What is a lease abstract?

A lease abstract is a summary of the key financial, business and legal information that exists in a commercial real estate lease. It should bring to the reader’s attention any unusual lease provisions, financial obligations or other issues of import. The key to a valuable lease abstract is to keep things short and simple.

What does a lease abstract contain?

Each abstract will vary in length and detail depending on the particular needs of the client. An abstract is like an outline of the lease, providing a summary of selected lease information and directing the reader where to obtain further information. (See Complete Abstract List) Specifically, a lease abstract provides a lease summary together with referenced section headings so that all critical lease information is readily accessible.

Why is a lease abstract needed?

Lease abstracting becomes particularly important prior to an acquisition, merger or assignment and allows for effective decision-making. LeaseProbe abstracts provide bottom line information extracted by experts after careful consideration and integration of all relevant documents. Abstracts also permit a lease administrator, leasing agent or property manager to easily review all relevant lease information without taking the time to search and read through each page of the lease. By aggregating the lease information, abstracts allow users to better manage a portfolio of leases. Lease abstracting serves to organize your lease data, which is a crucial benefit when leases contain many amendments, when landlords or tenants hold sizeable lease assets, or when dealing with a variety of lease formats.

What lease information should be abstracted?

The lease information that should be abstracted depends on the individual needs of the client and is contingent on several factors, including the reasons for abstracting and the length and complexity of the lease documents. Lease abstracts can range from two to ten pages per lease, but typically are two to five pages. At a minimum, an abstract should contain the most important "dates and dollars" provisions of the lease, such as Commencement, Expiration, Renewal Term and other key Option Dates along with Rents, Operating Expenses, and Square Footages.

Still confused about what a lease abstract is? Contact LeaseProbe today for more information on how lease abstracts can be of use to you.