At Grant & Lewis we believe that the greatest threat to successful commercial real estate investment lies in the inefficient management of occupancy costs. With an increasing number of tenants relying on expert lease administration, today's lease agreements are more complex and varied than ever before. We believe that the first line of defense against the pitfalls inherent in complex leases is a professionally prepared abstract.
A lease abstract is a summary of the most important operating provisions of a lease. In theory, a lease abstract should bring to the users attention any unusual lease provisions, financial obligations or other issues of import; where applicable an effective lease abstract will direct the reader to where one can obtain more detailed information concerning the information in question. The key to a valuable lease abstract is to keep things short and simple. It is sometimes helpful to think of an abstract as analagous to to an outline of the lease.
The most common user of a lease abstract is the lease administrator. The lease administrator is responsible for charging tenants and managing the relationships between the landlord and the tenants. Often times, the property owner and/or representing broker will also use a lease abstract to determine the feasibility of leasing to prospective tenants with respect to any existing exclusivity clasues. The most important user of the lease abstract, is the purchaser of a new real estate asset. During the due dilignece period, the buyer should verify the quality of the leases currently in force before deciding to go forward with completing the acquisition.
Lease abstracts are generally needed in three basic situations:
Grant & Lewis has the experts needed to deliver a large number of abstracts, a defined process designed for consistency across each of your leases, and a software system that allows you to access your abstracts from anywhere at any time.