Uncategorized · Retail leases · Shopping Center · Malls

Distorted sales and sales audits

Over the past 2 months, there have been a number of stories about tenants “distorting” sales including this one in Shopping Centers Today – https://www.icsc.org/news-and-views/icsc-exchange/tenants-should-include-more-internet-returns-in-reported-sales-simon-says It is almost presented as a “breaking news” type item, but this issue, including internet returns and its technological predecessor, catalog returns, has been an issue as long as tenants… Continue reading Distorted sales and sales audits

commercial real estate · Malls · Retail leases · Shopping Center · Uncategorized

The “backdoored” exclusive

Exclusives, kickouts and cotenancies are typically the big three non-financial covenants that have to be confirmed on an acquisition because, along with the cash flow of the property, they have such an impact on value. More often than not, these provisions are fairly obvious in a lease, But, sometimes they are buried. This past week,… Continue reading The “backdoored” exclusive

commercial real estate · Uncategorized

The physical embodiment of the last real estate recession is now gone … and it is kind of sad.

(A little non-lease administration but still real estate related blog for this week) Having been in retail real estate since 1987, I have seen my shares of ups and downs. However, in the early through mid 2000s, transaction volumes were through the roof, and I had forgotten the rule about what goes up also goes… Continue reading The physical embodiment of the last real estate recession is now gone … and it is kind of sad.

Malls · Retail leases · Shopping Center · Uncategorized

Are your tenants still contributing to marketing?

I got in to the industry in 1987. At that time, there were still plenty of 10-30 year old leases still in effect. So many of those leases had requirements for tenants to participate in a merchants’ association (usually at some initial nominal rate with CPI increases). The tenants would control how those funds were… Continue reading Are your tenants still contributing to marketing?

Malls · Office Properties · Retail leases · Shopping Center · Uncategorized

“That’s standard” is not a good enough answer.

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.

Uncategorized

You really expect the landlord to absorb CAM and taxes on non-existent space?

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?