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so that any future buyer of a property is
assured of a legal right to collect rent and
otherwise enforce existing leases.
Mortgage lenders insist on such language
in leases so that, in the event of a
foreclosure, the tenant is obligated to pay
rent to the foreclosing lender. The
attornment language is generally
referenced in notices informing tenants of a
change in ownership.
Available The term applied to a unit ,
suite or property which is available for
lease or sublease. Some owners also
consider as available those units which are
currently leased but where the existing
tenant has either declined to extend or is
under notice of termination.
Average Annual Yield Due to the effect
of compounding, Average Annual Yield is
not the arithmetic average of the individual
annual yields over a period but is instead
be computed by the following formula:
where X is the average total return over a
period of n years and Y
1
through Y
n
are
the annual returns for each year in that
period.
Average Downtime Expressed in
months, the typical amount of time
expected between the expiration of a lease
and the commencement of a replacement
lease under current market conditions.
Average Free Rent Expressed in months,
the typical rent abatement concession
expected to be granted to a tenant as part
of a lease incentive under current market
conditions.
Average Occupancy The average of the
Current Occupancy of each of the
preceding 12 months.
