Page 47 - Commercial Lease FlipBook 2020

LIQUOR LICENSE:

A license or permit issued by the government municipality to sell or serve alcoholic beverages in the Premises. The commercial lease must also permit the tenant to
sell or serve alcoholic beverages.

LOSS OF RENTS (BUSINESS INTERUPTION INSURANCE):
An insurance policy, as required in a commercial lease, purchased by the tenant that covers the loss of income in the event the commercial tenant's business is
unable to operate from a covered loss. The commercial lease may require tenant's Business Interruption Insurance policy to a have a provision to pay the tenant's

monthly Base/Minimum Rent and Additional Rent to the landlord in the event of casualty for a certain period of time.

OPERATING EXPENSES (“CAM”):
The actual expenses paid or incurred in operating, managing, maintaining, repairing, replacing, equipping, and insuring the Property including the common areas. A
landlord’s definition of Operating Expenses is likely to be quite broad, covering most aspects of operating the Building. The definition of Operating Expenses in a
commercial lease may or may not include real estate taxes.

PERCENTAGE RENT:
The lease provision requiring the tenant to pay a percentage of the tenant’s Gross Sales as a component of rent. It is common for the tenant to

reach a Breakpoint before Percentage Rent is charged.

PREMISES:

The commercial tenant's space, which includes the total leasable or rentable square feet of the area as described in the commercial lease.

PREPAID RENT:
Rent paid when the lease is signed that is usually applied to the tenant's first month of rent due on under the commercial lease.