Słowniczek pojęć branżowych

Alterations
Alteration is any work or works undertaken on the premises that would result in an alteration to the physical structure or layout of the premises.

Ancillary
Ancillary space is any part of the premises which provides support to the primary use and more valuable space.

Break Clause
A break clause is a right entitling one or both parties to end the tenancy before the expiry of the contractual term. The break date will normally be specified either as an actual date or a period of time before or after a particular event. The period of notice and method of giving notice is a matter of agreement between the parties when the lease is granted.

Cold storage
A warehouse unit used to store fresh and/or frozen food at a desired temperature to maintain the quality of the product.

Commercial Property
All types of properties that are used or could be used for a business purpose, including offices, retail, industrial and leisure properties. Commercial property is predominantly a business-to-business market, where the legal relationship between landlord and tenant is based upon a commercial contract known as a lease.

Courier / cross dock
A distribution docking terminal, usually consisting of trucks and dock doors on two (inbound and outbound) sides with minimal storage space. The name ‘cross docking’ explains the process of receiving products through an inbound dock and then transferring them across the dock to the outbound transportation dock.

Early Access
Tenant’s right to take occupation of the premises prior to formal lease commencement date, in order to carry out some minor works or relocate its movables.

Landlord
A company who owns and leases premises to other businesses (referred to as tenants).

Lease Agreement
A document containing a written record of the terms and conditions agreed between landlord and tenant for the lease of the premises, including the rent, term, operation, management, and enforcement of the tenancy.

Lease Anniversary Date
Means the date on which the lease initially commenced and on which, in subsequent years, the annual indexation is due.

Market Value
The market value is the best price obtainable in a transaction completed on the valuation date based upon the following assumptions:
(i) a willing seller (a hypothetical owner who is neither eager nor reluctant i.e. not forced but not at a price which suits only him/her).
(ii) prior to the valuation, a reasonable period to market the property and complete all the necessary legal formalities was available.
(iii) during this period, the state of the market was the same as at the date of valuation.
(iv) any bid from a special purchaser is excluded.
(v) all parties acted knowledgeably, prudently and without compulsion.

Measurement
Net Internal Area (NIA) is the usable area within a building measured to the internal face of the perimeter walls at each floor level.
Gross Internal Area (GIA) is the area of a building measured to the internal face of the perimeter walls at each floor level.
Gross External Area (GEA) is the area of a building measured externally at each floor level.

Office space
Space within a building that provides a suitable environment for office & administration functions.

Premises
The real estate or part of the real estate (as defined in a lease agreement), together with all Improvements, equipment and fixtures thereon.

PropTech (property technology)
Use of information and innovative technology to help design, lease (or buy & sell) as well as operate and manage the real estate. PropTech implements variety of digital innovations to address the rapidly changing needs of the property industry. It allows for greater efficiency for the owner (landlord) and at the same time results in cost optimization for the tenants.
Comprehensive overview of the warehouse related PropTech solutions is included in the SEGRO report available in the library (link).

Real Estate
Generally, a property made up of land and buildings on it as well as other improvements and fixtures.

Real Estate Agent
An agent is an individual or company authorized by the principal to act on behalf of the principal.

Rent
Tenant’s regular payments to the landlord for the right of exclusive use of a property or land; commonly, rental rates are stipulated as XX Euro per 1 sqm of leasable area per month + VAT, payable monthly in advance for the duration of the lease term.

Rent Deposit
Sum of money (in form a cash deposit or a bank guarantee) that is provided by the tenant to the landlord as security for payment of the rent and other moneys per the covenants in the lease. The amount of deposit can vary depending upon the circumstances but is commonly equivalent to at least 3 or 6 months of rent + service charges + VAT.

Rent free
Exemption from rent for a defined period, typically varying between 1 and 2 months of rent free for each year of lease. In most cases the rent frees are structured as rent rebate spread over certain number of months or equally over the entire lese term.

Rent Indexation
Indexation clauses regulate the terms and conditions for adjusting the rent during the term of the lease. In most cases, indexation clauses provide for an annual uplift of the rent with reference to a specified price index, e.g. Harmonised Index of Consumer Prices (HICP).

Service Charges
Sums charged by a landlord to a tenant under a lease, in addition to the rent. They are intended to pass on the cost from a landlord to a tenant in order to recoup the landlord’s costs related to the operation of the property (including but not limited to services, repairs, maintenance, property taxes, insurance and property management). Customarily, service charges are stipulated as XX PLN per 1 sqm of leasable area per month + VAT, payable monthly in advance for the duration of the lease term. Service charges are subject to annual reconciliation (open book principal).

Tenant
A company who occupies a property leased from a landlord based on a signed lease agreement.

Tenants’ Improvements (TIs)
Improvements or changes made to leased premises, that are made for the benefit of the tenant (e.g. additional fit out, specific installations etc). The cost of TIs can be paid by the tenant upfront or financed by the landlord and repaid over the lease period in form of a TI rent.

Term
The duration or period of time for the contractual right to occupy the premises. Standard lease term for warehouse space in Poland varies between 3 – 5 years, with some exceptional leases signed for 10 – 15y.

Triple Net Lease
Lease agreement on a property whereby the tenant agrees to pay all the expenses of the property including real estate taxes, building insurance, and maintenance cost.

Vacancy
All units within a property that are vacant or unoccupied at a particular point in time.

Warehouse
Large, usually one-story buildings with high ceilings and multiple dock loading doors either the front or back of the building to accommodate the loading and unloading of trucks. Warehouse buildings are usually used for variety of functions e.g. storage of raw materials, finished or partly finished goods, pending either onward transit or division into smaller batches and subsequent distribution.