commercial real estate · Malls · Retail leases · Uncategorized

Extending a lease term – by exercise of option or amendment

Exercising an option that was granted in a lease with no change in terms should be a fairly simple exercise as specifically defined in the lease – often sending notice to the landlord on the intent to exercise with no additional action required by any party. The lease continues. However, sometimes the parties overcomplicate the… Continue reading Extending a lease term – by exercise of option or amendment

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

Taxes and insurance addressed in CAM – and then again, separately

It’s not unusual to see terms referenced several times throughout a lease. Often, it will be a definition of a concept in one clause and the use of that defined term in another. But, sometimes, it can be confusing as to why a term is mentioned multiple times. Case in point is when insurance or… Continue reading Taxes and insurance addressed in CAM – and then again, separately

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 · Retail leases · Uncategorized

The first issue to review when starting due diligence on an acquisition

In the 30+ years that we have been doing abstracts and cash flow analysis as part of property and portfolio acquisitions, there is one issue that we do a quick check for before we start the acquisition process in full force: Rights of first refusal to purchase a property Why that issue? A right of… Continue reading The first issue to review when starting due diligence on an acquisition

commercial real estate · Retail leases · Shopping Center · Uncategorized

Real estate tax timing issues

When reconciling operating expenses, timing is often pretty straightforward. The tenants make monthly escrow payments throughout the year. The landlord reconciles the calendar year and applies those payments. An additional billing or credit is applied to a tenant’s account. However, taxes are a different story. While some municipalities bill taxes for calendar years, many bill… Continue reading Real estate tax timing issues

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

Prior defaults

This past week, we worked on a 40 tenant open air center acquisition. Often times, a seller severely restricts the information provided to our clients, the buyers. Fortunately, this time, we had almost free access to the seller’s files. Many of the leases were leases that had been amended and extended 3,4,5 times since their… Continue reading Prior defaults