Introduction to Leasing Commercial Real Estate

This course will introduce basic leasing practices in commercial real estate transactions.  It includes a description of typical clauses in real estate leases for a variety of commercial properties.  Factors typically used in calculating gross rent and commission will be introduced.

Course Objectives – by the completion of this course, participants will be able to:

• Describe the basic elements of a lease agreement for commercial spaces.
• Given a sample spread sheet, describe the elements included in calculating the total gross rent of a sample property, including mortgage payment, return on investment, real estate taxes, common area maintenance charges (C.A.M.), and reserve replacement costs.
• Describe how upgrades to space and letters of intent are used when negotiating lease agreements.
• Compare typical lease agreements for the following types of properties:  office spaces, shopping centers, industrial properties, vacant land.
• Discuss commissions within the context of leasing commercial real estate.