Don't get lost in the jargon. We have provided definitions for the frequently used terminology you may encounter during the process of acquiring your new office space.

GENERAL    I     CONSTRUCTION (Coming Soon)    I     FINANCIAL (Coming Soon)

GENERAL TERMS

BUILDING CLASSIFICATIONS    l     RENTAL TERMS    l     OTHER GENERAL TERMS

BUILDING CLASSIFICATIONS Class “A” Office: Building(s) location is considered premier with high market perception standards. Typically higher rent with excellent building finishes, multiple building amenities, and high efficiencies.   Class “B” Office: Building(s) location considered excellent with medium market perception standards. Typically lower rent than Class “A” with good building finishes, some building amenities and low efficiencies.   Class “C” Office: Building(s) location considered poor with low market perception standards. Typically below market rent with fair building finishes, few building amenities and low efficiencies.

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RENTAL TERMS CAM: “Common Area Maintenance” charges. Generally used in NNN lease where the tenant pays a share of the costs associated with the maintenance of the common areas. HOA: “Owners Association Fees” Fees assessed to each owner of a Meridian Professional Center to cover common area charges.   Net Lease/Triple Net Lease: Also referred to as “NNN” A lease in which the tenant pays not only the base rent , but certain landlord costs such as operating expenses, property taxes, insurance premiums, and utilities. Operating Expense: The actual day to day costs of operating a property, such as: taxes, utilities, cleaning, insurance, maintenance, etc.

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OTHER GENERAL TERMS Build to Suit: A developable parcel/suite that an owner will improve to suite the needs of a particular tenant. Construction does not begin until a tenant has committed to the property and requires at minimum a 10% payment of total construction costs. Letter of Intent: A non-binding contract that outlines the terms that will be used to draft the purchase and sale agreement. Typically the first step of the purchase process, once Letter of Intent has been signed Meridian will pay for the initial space plan any changes to the original space plan will be the responsibility of the buyer.   Net Rentable Area: The area (square footage) for which rent is charged under a lease, including a portion of the common area used by the public and for maintenance within the building.   Net Usable Area: The area (square footage) for which the tenant has exclusive rights, i.e. the area within the tenants demised premises.   PSF: Per square foot   PSF/Mo.: Per square foot per month   PSF/Yr: Per square foot per year   Parking Ratio: a ratio of allocated parking spaces per square foot lease or purchased. For example 1:1000, one parking space for every 1000 square feet lease or purchased.   Purchase and Sale Agreement: Purchase contract drafted by Meridian that will be use to outline all details of the purchase of a Meridian Professional Center property.   Renewal Option: The right of the tenant to review or extend the term of the lease for a stated period of time at a rent which may be renegotiated or will be determined through negotiations at the time of renewal.   Right of First Refusal: Gives the tenant a first chance to lease a specific space if the landlord has another prospect ready and willing to lease such space. The landlord must have a legitimate offer which the tenant can refuse or accept.   SF: Square foot or square feet   Space Plan: Architectural drawing of the suite layout.     Tenant Improvement: (also known as TI) improvement necessary to meet the needs of the tenant; to construct the tenant’s space, i.e. walls, doors, ceilings.   Term: The specified period of time in a lease agreement whereby the landlord grants a right of possession and use for a property or space to the tenant. The length of the lease.   Turn Key Construction: A construction project whereby the landlord is responsible for the total completion and cost of improvements made to a property pursuant to the specific requirements and specifications of the tenant.

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