10 Commercial Real Estate in Kansas City Terms You Should Know
When you are looking for commercial office space for lease in Kansas City, the best place to start is to familiarize yourself with leasing terminology. Here are a few terms to become acquainted with before going in search of your perfect office space, as outlined in the article “Typical Leasing Terminology”:
- Lessee. The individual or business who leases the property, also known as the tenant.
- Lessor. The owner of the property, referred to as the landlord.
- Rent Rate. The rent rate is listed for a space on a per square foot basis. Be sure to clarify whether the listed rate refers to rentable or usable square footage.
- Gross Rental. In a gross rental lease, the tenant’s rental payments cover all services, such as insurance, property taxes, and often some maintenance services. This type of lease is different than a net lease, which charges for each of these expenses separately.
- Option to Renew. This is a clause that a tenant can negotiate into the original lease, which allows the tenant to renew the lease before it expires at a pre-determined rental rate. This option is especially useful for tenants who are not sure where they will be in a few years, as it gives them the option to extend their stay or move on if they have outgrown the space.
- Rent Free Period. Many landlords offer this as an incentive to tenants, which can go into effect at the beginning of the lease or be spread out through the course of the lease, depending on the negotiated terms.
- Date of Possession. This is the date agreed upon in the lease when the tenant officially begins their occupation of the premises. Starting from this date, the tenant assumes liability for anything that might happen in the space.
- Property Maintenance. The tenant is typically responsible for maintenance costs both inside their space and in common areas of the building. However, the landlord or property owner generally is responsible for the maintenance of the outside of the building.
- Assignment. This clause allows a tenant to pass their lease on to another tenant for the rest of the lease term, usually because the original tenant needs to leave the space due to financial difficulties. The choice of a new tenant is subject to the landlord’s consent. Potential lessee’s should consider trying to negotiate for this clause to be included in their lease to protect themselves in the event of financial difficulties.
- Novation. In this situation, an entirely new tenant moves into the premises before the end of the original lease and draws up a new lease directly with the landlord.
Before you start looking for commercial real estate in Kansas City, take the time to familiarize yourself with the vocabulary of the commercial real estate market. This will help make the process of finding a Kansas City office space for rent feel much more in your control.
If you are looking for commercial office space for rent in Overland Park, KS, give one of our commercial real estate agents in Kansas City a call at 913-685-4100 to find out more about our available spaces and commercial property management in Overland Park, KS!