Topic
Lease Structure
Guides and real deal teardowns on lease structure.
Why one month can cost you 25 basis points
How value quietly bleeds as lease term burns off, and why it accelerates the closer you get to expiration.
Read it →Starbucks net lease and ground lease basics
The difference between a Starbucks corporate net lease and a Starbucks ground lease, why rent escalations matter, and what to confirm before you buy.
Read it →The Chick-fil-A ground lease, explained
Why Chick-fil-A single-tenant deals are scarce, what a ground lease means for a landowner, and what to confirm before assuming a listing is really the tenant it claims.
Read it →Ground leases, explained: owning the dirt under the store
What a ground lease is, how it works for retail investment property, what to watch for, how to use it as a defensive strength, and the best/worst-case outcomes.
Read it →Common area maintenance (CAM): the retail expense that quietly makes or breaks returns
What CAM is, how it works in multi-tenant retail investment property, what to watch for, how to structure it as a strength, and the best/worst-case outcomes.
Read it →The Triple Net (NNN) Lease Explained: What It Means for Retail Investors
A plain-English breakdown of the triple net (NNN) lease: what the tenant actually pays, how it shapes a retail investment, what to check before you buy, and how to make the structure work for you.
Read it →Percentage Rent Explained: How Retail Leases Share the Upside
Percentage rent lets a landlord collect extra rent based on a tenant's sales above a set threshold. Here's how it works in retail investment property, what to watch for, and how to read it.
Read it →The Co-Tenancy Clause in Retail Leases, Explained
A co-tenancy clause lets a retail tenant cut rent, or leave, if key neighboring stores or an anchor go dark. Here's how it works and why it matters to your net-lease and multi-tenant investment underwriting.
Read it →The Estoppel Certificate Explained: A Net-Lease Buyer's Due Diligence Anchor
An estoppel certificate is a tenant-signed statement confirming the real terms of a lease. Here's how it works, why it matters in net-lease due diligence, and how to use it as leverage.
Read it →Gross Lease vs. Net Lease: What Every Retail Property Buyer Needs to Know
A gross lease and a net lease can produce the same monthly check but two completely different investments. Here's the difference, why it drives value in retail property, and what to watch before you buy.
Read it →Lease Escalations Explained: How Rent Bumps Drive Net-Lease Value
Lease escalations are the scheduled rent increases baked into a net-lease. Here's how they work, why they move value, and what to check before you buy or sell.
Read it →Tenant Improvement Allowance, Explained: What It Really Costs You
A tenant improvement allowance is money a landlord puts toward build-out costs on a new lease: here's how it's actually negotiated, funded, and what it means for your return.
Read it →The Exclusive Use Clause, Explained: What It Actually Protects (and Doesn't)
The exclusive use clause restricts what other tenants in a retail center can sell or do, and it can make or break a deal's value if it isn't drafted and tracked carefully. Here's how I explain it to clients before they sign anything.
Read it →Renewal Options Explained: What That "Option Period" in Your Lease Really Means
Renewal options give a tenant the right, not the obligation, to extend a lease on pre-set terms, and how they're written can shape a net-lease property's value as much as the rent roll does. Here's how I walk clients through reading them.
Read it →Absolute Net Lease Explained: How It Differs From a Standard NNN Lease
An absolute net lease pushes every cost of ownership, including roof and structure, onto the tenant, which is not always what a standard NNN lease actually delivers. Here's how to tell the difference before you rely on it.
Read it →The Go-Dark Clause: Why an Empty Store Can Still Be Paying You Rent
A go-dark clause determines whether a tenant can stop operating while still paying rent, and whether you, as the landlord, have any real remedy when they do. This piece breaks down why that clause matters more than the cap rate in retail net lease deals.
Read it →Right of First Refusal (ROFR) in Commercial Real Estate: What It Actually Gets You
A right of first refusal gives you the chance to match a deal before it goes to someone else, it's not a right to buy on your own terms. Here's how ROFRs actually function in net lease retail deals and what to check before you rely on one.
Read it →Effective Rent vs. Face Rent: The Number on the Sign Isn't the Number That Matters
Face rent is the headline number in a lease; effective rent is what's left after concessions, free rent, and tenant allowances are netted out, and it's the one that should drive your valuation.
Read it →The Rent Roll, Explained: How I Read One Before I Ever Look at a Cap Rate
A rent roll lists every tenant, their rent, and their lease terms, and it's the single best predictor of what a property will actually do for you. Here's how I read one before I trust any number on a flyer.
Read it →McDonald's Real Estate: Why It's a Property Company That Happens to Sell Burgers
A plain-English look at how McDonald's built its business around owning and controlling real estate, and what its ground-lease structure means if you're buying a single-tenant net-lease property.
Read it →Chipotle as a Net-Lease Tenant: What Owners and Investors Should Know
A plain-English look at Chipotle as a net-lease retail tenant: how the concept shapes the real estate, what a typical lease looks like, and how I'd size up the risk on either side.
Read it →Dutch Bros and the Drive-Thru Coffee Model: A Net-Lease Owner's Guide
A plain-English look at Dutch Bros and the drive-thru-only coffee format as net-lease retail real estate: how the model works, what drives the real estate, and what owners and investors should weigh before buying one.
Read it →Taco Bell Net Lease: What a Yum! Brands QSR Really Buys You
How Taco Bell and the Yum! Brands quick-service format work as net-lease retail investments: lease structure, tenant credit, real estate fundamentals, and what to weigh before you buy one.
Read it →Raising Cane's and the Single-Concept QSR Playbook for Net-Lease Investors
A plain-English look at Raising Cane's and the single-concept quick-service restaurant format as net-lease retail. What the model is, why it matters to real estate, and how I size one up for owners and investors.
Read it →Dunkin' as Net-Lease Real Estate: How I Underwrite the Coffee Drive-Thru
A broker's plain-English look at Dunkin' and the coffee/donut drive-thru as net-lease retail: what drives the format, how the leases tend to be structured, and what owners should weigh before they buy.
Read it →Culver's as Net-Lease Real Estate: What the Drive-Thru Format Really Buys You
A broker's plain-English look at Culver's and the drive-thru fast-casual format as net-lease retail real estate: how the buildings get owned, what drives value, and what to check before you buy.
Read it →Popeyes as Net-Lease Real Estate: How I Read a QSR Chicken Deal
A clear-eyed look at Popeyes as net-lease retail: how the fast-food model shapes the real estate, what to check on the lease, and how owners should weigh the upside against the risks. General education, not investment advice.
Read it →Burger King Net Lease: What CRE Investors Should Know About the Ground Under the Whopper
A plain-English look at Burger King as net-lease retail real estate. Because most locations are franchisee-operated, the strength of your lease often comes down to who signs it and how the site performs.
Read it →Panda Express as Net-Lease Real Estate: What Owners and Investors Should Know
A broker's plain-English look at Panda Express as single-tenant net-lease real estate: how the leases tend to be structured, what drives the real estate value, and what to weigh before you buy the dirt.
Read it →Whataburger as Net-Lease Real Estate: What Owners and Investors Should Know
A plain-English look at Whataburger as net-lease retail real estate: the brand's history, why the underlying property matters more than the burger, and how I coach owners and investors to think about the risk on both sides.
Read it →KFC as Net-Lease Real Estate: What Buyers Should Actually Look At
A plain-English look at KFC (a Yum! Brands concept) as single-tenant net-lease retail: how the real estate works, what drives value, and the questions I'd ask before you buy the tenant instead of the corner.
Read it →Panera Bread as Net-Lease Real Estate: How I Read the Fast-Casual Format
A broker's plain-English look at Panera Bread and the fast-casual format as net-lease retail: how the real estate is built, where the value sits, and what owners should actually underwrite.
Read it →The Permitted Use Clause in a Retail Lease: What It Really Controls
The permitted use clause defines what a tenant is allowed to do inside your space. It's a short paragraph with an outsized effect on releasing, tenant credit, and resale value, here's how a net-lease broker reads it.
Read it →CAM Caps and Gross-Up Provisions in Retail Leases: What Every Net-Lease Buyer Should Read First
CAM caps and gross-up provisions govern how common area costs get shared between landlord and tenant in retail leases. Here's how I read them across the table from a client, and why they matter more than the headline cap rate.
Read it →The Holdover Tenant, Explained: What Holdover Rent Means for Your Net-Lease Deal
A holdover tenant keeps occupying the space after the lease term expires. The holdover rent clause decides whether that's a windfall or a headache, here's how I read it before you buy.
Read it →The Base Year in a Commercial Lease: What It Really Means for Your NOI
A base year sets the expense baseline a landlord absorbs before a tenant starts paying its share of increases. Here is how it works, where it hides in retail deals, and how to use it when you buy or sell.
Read it →Rent Commencement vs. Lease Commencement Dates: The Net-Lease Gap That Costs Buyers
Lease commencement and rent commencement are two different dates in a net-lease deal, and the gap between them changes when rent starts and how much lease term you're really buying. Here's how I read them before making an offer.
Read it →The Modified Gross Lease Explained: What It Means for Net-Lease Buyers
A modified gross lease splits building expenses between landlord and tenant instead of loading them all on one side. Here's how to read one, what to check, and why the details matter more than the label.
Read it →Assignment and Subletting Rights in a Commercial Lease, Explained
Assignment and subletting clauses control who can take over a commercial lease and who stays on the hook for the rent. Here's how a net-lease broker reads them, and why they matter more than most buyers think.
Read it →The Relocation Clause in Retail Leases: What It Means for Your Net-Lease Deal
A plain-English look at the tenant relocation clause in retail leases: what it is, how it shows up in net-lease and multi-tenant retail, and how to read it before you buy.
Read it →Kick-Out Clause Explained: The Retail Lease Escape Hatch Every Buyer Should Read First
A kick-out clause lets a retail tenant terminate or cut rent if sales don't hit an agreed threshold by a set date. Here's how it works, what to check before you buy, and how to use it to your advantage.
Read it →Reciprocal Easement Agreement (REA): The Shopping Center Rulebook Behind Your Net Lease
A reciprocal easement agreement (REA) is the private contract that governs shared access, parking, and maintenance across a shopping center. Here's how it shapes the value and risk of a net-lease deal, and what to check before you close.
Read it →The 7.25 cap that was really a countdown timer
A 7.25 cap that everyone loved, until you read the lease: four years of term, a single-store guarantee, and an old roof on the landlord.
Read it →The 6.5 that beat the 7.5
Two deals, same month: a 7.5 and a 6.5. The lower cap was worth more, and it wasn't close. Here's why.
Read it →Flat rent, quiet erosion
This one doesn't blow up. It just quietly loses value for fifteen years, and nobody notices until they go to sell.
Read it →The anchor went dark
A center that looked diversified was really a three-year bet on one anchor, with co-tenancy clauses waiting to take down the rest.
Read it →