INTRODUCTION
GENERIC INTRO
XX/XX/2026
A Simple Guide to: Commercial Property Terms
A simple guide to xxxx
Base build
Base build refers to the existing building and its main systems before the tenant specific fit out is added.
This can include the structure, external envelope, roof, core areas, risers, main mechanical and electrical infrastructure, life safety systems and other landlord controlled elements.
Understanding the base build is important because it sets the limits of what can be done easily, what needs coordination and what may trigger additional approvals.
Demise
The demise is the area included within the lease.
In simple terms, it is the part of the building the tenant is actually taking.
This matters because it affects responsibility. Some areas may sit inside the tenant demise, while others may remain under landlord control.
This can influence maintenance, alterations, signage, services, access, fire strategy and permissions.
Common Parts
Common parts are shared areas outside the tenant demise.
These might include receptions, corridors, WCs, lift lobbies, stairs, shared lounges, cycle stores and other communal facilities.
Common parts can have a big impact on how a building feels. They are often the first and last spaces people experience, so they can strongly influence perceived quality, tenant confidence and the overall value of the building.
Space Plan
A space plan, sometimes called a test fit, is an early layout exercise.
It is usually used to check whether a space can accommodate a particular use, number of people, layout, operational requirement or commercial target.
For an office, a test fit might explore desk numbers, meeting room provision, breakout space, storage and circulation. For retail or hospitality, it might explore customer flow, back of house, covers, sales area, counters or service points.
A good test fit is not just about making things fit on paper. It should help identify whether the space works in practice.
Feasibility
Feasibility is a broader early stage review of whether a project is viable.
This can include space planning, budget, programme, statutory requirements, planning, building control, services, access, heritage constraints, landlord requirements and operational needs.
Feasibility work is useful because it helps identify the key opportunities and risks before too much time or money is committed.
Landlord Works
Landlord works are works carried out by or on behalf of the landlord, often before a tenant takes occupation.
This might include base build repairs, CAT A works, common parts, incoming services, statutory upgrades or agreed improvements to the space.
The key point is to understand what the landlord is providing before the tenant starts their own fit out.
Tenant Works
Tenant works are works carried out by or on behalf of the tenant to suit their own occupation.
This often includes CAT B fit out, furniture, signage, data, AV, branding and any occupier specific alterations.
The split between landlord works and tenant works should be clear early, because it affects cost, programme, approvals and responsibility.
Heads of Terms
Heads of Terms set out the main commercial points agreed between landlord and tenant before the lease is completed.
They often cover things like rent, lease length, rent free periods, break clauses, incentives, repairing obligations, landlord works, tenant works and any conditions that need to be met before completion.
For fit out projects, they can be important because they may affect what is being provided, when the space is handed over, who is responsible for certain works and what condition the space needs to be in at the start of the lease.
Agreement for Lease
An Agreement for Lease is a legal agreement that sets out what needs to happen before the lease is completed.
It may include landlord works, tenant works, approvals, timing, conditions, handover requirements and other obligations.
For fit out projects, this can be important because the design and delivery scope may be tied to what has been agreed commercially and legally.
Licence to Alter
A Licence to Alter is the landlord’s formal consent for proposed changes to a leased space.
It may be needed before a tenant carries out fit out works, especially where the works affect layout, services, structure, fire strategy, signage or external appearance.
This should be checked early so the design, approvals and programme are properly aligned.
Reinstatement
Reinstatement means returning the space to an agreed condition, often at the end of a lease.
This might include removing tenant fit out, making good finishes, taking out signage or returning the space to CAT A condition, depending on the lease.
This is where fitted spaces can become slightly grey. If a kitchen, meeting room or fitted item is already in place, it should be clear whether it stays, is removed or forms part of the agreed condition of the space.
Dilapidations
Dilapidations are items of repair, reinstatement or making good that may be required during or at the end of a lease.
They usually relate to the tenant’s obligations under the lease.
In simple terms, they are about what needs to be repaired, removed, replaced or put back when a tenant leaves.
Schedule of Condition
A Schedule of Condition records the condition of a space at a particular point in time, often before a lease starts or before works begin.
It can help clarify what condition the tenant inherited and what was already there.
This can be useful in existing buildings, especially where there are older finishes, visible wear, exposed services or areas that may not be upgraded as part of the fit out.