Why This List Exists
A residential lease is two pages and you have seen one before. A commercial lease is thirty to sixty pages, it is drafted by the landlord’s counsel, and it assumes you already speak the language. Most small-business tenants do not, and the gap is expensive — not because anyone is being dishonest, but because a term you do not recognize is a term you did not negotiate.
This is the vocabulary, grouped by what it does to your money. It is a reference, not legal advice; for anything you intend to sign, have a real estate attorney read it. In a market with vacancy near 25%, as Houston’s has been through 2026, tenants have more leverage than they usually realize — but only on the points they know to raise.
How Rent Is Structured
Base rent
The core rent, quoted annually per rentable square foot. A quote of “$28 per square foot” means $28 per rentable square foot per year. Divide the annual total by twelve for the monthly figure.
Gross lease (full service)
One rate covers base rent plus operating expenses — taxes, insurance, maintenance, and often janitorial and utilities. Simplest to budget. Usually carries an expense stop (below).
Triple net (NNN)
You pay base rent plus your pro-rata share of three categories: property taxes, building insurance, and common area maintenance. A low NNN base rate is not a low rate; it is an incomplete one. Always ask what the estimated net charges are per square foot, and ask for the last three years of actuals.
Modified gross
Between the two. Some expenses are bundled, some are billed separately, and the lease defines exactly which. “Modified gross” on its own tells you almost nothing — read the operating expense clause.
All-inclusive / flat rate
A single monthly number with no pass-throughs and no annual reconciliation. Common in executive suites and private office buildings. The advantage is not only simplicity but predictability: there is no January letter adjusting last year’s estimates. We compared the structures in All-Inclusive Office Leases.
Expense stop
In a gross lease, the baseline level of operating expenses the landlord absorbs. Anything above the stop gets passed through to you. A gross lease with a low expense stop behaves more like a net lease over time.
Escalation / annual increase
The scheduled rent increase, typically a fixed percentage (often around 2–3%) or tied to an index. Over a five-year term, a 3% annual escalation raises your final-year rent about 13% above year one. Model the whole term, not year one.
How Space Is Measured
Usable square feet
The area inside your suite — what you can furnish and occupy.
Rentable square feet
Usable square feet plus your share of building common areas. This is the number your rent is calculated on.
Load factor (add-on factor, common area factor)
The percentage difference between the two. A 15% load factor on 1,000 usable square feet bills you for 1,150. Ask for it explicitly on every quote — two identical rates can deliver noticeably different amounts of real office. There is a full worked example in our guide to how much office space you actually need.
Pro-rata share
Your percentage of the building, used to allocate operating expenses. Confirm how it is calculated and whether it is based on leased area or total area — in a building with vacancy, that distinction matters.
Buildout and Condition
Tenant improvement (TI) allowance
Money the landlord contributes toward customizing the space, quoted per square foot. Confirm three things: what it can be spent on, who controls the contractor, and what happens to any unused balance.
Shell condition / vanilla box / turnkey
How finished the space is when you get it. Shell means bare. Vanilla box means basic walls, ceiling, lighting, and HVAC. Turnkey means ready to occupy. The gap between shell and turnkey can be tens of thousands of dollars and several months.
Restoration clause
An obligation to return the space to its original condition at the end of the term — removing anything you installed. Easy to overlook when you sign and expensive at move-out. Negotiate a written waiver for improvements the landlord will want to keep anyway.
Term, Exit, and Risk
Commencement date vs. rent commencement date
When the lease starts versus when you start paying. Free rent (an “abatement” or “concession”) lives in the gap. Get it in writing in the lease, not in an email.
Holdover
What happens if you stay past the end of the term. Holdover rent is commonly 150% or 200% of the last month’s rent, sometimes more, and some leases add consequential damages. If your next space is delayed, this clause is the one that bites.
Assignment and subletting
Whether you can hand the lease to someone else or rent out part of your space. Most leases require landlord consent; negotiate for “consent not to be unreasonably withheld.” This is your primary exit if the business changes.
Personal guaranty
Your personal promise to pay if the business cannot. Landlords routinely ask small and newly formed businesses for one. If you must give it, negotiate limits: a burn-off after a period of on-time payment, or a cap at a fixed number of months’ rent.
Default and cure period
What counts as a default and how long you have to fix it after notice. Push for written notice and a meaningful cure window on monetary defaults.
Option to renew / option to expand / right of first refusal
Rights to extend, to take more space, or to match an offer on adjacent space. Valuable and usually free to ask for at signing. An option with no stated rent formula is worth much less than one that specifies how the renewal rate is set.
Co-tenancy and relocation clauses
A relocation clause lets the landlord move you to comparable space elsewhere in the building. If your suite’s specific qualities matter — a corner window, a separate entrance, a soundproofed room — strike it or narrow it.
The Documents Nobody Explains
Estoppel certificate
A signed statement confirming the lease terms and that neither party is in default, usually requested when the building is sold or refinanced. You will almost certainly be asked for one. Read it before signing — it becomes binding on the facts it states.
SNDA (subordination, non-disturbance and attornment)
An agreement with the landlord’s lender. The important half for you is non-disturbance: if the lender forecloses, your lease survives and you are not evicted. Ask for it.
Certificate of occupancy
Municipal confirmation the space may lawfully be occupied for your use. Confirm it exists and covers your intended use, particularly for medical, counseling, or any use with specific code requirements.
Five Questions That Cover Most of the Risk
- What is my total monthly cost, all in, in year one and in the final year?
- What is the load factor, and what are the usable and rentable square footages?
- What were actual operating expenses per square foot for the last three years?
- What exactly am I on the hook for if I need to leave early — and can I sublease?
- What is the holdover rate, and is there a restoration obligation?
If a landlord answers all five clearly and in writing, you are dealing with a straightforward operation. If the answers are vague, that is information too.
When the Glossary Stops Mattering
Most of the terms above exist because a traditional commercial lease allocates building risk between landlord and tenant across a long term. A flat all-inclusive monthly arrangement collapses most of that: there is no load factor to argue about, no operating expense reconciliation, no expense stop, no CAM true-up. You get a number, and the number is what you pay.
That is how leasing works at 2019 Washington Avenue — private offices at a flat monthly rate with utilities, internet, parking, and building services included, furnished or unfurnished, on terms sized to the tenant rather than the building. For a solo practitioner or a small firm, the value of that structure is not only the cost; it is the weekend you do not spend reading a sixty-page document.
See the Space for Yourself
2019 Washington Avenue offers move-in-ready private offices about a mile northwest of downtown Houston, with parking at the front door, high-speed internet, utilities, and building access included in a flat monthly rate. Furnished or unfurnished, individual suites or larger multi-room configurations.
Call (713) 224-5529 or send us an inquiry to check current availability and schedule a tour. Questions first? The frequently asked questions page covers lease terms, parking, security, and what is included.