Subleasing can be tricky, and it is often time-sensitive. Lessee may be paying rent on space it is not using. Potential sublessees often have an immediate need and a delay can cause them to look elsewhere. Before requesting Lessor’s consent, it is helpful to know key provisions of the AIR CRE Lease relating to subleasing. [...]
AIR CRE Contracts continue to gain popularity for a variety of transactions. They are the most widely-used real estate contracts in California for industrial, office, and retail transactions. AIR CRE has expanded the AIR CRE Contracts beyond California. The Contracts are now available in 37 states (the list of available states is below). According to [...]
In a real estate purchase transaction, when the due diligence period is winding down, Buyer has a decision. Typically, the decision is to: (1) waive contingencies and proceed with the purchase, or (2) disapprove of the contingencies, terminate the transaction, and obtain a refund of the deposit. The AIR CRE Purchase Agreement provides Buyer with [...]
The AIR CRE Option To Extend Addendum has been a staple of California leasing transactions for decades. AIR CRE recently made a number of important changes to further improve the addendum, particularly to the process for determining Fair Market Value (FMV). Below is a summary of key aspects of the new procedure to determine FMV: [...]
After an AIR CRE purchase agreement is signed, Buyer commences its due diligence. If Buyer is satisfied with its inspections, Buyer may waive Buyer’s Contingencies, and proceed with the transaction. Once Buyer’s Contingencies have been waived, Buyer’s Deposit is often described as “non-refundable.” Question: After waiver of Buyer’s Contingencies, is Buyer’s Deposit ever refundable? Short [...]
Many lease transactions include an option for the tenant to extend its lease term. The AIR CRE Option(s) To Extend Addendum is frequently added as an afterthought when completing an AIR CRE Lease. This well-drafted addendum does provide that Lessee can lose its option under certain circumstances. Question: If Lessee subleases all (or a portion) [...]
In many purchase agreements, at the expiration of the due diligence period, Buyer is required to make a decision. A buyer decides whether it will: (1) disapprove of a contingency (and terminate the purchase transaction); or (2) waive its contingencies, causing its deposit to become non-refundable, and proceed to purchase the property. Question: Under the [...]
The Associated Press projects that Prop. 15 will fail with 52% of Californians voting against the measure. The Associated Press article is here. The LA Times article on Prop. 15’s defeat is linkedhere. If passed, Prop. 15 would have created a “split” property tax roll. Many commercial and industrial properties would have lost “Prop. 13 [...]
In general, Prop. 15 requires commercial properties to be re-assessed to market value, but excludes residential properties from re-assessment. Mixed-use properties are unique in that they are used for both commercial and residential purposes. Question: Will mixed-use properties be re-assessed to market value if Prop. 15 passes? Short Answer: There are three key rules for [...]
Background on Prop. 15: On November 3, 2020, California voters will decide whether to adopt the “Split Roll” Initiative, Prop. 15. If passed, many commercial and industrial properties would lose “Prop. 13 protection,” and would be re-assessed and taxed based upon market value. Residential and agricultural properties would notlose “Prop. 13 protection.” Commercial properties can [...]