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

An approach to lease administration and due diligence

When we are verifying rents at a property, we do all of our calculations – prorata shares, caps, breakpoints, CPI calculations, lease year language applications and so on – prior to looking at what the current landlord has done. I don’t know about you, but I can be fairly easily led by what someone else… Continue reading An approach to lease administration and due diligence

commercial real estate · Malls · Office Properties · Retail leases · Shopping Center · Uncategorized

It’s just a couple of days

We will not complete the date fields in a lease abstract until we know which dates we are going to use as the Commencement Date and the Rent Commencement Date. That can be incredibly frustrating for anyone that has to deal with us. Think about that. You’ve just executed a lease and you want a… Continue reading It’s just a couple of days

commercial real estate · Malls · Office Properties · Retail leases · Shopping Center · Uncategorized

Considering the proper treatment of tax abatements and incentives in your leases

I have the honor of serving on our city’s development authority. It is a recent appointment, so I cannot take any credit for the great things that have been done already. As part of the appointment, I was required to take a class that included a couple of hours on tax incentives and bond financings.… Continue reading Considering the proper treatment of tax abatements and incentives in your leases

commercial real estate · Malls · Retail leases · Shopping Center · Uncategorized

Be explicit – even fixed CAM can be tricky

There’s no doubt that prorata CAM, tax and insurance calculations can be tricky. You have to make sure the shopping center definition is correct, the expenses are correct, the method of calculating the leasable area is correct, the method of calculating vacancies is correct, the definition of excluded area is correct, the treatment of excluded… Continue reading Be explicit – even fixed CAM can be tricky

commercial real estate · Malls · Retail leases · Shopping Center · Uncategorized

Unique remedy language in the event of a violation

The majority of national and regional tenant leases contain some sort of tenant-negotiated restriction. It may be an exclusive use, or a specific prohibited use in the center (no educational facilities), or a site line restriction, or a restriction against a type of use within x feet of the premises (no food uses within 200’… Continue reading Unique remedy language in the event of a violation

Malls · Retail leases · Shopping Center · Uncategorized

A few more issues related to excluded area contributions

Last week we addressed a few of the issues to consider related to excluded area contributions, but two properties that we worked on this week made me realize I missed discussing two very significant issues – refunds/credits and recaptures as they relate to excluded area tenants. At one of the properties, an excluded area tenant… Continue reading A few more issues related to excluded area contributions

Malls · Retail leases · Shopping Center · Uncategorized

Excluded area contributions

When a tenant pays a prorata share of taxes or CAM, there are often defined excluded areas. Most typically, those defined excluded areas are either directly assessed, self-maintaining or insured, or are paying at a rate significantly less than full prorata. By defining those areas as “excluded areas,” the landlord reduces it absorption of CAM… Continue reading Excluded area contributions