Description
Learn how to effectively use escalation clauses in commercial leases to avoid future expenses.
This highly informative webinar is designed to enhance your knowledge and understanding of how various types of escalations, such as operating expenses, common area maintenance (CAM), and real estate taxes, among others, are addressed in todays commercial lease environment. The material will discuss how to effectively review and negotiate escalation provisions in commercial leases to minimize the payment of expenses when representing the tenant and maximize the collection of expenses when representing the landlord. In addition, the course will explore these critical economic provisions from the perspective of both the landlord and the tenant and discuss the importance of thoroughly reviewing commercial lease provisions and addressing any ambiguous language therein.
* You will be able to recognize more easily various types of escalation provisions typically found in commercial leases which could result in a significant upside to the landlord and significant expense to the tenant.
* You will be able to identify key factors in analyzing these provisions from both the landlords and tenants perspectives.
* You will be able to discuss and explain why certain items should be included or excluded from these provisions during lease negotiations.
* You will be able to review and analyze leases more efficiently and costeffectively.
General Overview
• Lease Negotiation Process
• Parties Leverage
• General Economic Conditions
Market Conditions
• Specific Location of Premises
• Desirability of Particular Property
• Existing Property vs. Property to Be Constructed
• Base Year
• Proportionate Share
• Escrows
• Caps
Basic Concepts
• Escalations Are Included as an Item of Additional Rent
• Without Offset/Set-off, Deduction, Abatement, or Reduction
• Remedies Regarding Non-Payment
• Interest/Late Fees
Operating Expenses/Common Area Maintenance (CAM)
• Gross vs. Net
• Base Year
• Definition (Landlords Perspective)
• Exclusions (Tenants Perspective)
• Estimates/Reconciliation
• Dispute/Audit
• Gross-up
• Cap
• Bumps/Fixed Increases in Lieu of
Real Estate Taxes
• Gross vs. Net
• Base Year
• Definition (Landlords Perspective)
• Exclusions (Tenants Perspective)
• Estimates/Reconciliation
• Right to Appeal
• Representations/Warranties
Cost of Living (CPI)
• Base Year vs. Base Month
• Price Index
• Equalization Factor
• Frequency
• Cumulative vs. Non-Cumulative/Simple
• Cap
Retail
• Percentage Rent
• Promotional Charge/Merchants Association
• Media Fund/Advertising Charge
Miscellaneous
• Electricity
• Water
• Sprinklers
• Insurance
• Fuel/Energy/Steam
• Emissions
• Change in Laws
• Porters Wage
CLE (Please check the Detailed Credit Information page for states that have already been approved) ,CPE ,Additional credit may be available upon request. Contact Lorman at 866-352-9540 for further information.
Jan Alan Lewis, Esq.-Cole Schotz P.C.
