SUBLEASE RISKS – SUBLESSOR’S PERSPECTIVE

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 [...]

SUBLEASE TIPS – SUBLESSEE’S PERSPECTIVE

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 [...]

RENTABLE VS. USABLE SQUARE FOOTAGE IN A COMMERCIAL REAL ESTATE 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 [...]

TYPES OF COMMERCIAL LEASE AGREEMENTS

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 [...]

WHEN DISASTER STRIKES

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 [...]

MANAGING ROOF PORTFOLIOS

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 [...]

Go to Top