The UMass Building Authority, or UMBA, announced that it has entered into definitive documents with Accordia Partners and an affiliate of the Real Estate Group of Ares Management on lease terms
for the 20-acre site that had previously housed the Bayside Expo Center.
On the effective date of the proposed standard, operating leases must be recorded and reported as capital leases based on minimum lease payments over their remaining lease terms
. It does not require lessees to restate existing capital leases to comply with the new standard.
The lease terms
of the properties to be acquired by W.
Landlords are becoming more occupier friendly and are showing an increasing willingness to make lease terms
more flexible, according to a survey carried out by the CBI and property advisers GVA Grimley.
It includes information on adapting clauses to specific situations and negotiating favorable lease terms
, techniques and strategies on structuring lease deals, and data on the latest court rulings affecting lease agreements.
In an effort to attract tenants to available commercial space, landlords often provide extraordinary benefits or favorable lease terms
. Called rent inducements, these are clauses in a lease agreement that landlords provide in an effort to attract future tenants to lease available property.
Generally, if a lease comes under section 467, the lessor and the lessee must account for the rental income and deductions in accordance with the lease terms
. If any rental payments are due after the end of a rental period, interest must be attributed to these payments on a present value basis; as such, a portion of the lease payments may be recharacterized as interest over the lease term
"His ability to easily compare lease terms
of similar surrounding properties enabled smooth negotiations."
However, a look at equipment operating lease statistics only shows that the vast majority of the transaction volume is comprised of small and mid-sized transactions of less than $250,000, with average lease terms
of less than four years, whose capitalized value would be less than 0.4 percent of assets and 1.2 percent of debt.
Pressure on the commercial letting market has seen landlords become more adaptable and realistic in formulating lease terms
that match the needs of particular businesses.