October 29, 2017
Over the years, we have worked on 150+ tenant regional malls where the sellesr had been using 3-4 expense pools per prorata expense category, and we have also worked on 20 tenant open air centers where the seller had been using 20 different expense pools. What’s right? As new variables are introduced into leases, the […]
October 22, 2017
I would have to guess that we may have annoyed a client this week because we would not drop an issue. Their leases required the inclusion of licensee square footage in Gross Leasable Area (GLA). Generally, most standard leases today define licensees as exclusions when calculating prorata shares. (Licensees themselves are typically defined as short […]
October 15, 2017
I have mentioned in prior blogs that one of the things I love about lease administration is that everything you need to know about the lease is right there in 40-50 pages of the lease (sometimes as few as 2-3 pages, but sometimes as many as 500+). But, unless there are outside rules specifically addressed […]
October 8, 2017
In prior posts, we have addressed why there are excluded areas defined for purposes of calculating prorata shares of taxes or CAM. In a nutshell, if a part of a property is not paying a full prorata share of expenses, any shortfall has to be absorbed by the landlord. For example, we have a fully […]
September 24, 2017
There is a subtle difference in prorate share definitions that you might miss if you are not looking for it. But, believe me, sophisticated national and regional tenants are looking for it. In defining excluded areas, a lease will often read: “the tenant will pays its prorate share of the charges based upon the gross […]