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Natural Breakpoint: The amount of gross sales which, when multiplied by the overage percentage, equals base rent (stated differently, a natural breakpoint is calculated as base rent divided by the overage percentage).
Net Lease: A lease requiring the tenant to pay not only rent but also costs incurred in maintaining the property, including taxes, insurance, utilities and repairs.
Net Operating Income (NOI): The income projected for an income-producing property after deducting losses for vacancy and collection and operating expenses.
Net Rentable Area (NRA): Defined as the measurement of a building or suite upon which rent is calculated.
Non-Disturbance: A lease provision which grants a tenant the right to remain in occupancy of the leased premises regardless of a change in the ownership of the property, so long as the tenant continues to fulfill their lease obligations. While non-disturbance language is included in most leases, some leases obligate a landlord to obtain a subordination, non-disturbance and attornment agreement’ from a mortgage holder or ground lessor, whereby such mortgage holder or ground lessor agrees not to disturb tenant’s occupancy of the premises in the event of foreclosure as a condition to tenant’s subordination of their lease to the mortgage or ground lease.
Notification Date: The date by which either the landlord or tenant must provide notice to the other party that they wish to exercise a lease clause, typically an option.