is used to record modifications to an existing Lease agreement, typically by way of a Lease Amending Agreement which may impact the financial or non-financial terms of the lease.

Consumer Price Index 

This is a measure that examines the weighted average of prices of a basket of consumer goods and services such as transportation, food and medical care.  It is calculated by taking the average price changes for each item in the predetermined basket of goods. This index is used to calculate the increase in the rent amount of future lease payments.

Co-Tenancy

The tenant’s rights to get a reduction in rent from landlords if certain conditions are met or not, relating to the occupancy of key tenants or a certain number of tenants within a shopping mall or building as prescribed in the Lease.

Coverage Amount

The amount of risk or liability that is covered for an individual or entity by way of insurance services.

Critical Dates

Milestones and events throughout the lifecycle of the Lease such as possession, commencement, expiration dates, notice dates, etc..

D

Document Reference

The section(s) of the Lease document used to designate and quickly locate the comments that have been abstracted.

E

Expansion Option

This is an option specified in the Lease allowing the Tenant to lease additional space within the Building or Center.

G

Generate Billings

Creation of a periodic rent roll for the income Leases via active rent streams created in the Recurring Costs section. 

Generate Rent Roll

Creation of a periodic rent roll for expense Leases via active rent streams created in the Recurring Costs section.

I

Index

The Index table used to determine Consumer Price Index data to be used in the calculation of rent.

Index Multiplier

The resulting number which is to be used as a multiplier to calculate cost differences from city to city.

Index Period

The most recent period for which an index has been computed or is being computed.

Indexed Rent

The amount of future Lease payments which are calculated using an established index, typically the Consumer Price Index (CPI) whereby an increase in the index will generate a corresponding increase in the rental payment to be applied. 

Initial Term Begin

The date on which the original Lease term starts or commences.

Initial Term 

Expiration

The date on which the original Lease term ends or expires.

Insurance Type

The type for which an insurance coverage is associated to

Invoice ID

A system generated number and is used in creating the voucher in the Client's payables ERP system or is used in referencing a charge.

Invoice Number

A unique number assigned to reference the charges being billed. 

L

Landlord Days to Bill

The duration within which the reconciliation assessment by the landlord or lessor is due as specified in the Lease. This number will be added to the end date of the reconciliation period to calculate the ‘Bill Due Date’.

Lease Account Classification

Indicates the accounting treatment of the Lease based on meeting certain conditions set by the accounting rules.

Lease Effective Date

The date on which the Lease agreement is to take effect based on certain conditions.

Lease Execution Date

The later of the two dates on which the landlord and tenant has executed the Lease document.

Lease Rentable Area

The actual area being occupied in a leased space upon which the Minimum rent and Additional rent are computed.

Lease Type

This is to determine the calculation method whereby a tenant pays rent expenses to a landlord

Lease Financial Group

This is to organize Leases into a specific group which will then be used to generate rent roll, billings, batch payments and accruals.

Lease Wizard

Six predefined templates to help the user create the Lease record in the database containing appropriate tables.

Legal Entity

The individual, company or organization that is associated to the Client and has legal rights and obligations relating to the Lease.

M

Master Lease ID/Number

Master/Parent agreement that the Lease ID is associated to i.e. if entering a sublease 

agreement, the Master Lease would be the Lease between the Head Landlord or property owner and the Sub Landlord or the original tenant of the Head Lease agreement.

Minimum Rent

Base rent payable to the landlord in addition to the Operating Expenses or Additional Rents.

N

Named Co-Tenancy

Tenant/s that are listed in the Lease that need to be opened and operating within the Building/Center

New Index

The revised Index amount which is a measure that examines the weighted average of prices of a basket of consumer goods and services.

Notice Period

The period in which notice is to be served to the other party to exercise an option as specified in the Lease.

O

Obligations

The legal obligations of a landlord and tenant in relation to the maintenance and repair of the premises as set out in the Lease.

Obligations Group

The high-level grouping of the obligation types which will help to organize them into easily reportable buckets

Obligations Type

The specific repair type to which responsibility can be assigned such as Roof Structure, Roof Surface, etc.

Occupancy Threshold

The occupancy threshold based on a percentage of specified number of tenants or a square footage in a Center being open.

Occupancy Percentage (%)

The minimum percentage of the Center’s gross leasable area that must be leased.

Options

These are common real estate related events, options or milestones such as Renewal, Expansion, Termination, etc. that requires action on the landlord or tenant.

Option Party

The party to whom it is entitled to exercise the option.

Original Term End

The end date on which the original term of the Lease is scheduled to end or expire.

P

Percentage Rent

The rent to be paid or collected in addition to the Minimum rent, if any, which is based on a percentage of gross sales as defined under the terms of the lease.  

Policy #

A unique identifier that attaches a policy to a specific individual.  This is the number that is assigned by the insurance company for reference purposes.

Possession Date

The date the tenant takes (or is authorized to take) legal possession of a leased premises to start the build-out process.

Pro rata Share

The proportionate allocation of the Rentable Area leased to a tenant divided by the total Center Gross Leasable Area.

Purchase Option

This is an option in the Lease allowing the Tenant to purchase the leased asset at the end of the lease period for a price amount specified in the Lease.

Purchase Option Amount

The total price amount associated to the Purchase Option available in the Lease.

R

Real Estate

Property consisting of buildings or lands typically for commercial use.

Reconcilable Expenses

Expenses that are subject to reconciliation comparing the estimated expense amount paid by the tenant against the actual expense amount incurred by the Landlord at the end of a period defined in the Lease.

Recurring Costs

The fixed rental fee(s) and additional costs incurred by the business to utilize the property throughout the life cycle of the Lease.

Remeasure Asset Method

The method used to re-evaluate the value of an asset or liability within a specified account on a company's financial statements.

Renewal Option

This is an option in the Lease giving the tenant the right to renew or extend the Lease, under certain terms and conditions within a specified period.

Rent End

The effective end date of rent payment or billing.

Rent Reduction (%)

The percentage amount of rent the tenant is entitled to reduce.

Responsible - Maintenance

The party responsible for the necessary maintenance.

Responsible - Repair

The party responsible for the necessary repairs.

Responsible - Replacement

The party responsible for the necessary replacement.

Responsible - Payment

The party responsible for the payment of the repairs or maintenance.

Responsible - Initial Install

The party responsible for the initial instalment.

Responsibility – Coverage

The party responsible to carry and maintain the insurance policy.

Responsibility - Payment

The party responsible to pay for the insurance policy.

Rolling Option

This is an option in the Lease whereby either party has the right to exercise the option at any given time throughout the current term of the Lease by providing notice to the other party.

S

Sales

The retail gross sales of the tenant as defined in the Lease.  This amount is used in the calculation of percentage rent.

Sales Exclusions

These are items that are defined in the Lease which can be deducted from the Gross Sales prior to calculating the percentage rent.

Sales Offset

These are additional tenant deductions that are defined in the Lease which can be applied against net percentage rent due post the initial percentage rent calculations.  Once a percentage rent payment is calculated, some leases provide the ability to offset or reduce the payment by other costs i.e. percentage rent offset by amount paid in insurance.

Security Deposit

An amount required by a Landlord from a Tenant usually upon Lease signing to be held as security against any unpaid rent or expense (such as repairs to the premises) or any other financial obligations of the Tenant.

Shopping Center

The name of the mall in which the Tenant currently occupies or leases a space.

T

Tax Rate

The percentage of an amount of money that is required to be paid as sales tax on the rent amount. The tax rate is the tax imposed by the federal government and some states, where applicable.

Tenancy Type

This indicates if a party to a Lease is a Landlord or a Tenant.  In this context, Tenant pays rent or expense to the Landlord thus the tenancy type is ‘Payable’ and Landlord receives rent or income from the Tenant thus tenancy type is ‘Receivable’. 

Tenant Days to Complete

The duration within which the reconciliation assessment by the tenant or lessee is due from the date of receipt is due from the Landlord as specified in the Lease. This number will calculate the payment ‘Due Date’ based on the ‘Bill Received Date’.

Tenant Inducement

Payment made by a landlord to attract tenants to a building such as moving expenses or allowances for fixtures.

Tenant/Construction Allowance

Payment made by a landlord to compensate the tenant for all or a portion of the funds required to construct the premises.

Term

This is the period, expressed as number of months or years from the Lease Effective Date on which the tenant leases the building/center.

Term Status

Identifies the status of the current Lease term.

Termination Option

This is an option allowing a landlord or tenant to terminate the Lease earlier than the lease expiry date.

Termination Fee Amount

The total fee or penalty amount associated to the termination of the lease.

Total Cap Percentage

This percentage indicates that the tenant will pay no more than some negotiated limit even after CAM, Operating Expenses or taxes have been allocated by a fair percentage formula.  This percentage threshold is validated on a year over year basis for purposes of processing an expense reconciliation.

Total (Centre) GLA 

The gross leasable area of the Center/Building which is the total floor space available to be rented in a commercial property.

Tracking Worksheet

This is used to track certain expenses such as Security Deposits and/or incentives granted to the tenant such as Tenant Inducements and Construction Allowances.

U

Use Type

Identifies the use of the leased premises or property.

Utilities

A commodity or service, such as electricity, water, gas, etc that is provided by a public utility.

V

Vendor 

The party to whom the rent payment will be delivered or paid to.

Vendor ID

A unique identifier associated to a Vendor.