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Lease term |
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One of the things marketers must look out for is the lease term. The initial lease term for blocks in waters 400 to 800 meters (1,312 to 2,624 feet) deep would change from 8 to 5 years, but when an exploratory well is drilled the life of the lease would be extended to 8 years. Manage Short Term and/or Long Term Costs--depending upon how a tenant's existing lease compares to the then existing market and projected future market, examining the overall real estate costs for the combined time period of the remaining balance of the existing lease term and extended renegotiated term, may result in substantial future savings over the combined term. |
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