Leasing Criteria Clause Samples
The Leasing Criteria clause defines the specific standards and requirements that a prospective tenant or property must meet for a lease agreement to be approved. This may include financial qualifications such as minimum income levels, credit score thresholds, or background checks, as well as property-related conditions like compliance with zoning laws or maintenance standards. By clearly outlining these prerequisites, the clause ensures that only suitable tenants or properties are considered, thereby reducing the risk of disputes and helping both parties understand the expectations for entering into a lease.
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Leasing Criteria. Each Lease Agreement exceeds or meets the Leasing Criteria (including all supplements or amendments thereto) previously provided to and approved by Administrative Agent.
Leasing Criteria. Seller covenants and agrees that all New Leases shall satisfy each of the following leasing criteria (collectively, the "Leasing Criteria") unless otherwise approved (or deemed to be approved) by Buyer in accordance with Section 3.3 hereof:
(i) the New Leases shall be in substantially the same form and substance as the Existing Leases;
(ii) the New Leases shall be to tenants approved (or deemed approved) by Buyer in accordance with the terms of Section 3.3 hereof;
(iii) the New Leases shall require tenants to pay for their full pro rata share of common area maintenance expenses and taxes in accordance with industry standards applicable to Comparable Properties, subject to reasonable exceptions found in comparable transactions or in one or more of the Existing Leases;
(iv) the New Leases shall include market-based percentage rental clauses, but only to the extent that such clauses are used in leases for comparable tenants at Comparable Properties or in one or more of the Existing Leases;
(v) any concessions or "free" or "reduced" rent offered to prospective tenants shall be reasonable under the circumstances and within industry standards for items offered to similar tenants for Comparable Properties (and in no event shall such concessions be "back-end loaded"); and
(vi) the base rent and rent escalations under the New Leases shall be reasonable and within industry standards for Comparable Properties, provided that each rent escalation under each New Lease shall be no less than a ten percent (10%) escalation and shall occur no less frequently than every fifth (5th) lease year.