Editorial responsibility: Emmanuel DeGiovanni. Updated 31 October 2026.
Use this glossary to decode an office offer or draft lease. It explains working terminology; the agreement and applicable law determine the actual rights and obligations. For a full review sequence, use the agreement checklist.
- Premises
-
The property and rights included in the proposed letting. Check: Does the plan identify the exact unit, office area, parking and shared facilities?
- Permitted use
-
The activity the agreement allows at the premises. Check: Does the proposed activity match both the contract and the relevant property approvals?
- Commencement and handover
-
Dates for the lease, access, delivery and rent starting. Check: Are they separate, and what happens if works or services are delayed?
- Di fermo
-
A label commonly used for a fixed commitment phase. Check: What dates, exceptions and obligations does this draft actually specify?
- Di rispetto
-
A label used for a subsequent contractual phase. Check: What options, notice and conditions determine continuation or departure?
- Break clause
-
A provision allowing an identified party to end the arrangement before its stated expiry, subject to its terms. Check: Who can use it, when, how and with what continuing obligations?
- Renewal or extension option
-
A proposed right or procedure to continue occupation. Check: Who controls it, what is the deadline and how is the new rent set?
- Base rent
-
The stated rent before separately charged items. Check: Is it monthly, annual, per square metre or for the entire premises?
- Rent review or indexation
-
The mechanism used to adjust rent. Check: Which dates, formula, index, cap or floor are written into the draft?
- Service charge or CAM
-
Charges for specified shared building costs; CAM means common area maintenance. Check: What is included, how is the share calculated and how are actual costs evidenced?
- Deposit and guarantees
-
Different forms of security requested for obligations. Check: What amount, duration, calls, deductions and release conditions apply to each document?
- Fit-out and landlord works
-
The works needed to prepare the premises. Check: Who approves, pays, completes and owns each item, and by when?
- Schedule of condition
-
A record of the premises at an agreed point. Check: Is it sufficiently detailed and incorporated into the agreed documentation?
- Reinstatement
-
The work or condition required when premises are handed back. Check: Which alterations must be removed, what standard applies and who approves completion?
- Assignment and subletting
-
Different ways another occupier may become involved in the premises. Check: What consent is required and which obligations or guarantees remain with the original tenant?
- Heads of terms
-
A summary of the proposed commercial deal. Check: Which points are agreed, conditional or outstanding, and how does the final contract reflect them?
Translate labels into a written cost and responsibility schedule
Descriptions such as “gross”, “net”, “inclusive” or “serviced” are not a substitute for a list of inclusions and exclusions. Ask for rent, applicable taxes, utilities, parking, insurance contributions, service charges and repair responsibilities to be itemised. Use the illustrative cost-allocation examples to see why similar labels can produce different budgets.
For the duration terminology, see the lease-term guide and Ganado Advocates’ commercial lease overview, question 18. Discuss contract interpretation with your legal adviser; prepare the commercial negotiation with the questions that remain unresolved.
