FAQ - Glossary

Add-on space factor - an indicator that shows you, in percentage terms, how much common space a building has (e.g. Add on factor - 34%). This refers to parts of the building that are used by different tenants - e.g. reception, lifts, lobby (usually), communal toilets on floors.

Asking rent - the rent price that the owner or landlord of the property initially offers. It is usually quoted in euros, much less often in zlotys. This is the price per square metre of office, for one month. This is the number you will see in the presented offices for rent on finne.

Break option - the tenant's right to end the office lease earlier than in the contract. Usually there are specific conditions for both parties to benefit from this option (e.g. additional fee, compensation etc.).

Cash flow - statement presenting the total rental costs in a particular building. It is broken down by specific years of rent. This table is useful for us when we compare the financial details included in the offers.

Effective rent - depending on the stage we are at with the tenant, we use a specific type of rent. Effective rent is the negotiated price minus the initial rent (i.e. rent frees, will be discussed below). It is converted to the total duration of the tenancy. For example - if the rent for 4 years is 10 zloty per month, but the rent frees gives us 2 years rent-free, the Effective rent for 4 years will be 5 zloty per month. What is important for you - this rate does not appear in the contract, only in the offers.

Fit out budget - this is the tenant's budget for space arrangement, which we can provide in euros or in zlotys. It is usually presented per square metre or as an overall amount. It is determined by the prospective tenant.

Gross space - this is the entire office area, i.e. both areas where only particular tenant has access, but also common areas shared with other clients (e.g. part of the toilets, corridor, etc.).

HVAC (Installations) - it concerns the different types of installations in a building: heating (heating - H), ventilation (ventilation - V), air-conditioning (air conditioning - A) and cooling (cooling - C). They are distributed on the basis of the floor plan, its layout (open space or office layout) and the number of people working in the room.

Hot desking - the workspace can be available to different people for a certain period or divided between a fixed group of people working at different times. Both options optimise such space for both the company renting the office (cost savings) and the building owner (no so-called empty runs, the space works for itself all the time). It is very popular in case of renting a coworking space.

Landlord - the company or, less commonly, the individual who leases office space to us. This is usually the owner of the office or warehouse building, the asset manager (the person who manages the space on behalf of the owner) or the developer of the building.

Letter of intent - such a letter describes the main aspects of a negotiated lease between a tenant and the owner or manager of an office building. It is one form of reserving space for the duration of negotiations.

Long list - the first, usually extensive list of buildings that meet the tenant's expectations (this is the first general view through which offers that fit the basic criteria are 'passed').

Minimal rental period - the minimum period for which a landlord signs contracts with tenants. Lease term is sometimes negotiable - in buildings older than 5 years (when 1 lease cycle ends).

Net space - this is the size of the space that comprises the space plan (discussed below), so approved by tenant.

Open space - an open work space without separating walls, rooms or offices. A common solution especially for large office spaces available on the floor.

Parking factor - a ratio that tells us how many parking spaces we can rent in relation to the size of the office to be leased. For example: if the parking ratio in the building is 1/180, then we can rent 1 parking space for every 180 sqm of office.

Property manager - is the person who looks after the office building, i.e. manages it on behalf of the owner. He or she manages the following services provided by the building: security, rent settlement, cleaning of the space and optimisation of operating costs.

Service charge - these are the total costs for the maintenance and day-to-day operation of the office or warehouse building passed on to the tenants as a result of the lease agreement. They include, among others, taxes, insurance premiums, reception and security costs, cleaning of common areas, etc. Rates are usually quoted per square metre, in zloty, less often in euros.

Short list - once the client has passed the first sieve (Long list - above), he gets a list of 3-4 buildings that are qualified by the tenant for the next stage of negotiations. The next step will be to sign a Letter of Intent (LOI (Letter of Intent) - above) with the selected landlord.

Space plan - a plan including the tenant's guidelines (e.g. the size of the team using the office, or the way the space is arranged, e.g. open space, offices or mixed layouts, conference rooms). It also includes requirements for additional aspects - a kitchen, server room or common spaces for the tenant. Examples include chillout rooms (places to relax during working hours), which are gaining in popularity.

Tenant - a person or company who is looking for and decides to lease office, coworking or warehouse space from the building owner or manager.

Tour book - a brochure that is a summary prepared for the tenant right before viewing potential locations (i.e. viewing - below). It generally contains summary data about the building, photos of the office building and describes the location. It is particularly useful if you are visiting more buildings in one day.

Vacancy - the total available rental space in relation to the total space in a given market, a value expressed as a percentage. Also known as Vacancy Rate.

Viewing - the viewing by an interested tenant of an office building for rent from a long list. After such visits, a short list (above) is created.