What is a lease abstract and how can it help your business?

By
Commercial Real Estate Agent

Most corporate real estate leases consist of several dozen pages and in some cases upwards of a hundred pages or more.  A lease abstract is a 1 or 2 page snap-shot of your lease in an easy to read format.  The process involves reading through your entire lease and abstracting pertinent information.  Some examples of extracted information include the following:

  •  Date Lease Signed

  •  Date Lease Expires

  •  Length of Term

  •  Current Rate Being Paid PSF

  •  Escalation Clause

  •  Termination Options

  •  Security Deposit

  •  Penalty Fees If Any

  •  Renewal Options

  •  Contraction & Expansion Options

  •  Rental Schedule

Showing a current rental rate schedule is one of the most important aspects of a lease abstract which shows your current rental rate and projects out the future annual rates.  Once you know and understand your rental schedule you can compare to the market and determine if you are paying more than you should.

Also, a lease may have multiple addendums making the entire process complicated and ideal for using a professional.  If you are concerned about your lease, or if you are in the market for new office space, please consider having my team help you with your search.

I look forward to hearing from you!

Jason Tucker | Associate Director

Newmark Knight Frank, Inc.
34975 W. Twelve Mile Road | Farmington Hills, MI 48331
Phone: 248-848-4084 | Fax: 248-848-9041 | Cell: 248-431-8138
e-mail: jtucker@newmarkkf.com | Website: www.newmarkkf.com

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Comments (1)

R.L. Travers & Associates, Inc
R. L. Travers & Associates, Inc. - Springfield, VA
Commercial Property Management & CRE Brokerage

This is an excellent lease abstract and a great service you are providing, good work!

Jun 29, 2011 02:18 AM