Page 47 - The Dental Entrepreneur

The Dental Entrepreneur

Building Classification Class “A” building has excellent location and
access to attract the highest quality tenants.
The building is well managed, the structure

is of high quality finish and usually new .
Class “B” building has a good location,
management construction and tenancy.
Class “C” building generally is older with

economic obsolescence.

Certificate of Occupancy A certificate issued by a local government
building department or agency stating that a
building is in a condition suitable for
occupancy. This is known as “C of O”
Concessions Cash expended by landlord in the form of
rent abatement, build out allowance, or other
payments to induce the tenant to sign a
lease.

Core Factor The difference between rentable square feet
and useable square feet expressed as a
percentage. The lower the core factor, the
better for tenants.

Expense Stop A provision in the lease establishing the
maximum level of operating expenses to be
paid by the landlord.

Full Service Rent A rental rate that includes operating
expenses and real estate taxes for the first
year.

Fit Up/ Fit Out Making interior spaces suitable for
occupation

Hold Over Tenant A tenant who retains possession after the
expiration of a lease.

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