REE 3043 Chapter Notes - Chapter 21-22: Lease, Property Management, Net Lease
Document Summary
Property management- deals with day to day operations. Asset management - deals with physical financial or ownership structure. Credit tenants - companies whose general debt obligations are rated as investement grade. Tenant mix - synergism created by the collection of tenants. Lease - legal contract between tenant (lessee) & owner"s (lessor) for use and possession of re (land and or improvements) Leases: the engines that drive values and returns. When you purchase a property you are really acquiring a portfolio of leases. Gross lease - the owner pays all of property"s operating expenses. Net lease- tenant is responsible for paying a clearly defined portion of the property"s operating expenses (property taxes) Triple net lease - all operating expenses. A lease assignment occurs when all of a tenant"s rights and obligations are transferred to another party. If the assignor remains liable for the promised rent unless relieved in writing a sublease occurs.
