What is a lessee?
Lessee is another word for “tenant.”
What is the difference between lessor and lessee?
The lessee is on the giving end of a lease transaction and is opposed to the lessor, which is the receiving end of a lease transaction (landlord, or owner of the space that is being leased).
The lessee is an individual or a business that holds property under a lease. Therefore, subject to terms and conditions that are specified in the lease contract signed by both parties, the lessee (tenant) has the right of use of real property, granted by the real owner of that property.
What is lessee status?
Depending on the number and order of the tenants involved in a lease transaction, the lessee can be:
– Anchor lessee/anchor tenant – usually applies to either the first tenant to lease a space in a multi-tenant property, or the tenant which leases the most space in a multi-tenant property. Anchor lessees usually benefit from lease terms that grant them advantages over other tenants in the property. For example, in a multi-tenant retail property, such as a shopping mall, the anchor tenant may benefit from an exclusive clause, by which the landlord promises there will be no other tenant would engage in a specific business activity or carry specific type of merchandise, therefore the anchor tenant has exclusivity regarding certain terms, within the property.
– Co-lessee – when two or more tenants enter a lease agreement for the same space, which they share, each of the tenants is a co-lessee under that agreement. This is more common in residential leases, than commercial real estate leases
– Sub-lessee – this is a tenant who is leasing the space on which another tenant already has a lease. Unlike a co-lessee situation, the sub-lessee does not share the leased space with the tenant from which it is leasing (see subletting).
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