Leasing

1.5 Credits · Level: Graduate

This course will give students a broad overview of leases and their importance to commercial real estate. We will discuss the various roles that leases play in commercial real estate, and the differences and similarities between different types of leases. Students will learn to parse out the true and complete economic terms of a lease transaction in a manner that permits meaningful comparisons. We will review the various elements of commercial leases, placing particular emphasis on construction, pass-through of expenses, flexibility and exit strategies, options, and the effect of the current economic situation. Throughout, we will discuss the roles and motivations of the various players, and how competing interests reach agreement. Finally, through one or more guest speakers, we will hear how leases are interpreted in the real world on a day-to-day basis. Course Objectives: Provide an understanding of leases as the economic underpinning of commercial real estate, impart a working knowledge of a broad array of lease types, teach students to analyze the full economic impact of a lease in a manner that facilitates comparisons across leases, and give students a full working knowledge of the key components of commercial leases and how they fit together, explore the motivations, similar and dissimilar, of the parties (landlord, tenant, lender) and the usual compromise positions. Students will leave the course with the ability to read a commercial lease and understand and extract its key terms, and with an understanding of how those terms are put into practice.