iii. Leasing, Tenancy & Occupancy

Leasing, tenancy, and occupancy govern how space within a property is allocated, contracted, and utilized. These dynamics directly influence revenue stability, operating performance, and long-term asset value across real estate asset types.

Base Rent

The fixed rental amount paid by a tenant for the right to occupy space, excluding additional charges.

Creditworthiness

An assessment of a tenant’s financial ability to meet lease obligations.

Lease Abstract

A summarized record of key lease terms used for analysis, reporting, and management.

Lease Term

The length of time a lease agreement remains in effect.

Leasing Strategy

The approach used to attract, retain, and structure tenants to meet asset performance goals.

Net Lease

A lease structure where tenants pay some or all property operating expenses in addition to rent.

Occupancy Rate

The percentage of rentable space that is occupied by tenants at a given time.

Rent Concession

Incentives offered to tenants, such as free rent or tenant improvements, to secure or retain occupancy.

Tenant Improvement (TI)

Build-out or modifications made to leased space to accommodate tenant needs.

Tenant Mix

The composition of tenants within a property, influencing income stability and risk.

Turnover

The rate at which tenants vacate and new tenants occupy space within a property.