Rental Glossary - F
Fixed Term Lease
A rental lease with a specified beginning and ending date. Example: January 1, 2007 to August 31, 2007. In Quebec, during the life of a lease, the landlord cannot increase the rent or end the tenancy prematurely.
Personal property, such as improvements, attached to the land or building that is considered part of the real property.
First Generation Space
Usually refers to a new rental space that has never been occupied by a tenant, and is currently available.
Also called Prime Space.
See Second Generation Space and Speculative Space.
A one- or two-story commercial building that offers flexibility in how the rental space can be used. The building usually has high ceilings, load-bearing floors and loading-dock facilities, although it features little or no common areas. However, it provides a configuration that allows a flexible amount of office space in combination with manufacturing and other commercial space.
Floor Area Ratio
The ratio of the total square footage of a building to the land on which it is situated. The floor area ratio (FAR) is calculated by dividing the total square footage in the building by the square footage of land area.
Full Service Lease
An all-inclusive commercial rental lease that requires the property owner to pay all the operating expenses and real estate property taxes for the first year. Similar to a Gross Lease, with this type of commercial lease the tenant is generally still responsible for paying increases in operating expenses over the base year amount.
Future Proposed Space
Refers to rental space in a proposed commercial project that has been leased before the start of construction, or where the start date for construction has not been set. Also called Preleased Space, the proposed rental space of buildings under construction is not included in the absorption rate in order to avoid the double counting of tenants.