Leases

1. 1) Exclusionsof operatingexpenses:CAM,REIT,INSURANCE
3) Commercial lease:Lease premisestocorporate orbanks or companies,commercialleasesare for
much longerperiod.
Retail lease:Lease premisestoretail shopslike supermarkets,foodcourts.Periodof retail lease
Lesserthancommercial lease.
4) Kickout
5) Tenancyat sufferance- Stayinthe premiseswithoutconsentof LL. Rentwill increase,125%,
150%, 200%.
Tenancy at will – Stay in the premiseswiththe consentof LL. Rentwill increase,125%/150%/200%
Month to monthtenancy.- lease willbe renewed monthlyonthe baisi of holdingof premisesbythe
T.. Rentwill be 100%.
6) Openingcotenancy- WhenT opensthe premises,major/anchorTenantshouldbe available and
occupancypercentage shouldbe higher.
operatingco tenancy- Duringthe operatingperiodof businessbyT,Anchor/majorTshouldbe
available inthe property.
7) Yes,T can go dark, if co tenancydoesmeetatthe righttime and% occupancy islesserthan
mentionedinthe lease.
8) Steppedrentincrease: Inthe whole termof lease,rentwillincreaseeveryyearorafterevery2 or
3 year.
9) Auditclauses:
- Afterreceiving statementfromthe LL, T will respondthe statementinhow manydays.
- Sendnotice toLL
- T will doauditat T office/LLoffice
- TrainedAuditorisrequiredornot
- If auditerror if greaterthan 5%, chargeswill be paidbyLL, else chargeswill be paidbyT.
10) Typesof option:
- GO dark
- Kickout
- Renewal option

2. - Contractionoption
- Expansionoption
- AutoRenewal option
- Terminationoption
- In lieu
11) Property- anylandor buildingwhichhasvalue isknownasproperty.
12) Typesof deposits:
-Letterof credit
-cash
- Bank guarantee
13) Assignmentfee:During assignment,the chargesof assignmentagreementbetweenTand third
party,knownas assignmentfees.
14) GLA: Gross leasable area- the wholeareaof the building.
15) BOMA: Buildingownerandmanagerassociation,usedtofindoutthe rentaccordingto the SF of
the building.
16) T restrictionclause:
- Assignment/subletting
- Radiusrestriction
- continuousoperationclause
LL restrictionclauses:
- Rightof firstrefusal
- Rightof firstoffer
- Damage and destructionclause
17) Base Year: Firstyearof the lease.
18) Afterhoursutilities:Usingthe utilitiesaftermentionedbuildinghours.
Excessutilities:If Twantsto use utilitiesmore thanmentioned,Thasto pay extrafor those
utilities.

3. 19) Recapture rights:LL has the rightto recapture the premisesincase of violationof anytermsand
conditionof the lease bythe T.
20) NSFcharges:Nonsufficientfunds.If Tis notable to give rentbefore due date ordoesnot pay
the full rentbefore due date.ThatisNSF.
21) Lease audit:examine all documentsrelatedtolease,andaboutthe propertyspace.
22) Cap types:Fixedamount,%increase,% increase accordingtoperSF.
23) Insurance maintained: hazardand Fire insurance,propertyinsurance,premisesinsurance,
natural calamitiesinsurance,liabilityinsurance.
24) Rentabatementisfree rentandrentoffsetis,if T has givenexcessamountforanywork,he will
adjustthat inrent.