Commercial Lease Analysis Flashcards
7 cards from real CRECI practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Commercial Lease Analysis flashcards as text
A 'subordination, non-disturbance, and attornment' (SNDA) agreement primarily protects:
Answer: The tenant's right to remain in occupancy if a lender forecloses
An SNDA ensures that if the property is foreclosed, the tenant's lease survives and the new owner must honor its terms, provided the tenant recognizes the new owner.
In commercial leasing, 'rentable square footage' differs from 'usable square footage' because it:
Answer: Includes a pro-rata share of common areas
Rentable square footage adds the tenant's proportionate share of common areas (lobbies, restrooms, corridors) to the usable area, resulting in a higher figure.
Which provision in a commercial lease restricts the landlord from leasing nearby space to direct competitors of the tenant?
Answer: Exclusivity clause
An exclusivity clause grants the tenant the sole right to conduct a particular type of business within the property or a defined area, preventing the landlord from leasing to competitors.
A 'dark store' clause allows a tenant to:
Answer: Stop operating the business while still paying rent
A dark store clause permits a tenant to vacate and cease operations while continuing to pay rent, often used strategically by large retailers to limit competition.
Under a modified gross lease, which party typically pays for increases in operating expenses beyond a base-year amount?
Answer: The tenant pays increases above the base-year stop
In a modified gross lease, the landlord covers operating expenses up to a base-year stop, and the tenant is responsible for any expense increases above that threshold.
What does 'CAM reconciliation' refer to in commercial leasing?
Answer: Comparing estimated CAM charges paid throughout the year to actual costs incurred
CAM reconciliation is the year-end process of comparing the tenant's monthly CAM estimates to actual expenses, resulting in either a credit or additional payment.
A 'relocation clause' in a commercial lease gives the landlord the right to:
Answer: Move the tenant to a comparable space within the building
A relocation clause allows the landlord to move the tenant to another space of similar size and quality within the building, typically with advance notice and at no additional cost to the tenant.