REM 300 Lecture Notes - Lecture 11: Floor Area (Building), Liability Insurance, Nuisance
28 May 2016
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Document Summary
Monitoring for percentage leases: need monthly sales volumes from stores. Percentage rent clauses are less likely to be applied to banks and other service tenants. Common area maintenance charge: monthly, based on proportional share of gross leasable area. Occupancy costs: monthly, may relate to water usage, etc. (e. g. restaurant) Parking: restricts tenant and employee parking and loading/off loading areas. Property taxes: monthly, proportional share of taxes based on tenant"s gross leasable area. Paid monthly, prorated amount based on total sq. ft of unit. Tenant may be required to spend a certain per cent of gross income on advertising. Use restricted to that stated in the lease. Tenant may be restricted from opening another unit within a certain distance of shopping center. If they do, they may be required to include sales from the second unit as part of their gross sales for rent calculation purposes. May be required to join and pay dues as part of lease agreement.
