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In a perfect world, every developer of a project would know exactly how it would be used, both initially and in the future, and know all parties that would be involved with the project, including future developers of adjacent parcels and all tenants. In reality, parties and uses change over time, and multi-phase and mixed-use projects are becoming increasingly more common. It is not always easy to anticipate the necessity of an REA at the beginning of a development project, but a developer should at least leave open all options when drafting leases. This article examines the issues that arise when there is no REA at the time a project is being leased, but there is a realistic possibility that an REA will be required as and when portions of the property are conveyed as separate parcels.
What Is an REA?
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