RA-03 — Lease / Tenancy

A lease over a real-estate asset (RA-01) — the contract between the investor as landlord and a tenant that produces the asset’s income. One record per lease; the set of leases over an asset is its tenancy schedule.

Purpose

For a real-estate asset, the leases are the income. The value of a let building is the value of its tenancy schedule — the contracted rent, its duration, its review pattern, the credit of the tenants. An appraisal (RA-05) of a commercial property reads the leases directly; the operating record’s (RA-02) gross income is the sum of the rent the leases produce. Modelling the lease explicitly is what lets the income be traced to its contractual source rather than asserted as a number.

The lease is the real-estate analogue of the private-markets pack’s Fund Terms (PM-10): a contract whose economic content — rent, escalation, reviews, breaks — drives the asset’s cash flow and must be held as queryable data, not buried in a document.

Attribute schema

ColumnTypeDefinition
lease_idvarcharPrimary key.
real_asset_idvarchar (FK → RA-01)The asset the lease is over.
tenant_entity_idvarchar (FK → E-01)The tenant, as a Legal Entity in the counterparty / tenant role.
demised_areadecimalThe area let under the lease, in the asset’s size_unit.
lease_startdateThe lease commencement date.
lease_expirydateThe contractual expiry date.
break_datedateThe earliest tenant or landlord break date, where the lease has a break option; null otherwise.
passing_rentdecimalThe current contractual rent payable under the lease.
currencycharThe currency the rent is expressed in.
rent_review_basisvarcharHow the rent changes at review — open_market / indexed / fixed_uplift / turnover / none.
next_review_datedateThe date of the next rent review.
lease_typevarcharThe repairing-and-insuring basis — FRI (full repairing and insuring) / gross / net / ground_lease.
tenant_covenantvarcharAn indicator of the tenant’s credit strength — the covenant the income rests on.
lease_statusvarcharactive / holding_over / expired / surrendered.
sourcevarcharThe source document the lease was abstracted from.

Notes

  • The tenancy schedule of an asset yields the weighted-average unexpired lease term (WALT) — the duration of contracted income, a primary value driver computed by weighting lease_expiry (or break_date) by passing_rent across the asset’s leases. WALT is derived, not stored: it is a property of the lease set.
  • rent_review_basis and next_review_date carry the reversionary potential — the gap between passing rent and open-market rent that an appraisal capitalises into a reversionary value.
  • A lease is the income side of a real-estate asset; an infrastructure asset’s income is contractual in a different form — a concession or an offtake agreement — carried on RA-04 and RA-02 rather than here. RA-03 is real-estate-specific.

Out of scope

  • The asset the lease is over — that is RA-01 Direct Real Asset, referenced through real_asset_id.
  • The realised period income a tenancy schedule produces — that is RA-02 Asset Operating Record; RA-03 is the contractual source, RA-02 the observed result.
  • An infrastructure asset’s contracted income — a concession or offtake agreement — that is RA-04 Development Project and RA-02; RA-03 is real-estate-specific.
  • The settled rent-review history as an event sub-entity — named as an open extension; the entity carries passing_rent and the next-review attributes only.

Owned and consumed by

  • Owned by: SD-04.10 Direct Real-Asset Management — the lease-as-data entity is the economic content of the lease (rent, reviews, breaks, tenancy status), and SD-04.10 is the function that sets and maintains that content: letting, lease renewals, rent reviews and tenant management are write operations on this record. The authoritative source for a data entity is the function that authors its substance, and the lease’s substance is exactly these economic terms. SD-14.9 holds the executed document — legal custody, a thinner relation, recorded as a consume below — but it does not author the rent, the review pattern or the break terms. The shape echoes the private-markets pack’s Fund Terms (PM-10): the economic terms held as queryable data, the executed document held by the legal function as a document source rather than as the term authority.
  • Populated via: SD-13.11 Document & Content Management (the lease is abstracted from the executed document).
  • Consumed by: SD-14.9 Legal & Contract Management (legal custody of the executed lease as a document, and the contractual-obligation register over it — the legal-document relation, not authorship of the economic terms), SD-08.3 Private-Asset Valuation (the tenancy schedule is the income-approach input for real estate), SD-07.2 Credit & Counterparty Risk Management (tenant covenant), SD-09.7 Private-Markets Cash-Flow Forecasting.

Open extensions

  • The rent-review event sub-entity — the history of settled reviews, so passing rent is traceable through its review chain.
  • Lease incentives — rent-free periods, capital contributions, fit-out — modelled as data alongside the headline rent.
  • Service-charge and recoverable-expense modelling, linking the lease to the operating record’s expense lines.

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