Inside R&E Podcast — The Lease Is Not Paperwork: How Commercial Leases Drive Building Value

In this episode of Inside R&E, William Byers Jr., Member of R&E’s Transactions Department, joins Dave Lorenzo, Founder of Exit Success Lab, for a conversation on how landlords, buyers, and investors should view a lease as part of the building’s financial architecture, and not just a legal form .

During the conversation, Bill and Dave discuss how a lease is pivotal to the overall economics of a building and defines its financial performance. Bill explains how the structure of a lease affects the value of the building and highlight provisions that may appear harmless on paper but could impact the building’s value or risk profile, including hidden terms to watch for. Bill and Dave also examine specific provisions that could make one building appear more stable than another to a buyer or lender, as well as what buyers should look for in a lease during due diligence. In addition, they discuss landlord rights and limitations when a tenant files for bankruptcy, along with subleasing scenarios.

William Byers Jr. has worked on a myriad of both large and small transactions ranging from sales and purchases of office, apartment and mixed-use buildings to landlord and tenant representation in office, retail, restaurant, garage and ground leases, as well as grantor and grantee representation for complex multi-party easement agreements. In addition to having an MBA, Byers previously worked at a corporate firm, which serves him well in drafting complex corporate documents such as operating, partnership and shareholder agreements, joint venture agreements, stock purchase agreements, and employment agreements for commercial real estate brokers.

For any questions related to this episode, contact William Byers Jr. at [email protected] or (212) 551-8456.

Stream the full episode, now available on Apple Podcasts, Spotify and YouTube.