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.
Option Term(s), Terms of Lease, Lease Terms, Initial Terms
One of the more important characteristics of a brick-and-mortar retail lease is the Term of the Lease. The duration of the lease can range from a few years to 10+ years depending on the overall deal structure (condition of the space, economics, investment, etc.). The tenant should always ask for option(s) to extend the initial Term of the Lease, which the tenant may elect to exercise under certain conditions, assuming it is not in default of the lease during the initial Term. The Option Term(s) is typically one or two option periods of various durations, typically not longer than the initial term of lease.
