The NYC Office Leasing Glossary

New York office leasing runs on a private vocabulary, rentable feet that are not usable, guarantees that are "good guy", rent that is free until it is not. These 21 entries explain each term the way a tenant needs it: what it means, what is negotiable, and where the money hides. Every definition reflects standing New York market convention rather than any single deal.

Updated 2026-09-30 · 21 terms, tenant-side · Nomad Group

Loss Factor→ /glossary-loss-factor/

Rentable vs Usable Square Feet→ /glossary-rentable-vs-usable-square-feet/

Tenant Improvement (TI) Allowance→ /glossary-tenant-improvement-allowance/

Free Rent (Rent Abatement)→ /glossary-free-rent/

Escalations→ /glossary-escalations/

Good Guy Guarantee→ /glossary-good-guy-guarantee/

Security Deposit & Letters of Credit→ /glossary-security-deposit/

Sublease→ /glossary-sublease/

Direct Lease→ /glossary-direct-lease/

Class A, B and C Office Space→ /glossary-class-a-b-c-office/

Gross Lease vs Net Lease→ /glossary-gross-vs-net-lease/

Letter of Intent (LOI)→ /glossary-letter-of-intent/

Buildout (Office Fit-Out)→ /glossary-buildout/

Pre-Built (Prebuilt) Space→ /glossary-pre-built/

Test Fit→ /glossary-test-fit/

Holdover→ /glossary-holdover/

Assignment & Sublet Clause→ /glossary-sublease-clause/

Operating Expenses (OpEx)→ /glossary-operating-expenses/

Lease Takeover→ /glossary-lease-takeover/

Lease vs Rent→ /glossary-lease-vs-rent/

Triple Net Lease (NNN)→ /glossary-triple-net-lease/

Why does this glossary exist on a brokerage site?

Because the vocabulary is where tenants lose money. A tenant who knows what a base year or a recapture right is negotiates differently. Nomad represents tenants only, so an informed counterparty is the point, not a problem.

Key details

Loss Factor: → /glossary-loss-factor/
Rentable vs Usable Square Feet: → /glossary-rentable-vs-usable-square-feet/
Tenant Improvement (TI) Allowance: → /glossary-tenant-improvement-allowance/
Free Rent (Rent Abatement): → /glossary-free-rent/
Escalations: → /glossary-escalations/
Good Guy Guarantee: → /glossary-good-guy-guarantee/
Security Deposit & Letters of Credit: → /glossary-security-deposit/
Sublease: → /glossary-sublease/
Direct Lease: → /glossary-direct-lease/
Class A, B and C Office Space: → /glossary-class-a-b-c-office/
Gross Lease vs Net Lease: → /glossary-gross-vs-net-lease/
Letter of Intent (LOI): → /glossary-letter-of-intent/
Buildout (Office Fit-Out): → /glossary-buildout/
Pre-Built (Prebuilt) Space: → /glossary-pre-built/
Test Fit: → /glossary-test-fit/
Holdover: → /glossary-holdover/
Assignment & Sublet Clause: → /glossary-sublease-clause/
Operating Expenses (OpEx): → /glossary-operating-expenses/
Lease Takeover: → /glossary-lease-takeover/
Lease vs Rent: → /glossary-lease-vs-rent/
Triple Net Lease (NNN): → /glossary-triple-net-lease/