Commercial real estate has a vocabulary that's specific enough to create real confusion for anyone who's new to the market. These are the terms that come up most often in NYC retail leasing — defined clearly, with context for how they're actually used.
Lease terms and structure
Letter of Intent (LOI) A non-binding document that outlines the key deal terms before a formal lease is drafted. In NYC retail leasing, LOIs are typically more detailed than in other markets — they often include not just basic economics (rent, term, square footage) but also major lease provisions like assignment rights, subletting, and tenant improvement allowance. Getting the LOI right matters because it sets the baseline for the lease negotiation. See LOI mechanics for NYC retail leases.
Base Rent The fixed monthly rent specified in the lease, before any additional charges. In NYC retail leases, base rent is typically expressed as an annual per-square-foot figure (e.g., $150/sq ft/year). The tenant pays this amount regardless of sales performance.
Percentage Rent A lease provision that adds a percentage of the tenant's gross sales to the base rent, triggered when sales exceed a specified threshold (the "natural breakpoint"). Common in high-traffic NYC retail corridors, especially for food-and-beverage tenants. See percentage rent clauses in NYC retail leases for the full mechanics.
Triple Net Lease (NNN) A lease structure in which the tenant pays base rent plus their share of property taxes, insurance, and building maintenance. Common in some commercial real estate segments; less universal in NYC retail, where lease structures vary more.
CAM (Common Area Maintenance) Charges for maintaining shared spaces in a multi-tenant property — lobbies, corridors, parking areas. In NYC retail, CAM is often negotiated, with tenants pushing for caps on year-over-year increases.
Tenant Improvement Allowance (TI) A landlord contribution to the cost of building out a tenant's space. Expressed as a dollar amount per square foot. A $50/sq ft TI on a 2,000 sq ft space is $100,000 toward buildout costs. TI is often a significant negotiating point, especially for food-and-beverage tenants with extensive construction requirements.
Free Rent A period at the beginning of a lease when the tenant pays no rent — often granted while the tenant is constructing their space. Three to six months of free rent is common in NYC retail for spaces that require significant buildout.
Good Guy Clause A provision in a personal guarantee that limits the guarantor's liability to the period of actual occupancy. If the tenant closes and vacates the space in accordance with the clause (typically requiring advance written notice), the personal guarantee terminates. This is a common negotiating point in NYC retail leases.
Personal Guarantee A provision in which an individual (usually a business owner or principal) personally guarantees the lease obligations of their entity. Nearly universal in NYC retail leases for independent operators and small businesses. The scope — full term, limited years, good guy clause — is negotiable.
Assignment and Subletting Provisions governing whether a tenant can transfer their lease to another party. Assignment is a full transfer of the lease; subletting involves the original tenant retaining responsibility while a subtenant occupies the space. NYC landlords typically have approval rights over assignments and sublets.
Market and deal terms
LOI to Lease Timeline The period from a signed letter of intent to a fully executed lease. In NYC retail, a straightforward deal typically takes 60–90 days. Complex deals with significant TI negotiation, unusual provisions, or complicated ownership structures can run six months or longer.
Comp (Comparable Transaction) A recent lease transaction used to establish market value for a space. Brokers use comps to advise landlords on asking rent and tenants on whether a deal is at market. Comp data in NYC retail comes from CoStar, from broker market knowledge, and from disclosure in some publicly filed documents.
CoStar The primary commercial real estate data and listing platform. CoStar is the industry standard for available-space listings and transaction comps, though its NYC retail coverage has gaps — particularly for off-market situations and newly available spaces.
ACRIS (Automated City Register Information System) New York City's public database of property deed transfers and mortgage filings. The most authoritative source for NYC ownership data. Retail brokers use ACRIS to track ownership changes, identify when buildings have traded, and find ownership information for landlord outreach. See NYC retail leasing guide for more on how to use it.
1031 Exchange A provision of the US tax code (Section 1031) that allows a property seller to defer capital gains taxes by reinvesting the sale proceeds into a "like-kind" replacement property within a specific timeline: 45 days to identify replacement properties, 180 days to close. Creates motivated buyers at specific points in time. See how to find 1031 buyers for how brokers use this.
Tenant Rep (Tenant Representation) A brokerage arrangement in which the broker works exclusively for the tenant's interests in a lease negotiation. See what is tenant representation.
Dark Space A retail space that's vacant and not operating. A dark storefront may be officially available (listed with a broker, actively marketed) or unofficially available (the landlord hasn't engaged a broker yet). Dark spaces are a primary source of deal origination for proactive brokers.
Corridor In NYC retail, the term used to describe a distinct commercial strip — typically an avenue or block range with a coherent character and tenant mix. SoHo Broadway, Madison Avenue in the 70s, Bedford Avenue in Williamsburg. Understanding corridors and their differences is foundational to working NYC retail.
CRE brokerage terms
Listing Broker / Landlord Rep The broker representing the landlord in a lease transaction. Their job is to find a qualified tenant and negotiate favorable terms for the landlord.
Tenant Rep The broker representing the tenant. Their job is to find a space that fits the tenant's needs and negotiate favorable terms for the tenant.
Commission Split How the total commission on a deal is divided between the listing broker (landlord's rep) and the cooperating broker (tenant's rep). In NYC retail leasing, commissions are typically paid by the landlord and split between both sides.
Pipeline The collection of active deals, pursuits, and prospects a broker is working at any given time. A healthy pipeline has deals at multiple stages — early prospect through near-close — and is accurate enough to trust for revenue forecasting.
For more on how NYC retail leasing works in practice, see the NYC retail leasing guide or the commercial real estate deal management post.