New York leases have their own vocabulary, and misreading one term can cost more than the rent negotiation itself. This is the short glossary every tenant needs.
Rent structures
- Full-service (gross): taxes, insurance, cleaning and base utilities are inside the rent.
- Modified gross: the New York standard — all-in for a base year, with later increases passed through.
- Triple-net (NNN): a low base rent plus your share of taxes, insurance and operating costs, usually another $15–25 per square foot.
The numbers that surprise people
- Loss factor — the gap between rentable and usable area, typically 25–35% in Manhattan.
- Escalations — a fixed 2.5–3% per year, or your proportionate share of tax and operating increases over the base year.
- TI allowance — the landlord’s contribution to build-out, often $50–100 per square foot on longer deals.
- Free rent — commonly one month per year of term, taken up front.
- Good-guy guarantee — a personal guarantee limited to the period until you hand back the keys properly; standard in New York and far safer than a full guarantee.
Clauses worth negotiating
Sublease and assignment rights, a renewal option with a defined rent formula, after-hours HVAC rates, and a cap on operating-expense pass-throughs. These matter more over five years than a dollar off the asking rent. When you are ready to compare real offers, start from the buildings in our New York listings — every enquiry goes to a broker who works that district daily, at no cost to tenants.
