What happens to market rent at lease expiration?

What happens at lease expiration is the then prevailing market and renewal rent (which could be inflated at the market inflation factor) is calculated and used in the weighted average market/renewal rent calculation. Then, this resulting blended rent calculation is used at the start of market lease term.

When does lease expire for medium sized tenant?

The medium sized tenant’s lease expires a year later on December 31st 2020. And the small tenant’s lease expires one more year later on December 31st, 2021. The first two tenants have annual rent escalations of 3%. The third tenant also has annual rent escalations of 3%, but only for the second and third years of its lease.

How does market leasing assumptions work in commercial real estate?

There are two possibilities after a lease expires: 1) the tenant vacates and you have to re-lease the space at the then prevailing market rents and terms, or 2) the tenant renews its lease, possibly at rent and terms different than the market.

How does rent escalation work in commercial real estate?

The first two tenants have annual rent escalations of 3%. The third tenant also has annual rent escalations of 3%, but only for the second and third years of its lease. To keep things simple, there are no reimbursements, leasing commissions, or tenant improvements.

What happens when a real estate agent contract expires?

It’s been a couple of months and your contract is set to expire, meaning that your agent is no longer legally obligated to represent you. That means you no longer have to pay the commission, right?

How long do real estate brokers have to keep their business records?

Brokers must keep at least one legible copy of all brokerage business books, accounts, and records for at least five years from the date of receipt of any money, fund, deposit, check or draft entrusted to the broker.

Is the listing period negotiable in real estate?

And like other situations in the real estate world, the listing period is negotiable. Say, for example, you want a quick sale and your agent knows she has only 30 days to get that done. “You may want to define that commission protection period and say, ‘After the terms of this contract, that’s it,’” says Edgar.

When do Florida real estate license records have to be maintained?

(Section 475.5015, Florida Statutes) If there is litigation as a result of any transaction, the records must be maintained for at least two years after the conclusion of the civil action or the conclusion of any appellate proceeding, whichever is later, but in no case less than five years.