Structuring the Complex Commercial Real Estate Lease - Government Incentives, Real Estate Tax Exemptions, Condominium Conversions, Financial Reporting Considerations, Intervening Leases, Tax Considerations and Unintended Consequences

01/09/2013

Competition for tenants of substantial commercial real estate leases will often require the successful landlord to agree to complex lease structures, or even the re-structuring of the underlying real estate. Tenants making a substantial, long-term investment in a lease of real property will be best served by a team of professionals with expertise in the various components of an optimal structure, taking into account all relevant circumstances and the potential availability of government incentives and/or "as of right" real estate tax exemptions.

State and local government programs designed to lure tenants to designated locations, or to prevent their relocation to competing cities or states with a corresponding loss of jobs, are often dependent upon some form of relief from real estate taxes and/or sales taxes relating to the construction of leasehold improvements. This relief from taxation has sometimes required a transfer of actual or deemed ownership of all or a portion of a parcel of real property or a building to a tax-exempt development agency.

To read the full article, click on the PDF linked below.

Structuring-Complex-Commercial-Real-Estate-Lease.pdf

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