Page 44 - Commercial Lease FlipBook 2020

BREAKPOINT (NATURAL BREAKPOINT):

The point at which the tenant starts paying a percentage of their Gross Sales to the landlord as Additional Rent. A Natural Breakpoint is when the Base/Minimum Rent
is divided by a certain percentage that is negotiated in the commercial lease.

BUILDING:
The Building may be defined in the commercial lease as part of the Property or the Project.

CAM CAP:
The amount or percentage in which tenant's CAM can increase from year-to-year, sometimes expressed on a per square foot (psf) basis.

COMMON AREA MAINTENANCE (CAM):
This is the amount of Additional Rent charged to the tenant, in addition to the Base/Minimum Rent, to maintain the common areas of the Property. Examples of
Common Area Maintenance include snow removal, exterior landscaping, outdoor lighting, and parking lot sweeping. For simplification purposes, Greystar's reference
to CAM generally includes real estate tax and insurance reimbursements.

CONSUMER PRICE INDEX (CPI):
Consumer Price Index (CPI) measures inflation in relation to the change in the price of a fixed amount of goods and services during a period of time. The CPI is

sometimes used in leases to determine future Base/Minimum Rent increases.

CONTROLLABLE EXPENSES:
The Property's Operating Expenses in which the landlord has some control over whether they increase or decrease as defined in the commercial lease. Most
commercial leases consider utilities, real estate taxes, insurance, and snow removal as expenses that cannot be controlled. Security and union wages/benefits may also
be considered non-controllable expenses in certain commercial leases.

COST POOLS:
A separate group of accounts that are allocated to the commercial tenants as a part of the CAM calculation.