Deck 16: Commercial Leases

Question 1

A lease in which the lessee pays a fixed amount as basic rent and is not required to pay any portion of the lessor's operating expenses is known as a ___ lease.

Answer 1

gross

Question 2

A residential tenant's bargaining power is considered to be on a more even footing with that of a landlord than is the bargaining power of a commercial tenant.

Answer 2

False

Question 3

Commercial leases usually are long term.

Answer 3

True

Question 4

Under a ground lease:

A) a lessee may deduct the entirety of the rent payments as a business expense
B) a lessee may deduct a portion of the rent payments as a business expense
C) a lessor may deduct a portion of the rent payments as a business expense

Question 5

The rental term under a shopping center lease is often shorter than the rental term under an executive office suite lease.

Question 6

There is no commercial equivalent to the Uniform Residential Landlord and Tenant Act.

Question 7

What information should be included in the rent provision of a commercial lease?

Question 8

A lease in which the lessee pays a base rent, plus a pro rata share of some of the lessor's operating expenses, is called a ___ lease.

Question 9

What should be included in a percentage lease provision?

Question 10

What rules and regulations are often imposed on commercial lessees?

Question 11

A gross lease is used most often in:

A) warehouse leases and executive office suite leases
B) executive office suite leases and shopping center leases
C) warehouse leases and shopping center leases

Question 12

Display cases are an example of:

A) leasehold improvements that remain with the lessor at the end of a lease
B) trade fixtures that remain with the lessor at the end of a lease
C) trade fixtures that may be removed by the lessee at the end of a lease

Question 13

Warehouse leases often are less complex than shopping center leases.

Question 14

What types of insurance might a lessee be required to carry?

Question 15

Operating expenses may include:

A) real property taxes and insurance
B) utilities and maintenance charges
C) both a and b

Question 16

A lease for a parcel of vacant real property is called a           lease.

Question 17

Percentage leases may base computations on:

A) gross sales figures
B) net sales figures
C) either a or b

Question 18

How do commercial leases differ from residential leases?

Question 19

A lease that contains a rent adjustment clause, allowing for the increase or, less often, the decrease of the rent to be paid over the term of the lease, is called a ___ lease.

Question 20

A lease in which the lessee pays a pro rata share of all of the lessor's expenses is known as a            lease.