As many companies, particularly retailers, seek to monetize assets or at least leverage valuable real estate assets, we are witnessing increased popularity of sale leaseback transactions.… Continue Reading
Landlords hold their management fees dear, and need to ensure they are fully recoverable. Offers to lease routinely provide that the tenant will pay a management fee equal to a fixed percentage (say 5%) of the “Basic Rent” payable by the tenant. Despite this clear contractual arrangement, landlords occasionally (and inadvertently) shortchange themselves when preparing the final form of lease.
Consider an offer to lease for a multi-tenant building. The offer says that the lease will be a “net” lease and that the tenant will pay its “Proportionate Share” of “Operating Costs”. The offer also says that the tenant will … Continue Reading