Construction on Unimproved Property (Free Standing Building Sample Clauses

Construction on Unimproved Property (Free Standing Building. Single Tenant). These are the true build-to-suit leases. A build-to-suit lease on unimproved property almost always involves a free standing building and a single tenant. If there is more than one building, there is still usually only one tenant. The landlord may or may not own the property. Sometimes the lease calls for the landlord to purchase a specific piece of property and construct the required improvements. Under this category, one may see a sale-leaseback or a synthetic lease. These leases are almost always a true "triple net" lease in which the tenant pays directly to the provider all of the utilities, taxes and insurance, not to mention all costs of repairs and replacements. In other words, the utilities, taxes and insurance are "net" to the landlord and they are not included in the rent. True triple net leases are sometimes called "bond leases" because all the landlord does is collect the rent the same as the bond holder clips coupons. If the landlord has an obligation to rebuild the improvement in the event of a casualty, or if the landlord retains control over paying any of the utilities, taxes or insurance (even if the landlord passes through 100 percent of the costs), then these leases are sometimes called a "double net" lease. Sometimes there is no obligation on the part of the landlord to rebuild in the event of a casualty. Leases in this category are usually long term, generally ten to twenty years with up to six five year renewal options at fixed or formulae rates. Tenants generally have an absolute right of assignment, the right to "go dark", and a very broad use clause.