499 Final

  1. Types of tenants and descriptions
    anchors: reputation that draws customers in  (thus lower rents)

    Inline shops: standard leases

    Pads out parcles:
  2. Four criteria for evaluating teants
    • credit rating
    • core customers
    • market niche
    • competition
  3. examples of tenant improvments
    • Size
    • storefronts
    • electricty
    • water
    • gas
    • Hvac
    • lighting
  4. what is a tenant criteria manual
    tells developer everythign a retailer wants
  5. three aspects of tenatn criteria manual
    • design
    • guidlines to submitting construction docs
    • technical
  6. Whats a tenant information package include
    • siteplan
    • specific floor plan
    • adjacent utility info
  7. Primary Aspects of  Lease
    • Premise
    • term
    • rent
    • continous operation
    • operation expenses
    • Promotional
    • TI Allowances
  8. Types of Rent INcreases
    • CPI
    • Fixed increase
    • Fixed % increase
    • Market Adjusted increase
  9. Breaking Point
    Amount above breaking point is what tenants owers % of sales
  10. Breaking Point =
    Rent/ %
  11. two guarantees landlords need for charging % rent
    Must define gross sales in such agreemtns

    must allow audit rights
  12. What three elemtns of opeartion expenses
    • CAM
    • Property Taxes
    • INsurance
  13. examples of CAM costs
    • water
    • electricty
    • parking lots
    • lighting
    • landscaping
    • snow
    • security
    • admin fee
  14. Reconciliation
    reconcilign the budget to actual costs to determine how much developer -tenant owe each other
  15. Two types of CAM limts
    cumlative and non cumlative
  16. Guaranty
    Financial obligation of larger company apply to their smaller subsidiaries and LLCs
  17. Casuelty Clause
    Describes the type of casulaty that will permit the landlrod to terminate the lease, describes the parties' respective rebuilding obligations, and resolves consequences of lease termination
  18. Sublease and Assignment Clause
    Landlord has right to approve sublease and assignments of space
  19. Improvments and Alternations Rights
    landlord has right to review all changes to the pace
  20. right to enter
    landlord has right ot enter tenant spaces
  21. Maitance and Repair Obligations
    tenants required to perform all maitance, repairs, and replacements to space
  22. Types of insurance landlords typically require of teants
    • self
    • fire
    • liability
    • rent
    • glass
  23. Indemity
    teants must provide defenst to landlord liablilty for accidents in leased spaces
  24. Condemnation Clause
    If leased property is expropriated by government authroity, leasehold interest  is paid to teantn out of lump sum award for overall value of property
  25. reciporcal easement agreemtns
    state which outparcels have parking and access rights over other parcles

    binding to future owners
  26. Assignment by Landlord
    upon sale, seller is released from liablilty under the lease for the perfomace of the obligations after sael
  27. recordation of lease
    tenant must record its lease to perserve its rights with respect to future owners
  28. types of managments servcies
    in house

    third party
  29. typical managment fees
    3% of gross lease

    10% administrative fee on CAM expesnes
  30. Issues Mangaments Deal With
    • Crime
    • Accidents
    • Diasters
    • Signs
    • Parking
    • Hours of Operation
    • Legal
    • Taxes
    • Accounting
    • marketing
    • maintance
    • tenant relations
  31. Elements of Property Maintance INclude
    • landscaping
    • parking
    • security
    • handmen
    • day porters
Card Set
499 Final
Chapter 6-8