Basking Lease Glossary
One-sentence definitions for every LeaseOps, Occupancy & Capacity, CRE term you need
What this is
This glossary is a single source of truth for the terms used across Basking products, reports, and benchmarks, covering lease administration, occupancy metrics, and real estate data.
How it’s organized
Terms are grouped by topic to make browsing easier.
Each section covers a specific domain (for example, Lease Abstraction or Lease Events) and contains a list of question-and-answer definitions. Open any section to review all included terms.
Lease Abstraction Fundamentals
Group 1: Lease Abstraction & Core Concepts
What is lease abstraction?
Lease abstraction is the process of reviewing lease documents and extracting key information into a structured format.
According to the lease data tables, this includes dates, financial terms, lease structure, options, and obligations that are required for lease administration, reporting, and accounting.
The goal of lease abstraction is to ensure that all critical lease information is consistently captured and available for operational use.
What information is typically included in lease abstraction?
Based on the lease abstraction tables, extracted information typically includes:
- lease dates (start, end, execution)
- lease type and structure
- tenure or occupation details
- lease status
- financial terms and cost schedules
- lease events and options
- guarantees, deposits, and allowances
Each extracted field supports lease administration, accounting, or reporting requirements.
Why is lease abstraction important for lease administration?
Lease abstraction ensures that lease obligations, rights, and costs are clearly understood and tracked over time.
Without abstraction, critical details may remain locked in documents, increasing the risk of missed events, incorrect payments, or non-compliance.
Group 2: Tenure & Occupation Information
What is tenure or occupation in lease administration?
Tenure or occupation describes how a location is held or used by an organization.
It identifies whether the location is leased or owned and defines the legal and operational relationship between the organization and the property.
This information is used to distinguish different types of locations within a lease administration system and in reporting.
What is the difference between leased and owned locations?
- Leased locations are occupied under a lease agreement.
- Owned locations are properties legally owned by the organization.
This distinction affects how locations are recorded, managed, and reported.
What is a head lease?
A head lease is a lease where the organization is the primary tenant and pays rent directly to the landlord.
In the lease data tables, this is reflected as a payable lease.
What is a sublease?
A sublease occurs when the organization occupies space that is leased from another tenant rather than directly from the landlord. In this case, the organization is a subtenant, and the original tenant acts as the sublandlord.
What is tenure or location type?
Tenure or location type defines whether a location is:
- owned
- under a head lease
- under a sublease
This classification helps distinguish different legal and financial responsibilities associated with each location.
What does “vacant” mean in lease administration?
Vacant indicates whether the leased or owned location is currently occupied or not.
As noted in the lease tables, locations are assumed to be “not vacant” unless stated otherwise. A lease may still be active even if the space is vacant.
What is lease status?
Lease status indicates whether a lease or owned asset is currently active or inactive.
What does “current” lease status mean?
A current lease status means the lease is active and obligations under the lease are currently in effect.
What does “disposed” lease status mean?
Disposed means the lease has expired or the owned asset has been sold and is no longer in use.
What does “preliminary” lease status mean?
Preliminary indicates that a lease has been executed, but the commencement date is not yet known.
Group 3: Lease Lifecycle & Key Dates
What is the lease execution date?
The lease execution date is the date on which the lease agreement is fully executed, typically when the landlord signs the lease document. This date helps determine whether the correct and final document is being used.
What is the lease start date?
The lease start date is the first day the lease is effective and lease obligations begin for the original lease term.
What is the lease end date?
The lease end date is the last day the lease is in force under the current term.
What is the lease term?
The lease term is the time period between the lease start date and the lease end date.
What is the current lease commencement date?
The current lease commencement date refers to the first day the lease, amendment, or renewal becomes effective for the current term.
What is the possession or occupancy date?
The possession or occupancy date indicates when the tenant is entitled to occupy the leased space.
This information is required for lease accounting purposes.
Group 4: Lease Events (Core & Advanced)
What are lease events?
Lease events are specific rights, obligations, or conditions defined in a lease that occur on a date or under certain conditions during the lease term. According to the lease data tables, events are captured because they often trigger changes in rent, space usage, guarantees, or termination rights and must be actively tracked.
Why are lease events important in lease administration?
Lease events are critical because they define when actions must be taken by the tenant or landlord. If an event is missed or not tracked, contractual rights may be lost, or financial obligations may change unexpectedly.
Lease Options
What is a lease renewal option?
A lease renewal option gives the tenant the right, but not the obligation, to continue the lease for an additional term. The lease tables indicate that renewal options include defined notice periods, renewal terms, and rent conditions.
What is an automatic renewal option?
An automatic renewal option means the lease will renew automatically unless notice is given by one of the parties within a specified timeframe. In this case, tracking notice requirements is essential to avoid unintended lease extensions.
What is a lease expansion option?
A lease expansion option gives the tenant the right to increase the size of the leased space at a future date.
The lease tables note that expansion options may apply to a specific location or additional space and can include cost implications and notice requirements.
What is a lease contraction option?
A lease contraction option allows the tenant to reduce the size of the leased space at a future date. The lease data indicates that contraction options may be ongoing or limited to a specific point in time and often require advance notice.
What is a tenant termination option?
A tenant termination option gives the tenant the right to terminate the lease before the scheduled lease end date. The lease tables specify that termination options include conditions such as notice periods, termination dates, and potential fees.
What is a landlord termination option?
A landlord termination option allows the landlord to terminate the lease under specific conditions defined in the lease. These options are typically subject to notice requirements and may include compensation or other conditions.
What is a mutual termination option?
A mutual termination option allows both parties to agree to terminate the lease under predefined terms. This option defines who can exercise the right and under what conditions.
Timing & Structure of Events
What is an early notice date?
An early notice date is the date by which notice must be given in order to exercise a lease event, such as renewal, termination, or expansion. The lease tables highlight early notice dates as critical tracking points because missing them can invalidate the event.
What is an event end date?
An event end date defines the last date on which a lease event can be exercised. If the event is not acted upon by this date, the right expires.
What does “multiple event instances” mean?
Multiple event instances refer to events that occur more than once during the lease term, such as recurring renewals or rent reviews. Each instance may have different dates, conditions, or financial impacts and must be tracked separately.
What are date-driven lease events?
Date-driven lease events are triggered on specific calendar dates defined in the lease. These events require monitoring of fixed timelines to ensure compliance.
What are conditional lease events?
Conditional lease events are triggered only when specific conditions are met rather than on a fixed date. The lease tables indicate that these events depend on defined criteria and require interpretation in addition to tracking.
What are business-day-driven lease events?
Business-day-driven lease events use business days rather than calendar days to calculate notice periods or deadlines. This distinction affects how notice periods are counted and when actions must be taken.
Other Key Lease Events
What is a rent review?
A rent review is a lease event that allows rent to be adjusted during the lease term. The lease data tables indicate that rent reviews may be based on market rates, indexation, or other defined methods and require notice and documentation.
What is a right of first offer (ROFO)?
A right of first offer gives the tenant the right to receive an initial offer for additional space or a lease opportunity before it is offered to third parties.
What is a right of first refusal (ROFR)
A right of first refusal allows the tenant to match a third-party offer for space or a lease opportunity. The lease tables note that ROFR rights are typically time-bound and event-driven.
What is a letter of credit as a lease event?
A letter of credit is a financial security provided by the tenant and tracked as a lease event when changes, returns, or expirations occur.
What is a bank guarantee as a lease event?
A bank guarantee is a form of financial security that may increase, decrease, or expire during the lease term and is therefore tracked as an event.
What is a security deposit event?
Security deposit events track changes, returns, or adjustments to a security deposit during the lease term. These events are captured to ensure financial obligations are actively managed.
What is a tenant improvement allowance (TIA) event?
A tenant improvement allowance event tracks deadlines and conditions related to the use of a landlord contribution toward space transformation. The lease tables indicate that deadlines for using the allowance should be tracked as events.
Group 5: Cost Schedule
What is a cost schedule in lease administration?
A cost schedule is a structured list of lease-related costs that the tenant is required to pay under the lease agreement. According to the lease tables, the cost schedule is used to capture recurring and non-recurring financial obligations associated with the lease.
What is base rent?
Base rent is the minimum rent payable by the tenant to the landlord. The lease tables specify that base rent includes the rent amount, payment frequency, currency, and any defined method of increase.
What is free rent?
Free rent refers to a rent-free period provided under the lease. The lease tables indicate that when free rent applies, base rent is still abstracted from the lease start date, and any free rent period is applied as an offset or credit.
What is prepaid rent?
Prepaid rent is rent paid in advance at lease commencement. According to the lease tables, prepaid rent is abstracted as a credit that offsets base rent and may require a separate cost type for accounting purposes.
What is CPI increase?
A CPI increase is a rent adjustment mechanism based on the Consumer Price Index or a similar index. The lease tables note that CPI increases may include a placeholder value when the actual amount is not yet known, ensuring the requirement is captured for reporting and forecasting.
What are operating expenses (OPEX)?
Operating expenses are recurring costs related to the operation of the property. The lease tables indicate that OPEX amounts are often not specified in the lease and are instead determined through invoices received from the landlord.
What are parking costs in a cost schedule?
Parking costs refer to charges associated with parking spaces allocated under the lease. According to the lease tables, these costs may be known only after receiving an invoice from the landlord and are therefore tracked as part of the cost schedule.
What does “may have multiple cost instances” mean?
This indicates that a lease may include multiple costs of the same type, each with its own date range, amount, or conditions. The lease tables highlight that cost schedules can include multiple instances, such as different free rent periods or cost changes over time.
Group 6: Contacts & Notices
What are contacts in lease administration?
Contacts define the parties and addresses used for legal notices, payments, and financial communication under the lease. The lease tables indicate that contact information is critical to ensure notifications and payments are sent to the correct party.
What is a landlord notice address?
A landlord notice address is the legal address to which notices must be sent to the landlord. The lease tables note that this may include copy notice addresses to ensure proper delivery.
What is a tenant notice address?
A tenant notice address is the legal address used to send notices to the tenant. This address is defined to ensure compliance with lease notice requirements.
What is a remittance or payment address?
A remittance or payment address specifies where rent and other payments must be sent. According to the lease tables, this information may not always be stated in the lease and may require additional documentation, such as a landlord’s W9.
What is a tenant financial management or billing address?
This address defines where invoices should be sent, particularly in sublease arrangements. The lease tables indicate that this information is required to ensure accurate billing and payment processing.
Group 7: Documents, Notes & Tracking
What lease documents are reviewed during lease abstraction?
Each lease document reviewed during abstraction is inventoried. According to the lease tables, document name, date, type, and description are captured to ensure all relevant documents are accounted for.
Why is document inventory important in lease administration?
Document inventory ensures that lease data is abstracted from the correct and most up-to-date documents. This helps prevent errors caused by outdated or incomplete lease documentation.
What are notes and pending items in lease abstraction?
Notes and pending items capture information or actions that require follow-up during or after the abstraction process. The lease tables indicate that these items are critical to completing accurate lease abstraction.
What is a lease tracking worksheet?
A lease tracking worksheet is used to monitor key financial guarantees and obligations over time. According to the lease tables, this includes tracking items such as bank guarantees, letters of credit, security deposits, and tenant improvement allowances.
What is tracked for a security deposit?
The lease tables specify that security deposit tracking includes:
- deposit amount
- conditions for return
- interest terms, if applicable
- dates associated with changes or release
Any changes are tracked as lease events.
What is tracked for tenant improvement allowance?
Tenant improvement allowance tracking includes:
- the allowance amount
- how unused portions can be used
- any deadlines or requirements for requesting the allowance
The lease tables indicate that deadlines should be captured as lease events.
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