Chp. 30 Quiz - Commercial Leases Flashcards
If the landlord quotes the size of a building at 128,000 square feet “rentable,” with a 11% loss factor, how much usable space is there?
113,920 square feet
Which lease escalation clause passes on prorated increases in taxes, heat, and maintenance to the tenant?
Direct operating
Which of the following areas would NOT be considered a common area of a building?
Restrooms inside individual office spaces
Which of the following is NOT a type of commercial lease?
Proprietary
Most _______ leases need to address the issue of environmental concerns.
agricultural
All of the floor space within the exterior walls of a building enclosed by a roof is what kind of square footage?
Gross square footage
Which of the following is NOT a common type of insurance purchased to cover the risks of leasing commercial property?
Workers’ compensation insurance
With what type of lease do the tenants have the right to approve leases being negotiated with competitors?
Retail
A lease restricts a commercial tenant’s business activities in what clause?
Use clause
Space in office buildings tends to be leased for
3 to 5 year terms.
How is useable square footage determined?
Rentable square footage – (Rentable square footage x loss factor)
Which lease option allows the owner to relocate the tenant to another space in the same building during the term of the lease?
Tenant relocation option
Which lease escalation clause stipulates that the tenant will pay operating expenses above a certain amount?
Operating/Tax stop
CAM stands for
common area maintenance.
Flat leases are most common in which type of property?
Residential
