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.
Schematic Drawings
Schematic drawings are the first step in an architect’s design process, where project requirements and goals are determined. The architect then takes this information and develops rough drawings of floor plans, elevations, and illustrative sketches or computer renderings.
Second-Generation (2nd Gen)
Refers to a space previously occupied by a restaurant or other retailer, which can be repurposed by a subsequent tenant. Second-generation spaces are highly recommended for businesses who are opening their first brick and mortar restaurant because it is often a more affordable option with less time (and third parties) between lease signing and open for business.
Small Business Administration (SBA)
The Small Business Administration/SBA supports small businesses in guaranteeing loans. It sets guidelines for loans made by its partnering lenders, community development organizations, and micro-lending institutions.
Social Media Scheduling Platforms
A social media scheduling platform or automation tool enables you to be proactive and strategic about planning, scheduling, and editing your content ahead of time. Planning your social content in advance will save you time, money, and errors.
Soft Costs
Soft costs are associated with the planning, permitting, and financing of a
construction project.
- Architectural and engineering fees
- Legal fees, permits, and taxes, property and construction insurance
- Movable furniture, fixtures and equipment (“FF&E”)
- Marketing, advertising
- Initial staffing and pre-opening costs
- Inventory
- Working Capital
Sources & Uses of Funds
A document (usually a spreadsheet with two columns) that details where the project budget funds are coming from (owner equity, investors, bank debt) and how the funds will be spent (hard costs, soft costs, etc.). See Sources & Uses of Funds template on GSP website.
Special Permit or Variance
A special permit or variance is required when a property owner’s (or tenant’s) planned use of the premises deviates from local zoning law. If a special permit or variance is granted, it acts as a waiver to some aspect of the zoning law or other regulations.
