Commercial Real Estate Leases
Examine standard office and retail lease forms, gain an understanding of the motivations of the parties to a lease, and develop a framework for negotiation—from term sheet to closing. Property managers need to understand how to administer a lease and what items and clauses require action and follow-up. Topics covered include full-service, triple-net, and modified-gross leases; legal terminology in leases; expenses and additional rent clauses; electric rent inclusion, as well as inclusion of operating expenses, common area maintenance (CAM), and real estate taxes; exit strategies, including assignment and sublease; and the tenant’s rights of first offer, first refusal, renewal, and termination. Also, discuss the role of property managers in the leasing process in regard to preparing and showing the space, negotiating operating clauses, and managing the various guarantees and types of security deposits.
You'll Walk Away with
- An understanding of landlord/tenant rules and regulations
- The ability to create a stacking plan for use in the management report
- Knowledge of when and how to respond to a violation of a lease provision
- Familiarity with presenting the expenses associated with a lease, such as tenant improvement funding, landlord work, and legal fees
- An understanding on the different recoveries methods for CAM and utility expenses