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Administering CAM, Tax and Insurance – How viewing an aerial without preconceived notions can improve your reimbursement ratios

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Before we start any type of due diligence or property lease audit, before we get into any documents or financials, we spend time reviewing various resources. My personal “go-to” are aerials, lease/site plans, the GIS and tax data and Google street views for a walk around. Now that I have put that on paper, I… Continue reading Administering CAM, Tax and Insurance – How viewing an aerial without preconceived notions can improve your reimbursement ratios

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One parcel – multiple assessments? Understanding component assessments can mean $510k in value on this example property.

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In commercial leases, especially retail leases, it is common to see that tenants can, or should, be billed based upon the square footage of the property excluding portions of the property that are separately assessed. Sounds pretty simple and straightforward, doesn’t it? But in that one sentence, there can be dozens of variations on the… Continue reading One parcel – multiple assessments? Understanding component assessments can mean $510k in value on this example property.

commercial real estate · Malls · Retail leases · Shopping Center

Deductions and exclusions from reported gross sales

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ICSC published a brief summary of a handful of timely legal issues discussed during its 50th U.S. Law Conference. Among the topics were a few percentage rent concerns. They are all relevant in the current environment and worthy of addressing the “whys” of the topics and expanding on them a bit. Before hitting those issues,… Continue reading Deductions and exclusions from reported gross sales

commercial real estate · Malls · Office Properties · Retail leases · Shopping Center

Property Management Systems Can’t Handle This Clause – And if you have them, they will be critical for 2020

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We have been seeing a clause for years that is both brilliant and fair to both landlords and tenants – a CAM cap carryforward. The concept is fairly simple. You calculate and apply a cap as required by the lease. However, if there is any excess CAM that the landlord could not bill and collect… Continue reading Property Management Systems Can’t Handle This Clause – And if you have them, they will be critical for 2020

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Remember that premises services (utilities/trash) are not common area expenses!

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It is not uncommon for a lease to require a tenant to pay quite a few different monthly recurring charges (minimum rent, taxes escrows, CAM escrows or fixed CAM, insurance escrows, perhaps a marketing charge, or storage, or signage to name a few) as well as certain charges to be paid or reconciled annually (those… Continue reading Remember that premises services (utilities/trash) are not common area expenses!

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The throwaway lease clause that cost more than $10m in value

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You may be thinking this is clickbait. It’s not. This past week, we had a truly “throwaway” lease clause that had cost the owner more than $10m in value on the property. Not one clause in every lease at the property, but one clause in one lease. The clause – “The tenant may offset percentage… Continue reading The throwaway lease clause that cost more than $10m in value

commercial real estate · Malls · Retail leases · Shopping Center

Just how bad can that cotenancy provision be?

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Coronavirus is laying bare deficiencies that exist in lease language. We are currently working on a still very successful regional mall. Its one vacant anchor is slated for redevelopment. The owner had never had a large portfolio, so did not have the benefit of seeing the evolution of lease language and, as a result, has… Continue reading Just how bad can that cotenancy provision be?