- Property Address
- Floor #
- Suite #
- Rentable Square Feet
- Pro Rata Share
- Business Hours
- Lease Commencement Date
- Rent Commencement Date
- Lease Expiration Date
- Base Rent
- Renewal Rent
- Rent Abatement
- Security Deposit
- Late Fee
- CAM/Operating Expenses
- Real Estate Taxes
- Base Year/Expense Stop
- Gross Up
- Landlord’s Insurance
- Tenant Audit Rights
- After Hours HVAC
- Landlord Services
- Right of First Refusal
- Right of First Offer
- Permitted Use
- Prohibited Use
- Exclusive Use
- Landlord Restrictions
- Assignment & Subletting
- Estoppel Certificate
- Landlord Notices
- Tenant Notices
- Tenant’s Insurance
- Tenant Improvements
- Environmental Provisions
- Additional Documents
ABSTRACTING SCOPE GLOSSARY
The following is a brief explanation of commonly abstracted lease terms, together with the type of detail normally abstracted within each provision. This list is intended to assist the client in narrowing the scope of the anticipated lease review.
Landlord -The name of Landlord, together with its state of incorporation/formation and dba name, if applicable.
Tenant – The name of Tenant, together with its state of incorporation/formation and dba name, if applicable.
Sublease – Identifies sublease, if any. Sublease will be separately abstracted.
Property Address – Describes the precise location of the Premises.
Floor # – Describes the precise location of the Premises.
Suite # – Describes the precise location of the Premises.
Rentable Square Feet – The square feet of the Premises.
Pro Rata Share – Pro-rata share of the overall building that Tenant inhabits. Typically used for operating expenses, CAM charges, real estate taxes, etc.
Lease Commencement Date – The date the Lease term commences.
Rent Commencement Date – The date Tenant’s obligation to pay rent commences.
Lease Expiration Date – The date the Lease term expires.
Term – The length of time (typically expressed in years) from Lease Commencement to Lease Expiration.
Holdover – Includes holdover rate and whether a holdover provides Landlord with an automatic extension option (and the terms thereof).
Base Rent – Schedule of current and future rental payments due under the Lease. Stated annually, monthly, and per square foot annually and monthly.
Renewal Rent – Any remaining scheduled rent increases. Description of renewal rent if not stated in dollars (e.g., Fair Market Value (FMV) or change in the Consumer Price Index (CPI)).
Rent Abatement – Any remaining reduction or elimination of a continuing charge (including Base Rent, Expense Recoveries) required to be paid by Tenant under the Lease for a specified period of time.
Security Deposit – Includes type of security (cash or letter of credit), amount, if deposit is interest or non-interest bearing, reductions or increases in deposit amounts (if any), and substitution rights (if any).
Late Fee – Penalty incurred for the late payment of rent and other fees due under the Lease. Includes amount, rate, number of grace days and notice requirements, if any.
Interest – Interest rate for the late payment of rent and other fees due under the Lease. Includes rate, number of grace days and notice requirements, if any.
CAM/Operating Expenses – Includes expense groups to be recovered, recovery mechanics (net or gross), base year, expense stops, recovery caps or floors and non-standard inclusions, including, capital expenditures, depreciation & amortization, management and/or administrative fees, structural repairs, roof maintenance and replacements.
Real Estate Taxes – Includes what party is obligated to pay (i) Real Estate taxes and assessments and (ii) in the event taxes on rentals are assessed.
Base Year/Expense Stop – The recoverable expenses above which Tenant is required to pay its proportionate share. Expressed as a year (either fiscal or calendar) or as a fixed amount.
Gross Up – Includes whether Landlord has the ability to gross up expenses as if the building had a specific percentage leased or if the Lease states that for purposes of calculating PRS, the occupied square footage will be grossed up to a certain percentage leased.
Landlord’s Insurance – Includes type of insurance, amount of required coverage for each type and any self insurance provisions, if applicable. Also includes ability of Landlord to pass through insurance expense.
Utilities-Premises – Includes what party is responsible for payment of Utilities to the Premises, and if paid directly or reimbursed.
Tenant Audit Rights – Description of Tenant’s right to audit Landlord’s operating expense records and the time frame Tenant must commence and/or complete the audit.
After Hours HVAC – Charge by Landlord for after hours use of HVAC.
Landlord Services – Includes scope of services provided, and if stipulated, what party is responsible for payment.
Repairs/Maintenance – Responsibilities of Landlord and Tenant with regard to repairs and maintenance of the Premises.
Renewal – Includes renewal terms, notice requirements, renewal rent and whether option is automatic or must be exercised in writing.
Expansion – Includes effective date, description of encumbered space, notice requirements, whether option is automatic, Tenant Improvement allowance and rental terms.
Contraction – Includes effective date, description of encumbered space, notice requirements, whether option is automatic, Tenant Improvement allowance and contraction fee.
Right of First Refusal – Right of First Refusal to purchase or lease. Includes notification requirements, description of encumbered space, whether option is one-time or continuous, rental terms, whether option is subject to rights of other tenants and any other information necessary to describe the option.
Right of First Offer – Right of First Offer to purchase or lease. Includes notification requirements, description of encumbered space, whether option is one-time or continuous, rental terms, whether option is subject to rights of other tenants and any other information necessary to describe the option.
Termination – Includes effective date, notice requirements, termination fee amount, timing of payments, and if applicable, special conditions that trigger the option to terminate (excluding casualty and/or condemnation).
Relocation – Any relocation options available to Tenant.
Purchase – Includes notification requirements, effective date, purchase price agreement, and any other pertinent information.
Termination – Includes effective date, notice requirements, termination fee amount, timing of payments, and if applicable, special conditions that trigger the option to terminate (excluding casualty/condemnation and defaults).
Relocation – Any Landlord Relocation rights including notice requirements, new Premises requirements and responsibility for payment of relocation costs.
Permitted Use – Tenant’s permitted use as stated in the Lease.
Prohibited Use – Any prohibited use specific to Tenant and/or Premises.
Exclusive Use – All Tenant’s Exclusive Use rights.
Assignment & Subletting – Includes Landlord consent requirements, discretion of consent, Landlord recapture/termination rights and provisions for sharing of sub-lease profits.
Subordination/SNDA – Includes whether Lease is subordinate or superior to existing and/or future lien holders and whether a Non-Disturbance Agreement is required from existing and/or future lien holders.
Default – Monetary and Non-Monetary. Details when the Lease will go into default status and whether Landlord is required to notify Tenant.
Estoppel Certificate – Includes number of days to respond to Estoppel Certificate request and whether the requirement is mutual upon Tenant and Landlord.
Landlord Notices – Includes name and address of Landlord contacts to whom Tenant is required to provide notice.
Tenant Notices – Includes name and address of Tenant contacts to whom Landlord is required to provide notice.
Tenant’s Insurance – Includes type of insurance, amount of required coverage for each type and any self-insurance provision, if applicable.
Tenant Improvements – Includes any remaining Tenant Improvement allowances from Landlord to Tenant, if any.
Alterations – Rights and duties of Tenant with regard to performing alterations on the Premises.
Casualty – Includes the termination rights of Landlord and Tenant in the event of a casualty.
Condemnation – Includes the termination rights of Landlord and Tenant in the event of a taking of private property by the government through eminent domain.
Signage – Includes rights of Tenant to lobby signage, signage on exterior of building, and signage on pylon or other monument signs (excludes interior suite signage).
Parking – Includes number and location of space, whether spaces are reserved and/or non reserved, rent to be paid for parking spaces, Landlord’s designation of Tenant parking areas and Tenant’s rights to additional parking areas.
Environmental Provisions – Description of Landlord and Tenant obligations (including description of activities, that each party is prohibited from performing) to comply with any applicable environmental laws. Includes any representations made by either party to the other regarding any history of environmental issues regarding the property or Premises.
Guarantor – Includes name of Guarantor and amount of guaranty, scheduled reductions or additions, if any, and expiration or limits, if any.
Brokers – Name of Landlord’s and Tenant’s brokers.
Additional Documents – List of other documents that were utilized in preparing the abstract.
Missing/Conflicting Information – List of missing documents, if any. List of the conflicts between various portions of the Lease and other documentation within the file.