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If a landlord provides a tenant with a build-out allowance used for improvements owned by the tenant, the landlord generally treats the allowance as a lease acquisition cost, amortizing it over the lease tenn.
According to the joint venture contract, the company is to pay 45 percent of the lease acquisition cost for a 50 percent interest.
The broker's fee is a lease acquisition cost amortizable over the term of the lease with the retail tenant.
If the lessor has made the economic outlay necessary to construct the tenant improvements, but it is dear under the lease agreement that the lessee/tenant is the owner of the improvements, the lessor should be able to treat the cost of the improvements a a lease acquisition cost and recover the investment through amortization deductions over the lease term.
Conversely, the landlord has a deferred lease acquisition cost asset amortizable over the term of the lease, including renewal periods, which is usually substantially less than the 31.
In addition, the year 2002 includes loan fee and lease acquisition cost write-offs of $720,000 associated with the four-community refinance, previously discussed, and the conversion of one leased community to a managed community.
Typically, the landlord will capitalize the cash payments as a lease acquisition cost and amortize them over the lease term.
When a lessee acquires a lease along with other intangibles, the House Report limits the portion of the purchase price allocable to the amortizable lease acquisition cost to prevent the shifting of costs from Sec.
Under the theory of the Grinalds footnote, the unrecovered cost of the old improvements and the amount of the payment would be treated as a lease acquisition cost and written off over the term of the new lease.
Additionally, lease acquisition costs remain low alongside high but steady yields.
Dubai offers attractive rents and strikingly lower overall lease acquisition costs for both financial corporations as well as creative/SME firms when compared to other global cities.