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...

Owners and property managers must watch their operating budgets and the dollars spent on the property. Save one dollar in operating costs and (assuming a 10% cap rate) value of the property increases by $10. That is why owners are always looking for new ways to economize. In addition to saving money, we are always looking for a way to invest a little in the property for a good return. A well-planned...

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...

One of the looming questions real estate investors are facing during the Covid-19 pandemic is what the effect will be on the demand for office space. How long will the remote working trend continue after the pandemic ends? What effect will this trend have on the demand for office space? There are many financial and psychological considerations to the question of if lower density requirements and employees...

Around 25% to 35% of the value of commercial properties are single-tenant properties (STPs). This large percentage means that large investors such as pension funds, as well as smaller investment groups must consider this type of investment. There are many uses ranging from office to industrial to retail. They can include office buildings, warehouses, department stores, supermarkets and other retail use....

When representing a seller of commercial real estate, we determine what type of buyer is most likely to be interested in a particular property as soon as possible in the marketing process. We then focus the appeal of the property on those features that are most important to that type of buyer. Normally there are three types of buyers for commercial property: Investors, who seek an income-producing...