Commercial lease structures come in many forms, but one of the more dynamic ones is the percentage lease. A percentage lease ties rent payments directly to a tenant’s revenue. This means that landlords share in a tenant’s financial success, which can align incentives in high-traffic commercial environments. These leases are most commonly found in retail […]
Percentage Leases: Definition, Negotiation, and Calculation Read More »
It can be easy for business owners to focus on the initial rental rate when signing a lease, but long-term costs can make for unwelcomed surprises down the road. A great example of this is the rent escalation clause. It determines how and when rent will increase over time. Landlords include escalation clauses to offset
Rent Escalation Calculator Read More »
When you hear “lease commencement date,” you might assume it’s just the day your lease starts—but for small-to-medium business owners, it’s so much more. This date can influence everything from when you take possession of a space to how and when your rent kicks in. Overlooking the details here can lead to unexpected expenses, tense
Your Lease Commencement Date: It’s Not Just a Start Date Read More »
Leasing commercial space can feel like trying to read the fine print on a greasy takeout menu—confusing and a little overwhelming. But if you’re a small business owner dreaming of opening your first café, workshop, or boutique, there’s one thing you need to get straight: index leases. Now, these leases aren’t as scary as they
Index Leases: Everything You Need to Know Read More »
Small business owners are guaranteed to face unexpected shifts throughout their tenure. This could include a myriad of scenarios: market changes, financial constraints, or the need to relocate. These challenges can make a long-term lease feel like a heavy anchor, but there are ways to approach termination strategically. The goal is to exit while minimizing
How to Terminate a Commercial Lease Early Without Penalty [TEMPLATE] Read More »
First things first-what is it? External obsolescence refers to the depreciation of a property’s value due to factors outside the owner’s control. Unlike physical deterioration or functional obsolescence, which stem from issues within the property, external obsolescence is caused by external changes in the surrounding environment, economy, or regulatory landscape. For commercial properties, this could
The Encyclopedia of External Obsolescence in CRE Read More »
What Are They? Arm’s length transactions in commercial real estate occur when two unrelated parties negotiate a deal independently and without external pressure. Each party operates in their best interest, ensuring fair market value for the property. These transactions are essential in maintaining transparency and integrity in high-value deals like office buildings, retail spaces, and
Arm’s Length Transactions in Real Estate Read More »
What Are Easements? Easements are legal rights that allow one party to use another party’s land for a specific purpose, without transferring ownership. In commercial real estate (CRE), easements are especially important as they often affect access, utility lines, or property boundaries. For instance, a property owner may have to grant a utility company the
Your Guide to Easement by Prescription Read More »
Latent defects are hidden issues in a property that are not immediately apparent during a standard inspection. Unlike patent defects, which are visible and can be noticed upfront, latent defects often go unnoticed until after a property is purchased or leased. These could include things like hidden mold, faulty plumbing behind walls, or structural issues
What is a Latent Defect in Real Estate? Read More »
Specific performance is a legal remedy in real estate that requires a party to follow through with their end of a deal, instead of just paying damages for not doing so. It’s a tool that’s typically used when financial compensation wouldn’t be enough to make the other party whole—especially in real estate, where properties can
Specific Performance in Real Estate: What to Know Read More »
