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Leases

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  1. 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. 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. 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.

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