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Chapter 22 Leases and Property Types

Chapter 22 Leases and Property Types. REAL ESTATE FIN 331. Essential Elements of the Lease. The names of the landlord and tenant The description of the leased premises An agreement to transfer possession of the property The start and end dates of the agreement

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Chapter 22 Leases and Property Types

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  1. Chapter 22Leases and Property Types

    REAL ESTATE FIN 331
  2. Essential Elements of the Lease The names of the landlord and tenant The description of the leased premises An agreement to transfer possession of the property The start and end dates of the agreement A description of the rental payments The agreement must be in writing The agreement must be signed by all parties
  3. Negotiated Lease Provisions Use of the premises The lease term to include an allowance for tenant improvements Magnitude of the rental payments Responsibility for operating expenses Any concessions to be made by the lessor Ability to assign or sublet the lease Renewability of the lease Cancellation option Advertising and signage Parking Subordination and non disturbance
  4. residential rental properties and leases Common lease provisions Lease term Condition of premises Responsibility for utilities Rules and regulations
  5. Office Properties and Leases Class A properties: command higher rents because of location, desirability Class B properties: command lower rents Class A properties Defining rentable space Usable area: Square footage of the bounded space Rentable area: usable area plus a prorated share of the common areas Common lease provisions Lease terms Expense Stops
  6. retail property characteristics Shopping Centers Strip malls Shopping centers Regional malls Outlet centers Defining leasable area Gross Leasable Area Gross Floor Area Anchor Tenants: large department stores usually found at the corners of regional malls Percentage Rent Clause: when rents are related to the tenant’s gross sales Use Clauses Hours of Operation Common Area Maintenance
  7. industriAL PROPERTIES Types of Properties Single user buildings Warehouses and Self Storage facilities Multitenant industrial parks Tax-free zones Industrial parks special tax breaks
  8. homework assignment Key terms: Anchor tenant, Cancellation option, Concessions, Percentage rent, Rentable area, Sublease, Tenant improvement allowance, Usable area Study Questions: 4, 5, 6
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