Video

  • 26 minutes

Gross vs. Net Leases - Real Estate Common Area Fundamentals

 
The way a lease is intended to work and what happens with a building looks like this – a developer or landlord buys or builds a building and wants to lease it out. In order to operate that building the landlord has to pay for a couple of things: the cost of the building, the debt service on the building, the building is going to depreciate over time so the landlord has to cover that; and the landlord also has to pay for the cost of operating the building, including the cost of electric, the cost of cleaning, and whatever other services need to be provided in the building. Hopefully at the end of the day the landlord will have a profit leftover which is the incentive for having purchased or built the building in the first place.

In this 25–minute video our speaker, Marc E. Betesh, Esq., MCR.h, reviews gross leases vs. modified gross leases vs. net leases. He digs in to basic rent structures, net rental structures, NNN rental structures, modified gross rental structures, and what happens when expenses grow.

Marc E. Betesh, Esq., MCR.h is the founder and president, KBA Lease Services, Inc. and Visual Lease LLC. KBA pioneered and leads the field of auditing real estate leases for commercial tenants. Mr. Betesh is a member of the New York and New Jersey Bars; a member of CoreNet, ICSC, Association of the Bar of the City of New York, AECRE, and New York State and American Bar Associations. He is consistently ranked among the “top-ranked faculty” at Corenet Global Learning and is a frequent lecturer on lease topics at New York University’s Real Estate Institute, American Bar Association, Association of the Bar of the City of New York, AECRE, ACREL, New York State Society of CPAs, ICSC, and the Institute of Internal Auditors.
Runtime: 25 minutes

Faculty

Marc E. Betesh, Esq., MCR.h

Marc E. Betesh, Esq., MCR.h

Visual Lease