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

A need for a holistic approach to leases

When coming up with a blog topic for the week, I typically reflect back on one issue that stood out for the week. My guess is that it almost appears as if each of the issues are stand alone. But, this is never the case. Within one lease, you can have hundreds of potential changes,… Continue reading A need for a holistic approach to leases

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

CAM, tax and insurance reconciliations during due diligence

More often than not, when acquiring a property or portfolio, prospective purchasers are focused on future cash flows. When it comes to CAM, taxes and insurance, it is future reconciliations that will have the most impact on the buyer’s cash flow. However, when acquiring a property, it is critical to get as many years of… Continue reading CAM, tax and insurance reconciliations during due diligence

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.

Malls · Office Properties · Uncategorized

Due diligence before the due diligence?

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?

Malls · Office Properties · Shopping Center · Uncategorized

Strange things are afoot at the Circle K

As underwriters of commercial real estate, we deal in facts. We read the leases, calculate all of the rents and reimbursements, examine the critical non-financial covenants, analyze the prior year cash flows and provide an analysis of the assumptions that our clients have made on vacancies and lease up and Tis and inflation and so… Continue reading Strange things are afoot at the Circle K

Malls · Office Properties · Retail leases · Uncategorized

A couple of percentage rent/gross sales issues this week

This week, we were working on an acquisition of a property in the southeast. One tenant occupied the majority of the property, with a handful of other tenants accounting for about 10% of the leasable area, but about 20% of the income. There was a restaurant tenant that had a unique name that I had… Continue reading A couple of percentage rent/gross sales issues this week