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Medical Office Leasing Glossary
Use the key points below to make the real-estate decision easier to evaluate, then turn the requirement into a live search.
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Plain-English definitions for the commercial real estate terms healthcare practices encounter while evaluating space and leases.
Reviewed 2026-08-13 • ClinicaMOB editorial standard: distinguish published information, informed analysis and property-specific facts requiring verification.
Medical Office Leasing Terms — Plain-English Definitions
Base Rent
The rent charged for the premises before additional operating expenses or other charges.
CAM / Operating Expenses
Additional building or property expenses passed through to tenants under the lease structure. The exact components vary by property and lease.
Full-Service / Gross Rent
A rent structure in which some or many operating expenses are included in the quoted rent, subject to the lease terms and possible expense stops or increases.
NNN / Triple Net
A structure in which the tenant typically pays base rent plus allocated taxes, insurance and common-area/operating expenses, as defined by the lease.
Tenant Improvements (TI)
Work performed to adapt a suite for the tenant. The lease may provide a landlord contribution, turnkey work, reimbursement or no allowance.
Second-Generation Medical Space
A suite previously built for healthcare use where some existing improvements may be reusable.
Second-Generation Dental Space
A former dental suite where plumbing, operatory layout, electrical, imaging or other dental infrastructure may reduce conversion work if it fits the new practice.
Usable vs. Rentable Square Feet
Usable area is the space physically occupied by the tenant; rentable area may include an allocation of common areas depending on the measurement method and building.
Letter of Intent (LOI)
A generally non-final business-term summary used to frame lease negotiations before definitive lease documents.
Exclusive Use
A lease provision that may limit specified competing uses at a property. Availability and scope depend on the landlord and existing agreements.
Permitted Use
The lease language defining what the tenant may legally operate in the premises. Medical and dental practices should make sure it is broad enough for planned services.
Assignment / Subletting
Lease provisions governing whether and how the tenant may transfer occupancy or lease rights to another party.
Renewal Option
A contractual right, if properly exercised, to extend the lease under specified terms or a stated method for determining terms.
Buildout Period
The period used for design, approvals, permitting, construction, inspections, equipment installation and readiness for occupancy.
Occupancy Cost
The broader economic burden of the space — potentially including rent, operating expenses, parking, utilities, improvement costs, financing, relocation and downtime.
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Medical Office Leasing Glossary
Plain-English definitions of important leasing, buildout and occupancy terms.
Turn the research into a property search.
Use the guide to define what matters, then tell ClinicaMOB the practice requirements once. We can search the four-county market around those priorities.
Compare markets
Move from the leasing issue to the counties and city submarkets where the practice can work.
Apply specialty requirements
Translate the practice type into physical-space, access, parking and workflow filters.
Check 2nd-generation options
Look for existing medical or dental infrastructure when it can reduce cost, time or risk.
Editorial standard. Guidance is written for medical/dental real-estate decisions in Southeast Florida. Property-specific facts, economics, availability and regulatory matters must be verified for the actual transaction; unsupported market claims are not published as fact.