NYC Commercial Real Estate Glossary

33 essential terms every restaurant, bar, and hospitality operator needs to know

Whether you're reviewing current NYC market data, reading our hospitality real estate guides, or ready to start your space search — this glossary covers the terminology you'll encounter throughout the process.

2

200-Foot Rule (Liquor License)

SLA regulation prohibiting on-premises liquor licenses within 200 feet of a school or house of worship.

5

500-Foot Rule (Liquor License)

SLA regulation restricting new on-premises liquor licenses within 500 feet of three or more existing licensed establishments.

A

Assignment and Subletting

Lease provisions governing a tenant's right to transfer the lease to a new tenant or sublet part of the space.

Anchor Tenant

A major, high-traffic tenant that draws customers to a building or development, benefiting smaller co-tenants.

Ansul System

An automatic fire suppression system required in commercial kitchens that produce grease-laden vapors.

B

Build-Out / Fit-Out

The construction process of converting a raw or existing commercial space into a finished, operational business environment.

C

Certificate of Occupancy (C of O)

NYC Department of Buildings document certifying a building's legal use and maximum occupancy.

Community Board Approval

Advisory review by a local NYC community board, required for liquor license applications and certain land use changes.

Certificate of Assumed Name / DBA

A filing that registers a business's trade name ('Doing Business As') with the county clerk, required before opening.

Competitive Density

The concentration of similar businesses within a defined area, indicating market saturation or demand clustering.

D

Dark Kitchen / Ghost Kitchen

A commercial kitchen facility designed exclusively for delivery and takeout orders, with no public-facing dining area.

Department of Buildings (DOB) Permit

Required permit from NYC DOB for any construction, renovation, or change of use in a commercial space.

DOHMH Health Inspection Grade

A letter grade (A, B, or C) assigned by NYC's Department of Health based on restaurant sanitary inspection scores.

E

Exclusivity Clause

A lease provision preventing the landlord from leasing to competing businesses in the same building or development.

Environmental Control Board (ECB) Violation

A citation issued for building code or quality-of-life violations, adjudicated by NYC's OATH tribunal.

F

Foot Traffic Density

A measure of pedestrian volume passing a location, critical for estimating walk-in customer potential.

G

Good Guy Guarantee

NYC-specific lease provision allowing a tenant to surrender a space and terminate personal liability with proper notice.

Grease Trap

A plumbing device that intercepts fats, oils, and grease before they enter the municipal sewer system.

K

Key Money

Upfront payment to an outgoing tenant for the right to take over a lease, fixtures, or goodwill.

L

Letter of Intent (LOI)

A non-binding document outlining proposed lease terms before formal lease negotiation begins.

Landmarks Preservation Commission

NYC agency that regulates changes to the exteriors of designated landmark buildings and properties in historic districts.

N

NNN (Triple Net Lease)

A lease structure where the tenant pays base rent plus property taxes, building insurance, and common area maintenance.

P

Percentage Rent

Additional rent calculated as a percentage of a tenant's gross sales above a specified breakpoint.

PCE Permit (Place of Public Assembly)

A permit required for venues where 75 or more people gather for entertainment, recreation, or worship in NYC.

PSF (Price Per Square Foot)

The standard metric for comparing commercial rent prices, calculated as annual rent divided by total square footage.

S

Second Generation Space

A previously occupied commercial space with an existing buildout from a prior tenant in the same or similar use.

SLA (State Liquor Authority) Application

The formal application process with the NYS State Liquor Authority to obtain an on-premises or off-premises liquor license.

T

Turn-Key Space

A move-in ready commercial space with all systems, equipment, and finishes in place for immediate operation.

Tenant Improvement (TI) Allowance

A landlord's financial contribution toward a tenant's buildout costs, typically expressed as dollars per square foot.

U

Use Clause

A lease provision that defines the specific activities permitted within a commercial space.

V

Vented Space / Venting

A commercial space with ductwork to exhaust cooking fumes, smoke, and heat through the roof of the building.

W

White Box / Vanilla Box

A raw commercial space delivered with basic utilities but no interior buildout, finishes, or equipment.

Z

Zoning Use Group

NYC zoning classifications that define which commercial, residential, and manufacturing uses are permitted on a property.

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