Frequently Asked Questions

Following are some of the questions we are frequently asked. A general response to each question is given based on sources we believe are reliable. However, please be advised that there are no guarantees, warranties or representations implied in the answers. For detailed information on your specific situation, please consult the appropriate tax, financial and/or legal advisers.

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1. How many square feet are in an acre?
   1 AC = 43,560 SF
   
   
2. Is there a typical lease term?
   Lease terms can vary greatly, from month-to-month terms to 20 years or more.
   
   
3. Is there a typical lease form?
   The 3 most common lease forms we have utilized are: gross lease, net lease and base year escalator lease. Each may be modified to meet requirements of specific properties.
   
   
4. What is a Gross Lease?
   Typically a Gross Lease means that a tenant makes a set monthly rent payment and is not responsible for any other expenses (other than telephone, cable, etc.). Some modifications to a Gross Lease include: Gross, plus utilities; or Gross, plus a share of real estate taxes; and so on.
   
   
5. What is a Net Lease?
   A Net Lease generally requires that a tenant pay a Base Rent plus pay a share of operating expenses for the property (real estate taxes, extended coverage building insurance, CAM). This cost is paid in addition to the Base Rent and is generally adjusted annually as operating costs increase or decrease. Modifications to a Net Lease include: tenants responsible only for a share of real estate taxes and extended coverage building insurance; tenants responsible for all costs associated with the property, including replacements and repairs.
   
   
6. What is a Base Year Escalator Lease?
   A Base Year Escalator Lease has a set amount of operating expenses included in the rental payment. This amount is generally established using the expenses for the year in which the lease begins. Each following year, if the operating expenses have increased, the rental rate is increased accordingly.
   
   
7. What is CAM?
   CAM stands for Common Area Maintenance. Examples of things that may be included in CAM fees are: building maintenance, snow removal, lawn and landscaping care, parking lot maintenance, etc.