Lease Economics Quick Reference
Recall the lease economics that affect NOI, risk allocation, and tenant control.
RENT What does RENT remind you to check in a lease? Recoveries, Escalations, Notice, Transfer. Compare gross lease and net lease from the owner's NOI view. The label matters less than the actual risk allocation. Tenant says, We need a cap on all operating expense increases. You want to stay constructive without accepting open-ended NOI leakage. Your line We can discuss controllable expense caps, but taxes, insurance, utilities, and snow removal need pass-through treatment. A broad cap can make the owner absorb costs the tenant's occupancy creates or that the owner cannot control. It distinguishes negotiable controllable costs from uncontrollable…
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