Even though snow has returned, now is the time to look forward to spring and summer as an ideal time to list your property to potential tenants or buyers. Listing commercial real estateduring the spring season can have several advantages for property owners and sellers. Hereare some reasons why spring is considered a favorable time for listing commercial real estate: Better Weather: Spring...
Commercial Property Leases
Right-sizing commercial real estate space is essential for tenants to optimize their operational efficiencyand cost-effectiveness. Here are some steps and considerations to help determine the right-sized spacefor your needs: 1. Assess Current and Future Needs: Begin by evaluating your current and future business requirements, taking into account factors likethe size of your team, expected growth,...
A real estate option agreement is a legal agreement between a seller and a buyer or investor that allows the buyer the right to purchase a property. It usually defines a specific timeframe for the buyer to make their decision to purchase the property or not. If the option is exercised, a closing is held and the property is purchased at the price previously agreed upon. There is no legal...
Absorption, or absorption rate, is a measurement used in Commercial Real Estate (CRE) to indicate the difference between the amount of space vacated by tenants over a period of time and the commercial space tenants have moved into within a geographic area and time frame. To put it simply, absorption is the rate at which commercial space is “absorbed” (sold or leased) over a specific period of time in...
Leases exist to form a legal agreement between a landlord and a tenant regarding who will pay various expenses and the rules related to renting that property. Because commercial properties are used differently than residences, commercial leases tend to have more components that are specific to each tenant. While there is no standard format for a commercial lease, most cover basic elements in order to...
Lease Negotiations With A Negotiation Team In the past, corporate managers and business owners frequently were able to make major real estate decisions on behalf of the business on their own. Now, a negotiating team will often be used in negotiating leases. This team may consist of legal counsel, finance department representatives, outside specialists such as real estate brokers or tenant...
Protecting Your Investments From Consequential Losses There is a need for both landlords and commercial tenants to have adequate insurance coverage on their investments. For ordinary daily problems, a landlord must have the maximum coverage for the building and tenant leases. A tenant must insure their business with coverage that will protect their assets. What if a landlord sustains damage to their...
The pandemic has triggered plenty of speculation about the future of office space, including the possibility that a long-term shift to remote work for some employees, for at least part of the time, could shrink the need for office space increasing vacancies and pulling down rents. Even as increasingly optimistic news about vaccines improves the possibility that many office workers could resume their...
The Professional Approach to Lease Renewals No matter what current vacancy factors are in any area, tenants feel they can and should negotiate with the landlord whether they occupy an apartment building, office building or commercial center. With vacancies high in many rental markets, the tenant will certainly be aware of all the possible terms for a lease renewal. If the owner or manager of the...
A lease is an important part of many real estate investments. It should outline all the obligations of the tenant and of the landlord. This sounds simple, but many questions can arise. If property taxes increase does the tenant pay all of the increase or only part of it? If the property must be updated who pays for the improvement? Can the tenant be moved out during the renovation? If the costs of...