Tenant is fundamental to value of lease-therefore property

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You are interested in buying a property that has Starbucks as the major lessee. The Starbucks lease has a current term of 15 years. The current lease is a net lease. This means that the landlord pays all taxes associated with the property and Starbucks only pays the rent.

True or False?

You are interested in buying a property that has Starbucks is the major lessee. The Starbucks lease has a current term of 15 years. The current lease is a double-net-lease. This means that the landlord pays all taxes associated with the property and Starbucks must pay insurance premiums and rent.

True or False?

When considering an investment in a property that has a single tenant that credit rating of the tenant is fundamental to the value of the lease and therefore the property.

True or False?

Reference no: EM13977763

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