Lease Abstract-Office and Retail
Hi guys,
I am comfortable with abstracting lease info for multifamily. It's probably the easiest product type to summarize a lease. The most important things that I summarize in my lease summary for multifamily is
- types of product
- average square feet and avg rent for each product type
- Weighted average rent
- Monthly income from each product type and total.
- Average rent per SF and weighted average.
I am a little unsure of how to abstract leases for office and retail particularly the ones with complicated lease structures. Example in retail, some will have fixed rents, some percentage based rents plus fixed rents, expense stops etc
Anybody have an example- an investment memo or an OM that can show me the info that was included in a lease summary? I would really appreciate it, thank you so much!
Don't have any that I can actually share, but the important terms for retail:
I haven't been in retail for ~1 year, so if I'm missing anything important, someone please correct me.
Another important one is the entity signing for the tenant/guarantor. Especially if the tenant is rated credit, you can have instances where large companies will have a subsidiary entity sign the lease, with no guarantee from the parent company (ie technically the credit rated entity). Depending on who you talk to, this can alter the credit profile of the lease.
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