Net change in leased space between two dates.

The number of months required to convert vacant space into leased space assuming no new, delivered space. Computed by dividing the average monthly absorbed space during a recent period into the current vacant space.

Considered a loss factor, the percentage of gross rentable square footage which is lost to the tenant's physical occupancy.

One of three arrangements often used for financing tenant improvements (finishing out office space to accommodate a tenant such as walls, doors, carpeting etc.) Often used in a yet-to-be built building, this arrangement caps the landlord's expenditure at a fixed dollar amount over the negotiated price of the base building shell. This arrangement is most successful when both parties agree on a detailed definition of what construction is included and at what price. Tenants may ask for a contingency in the event the actual build-out costs are less than the allowance, requiring the landlord to return the savings in the form of rent abatement or other concession.

Occurs when one party to a contract, prior to time of performance, informs the other of his or her intent not to perform. Example: The buyer informs the seller before the closing date of his or her intent not to buy.