HAAS 2011 - Lease Structure RSF v USF

HAAS 2011 - Lease Structure RSF v USF - COMMERCIAL REAL...

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HAAS 2011 - Lease Structure RSF v USF.doc Page 1 of 2 COMMERCIAL REAL ESTATE LEASE STRUCTURES February 2, 2011 There are numerous ways lease rates are structured in commercial real estate and each has its own application as well as its advantages or disadvantages. The view as to whether a particular structure provides advantages or disadvantages will vary wildly depending whether you are the landlord or the tenant! Probably the most important part of understanding lease structures is to know that the terms provided here are general guidelines, and different markets around the country use similar or different terms, which might have a different application than you have seen in other submarkets. The best practice is to simply ask what is included in the rental structure of which the person is referring. The Full Service commercial real estate lease is predominately used for commercial office space for lease in “multi tenant” office buildings. This Full Service commercial lease almost always includes the base rental rate, all real estate taxes, insurance, maintenance, janitorial, and utilities and is most prevalent in mid to high rise office buildings. The Net Lease is typically a structure you will see for a single tenant office, R&D, or industrial building. However, the Net Lease is sometimes used elsewhere under other commercial lease scenarios. Landlords often prefer the Net Lease because the tenant is responsible for almost all
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This note was uploaded on 08/28/2011 for the course UGBA 180 taught by Professor Nelson during the Spring '08 term at Berkeley.

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HAAS 2011 - Lease Structure RSF v USF - COMMERCIAL REAL...

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