Two or three weeks ago, we were working on a portfolio acquisition. There was an outparcel ground lease tenant that had the right to purchase its premises if the landlord ever sold the property. Our client asked the seller for the tenant’s release from its option to purchase the parcel. The seller replied that it… Continue reading “That’s standard” is not a good enough answer.
A few months back, we addressed what happens when you leave phantom square footage in the denominator. But, this week, we actually had a lease where the tenant requested (AND THE LANDLORD AGREED!) to add square footage to the denominator for purposes of allocating CAM and taxes. First off, this was not a local developer… Continue reading You really expect the landlord to absorb CAM and taxes on non-existent space?
For over 30 years, I have had the opportunity to work within some of the most well respected companies in commercial real estate. Each has its own way of doing things – their own sets of processes and procedures. I have heard comments ranging from “No one does it as well as we do,” to… Continue reading Learning and improving throughout your career
“Ambitious men do not ask questions for fear their infallibility will be challenged” – Washington (or John) Roebling My apologies to David McCullough who wrote The Great Bridge about the building of the Brooklyn Bridge for not even knowing whether it was Washington or John Roebling who gave us that awesome quote above. But, whether… Continue reading Why you should be at least slightly conversational in accounting, finance and lease administration
There really is a secret to a good abstract and, I apologize in advance because it will sound a little patronizing at first, it is to read the lease and fill out the abstract. Seriously? It does sound patronizing, doesn’t it? But, it is very obvious reviewing an abstract that has been completed using the… Continue reading The secret to a really good abstract
When we perform acquisition due diligence on behalf of a buyer, we find two types of issues. The first is where the seller has presented information that overstates the income or conditions. The seller may have presented that a tenant’s minimum rent is $10,000 per month, but the lease states $9,000. Or, perhaps the lease… Continue reading Due diligence before the due diligence?
A comma can change the meaning of a sentence fairly drastically. And, for lease administration purposes, it can have an unexpected impact on cash flow. The clause below was from a center we worked on last week: “Tenant’s Proportionate Share” shall be equal to the number of rentable square feet included in the Premises divided… Continue reading Let’s eat, Grandma! Let’s eat Grandma!