EXCLUSIONS CONTROVERSIAL.

National Lease Advisors surveyed real estate professionals regarding controversial lease clauses. The participants in the survey included tenants, landlords, developers, property managers, facility managers, real estate brokers, attorneys, tenant representatives, corporate real estate executives,

The answer: exclusions from operating expenses and common area maintenance billed to tenants. The majority areas of controversy were: the standard exclusions in leases; other significant issues that are key to negotiating the terms of a lease (business, legal, financial); and if negotiated exclusions are excluded from operating expenses billed to tenants.

The results of the survey varied for tenants and for landlord/property management companies for each of the other lease clauses. Landlords and management companies ranked the cap clause and space measurement as the next highest controversial lease clauses. Tenants, however, answered that the next most controversial lease clauses related to assignment and to base year.