# Industrial Lease Abstract Reviewer Research

## Purpose

- Supports `skills/industrial/industrial-lease-abstract-reviewer.md`
- Intended for users abstracting industrial leases for acquisitions, financing, and transaction diligence

## U.S.-Only Assumptions

- Focus is U.S. commercial leasing practice
- The skill is an issue-spotting and abstraction tool, not legal advice
- Industrial leases may be landlord-form, tenant-form, or negotiated redlines
- The research supports common industrial lease points such as NNN pass-throughs, repairs, assignment, estoppel, and SNDA-related diligence

## Source Table

| Source | Publisher | URL | Publish Date | Access Date | Source Type | Notes |
|--------|-----------|-----|--------------|-------------|-------------|-------|
| Commercial Real Estate Terms and Definitions | NAIOP | https://www.naiop.org/education-and-career/industry-terms-and-definitions/ | n.d. | 2026-04-22 | Institutional glossary | Common industrial lease terminology |
| Annual Report | Rexford Industrial Realty / SEC | https://www.sec.gov/Archives/edgar/data/1571283/000157128323000019/rexfordindustrialrealty_ars.pdf | 2023-02 | 2026-04-22 | Primary public filing | Triple net and modified gross lease context |
| Q4 2025 and Full Year 2025 Earnings Release | Prologis / SEC | https://www.sec.gov/Archives/edgar/data/1045609/000119312526017256/pld-ex99_1.htm | 2026-01 | 2026-04-22 | Primary public filing | Turnover costs and lease economics context |
| 2025 Annual Report | STAG Industrial / SEC | https://www.sec.gov/Archives/edgar/data/0001479094/000147909426000009/stag-20251231.htm | 2026-02 | 2026-04-22 | Primary public filing | Expiration scheduling and lease duration context |
| Rent Abatement in Commercial Leases: Free Rent & CAM Impact | CAMAudit | https://www.camaudit.io/resources/lease-language/rent-abatement-clause | 2026-04 | 2026-04-22 | Practitioner explainer | Base-rent vs reimbursement treatment during abatement |
| Commercial Lease Addendum for Expense Reimbursement | HAR Form Library | https://content.har.com/FormManager/pdf/20.pdf | 2025-12 | 2026-04-22 | Quasi-primary form source | Useful issue-spotting for reimbursable items and exclusions |
| Assignments and Subletting in Commercial Lease Transactions | Cozen O'Connor | https://www.cozen.com/admin/files/publications/CommercialLeaseTransactions_022112.pdf?embed=1 | 2012-02-21 | 2026-04-22 | Legal commentary | Assignment, release, consent, and transfer traps |
| Commercial Lease Assignment and Sublet Provisions | Colorado Lawyer | https://cl.cobar.org/features/real-estate-law/ | 2024-01-24 | 2026-04-22 | Legal commentary | Distinguishes assignment from sublease and continuing liability |
| Estoppel Certificates | Maslon | https://www.maslon.com/webfiles/maslonattorneypublications/prel1405_jacobson.pdf | 2014-05 | 2026-04-22 | Legal commentary | Estoppel function and drafting significance |
| 10 Step Commercial Lease Guide | Bernhard Law Firm | https://www.bernhardlawfirm.com/documents/WP-10StepLeaseGuideR.pdf | 2025-10 | 2026-04-22 | Legal/practitioner guide | Repair, operating expense, and obligation allocation issues |

## Key Findings

- Industrial lease abstraction should capture the actual economic and operational burden allocation, not just base rent and term.
- The critical abstract fields are:
  - lease structure
  - reimbursement obligations
  - repair obligations
  - roof and structure allocation
  - HVAC allocation
  - assignment and subletting
  - options and rights
  - estoppel and SNDA requirements
  - casualty and condemnation treatment
- Assignment and subletting clauses need special attention because the original tenant often remains liable absent an express release.
- Abatement language can create a major difference between face-rent economics and actual cash flow, especially if taxes, insurance, and CAM continue during the abatement period.
- In industrial leases, landlord and tenant repair obligations can vary materially even within the same market. The abstract needs to specify who handles roof, structure, slab, loading equipment, and building systems.

## Benchmark and Formula Decisions

- The lease abstract should require discrete fields for:
  - base rent and rent steps
  - free rent or abatement
  - CAM / tax / insurance reimbursement
  - landlord work and tenant improvement obligations
  - repair and replacement allocations
  - assignment / subletting standard
  - expansion, contraction, termination, purchase, or renewal options
  - estoppel response timing
  - SNDA requirement
- Do not reduce reimbursement language to a binary NNN / gross label. Capture exclusions, caps, gross-up rules, and capital improvement language when present.
- Treat estoppel and SNDA clauses as transaction-critical items, not back-office lease details.

## Conflicting Source Resolution

- Legal commentary varies by jurisdiction, but the issue list is consistent across sources. The skill should use these sources to identify what to extract, not to promise a single legal outcome.
- Lease form sources are helpful for reimbursement mechanics, but negotiated industrial leases often deviate from standard forms.
- Public REIT filings help confirm what experienced industrial landlords watch operationally, but they do not replace lease-by-lease review.

## Edge Cases and Red Flags

- Modified gross language that looks simple can hide broad pass-through rights
- "Landlord repairs roof and structure" clauses may still push membrane, dock equipment, slab damage, or HVAC components to the tenant
- Assignment provisions with recapture rights, profit-sharing, or strict affiliate limitations can materially affect exit flexibility
- Expansion or contraction rights can impair usable NOI or future leasing plans if not surfaced clearly

## Open Questions

- Whether future versions should split single-tenant vs multi-tenant abstract templates
- Whether later sector packs should include state-specific industrial lease overlays
- Whether a separate estoppel and SNDA checklist should be extracted into a shared legal workflow
