Breakoption - the right afforded to a tenant to terminate the lease agreement before the end of the period for which it was concluded. Breakoption can be used when the terms of the agreement are described in the contract.
Rent - the main component of the total cost of the lease. Periodic payment to occupy a defined area, presented as an amount per square meter.
Headline rent - rent specified in the lease agreement that does not include financial concessions.
Effective rent - rent rate that includes concessions for tenants. They may take the form of periods without paying the rent (e.g. Rent free), financial contribution of the landlord to the office arrangement or temporary reduction of the headline rent.
Bank guarantee - document in the form of a letter issued by a Tenant's bank to secure obligations under the lease. The bank guarantee is a commitment of the bank to pay the Landlord in case of the lack of payment from the Tenant.
Indexation - annual change in the value of the rent based on economic indicators. Indexation based on the percentage change in the consumer price index (CPI) is mostly used for contracts in PLN. HICPs index is most commonly used for rents in euro.
Deposit - the amount of money for the equivalent of three to six months of rent and gross maintenance fees that secures liabilities under the lease agreement.
Lease period - duration of the lease specified in months or years in which the landlord undertakes to provide lessee with property for a specified or unspecified period, whereas the tenant agrees to pay rent and other charges in accordance with the lease agreement.
Service Charge - fees related to the general functioning and maintenance of the building, reckoned for each square meter of space. The service charge include, among other things, building insurance, taxes, as well as charges for management, water, maintenance of the common areas, security and cleaning
Common area - area publicly available for all tenants of the building. It includes the entrance to the building, reception, elevator halls, escape routes and technical infrastructure.
Rent free - the so-called rental holidays, the allowance for the tenant specified in the number of months of exemption from the payment of rented space.
Building insurance - liability insurance, terrorism, fire or other mishap. The cost of insurance is covered by the tenants in proportion to the leased space.
Parking space index - the number of meters of leased space in a building per 1 parking space. The index depends on the number of parking spaces and a usable area of the building.
Common area index - proportionate share in the common areas of the building, designed for sharing with the other tenants, for example, entrance, reception, elevator halls, corridors.
Certified date - certified by a notary date of termination of the lease period. Fixing the certified date is very important if the building is sold with tenants. The buyer of the leased property may terminate the lease agreements concluded within the statutory period of notice, with the exception of contracts concluded in written form with a certified date.
BMS - Building Management System, integrated building management system covering all the installations such as air conditioning, fire-fighting system and access control system.
CBD - Central Business District in Warsaw - business area, it covers the very center and the periphery of the center
Letter of Intent - a null and void document concluded between the potential tenant and landlord defining the scope of future activities related to the investment. It is also a form of summing up the agreements of cooperation.
Gross area - leasable area increased by a common area index.
Net area - usable area which, according to the lease agreement, is entitled to the exclusive use of the tenant. This area also includes auxiliary facilities such as toilets, social facilities and warehouses. According to the Polish Standard PN-ISO 9836: 1997 unified measurement is applied.
Temporary contract - specified in months or years of duration of the lease agreement during which the landlord agrees to give the tenant the property for use for a limited period, and the tenant agrees to pay rent and other charges in accordance with the lease agreement. Early termination of the lease agreement before the end of the period of its duration is usually not provided; however, it can be taken into account, provided payment of an appropriate penalty.
Indefinite contract - the contract specifies only the date of the beginning of the lease and the period of notice resulting in termination of the legal relation. Normally, the notice period ranges from three to six months.
Subletting - leasing the utilized area by the tenant with the consent of the landlord. In case of the sublease the tenant signs a civil law contract with the subtenant.
Taxes - component of the royalty paid by tenants under the terms of the agreement. The taxes include property tax and perpetual usufruct.
Turnkey arrangement - preparation of the leasable area in accordance with the guidelines of the tenant.
Transfer date - the date in which the subject of the lease will be forwarded to the tenant in accordance with the lease agreement
Lease subject - area leased by the tenant, as defined in the lease agreement.