Essential terms that every multi-unit operator should be familiar with:

Base Rent
​The fixed amount you pay to occupy the space, typically on a monthly or yearly basis.

Percentage Rent
​Additional rent based on a percentage of your gross sales, usually paid once your sales exceed a certain threshold.

CAM (Common Area Maintenance) Charges
​Fees for maintaining shared areas like parking lots or landscaping, paid by tenants according to the size of their leased space.

Triple Net Lease (NNN)
​A lease where you pay base rent plus property taxes, insurance, and maintenance costs.

Rent Escalation
​Scheduled rent increases, which may be tied to the Consumer Price Index (CPI) or a fixed percentage.

Tenant Improvement Allowance (TIA)
​Money from the landlord to cover the cost of customizing the space for your business.

Lease Renewal Option
​A clause that gives you the right to extend your lease for another term, typically with pre-set rent increases.

Exclusive Use Clause
​A provision that prevents the landlord from renting nearby space to competitors.

Co-Tenancy Clause
​A clause allowing reduced rent or lease termination if a key tenant in the property leaves.