Warehouses from A to Z – Glossary of terms

ADR (from the French “Accord Dangereux Routier”), is an agreement on the international carriage of dangerous goods by road. A storage area or part of a storage area designated as ADR is a specially adapted area that must meet specific safety standards for handling hazardous materials – for example, flammable, toxic or radioactive substances, etc. These warehouses are designed to meet strict safety regulations and legislative requirements for the handling and storage of dangerous goods.

ASTI (Above Standard Tenant Improvements) refers to above standard improvements to the premises that go beyond the basic amenities provided by the landlord. These adaptations are usually tailored to the specific needs of the tenant and may relate to structural alterations, technical installations or design features. The cost of ASTI is often paid by the tenant in a lump sum or as an allocation in the rent and is negotiated as part of the lease agreement.

Blended rent or average rent is a combined rent that reflects different rates for different parts of a rented property. It can include, for example, a mix of warehouse and office space with different rents per square metre. It is used to achieve a balanced price within a single lease.

A break option is a contractual provision that allows a tenant or landlord to terminate a lease before the end of its standard term. This option is usually set at a specific date and is usually subject to the fulfilment of pre-agreed conditions, such as giving sufficient notice. The break option provides flexibility to both parties, particularly if the business terms or strategy of the company changes. Landlords often require compensation for early termination.

BREEAM (Building Research Establishment Environmental Assessment Method) is an international certification system for assessing the sustainability of buildings. It takes into account aspects such as energy efficiency, water management, use of green materials and environmental impact. Buildings with a high BREEAM rating typically have lower operating costs and are more attractive to tenants.

BTS (Built to Suit) refers to a property that is built to suit a specific tenant’s specific requirements. The tenant is involved in the design of the building, including the layout, technical parameters and design to meet their operational needs. This model is often used in industrial and logistics parks where companies need specific warehouse or production space. The advantage of BTS is space optimization and operational efficiency, while the disadvantage can be a longer lead time. Once completed, the building is usually owned by the developer and used by the tenant on a long-term lease.

BTO (Built to Own) refers to a custom-built property with the future owner being the user, not the developer. This model is suitable for companies that want to have full control over their property and invest in their own infrastructure in the long term. Construction is carried out according to the requirements of the investor, who finances the project either from his own resources or through a loan. The advantage of BTO is independence from the landlord and the possibility of long-term optimization of operating costs. The disadvantages can be higher upfront investment and less flexibility to change business plans.

CCTV (Closed Circuit Television) refers to a camera system used to monitor and protect buildings. It is used in commercial properties to ensure the safety of tenants, property and to control the movement of people. Modern CCTV systems can be linked to smart technology to allow remote monitoring.

Commencement date is the date on which the lease officially comes into force. From this date, the tenant starts to pay rent and assumes responsibility for the premises. The Commencement Date may be different from the date of handover of the premises if, for example, a rent free period is granted.

Cross-dock is a logistics process where goods are directly transferred from incoming trucks to outgoing trucks without the need for long-term storage. This method minimises handling time and speeds up the delivery of goods, which is particularly advantageous for fast-moving goods. Cross-dock terminals are designed to enable efficient flow of goods and reduce storage costs. This system is used, for example, by retail chains or companies in the e-commerce sector.

Early access means the possibility for the tenant to enter the leased premises before the official start of the lease. This access is usually granted in order to complete a fit out or prepare for operation. In some cases, early access may be free of charge, in other cases it is charged. The terms of this access are usually agreed in advance in the lease agreement.

Effective rent is the actual rent a tenant will pay after taking into account any incentives (discounts) such as rent holidays or fit out allowances. It is calculated as an average over the term of the tenancy. This figure helps to better compare different offers in the rental market.

ESFR (Early Suppression Fast Response) sprinklers are highly efficient fire extinguishing systems used mainly in industrial and warehouse buildings. These sprinklers react faster and with more water than conventional systems, allowing the fire to be located quickly and damage minimised.