This article describes how to renew a commercial lease in advance. You will need to:
Change the lease dates.
Enter new scheduled charges.
Update the recovery setup (if applicable).
Update the retail setup (if applicable).
Change the Lease From date back to the original date.
If you renew on the first day of the new period, the process is simpler. For more information, click here.
Changing the Lease Dates
In the example shown below, the Current Lease To date is 04/15/2023.
Click the Edit icon (the pencil) and enter the new lease dates (the renewal dates).
The original Lease From date was 04/16/2020; the new one is 04/16/2023. The Term is the same -- 36 months -- and the new Lease To date is 4/15/2026.
Click Save. Breeze displays a message:
Click Yes. Breeze saves the new dates and copies the current scheduled charges, recovery setup, and retail setup.
On each tab, you can see the duplicate charges/setup with the new lease dates.
You can edit the new charges and setup as needed. Open each tab -- Current Scheduled Charges, Recovery Setup, and Retail Setup -- locate the new charge/setup, open it for editing, and make changes as needed.
Changing the Lease From Date Back to the Original Date
Because you are renewing the lease in advance, there is a gap between the current date and the new Lease From date. For example, the current lease expires on 4/15/2023, and you create the renewal in January 2023. Between January and April, the Monthly Posting function will not create any charges.
To resolve this issue, change the Current Lease From date back to the original date.
Keep the Current Lease To date the same. To do this, the term will double in most cases.
Now, from the system's point of view, there is a long lease (Term = 72) with two rent steps (and setup steps). Monthly Posting will continue as expected.
When the Renewal Date Arrives
When the renewal date is no longer in the future, you can edit the Current Lease From date and the Term again, so that the Rent Roll will have accurate information.
Change the Current Lease From date to the start of the renewal (in this case, 4/16/2023).
Enter the correct Term (in this case, 36). The Current Lease To date won't change.
Midyear Lease From Date and Recover Reconciliation
Recovery calculations use the Lease From/Lease To dates, and this can affect tenants with midyear lease renewals.
For example, a tenant renews on 4/01/2022. The Lease From date is 4/01/2022. When you calculate recoveries for 2022, Breeze will consider the period from 4/01/2022 to 12/31/2022, and not look at data during the first three months.
To resolve this issue, you can leave the original Lease From date in place (the date before the renewal). This means not resetting the Lease From date when the renewal date arrives (the last step in the procedure shown above).