Comparative Lease Analysis

STEP 2: Edit Existing Lease. When tapping 'Edit Existing Lease(s)' you will see a screen view of all folders you created.

Tap on the desired folder to display all leases in that folder.

Next, tap on selected Lease to load the saved information from the remote server. Even if you entered and saved the lease on another device, you will be able to access it via the remote service on your device.

The lease details will be displayed on your device. You may now modify the lease terms.

Space Area: Defaulted at Square Feet. Future enhancements will allow for Units and Meters.

Property Name: Enter the Name of the property. This is also the name under which Lease information will be saved for future edits and selected for the analysis report. If the property does not have a name, you can use a reference, i.e. 'Main St. Office'. Note: This name will appear on all of your reports to identify the property to you/your client.

Property Address/Suite: Enter the full address, suite, city and state for the property. Each address will appear at the top of the property detail section of the reports.

Lease Term: Enter the total number of months of the lease term. For example, a 3 year lease will be entered as '36' for the lease term. There is no limit to the number of months for the term. The property detail report will provide a cash flow analysis for every month of the lease.

Rent Concessions: Enter the number of months for rent concessions, or the actual dollar ($) amount of the concessions offered by the landlord. A number from 1-99 will calculate the number of months that Base Rent is free to the Tenant. Entering a number 100 or greater will be a fixed dollar amount credit from the Landlord to the Tenant. Fixed dollar amount concession will be applied the first month of the lease move-in. Entry of 0 will be $0.00 concessions on the report.

Rentable Area: Enter the total square feet of the rentable lease space. Rentable Square Feet (RSF) includes the usable square feet plus the prorate share of common area space including hallways, restrooms, atriums, etc.

Load Factor: Enter a number between 1-99 to enter the load factor percentage (%). Entry of 100 or greater will be used as USF (Useable Square Feet). In commercial real estate load factor is the multiplier applied to a tenant's usable space that accounts for the tenant's proportionate share of the common area (restrooms, hallway, mechanical rooms, etc.). The calculation is completed using the rentable area (RSF) divided by the usable area (USF) minus one. ((RSF / USF) - 1). The load factor is expressed as a percentage. If you know the Useable Square Feet, enter that in this field and TheAnalyst® will calculate the Load Factor percentage on the PDF report.

Annual Rent: Enter the initial ANNUAL rental amount or rate for the first year. Inputs between 1-499 are for total annual rent per square foot. Entry of 500 or greater will be used as the total rental amount for the entire space for the first year.

Rent Escalation: Many leases include Escalation Clauses where the rent will increase at a pre-negotiated rate at a specific time during the lease. Entering a percentage in this field represents that the lease rate will escalate, or increase, at the given percentage every year. Users can also tap on the advanced settings icon (gear) to the right of the field to enter custom rental escalations. Here you can specify the start month of the increase and the type of increase, including: 1) Annual Percentage; 2) $ per Square Foot; 3) Fixed Monthly $ Amount. You can add as many custom increases as desired by tapping the Add Row button.

Expenses: Enter the initial ANNUAL expense amount or rate for the first year. Inputs between 1-499 are for total annual expenses per square foot. Entry of 500 or greater will be used as the total expense amount for the entire space for the first year.

Expense Escalation: Entering a percentage in this field represents that the expenses will escalate, or increase, at the given percentage every year. Users can also tap on the advanced settings icon (gear) to the right of the field to enter custom expense escalations. Here you can specify the Here you can specify the start month of the increase and the type of increase, includining: 1) Annual Percentage; 2) $ per Square Foot; 3) Fixed Monthly $ Amount. You can add as many custom increases as desired by tapping the Add Row button.

Expense Stop: An Expense Stop is the total amount the landlord will pay in expenses per year. Property operating expenses incurred that exceed the landlord Expense Stop in a given year will be the responsibility of the Tenant to pay or reimburse the landlord. Enter in this field the initial ANNUAL expense stop amount or rate for the first year. Inputs between 1-499 are for total annual expenses stop per square foot. Entry of 500 or greater will be used as the total expense stop amount for the entire space for the first year. Enter 0.00 for Absolute Net Lease properties where the tenant is responsible for all expenses.

Expense Stop Escalation: Entering a percentage in this field represents that the expense stop will escalate, or increase, at the given percentage every year. Users can also tap on the advanced settings icon (gear) to the right of the field to enter custom expense stop escalations. Here you can specify the start month of the increase and the type of increase, including: 1) Annual Percentage; 2) $ per Square Foot; 3) Fixed Monthly $ Amount. You can add as many custom increases as desired by tapping the Add Row button.

TI Expense: 'TI' is an acronym for Tenant Improvements. This is the amount it will cost to construct, build out or change the space for the tenant's use. These expenses are typically incurred prior to the tenant moving into the space. Inputs between 1-499 are for TI expenses incurred per square foot. Entry of 500 or greater will be used as the total TI expense amount for the entire space. Enter all of the TI expenses required in this field. If there is a TI allowance given to the tenant by the landlord, enter that amount in the TI Allowance field.

TI Allowance: This is the amount that the landlord will contribute to the Tenant Improvements for the property. This expense will be incurred by the landlord upon the commencement of the lease. Inputs between 1-499 are for TI allowance incurred per square foot. Entry of 500 or greater will be used as the total TI allowance amount for the entire space.

Move-In Costs: Enter the fixed dollar amount of costs incurred by the Tenant to move in to the new space. This may include utility set up fees, movers, installation fees of phone, Internet, etc. This amount will be added to the Tenant's total costs incurred at time of move in.

Lease Commission: Enter the leasing commission (LC) amount incurred by the landlord for this lease. This will appear on the landlord report only and not the tenant report. Enter a number between 1-99 to enter the LC percentage (%). Entry of 100 or greater will be used as the actual commission dollar amount. If using a percentage amount, this percentage will be applied to the Base Rent payments over the life of the lease. NOTE: If you calculate commission on the operating expenses paid by tenant, you will need to enter an actual commission dollar amount in this field and not percentage. The report will show that this expense is incurred at time of tenant move in.

Tap 'Save Lease' button bottom of the screen when you have completed the desired modifications.

'Save Lease' will, by default, provide you the option of saving the inputs with the same name. You now have the option of changing the Lease Name. If you change the name, the lease will not overwrite the prior inputs, allowing you to quickly replicate similar lease scenarios into multiple alternatives without re-entering all of the fields.

Whether you choose to keep the same Lease Name or change it, tap 'Save' and 'Continue' to proceed.

Select an existing folder or tap the new folder icon in the lower right corner.

If you are overwriting the previous Lease with same Lease Name and in the same folder, you will be asked to confirm to 'Overwrite' the existing lease.

Once you save the report to your desired folder, you will be returned to the folder view in 'Edit Existing Lease' where you can select to edit another lease. Once completed, tap the 'Back' button in the upper left corner to return to the main menu where you can enter another lease, edit the lease, or create the Tenant or Landlord report.