Leasing 101

/Leasing 101

Why Landlords Win

2017-10-14T13:49:53+00:00

The Landlord Knows All the Cards in the Deck The landlord broker already knows which concessions he is willing to make and will never reveal this to the tenant.  Because of this, most tenants will focus on the obvious,  leaving the entire lease agreement basically untouched.  Even with a few concessions given in this scenario, this is a huge win for the landlord because he retains all the "gotcha" clauses, cost-increase triggers, and oppressive language in the lease document. The Lease Document is a Landlord Document A lease is usually a private document created by attorneys to minimize liability for the landlord [...]

Why Landlords Win2017-10-14T13:49:53+00:00

Misfit Office Tenants

2017-10-14T13:49:53+00:00

My definition of a “misfit” tenant is an office or industrial user that is allowed into a space that does not fit the use of a traditional office or industrial tenant.  In softer markets landlords may attempt to maintain occupancy by going a little further than giving attractive concessions.  When a landlord crosses the line and closes a deal with a misfit tenant, the entire building  (including the tenants) can suffer. Characteristics of misfit tenants for office space can vary based on the building, but the most common misfit tenants are the following: Salons and Barbershops – Salons use a lot [...]

Misfit Office Tenants2017-10-14T13:49:53+00:00

Rent Increase Triggers Hidden in Plain Sight

2017-10-14T13:49:53+00:00

We've discussed  lease negotiations for office and industrial space multiple post, but have not gone into too much detail yet on why negotiations are so important! One of the benefits of negotiations is identifying and removing cost increase triggers in the lease that can be debilitating to a small or midsized business. If the landlord decides to repair or replace any number of items that could be considered a capital improvement the tenants will pay additional rent or CAM charges in a “standard lease”.  The impact of these triggers can further impacted by the type of financing the landlord decides to [...]

Rent Increase Triggers Hidden in Plain Sight2017-10-14T13:49:53+00:00

Like a BAD Neighbor…

2017-10-14T13:49:53+00:00

Whether you're a tenant in an office, retail, or industrial space you run the risk of having an undesirable neighbor. Bad tenants are loud, rude, inconsiderate, sometimes dangerous, and always bad for business.  Knowing the landlord and property management's history is a crucial factor in determining how peaceful and productive your office space will be in the months and years ahead.  Responsive management will enforce lease restrictions on noise, foot traffic, and safety before it becomes debilitating to your business. Some tenants believe strongly in getting testimonials from other tenants before signing a lease.  This is always a good idea, but [...]

Like a BAD Neighbor…2017-10-14T13:49:53+00:00

There is No Such Thing as a Fair Lease

2013-06-18T20:13:26+00:00

All standard boilerplate leases for office space, industrial space, and retail space are heavily in favor of the landlord.  By nature this document is designed to limit exposure and liability from the Landlord as much as possible. While most tenants pay attention to a few areas (i.e. term, rental rate), the danger lies in all of that “standard” language that is too often overlooked!  A “standard” lease agreement that is 5 pages can be just as aggressive as a 100 page lease document. Often more so! Don’t get me wrong, a lease is not something to be feared, but understood. This [...]

There is No Such Thing as a Fair Lease2013-06-18T20:13:26+00:00

Understanding NNN Leases Part 2

2017-10-14T13:49:53+00:00

How do we control cost? If your looking at this post, you have probably experienced the unexpected rent increases as a business owner.  Tenants do not want the volatility or extra burden that a NNN lease brings to the table.  Here are a few ways to control NNN cost.  Prioritizing NNN in your negotiation strategy is the best opportunity.  Every Landlord has different concessions that could be made to help control cost.  We have negotiatied NNN caps in some cases, where others we implemented stronger controls that govern how these cost would be allowed to impact our clients.  Have options, while [...]

Understanding NNN Leases Part 22017-10-14T13:49:53+00:00

Understanding NNN Leases Part 1

2017-10-14T13:49:53+00:00

What is a NNN Lease? A triple net lease or Net Net Net Lease is a type of lease where the tenant pays their share of the common area maintenance, taxes, and insurance.  A NNN lease passes on the instability or burden of market volatility from the hands of the landlord (as in a full gross lease) to the tenant by making the tenant absorb any increases in Common Area Maintenance, taxes, or insurance.  It takes the burden off the landlord and places that burden on the tenant. How do I calculate my rent with a NNN lease? The “base rent” [...]

Understanding NNN Leases Part 12017-10-14T13:49:53+00:00