What is a dark commercial property?
February 4, 2020. Commercial tenants typically want the right to “go dark” in the event that their businesses are not generating enough revenue. “Going dark”basically means that a business will stop operating while continuing to pay rent.
What does dark mean real estate?
Dark Property means any Property where a Sole Tenant (i) vacates, surrenders or ceases to conduct its normal business operations or (ii) notifies Borrower, Manager, any Affiliate of Borrower or Manager or any of their respective agents or representatives that it intends to vacate, surrender or cease to conduct its …
What does it mean when a tenant goes dark?
A provision highly sought after by tenants, the typical “go dark” provision allows a tenant to completely cease operations at the premises without being in default of its lease; provided that the tenant is not then currently in default, continues to pay rent to the landlord and meets its other obligations under the …
What is go dark value?
There is not an authoritative definition of “go dark” value. Simply put, it is the market value of a property assuming lease termination of the primary tenant. … The estimation of such a value requires the forecast of time and expense necessary to re-lease the property, including reconfiguration costs.
What does go dark mean?
to stop all activities or communication, especially temporarily but for a fairly long period: (of a spy or secret agent) to stop communicating for a period of time with the people you are secretly working for: … She was undercover and thought the gang were onto her, so she went dark.
What is a co tenancy clause in a commercial lease?
In a retail leasing context, a clause that is usually heavily negotiated and provides for either, or each, of the following: A certain percentage of the gross leasable (or otherwise specified) area of the shopping center remain open and operational.
What is a go dark Covenant?
• Go-Dark Provisions. Many leases contain a “go-dark” provision that permits a tenant to. discontinue its business operations for such time as the tenant continues to pay rent under the. lease, but different parties to a real estate transaction will have different concerns to address.
What does active with kick out clause mean in real estate?
A kick-out clause allows home sellers to continue showing and accepting offers even after accepting a contingent offer. … In general, if the seller gets a better offer, the clause allows the seller to “kick-out” the contingency buyer and proceed with the second offer.
What is a continuous operation clause?
A continuous operations clause in a lease is a requirement that obligates the tenant to continuously operate its business throughout the term of the lease. … The basic concept is that if a store closes, the shopping center loses the customers attracted by the store and other tenants lose business.
What does highest and best use mean in real estate?
Highest and Best Use, Defined
The reasonably probable and legal use of vacant land or an improved property that is physically possible, appropriately supported, and financially feasible and that results in the highest value.
What is the meaning of appraised value?
An appraised value is an evaluation of a property’s value based on a given point in time. The evaluation is performed by a professional appraiser during the mortgage origination process. … Appraised value may not correspond to an asset’s or property’s market value.
Is value in use market value?
Value-in-use is the net present value (NPV) of a cash flow or other benefits that an asset generates for a specific owner under a specific use. In the U.S., it is generally estimated at a use which is less than highest-and-best use, and therefore it is generally lower than market value.