Last Updated May 14, 2019

Law and Practice

Contributed By McGuireWoods LLP

Authors



McGuireWoods LLP has a diverse real estate practice of more than 80 lawyers and land use planners in its offices in Tysons, Charlottesville, Richmond and Norfolk, with skills in a wide range of traditional and non-traditional real estate transactions. The firm’s transactional representation spans all aspects of real estate acquisition, development, financing and disposition, including acquisition, sale, leasing and financing transactions, as well as project finance, construction, public-private partnerships, negotiation of local and state incentives and privatization transactions. The team respresents clients around the world on various sides of such transactions, including Fortune 500 companies. The transactional practice is complemented by the firm’s land use expertise, as it frequently handles zoning and land use matters for development projects.

Parties are generally free to negotiate variations in base rent as they see fit. However, under most commercial leases the base rent will increase at regular intervals over the course of the term, typically on an annual basis (ie, on each anniversary of the rent commencement date). However, these adjustments sometimes occur less frequently (eg, every three to five years, or at the time an extension option is exercised, etc).

In contrast, operating expenses and other “additional rents” are typically based on the landlord’s actual expenses incurred in a given year, so they typically do not vary on a regular schedule. Rather, tenants typically pay a fixed amount each month, based on the landlord’s estimated costs, and the parties make an annual adjustment once all final costs are known. However, in each new lease year the landlord may reserve the right to modify or increase its estimates, and thereby increase or modify the tenant’s monthly estimated contribution.

McGuireWoods LLP

1750 Tysons Boulevard
Suite 1800
Tysons, VA 22102-4215

+1 703 712 5000

+1 703 712 5050

info@mcguirewoods.com www.mcguirewoods.com
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Authors



McGuireWoods LLP has a diverse real estate practice of more than 80 lawyers and land use planners in its offices in Tysons, Charlottesville, Richmond and Norfolk, with skills in a wide range of traditional and non-traditional real estate transactions. The firm’s transactional representation spans all aspects of real estate acquisition, development, financing and disposition, including acquisition, sale, leasing and financing transactions, as well as project finance, construction, public-private partnerships, negotiation of local and state incentives and privatization transactions. The team respresents clients around the world on various sides of such transactions, including Fortune 500 companies. The transactional practice is complemented by the firm’s land use expertise, as it frequently handles zoning and land use matters for development projects.

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