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Tenant: One who holds or possesses lands or tenements by any kind of right or title.
Tenant Allowance: A monetary allowance granted from the landlord to a tenant to entice tenant to move into landlord’s building which will enable the tenant to prepare the leased premises for tenant’s occupancy. Tenant allowances may include a tenant improvement allowance, moving allowance, space plan/drawing allowance and/or lease buyout.
Term: The length of time that a lease transaction is in effect, measured as the period of time between the commencement date and the expiration date.
Termination Option: An option granted to either a landlord or tenant to end the term of a lease prior to the scheduled expiration date. In some terminations, the lease requires the terminating party to pay a fee for the right to cancel.
Termination Penalty: Consideration to be paid by the terminating party to the non-terminating party in order to end the term of a lease via a termination option.
Triple Net: Rent stipulated in a lease which requires the tenant to pay its proportionate share of real estate taxes, insurance and operating expenses. In the real estate industry, the terms triple net and net are often used with the same meaning.
True-Up: Also called a reconciliation billing, reflects a billing to tenants for the difference between estimated payments made by the tenant for an item of rent (usually expense recoveries) and the actual payment due. Reconciliation billings are made to a tenant after the landlord has determined the actual amounts to be billed in accordance with the lease provisions.
Turn-key: A term used to describe a landlord’s agreement to provide and pay for improvements to a tenant’s premises which are required to deliver the premises in a condition ready for the tenant’s stipulated use.