Glossary of Useful Retail Leasing Terms
In the following section, we have defined some of the most commonly used terms in the real estate industry, as referenced in the previous sections of this leasing tool kit. Read on to familiarize yourself with these terms as you progress through your leasing journey.
Guaranteed Maximum Price (GMP)
In a Guaranteed Maximum Price (GMP) contract, the customer agrees to reimburse the contractor for materials, labor, and the contractor’s fee. The GMP is the maximum price the customer is willing to pay for the project, meaning the contractor is responsible for any cost overages beyond the maximum price unless there are changes to the project design or original scope. This sort of construction arrangement/contract is very uncommon in the retail context.
