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.
There is a subtle difference in prorate share definitions that you might miss if you are not looking for it. But, believe me, sophisticated national and regional tenants are looking for it. In defining excluded areas, a lease will often read: “the tenant will pays its prorate share of the charges based upon the gross… Continue reading Excluded Areas – Premises vs. Occupants
It is not uncommon for a municipality to work with a property owner to them achieve some mutually beneficial goal – usually because the project might not otherwise be feasible without some sort of public assistance. Among the reasons a municipality may be considering the inventive,, they may be doing it to bring new jobs,… Continue reading Realizing the intended benefit of a tax abatement
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 …”
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
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!
It is not uncommon to have co-participation clauses in retail leases – a clause which states that a tenant will be obligated to pay a certain charge at a specific rate with annual increases to that charge, but “only if at least 70% of the other tenants are similarly obligated to pay such charge.” The… Continue reading Co-participation and similar obligation
This past week, Sears announced another 42 closures. As usual, we see even retail real estate executives posting or re-posting about the “Dying Retail Sector.” But, what I see regularly, not from these fatalists, is successful real estate companies take a different approach – “How do we take advantage of these opportunities?” One particular client… Continue reading Retail – the fatalists and the opportunists
This week’s (and next’s) post will be a bit shorter as I am in India with my son. This picture reminded me of Chick-fil-a which reminded me of a clause I ran across earlier in the week. Most retail leases have operating hours requirements which provide for default if the tenant does not maintain the… Continue reading So a cow walks up to a drive thru… Operating hours and liquidated damages
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