Malls · Office Properties · Retail leases · Shopping Center · Uncategorized

Intelligent people will argue

I have mentioned in prior blogs that one of the things I love about lease administration is that everything you need to know about the lease is right there in 40-50 pages of the lease (sometimes as few as 2-3 pages, but sometimes as many as 500+). But, unless there are outside rules specifically addressed… Continue reading Intelligent people will argue

Malls · Office Properties · Retail leases · Shopping Center · Uncategorized

Poof! A $40m value swing because of lease language.

In prior posts, we have addressed why there are excluded areas defined for purposes of calculating prorata shares of taxes or CAM. In a nutshell, if a part of a property is not paying a full prorata share of expenses, any shortfall has to be absorbed by the landlord. For example, we have a fully… Continue reading Poof! A $40m value swing because of lease language.

Malls · Office Properties · Retail leases · Shopping Center · Uncategorized

Hurricane Harvey, flooding and your lease obligations

A friend emailed me a suggested topic for this coming Sunday’s blog post. “So with the events in Houston, is it time for a blog on Rent Abatements in Damage and Destruction clauses?” Clearly, it is. And, as landlords and tenants are not going to wait to start paperwork for claims until Sunday, it is… Continue reading Hurricane Harvey, flooding and your lease obligations

Malls · Office Properties · Retail leases · Shopping Center

“…if the end of the world is imminent …”

Yes. This language exists in some leases. The language typically states that if the end of the world is imminent, the landlord has the right to accelerate rents for the remainder of the term.  There are still a few hours left to check your leases for this language before the eclipse arrives today.  Happy eclipse… Continue reading “…if the end of the world is imminent …”

Malls · Office Properties · Retail leases · Shopping Center · Uncategorized

Don’t overcomplicate the lease language

Every few weeks, someone in the office will let out a scream of frustration. The frustration comes from reading lease language that is so involved, but could have been accomplished with incredibly simple lease language. For example, it is fairly common to see Consumer Price Index (CPI) increases applied to rents, or used as caps… Continue reading Don’t overcomplicate the lease language

Malls · Office Properties · Retail leases · Shopping Center · Uncategorized

Negotiate your leases wisely!

In any given year, we (my company, Meridian Realty Consultants) will read and abstract 8-10,000 leases. We get to see what landlords and tenants spend their time negotiating. It is not uncommon for someone in the office to say, “Can you believe someone took the time to negotiate this?” It might be something as simple… Continue reading Negotiate your leases wisely!

Office Properties · Uncategorized

Office leases – Are taxes part of operating expenses?

The short answer? The lease should specifically address whether taxes are reconciled as part of operating expenses or are reconciled separately. But, why should this matter? This week, we were working on an office tower acquisition in the southeast. The majority of the leases had the typical “tenant pays a proportionate share in excess of… Continue reading Office leases – Are taxes part of operating expenses?