Intermediate
3.3 Reading Commercial Leases: What Every Investor Must Know
- 10 Sections
- 40 Lessons
- 41 Quizzes
The Lease Is the Asset
4 Lessons4 Quizzes
- Lesson 1.1: The Physical Building Is Just the Container
- Quiz 1.1: The Physical Building Is Just the Container
- Lesson 1.2: Lease Duration and Property Value: The Math Behind the Premium
- Quiz 1.2: Lease Duration and Property Value: The Math Behind the Premium
- Lesson 1.3: Lease Expiration Risk: The Silent Value Killer
- Quiz 1.3: Lease Expiration Risk: The Silent Value Killer
- Lesson 1.4: How One Clause Cost an Investor $200,000
- Quiz 1.4: How One Clause Cost an Investor $200,000
Lease Structures, Gross, NNN, and Everything Between
5 Lessons5 Quizzes
- Lesson 2.1: The Gross Lease: Simple on the Surface, Complex Underneath
- Quiz 2.1: The Gross Lease: Simple on the Surface, Complex Underneath
- Lesson 2.2: The NNN Lease: What the Three Nets Actually Mean
- Quiz 2.2: The NNN Lease: What the Three Nets Actually Mean
- Lesson 2.3: Modified Gross / Net Leases: The Hybrid Nobody Explains Clearly
- Quiz 2.3: Modified Gross / Net Leases: The Hybrid Nobody Explains Clearly
- Lesson 2.4: Expense Stops and Base Year Concepts: The Fine Print That Changes the Math
- Quiz 2.4: Expense Stops and Base Year Concepts: The Fine Print That Changes the Math
- Lesson 2.5: Industrial vs. Retail: Why "Gross" and "NNN" Mean Different Things Across Asset Classes
- Quiz 2.5: Industrial vs. Retail: Why "Gross" and "NNN" Mean Different Things Across Asset Classes
Rent Structure, Beyond the Base Rate
5 Lessons5 Quizzes
- Lesson 3.1: Fixed Escalations vs. CPI: Which Is Better for the Landlord?
- Quiz 3.1: Fixed Escalations vs. CPI: Which Is Better for the Landlord?
- Lesson 3.2: Percentage Rent: How Retailers Pay More When Business Is Good
- Quiz 3.2: Percentage Rent: How Retailers Pay More When Business Is Good
- Lesson 3.3: Free Rent and Tenant Improvement Allowances: The NPV Calculation Nobody Does
- Quiz 3.3: Free Rent and Tenant Improvement Allowances: The NPV Calculation Nobody Does
- Lesson 3.4: Rent Commencement vs. Lease Commencement: A Costly Confusion
- Quiz 3.4: Rent Commencement vs. Lease Commencement: A Costly Confusion
- Lesson 3.5: Reading a Rent Schedule: Annualizing It Correctly for Underwriting
- Quiz 3.5: Reading a Rent Schedule: Annualizing It Correctly for Underwriting
CAM Charges, The Devil in the Details
4 Lessons4 Quizzes
- Lesson 4.1: What CAM Actually Includes (and What Is Typically Excluded)
- Quiz 4.1: What CAM Actually Includes (and What Is Typically Excluded)
- Lesson 4.2: Gross-Up Provisions: How Landlords Calculate CAM on a Full Building
- Quiz 4.2: Gross-Up Provisions: How Landlords Calculate CAM on a Full Building
- Lesson 4.3: CAM Caps: What They Protect, and the Compounding Difference That Changes Everything
- Quiz 4.3: CAM Caps: What They Protect, and the Compounding Difference That Changes Everything
- Lesson 4.4: The Annual Reconciliation: Where Disputes Are Born and Won
- Quiz 4.4: The Annual Reconciliation: Where Disputes Are Born and Won
Tenant Rights, Options, ROFO, ROFR
5 Lessons5 Quizzes
- Lesson 5.1: Renewal Options: What "Fair Market Value" Actually Means in Practice
- Quiz 5.1: Renewal Options: What "Fair Market Value" Actually Means in Practice
- Lesson 5.2: Expansion Rights: ROFO vs. ROFR and Why Landlords Hate One of Them
- Quiz 5.2: Expansion Rights: ROFO vs. ROFR and Why Landlords Hate One of Them
- Lesson 5.3: Termination Rights and Kick-Out Clauses: When Tenants Can Leave Early
- Quiz 5.3: Termination Rights and Kick-Out Clauses: When Tenants Can Leave Early
- Lesson 5.4: Co-Tenancy Clauses: The Anchor Tenant Protection That Can Unravel a Retail Deal
- Quiz 5.4: Co-Tenancy Clauses: The Anchor Tenant Protection That Can Unravel a Retail Deal
- Lesson 5.5: Contraction Rights: The Rare Provision Every Landlord Should Know Exists
- Quiz 5.5: Contraction Rights: The Rare Provision Every Landlord Should Know Exists
Assignment, Subletting, and Lease Transfer
4 Lessons4 Quizzes
- Lesson 6.1: Assignment vs. Subletting: The Legal Difference That Matters
- Quiz 6.1: Assignment vs. Subletting: The Legal Difference That Matters
- Lesson 6.2: Landlord Consent Standards: Reasonable vs. Sole Discretion
- Quiz 6.2: Landlord Consent Standards: Reasonable vs. Sole Discretion
- Lesson 6.3: Recapture Rights and Change-of-Control Provisions
- Quiz 6.3: Recapture Rights and Change-of-Control Provisions
- Lesson 6.4: How Lenders Treat Assignment Restrictions
- Quiz 6.4: How Lenders Treat Assignment Restrictions
Default, Remedies, and Lease Enforcement
4 Lessons4 Quizzes
- Lesson 7.1: Tenant Default: Cure Periods, Notice, and the Eviction Timeline
- Quiz 7.1: Tenant Default: Cure Periods, Notice, and the Eviction Timeline
- Lesson 7.2: Landlord Default and Self-Help Remedies
- Quiz 7.2: Landlord Default and Self-Help Remedies
- Lesson 7.3: Personal Guarantees: Unlimited vs. Good Guy, and When to Require Them
- Quiz 7.3: Personal Guarantees: Unlimited vs. Good Guy, and When to Require Them
- Lesson 7.4: SNDA: Subordination, Non-Disturbance, and Attornment in Plain English
- Quiz 7.4: SNDA: Subordination, Non-Disturbance, and Attornment in Plain English
Ground Leases, Owning the Building, Renting the Land
5 Lessons5 Quizzes
- Lesson 8.1: What a Ground Lease Is: Splitting the Dirt From the Building
- Quiz 8.1: What a Ground Lease Is: Splitting the Dirt From the Building
- Lesson 8.2: Why Both Sides Sign: The Landowner's Logic and the Developer's Logic
- Quiz 8.2: Why Both Sides Sign: The Landowner's Logic and the Developer's Logic
- Lesson 8.3: Term and Rent Mechanics: 50 to 99 Years, and How the Rent Resets
- Quiz 8.3: Term and Rent Mechanics: 50 to 99 Years, and How the Rent Resets
- Lesson 8.4: Reversion and the Improvements: Who Owns the Building at the End
- Quiz 8.4: Reversion and the Improvements: Who Owns the Building at the End
- Lesson 8.5: Underwriting a Ground-Leased Deal: Leasehold Value, Lender Protections, and the Famous Pitfalls
- Quiz 8.5: Underwriting a Ground-Leased Deal: Leasehold Value, Lender Protections, and the Famous Pitfalls
Capstone, Abstract and Underwrite a Commercial Lease
4 Lessons4 Quizzes
- Lesson 9.1: Setup: Meet the Lease
- Quiz 9.1: Setup: Meet the Lease
- Lesson 9.2: Analysis: Run the Numbers
- Quiz 9.2: Analysis: Run the Numbers
- Lesson 9.3: Decision: The Three Riskiest Provisions
- Quiz 9.3: Decision: The Three Riskiest Provisions
- Lesson 9.4: The Pro Lens: Valuation and Offer Strategy
- Quiz 9.4: The Pro Lens: Valuation and Offer Strategy
Final Exam
1 Quiz
You are not buying a building. You are buying its leases. Read them with that in mind and the income stops being a mystery.
You cover gross, NNN, and everything between, rent past the base rate, CAM charges and where they hide, tenant rights, assignment and subletting, and default and remedies. A full module covers ground leases. The capstone abstracts and underwrites a real lease.
Nine modules, 40 written lessons, 102 practice questions, and a graded final exam with a certificate. Self-paced, no expiry date. Yours to finish on your own timeline.
Know what you own before you sign.
Key Terms in This Course
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