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REIT-MANAGEMENT4 MIN READ

Sort lease terms by NOI impact

Classify lease terms by how they affect REIT NOI and asset risk.

Place each lease term into the bucket showing its primary economic impact. Revenue Expense Leakage Cash Cost Optionality and Risk Base rent per square foot Annual contractual escalator Percentage rent above sales breakpoint Tenant cap on controllable operating expense recoveries Expense gross-up language for partial occupancy Six months free rent Tenant improvement allowance Tenant termination right after year three Co-tenancy clause tied to anchor occupancy Fixed-price renewal option below market

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