Real Estate Leases

1
Real Estate Leases
2
Rights

• Owners leased fee interest
• Tenants leasehold estate
• Subleases

3
Items in a Valid Lease
4
Expenses

• Gross lease
• Net lease (double, triple)
• Taxes, insurance, other
• Expense stops
• Determines max expense paid by owner
• Common area maintenance (shopping center)
• Tenant improvements
• Leasing commissions

5
Rent Types

• Fixed rent
• Step leases
• Indexed leases
• Percentage rent
• Shopping center
• Rent concessions