Deck 3: Site Selection

Question 1

What is a triple-net lease?

Answer 1

A triple-net lease is one that requires the tenant to pay
a.rent.
b.real estate taxes.
c.leasehold improvements/repairs.

Question 2

Explain a zoning law.

Answer 2

A zoning law is a law established by the local governing body that per- mits or restricts certain types of businesses from operating in specific locations.Some examples of zones are residential, industrial, commer- cial, retail, or any combination of these.

Question 3

Define "right of first refusal."

Answer 3

Right of first refusal is a negotiated contract term that protects a les- see from having his rented property sold to a third party without the lessee having the first option to purchase the property.A sale to a third party could put a lessee out of business.The lessee, under the terms of right of first refusal, has the first right to purchase the property.If the lessee refuses to make the purchase, the property can be placed on the open market for sale.

Question 4

What is meant by the term "turnkey" operation?

Question 5

List five factors that should be considered when evaluating a site.

Question 6

What are some of the resources to find future development plans for a given geographic area?

Question 7

Define demographic data.