Tips and information about commercial leasing are a pretty common topic for commercial real estate blogs. At least, that seems to be true from what I’ve seen. In a recent post by Drew Emmert, published on the SVNIC Blog, we get a thoroughly written article that focuses on “demystifying” some the the “legalistic provisions in the commercial lease.” This article is a bit different from the commercial leasing articles that I typically read, and is certainly worth taking a look at, if you are interested in reading up on the finer points of the commercial lease. Below is just a preview of the original post. To read the full article, you should click the button at the end.
A typical commercial lease is a comprehensive document that may be anywhere from 20 to 60 pages long. (Often with exhibits these things can be huge! So, reviewing new leases can be a real headache for an agent trying to sell or property manager taking on the management of a new multi-tenant property or shopping center.) When paging through a lease many provisions can seem irrelevant, extraneous, unimportant or rarely used. The fact is that every lease provision is drafted to address a specific event, need or situation that a landlord or tenant may face. Today, I was asked to address some of the more ‘legalistic’ provisions in the commercial lease in an attempt to try to ‘demystify’ them for you.
The first topic is Subordination, Non-Disturbance and Attornment. These are separate concepts and may appear, separately or together, in a commercial lease. There are also Subordination, Non-Disturbance and Attornment Agreements, commonly called ‘SNDA Agreements.’ However, it is important to understand that the three concepts do not always exist together.
1. Priority of Interests in Real Estate. Any discussion involving ‘subordination’ necessarily involves an understanding of how priorities of interests in real estate are ….