When leases require tenants to pay a prorata share of expenses – real estate, taxes, CAM, insurance, in some cases utilities and marketing – landlords are hoping to get reimbursed for as close to 100% of those expenses as possible. You might think that with an administration fee of 15% (among the most common), a… Continue reading Excluding tenants vs. excluding premises
The majority of national and regional tenant leases contain some sort of tenant-negotiated restriction. It may be an exclusive use, or a specific prohibited use in the center (no educational facilities), or a site line restriction, or a restriction against a type of use within x feet of the premises (no food uses within 200’… Continue reading Unique remedy language in the event of a violation
Last week we addressed a few of the issues to consider related to excluded area contributions, but two properties that we worked on this week made me realize I missed discussing two very significant issues – refunds/credits and recaptures as they relate to excluded area tenants. At one of the properties, an excluded area tenant… Continue reading A few more issues related to excluded area contributions
When a tenant pays a prorata share of taxes or CAM, there are often defined excluded areas. Most typically, those defined excluded areas are either directly assessed, self-maintaining or insured, or are paying at a rate significantly less than full prorata. By defining those areas as “excluded areas,” the landlord reduces it absorption of CAM… Continue reading Excluded area contributions
Back in 1996, I was serving as an expert witness in a mediation related to HVAC billing methodologies in regional malls. The tenant brought in their own expert witness to address water rates. Over the course of two days, the two of us had plenty of time to talk. At that time, in most municipalities,… Continue reading Dealing with new realities in “retail” rents
Back when I first got into the industry in the late 1980s, if I needed information on a property’s real estate taxes, it was not unusual to actually have to go to physically go to a county assessor’s office and access the data on microfiche. Fortunately, those days are long gone. For the most part,… Continue reading Real estate tax resources
When reconciling operating expenses, timing is often pretty straightforward. The tenants make monthly escrow payments throughout the year. The landlord reconciles the calendar year and applies those payments. An additional billing or credit is applied to a tenant’s account. However, taxes are a different story. While some municipalities bill taxes for calendar years, many bill… Continue reading Real estate tax timing issues
Next week will be back to the regular lease administration blog, but, for now, a little more Mexican retail. One sight in Puebla that does not show up on TripAdvisor is truly “experiential retail” – Container City. Puebla is very much a university town, and Container City is an area designed for those students. It… Continue reading Unique retail environment
This week, the blog will not be about lease administration. Rather, it is just a few pictures to give you confidence going in to the upcoming holiday retail season. My wife and I are visiting our son in Puebla, Mexico this week. We happened to arrive during Buen Fin – the Mexican version of Black… Continue reading Buen Fin!
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