Navigating the world of commercial real estate can be a daunting task, with intricate legal documents and complex financial considerations often overwhelming even the most experienced professionals. Among these often lengthy documents, commercial real estate leases stand out as particularly formidable challenges. Lengthy, jargon-filled, and rife with intricate legal language, these documents can make it difficult to extract the [...]
Commercial lease administration is a specialized area within property management that focuses on managing and overseeing lease agreements between landlords and tenants in commercial properties. These properties can include office buildings, retail spaces, warehouses, and other types of commercial real estate. The primary goal of lease administration is to ensure that both parties - the landlord and the tenant [...]
Introduction When venturing into a commercial lease, one of the key components for both tenants and landlords is understanding the role and importance of a guarantor. A guarantor in a commercial lease is essentially a safety net for landlords, ensuring that financial obligations will be met even if the tenant fails to pay rent or meet other lease terms. [...]
Subleasing commercial real estate space can offer benefits to the sublessor, such as offsetting costs and avoiding breaking a lease, but it also comes with various risks: Default Risk: If the sublessee fails to pay rent, the sublessor remains liable for the full rent payment to the landlord. This could result in financial strain, especially if the sublessor relies [...]
In the world of commercial real estate, navigating through various lease types and their terms can be a complex task. One aspect that often puzzles tenants and landlords alike is the concept of 'percentage rent'. This blog post aims to demystify percentage rent and explain how it's calculated. What is Percentage Rent? Percentage rent is a common term in [...]
Subleasing commercial space can offer various benefits, such as flexibility and cost savings, but it also comes with certain risks from the sublessee's (the one renting from the original tenant) perspective: Dependence on the Primary Lease: The sublessee's rights are dependent on the original lease between the landlord and the sublessor (original tenant). If the sublessor violates their lease [...]
When you are looking to lease commercial space, it is important to understand the difference between rentable and usable square footage. Rentable square footage is the total amount of space that you are paying rent on, while usable square footage is the actual amount of space that you will be able to use on an exclusive basis. What is [...]
There are three main types of commercial lease agreements: gross, modified gross, and net. Each one has its own set of benefits and drawbacks, so it’s important to understand the differences before signing a lease agreement. A gross lease eliminates exposure of cost increases to the tenant. A modified gross lease exposes the tenant to some risk of cost [...]
Disasters from fires, floods, tornados, hurricanes, earthquakes impacting the users of commercial real estate can result in a devastating impact to both Landlords and Tenants even if they are all well insured. Landlords and Tenants obtain insurance policies, but insurance proceeds will only reduce a portion of the financial risk when faced with a significant casualty event. Did you [...]
Many roof contractors will give you a free or low-cost inspection report and provide recommendations for repairs and replacements. With 30 years of experience in managing large portfolios of commercial real estate, I eventually became convinced having a consultant led approach is typically best. Sure – there are many circumstances where you are lucky enough to have a local [...]
