Practice Test Geeks(CLP) Certified Leasing Professional Practice Test
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Lease Origination and Structure Flashcards

7 cards from real CLP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Lease Origination and Structure flashcards as text

  1. Which lease provision specifies the tenant's right to expand into adjacent space if it becomes available?

    Answer: Expansion option

    An expansion option gives the tenant a contractual right to lease additional space, usually at a predetermined rent or formula.

  2. A tenant negotiates a lease with rent increases tied to the Consumer Price Index (CPI). This structure is called a(n):

    Answer: Escalation clause with CPI index

    A CPI escalation clause adjusts rent periodically based on changes in the Consumer Price Index to keep pace with inflation.

  3. In commercial leasing, 'usable square footage' differs from 'rentable square footage' because rentable square footage:

    Answer: Includes a proportionate share of common areas

    Rentable square footage adds a load factor (pro-rata share of common areas like lobbies and hallways) to the usable square footage a tenant occupies.

  4. A prospective commercial tenant with limited credit history offers a larger security deposit to secure a lease. Which additional credit enhancement might a landlord also request?

    Answer: Personal or corporate guarantee

    A personal or corporate guarantee makes a third party liable for the tenant's obligations, providing additional security beyond the deposit.

  5. The clause in a lease that requires the tenant to keep the space open and operating during required hours is called a:

    Answer: Continuous operation clause

    A continuous operation clause obligates the tenant to remain open for business during specified hours, which is especially important in retail settings.

  6. When structuring a ground lease, the landlord typically retains ownership of what during the lease term?

    Answer: The land only

    In a ground lease, the landlord retains ownership of the land while the tenant owns and operates improvements constructed on it during the lease term.

  7. Which of the following BEST describes a 'build-to-suit' lease arrangement?

    Answer: The landlord constructs a building to the tenant's specifications

    In a build-to-suit arrangement, the developer/landlord constructs a property specifically designed to meet the tenant's requirements, then leases it to that tenant.