anchors: reputation that draws customers in (thus lower rents)
Inline shops: standard leases
Pads out parcles:
Four criteria for evaluating teants
credit rating
core customers
market niche
competition
examples of tenant improvments
Size
storefronts
electricty
water
gas
Hvac
lighting
what is a tenant criteria manual
tells developer everythign a retailer wants
three aspects of tenatn criteria manual
design
guidlines to submitting construction docs
technical
Whats a tenant information package include
siteplan
specific floor plan
adjacent utility info
Primary Aspects of Lease
Premise
term
rent
continous operation
operation expenses
Promotional
TI Allowances
Types of Rent INcreases
CPI
Fixed increase
Fixed % increase
Market Adjusted increase
Breaking Point
Amount above breaking point is what tenants owers % of sales
Breaking Point =
Rent/ %
two guarantees landlords need for charging % rent
Must define gross sales in such agreemtns
must allow audit rights
What three elemtns of opeartion expenses
CAM
Property Taxes
INsurance
examples of CAM costs
water
electricty
parking lots
lighting
landscaping
snow
security
admin fee
Reconciliation
reconcilign the budget to actual costs to determine how much developer -tenant owe each other
Two types of CAM limts
cumlative and non cumlative
Guaranty
Financial obligation of larger company apply to their smaller subsidiaries and LLCs
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
Sublease and Assignment Clause
Landlord has right to approve sublease and assignments of space
Improvments and Alternations Rights
landlord has right to review all changes to the pace
right to enter
landlord has right ot enter tenant spaces
Maitance and Repair Obligations
tenants required to perform all maitance, repairs, and replacements to space
Types of insurance landlords typically require of teants
self
fire
liability
rent
glass
Indemity
teants must provide defenst to landlord liablilty for accidents in leased spaces
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
reciporcal easement agreemtns
state which outparcels have parking and access rights over other parcles
binding to future owners
Assignment by Landlord
upon sale, seller is released from liablilty under the lease for the perfomace of the obligations after sael
recordation of lease
tenant must record its lease to perserve its rights with respect to future owners