Got a tricky question? Receive an answer from students like you! Try us!

Commercial Lease - Essay Example

Only on StudentShare
High school
Author : jweimann
Essay
Miscellaneous
Pages 2 (502 words)

Summary

A commercial lease can be understood as contract granting use or occupation of property during a specified time for a specified payment. It is an agreement under which the owner of a property grants use or occupation of under a term of contract. In most real estate transactions some form of binding agreement is made early in the process…

Extract of sample
Commercial Lease

There are two important aspects of a commercial lease agreement, the standard lease provisions and the business points. The former consists of insurance, condemnation, and events of default while the latter consists of the specified rent and term.
The 'Business Points' identifies the various aspects such as the parties of the owner and the tenant, the said building or the said property which is to be leased. Exact details of the property needs to be provided and the building should be exactly identified in which the tenant will rent the space. It is also imperative to accurately describe the floor, location and the square footage of the property. The provisions further mentions the dates of the date of effect and the expiration (term) of the lease and in accordance to this term, the rents can be specified with the optional mention of renewal terms. Additional expenditures which can include operating expenditures and other real estate taxes exercised by different authorities need to be discussed and it needs to be clarified if the total rent includes all such expenditures.
Another important service issue is parking. It is normally expected to accompany the specified rented place but might not be the same in every case. Therefore it becomes an important clause in the contract for commercial lease. ...
Download paper

Related Essays

Negotiation and Decision Making Strategy: Warehouse Lease
is enjoying increased sales but along with that success comes the need to obtain additional warehouse space. In this market, competition is fierce among those on the waiting list, and the rates are high. Financial issues include signing premiums, common area maintenance (CAM) charges, and term commitments of at least one year. The company has been notified that there is an opening at the industrial sight where it has been on the waiting list for several months. The property management company will be attempting to obtain the highest lease rate for the longest possible term, with as many add-on…
3 pages (753 words)
Differences in Assessing and Managing Credit Risk in Investment Banking and Commercial Banking
Investment banking is one of the rapidly increasing financial businesses globally and global investment banking revenue increased concecutively for the third year running in 2005, to $52.8bn.…
6 pages (1506 words)
Commercial Landlord and Tenant Law
He says that if Mr Jagger wants to take the room the shortest term he will agree is one year, and he requires Mr Jagger to sign an agreement (which he produces and gives to Mr Jagger). Mr Jagger likes the room, and says he's 'happy with a one-year deal', but also says he wants to look at the form of agreement and possibly take advice on it before signing it, but he does need to move in immediately. He offers Mr Richards a month rent 'upfront'. Mr Richards accepts this, and allows Jagger to move in immediately. He says, however, that Jagger's occupation will be on the terms of 'that agreement…
7 pages (1757 words)
Commercial Rental Market in Midwestern City
Per square foot annual rental cost = 43.12 + 7.47 * Occupancy - 3.9 * Wiring1 - 0.9 * Distance to City Center - 0.76 * Distance to Airport + 0.53 * Number of Elevator - 0.35 * Length of Lease - 0.11 * Years to last Renovations + 0.09 * Building Age.…
lease
he FSAB standards, the lease agreement is for the use of the combustion turbine which could qualify as a capital lease because it is an agreement for the use of a piece of property that could be classified as an asset. The first item to be assessed is the legal fees arising in connection with the lease, i.e., $500K to Stipe, Berry, Mills and Buck, together with $1 million in legal fees incurred by Goliath Co. These expenses would fall under the category of external expenses that are not incurred on a sustained basis, but rather are a one-off expense. They do not fall under the category of a…
2 pages (502 words)
Sales and Lease contracts: Performance, Warranties, Remedies
Remedies for Breach of Lease Contract: Remedies for breaching of lease contracts include seeking financial redress, buying from a different seller, and seeking legal action to ensure that the other party performs its contractual obligations.…
7 pages (1757 words)