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Commonly Asked Questions about Nonresidential Property Leases

(B) Nonresidential real property The term nonresidential real property means section 1250 property which is not (i) residential rental property, or (ii) property with a class life of less than 27.5 years.
Explanation: A gross lease is a type of lease agreement where the landlord pays all the property expenses, including the property taxes, insurance, maintenance, and repairs. This type of lease is most often used with residential property (Option A).
For example, if the landlord/lessor of a property provides common area maintenance (CAM) of leased office space, such as cleaning and landscape services, the CAM involves delivery of a separate service and is not considered a cost of securing the office building. As such, it is considered a nonlease component.
Non-Real Property Assets means all Purchased Assets other than the Owned Real Property and the Leased Real Property.
Operating leases and Finance leases are the two most common types of leases (also called capital leases). In order to distinguish between the two, it is important to understand how the costs and benefits associated with the possession of the asset have been fully transferred from the lessor to the lessee.
The most common periodic tenancy is the month-to-month tenancy. rents causes the tenancy to be treated like a periodic tenancy (Civil Code Section 1946).
Non-Property Lease means any lease other than a Real Property Lease, including, without limitation, any equipment lease.
Non-lease components are elements of a contract that are not related to the use of a leased asset; they are commonly found in real estate leases. Examples of non-lease components include services contracts for the leased asset and common area maintenance (CAM).