Average length of lease terms has been falling for years, and the days of the 25-year term as the dominant form of commercial lease are long gone. One of the challenges this presents is keeping transaction costs down. A landlord who lets for three-year terms over a 25-year period, instead of one 25-year lease, faces eight sets of letting costs instead of one. At the same time, landlords have conventionally wanted to avoid conferring security of...
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