Lease Abstract CAM Audit Glossary C
Explains the type of expenses to be recovered by the landlord, how they will be recovered (i.e., net or gross), the base year, expense stops, recovery caps or floors and any non-standard inclusions (e.g., capital expenditures, depreciation & amortization, management and/or administrative fees, structural repairs, roof maintenance and replacements).
Explains the rights of the landlord and/or the tenant to terminate the lease in the event of a casualty.
Explains the rights of the landlord and/or the tenant to terminate the lease in the event the government takes the property through eminent domain.
Continuous Operation/Go Dark*
Explains whether or not the tenant must operate continuously, including any stipulations regarding the tenant’s right to cease operations but still pay rent, days the tenant is allowed to close, days the tenant must be open, whether or not the tenant may close for a set number of consecutive days, and if the landlord may terminate the lease in the event the tenant vacates.
Includes the effective date, description of encumbered space, notice requirements, whether the option is automatic, tenant improvement allowance and contraction fee (i.e., fee for reducing the rental space).
Stipulates whether or not the tenant is entitled to a rent reduction or waiver until a pre-set percentage of a retail center is occupied.
*Applies only to retail leases.