The Encyclopedia of Commercial Real Estate Advice

ENCYCLOPEDIA TOPIC JManaging and Leasing

Absolute Triple Net Lease: This lease gets the tenant to pay for absolutely everything

In a triple net lease, the tenant pays a prorated share of the building's maintenance, taxes, insurance, and common area maintenance (CAM). It doesn't get much better than that, does it? Actually, there is something better—an absolute triple net lease! Here, on top of all of that they pay for in a triple net lease, the tenant also pays a pro rata share of all structural repairs, or capital improvements, for the property. To pull this off, it takes the very best location, a national tenant, and a 15- to 25-year lease.

Americans with Disabilities Act (ADA) Compliance: The landlord is legally liable if the tenant's space is not ADA compliant

Be aware that if you are leasing to a new tenant that is doing tenant improvements, the landlord is equally liable if the changes do not meet ADA compliance regulations for the disabled. This is the case whether you or the tenant are paying for the improvements. Requirements include the installation of ramps, widening doors, the installation of grab bars in restroom stalls, access to an elevator, wider curb cuts, wheelchair accessible paths, and more. So it makes sense for the landlord to get involved at the beginning to make sure that the plans are checked out by the city for ADA compliance and that the installations made are compliant.

Assignment of Lease Clause: As landlord, make sure that you put into the assignment ...