What are the salient points to cover when abstracting a lease?
A lease abstract will generally include: • Identification of the landlord • Identification of the tenant • Identification of the space leased • Date of lease • Lease term • Lease type • Lease commencement date • Initial base rent • Escalation amounts and frequency • Provisions to suspend escalations • Overage rents • Triple-net charges • Administrative fees • Landscaping and common area maintenance charges • Pro rata share (for multitenant properties) • Expense stops and caps • Go-dark clauses • Tenant improvement (TI) allowances • Rent abatement and effective rent • Options to renew • Right of first offer to purchase It’s probably not a bad idea to remind the user of the appraisal report that an abstract of a lease is just that an abstract. To fully understand all the provisions of a lease, the user of the appraisal should be encouraged to read the lease in its entirety. Some leases can be disasters. Some have riders, guaranties, promissory notes, exhibits, memoranda and other ancilla
A lease abstract will generally include: • Identification of the landlord • Identification of the tenant • Identification of the space leased • Date of lease • Lease term • Lease type • Lease commencement date • Initial base rent • Escalation amounts and frequency • Provisions to suspend escalations • Overage rents • Triple-net charges • Administrative fees • Landscaping and common area maintenance charges • Pro rata share (for multitenant properties) • Expense stops and caps • Go-dark clauses • Tenant improvement (TI) allowances • Rent abatement and effective rent • Options to renew • Right of first offer to purchase It’s probably not a bad idea to remind the user of the appraisal report that an abstract of a lease is just that an abstract. To fully understand all the provisions of a lease, the user of the appraisal should be encouraged to read the lease in its entirety. Some leases can be disasters. Some have riders, guaranties, promissory notes, exhibits, memoranda and other ancilla
