Lease Management Professionals, if your head is spinning trying to understand and implement today’s leasing standards, you’re not alone! Consider this:
Leases vary in length. Monthly lease payments can vary over the term of the lease. Most leases are non-cancelable, although the terms of individual leases may differ slightly. And don’t forget, most leases also have renewal options.
In addition…
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- Some leases contain early termination options which can be exercised by the brand under certain conditions.
- Most leases require payment of a specified minimum rent PLUS a contingent rent based on a percentage of a store’s gross sales in excess of a specified threshold.
- Many leases contain opening and operating co-tenancy provisions that allow a company to pay alternate rent in lieu of minimum rent if certain conditions exist.
- Leases contain other provisions that, if in effect, could also affect the amount of minimum rent that a brand/company is required to pay.
- Leases for corporate office space are generally longer in term but contain many of the same provisions as retail leases.
- Most leases require payment of ancillary costs such as real estate taxes, insurance, and common area maintenance costs — all in addition to the minimum rent.
Accounting controls are necessary to operate efficiently. Building a sound financial reporting foundation is critical.
Obtaining the education needed to get ahead, and stay there, as a Lease Management Professional should be a top priority in 2024.
Yes. Procedures vary and are specific to each type of enterprise and management needs. We’ve got this covered.
National Real Estate Tenants Association debuts CCLA 3 System Proficiency in our next 10-week Certified Commercial Lease Administrator Certificate Training educational series starting April 9, 2024.
Learn more and register today.
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