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: [...]
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) [...]
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 not lose “Prop. 13 protection.” Commercial properties [...]
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.Properties can be reassessed as early as the July 1, 2022 – June [...]
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. Properties can be reassessed as early as the July 1, 2022 – June 30, 2023 fiscal [...]
The “Split Roll” Initiative recently qualified for the November 2020 ballot, and is numbered Proposition 15. If passed, many commercial and industrial property owners would lose their “Prop. 13 protection,” and their properties would then be assessed at market value. This article is the first in a multi-part series discussing Prop. 15. In this first [...]
On May 13, 2020, a bill numbered SB 939 became a lighting-rod in California. It proposed that certain Covid-impacted tenants could terminate their leases. Authored by Senator Wiener, SB 939 gained momentum when it passed the Judiciary Committee by a vote of 5-1 in favor of the bill. It then moved to the Appropriations Committee [...]
SB 939 was recently amended to provide additional eviction protections for Covid-impacted tenants in all industries. To be clear, this provision is not limited to restaurants, bars, places of entertainment, etc. This updated section of SB 939 provides, in part: 12-Month Repayment Period: “Covid-impacted” tenants have 12 months after the state of emergency ends to [...]