Glossary · Leasing & buying

Commercial real estate glossary for business owners.

Q: What is the most important term to understand before leasing commercial space?

How the rent is quoted. A rate quoted NNN (triple net) does not include property taxes, insurance and common area maintenance, while a gross or modified gross rate includes some or all of them. Convert every option to an all-in monthly cost before comparing.

Q: How do commercial real estate brokers get paid?

In most commercial leases the landlord pays a leasing commission under its listing agreement, and the tenant's broker is paid from that commission. The arrangement should be confirmed in writing at the start.

The terms that decide what you actually pay for space, explained in plain English, each with a worked example you can check with a calculator.

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Updated October 2026 · Alex Goff

The short answer This glossary defines the commercial real estate terms business owners meet when they lease or buy space: NNN leases, rent per square foot, CAM and pro rata share, TI allowances, letters of intent, owner-occupied property for SBA loans, clear height and flex condos. Each page gives a direct definition first, then a worked example with the math shown.

Written by Alex Goff of Goff CRE Group, brokered by Nassar Realty, for owners leasing or buying flex, industrial, retail and office space in Erie, Lafayette and the rest of Boulder County. The numbers in every example are illustrative. Real rates vary by property and change quarterly, so ask us for current comps for your size and use.

Leasing terms.

LeasingNNN leaseBase rent plus your share of property taxes, building insurance and common area maintenance.What NNN means → LeasingRent per square footAnnual rate × square feet ÷ 12 = monthly rent, plus how escalations and load factors change it.Calculate rent → LeasingCAM & pro rata shareShared building costs split by your square footage divided by the building's.CAM explained → LeasingTI allowanceMoney the landlord puts toward your build-out, usually quoted per square foot.TI allowance → Leasing & buyingLetter of intent (LOI)The short, mostly non-binding term sheet that comes before the lease or contract.What an LOI is → LeasingHow do commercial brokers get paid?Why the landlord usually pays the tenant's broker, and when you would pay a fee.Broker commissions →

Buying and building terms.

Buying · SBAOwner-occupied propertyYour business occupies the building: at least 51% of an existing building for SBA loans, 60% for new construction.SBA occupancy → BuyingFlex condoAn office-plus-warehouse unit you own inside a condominium association.Flex condos → BuildingClear heightUsable height from the floor to the lowest overhead obstruction.Clear height →

Glossary FAQ

What is the most important term to understand before leasing commercial space?

How the rent is quoted. A NNN rate leaves out taxes, insurance and common area maintenance; a gross or modified gross rate includes some or all of them. Compare every option as an all-in monthly cost.

Are the numbers in this glossary current market rates?

No. Every worked example uses illustrative numbers to show the math. Actual rates vary by property and change quarterly, so ask us for current comps.

How do commercial real estate brokers get paid?

In most leases the landlord pays a commission and the tenant's broker is paid from it. The details are in what a tenant rep broker costs.

Alex Goff

Commercial real estate broker, Goff CRE Group · Brokered by Nassar Realty. About Alex

Leasing or buying? Let's run your numbers. Get in touch Call (615) 598-5779