admin | February 22, 2009
Also called a land lease, the ground lease is one in which a tenant simply rents land, often without improvements of buildings. This is typically a net lease, with the tenant responsible for taxes, insurance and maintenance.
With ground leases, the tenant will then develop the property and build on the land. Because the tenant will [...]
admin | February 22, 2009
Most long-term leases have some sort of variable lease arrangement that allows the property owner to raise the rental payment charges. The basic methods for such adjustable leases are the graduated and the index leases, which are similar to their mortgage counterparts.
The index version of the variable lease makes periodic adjustment to the rental rate [...]
admin | February 22, 2009
A lease arrangement used by many larger shopping centers is the percentage lease. This arrangement ties the rental payments to the success of the tenant’s business, and is often used with properties in which the property itself (and its location) promises to bring customers to the tenant. A portion of the tenant’s rental payment is [...]