Tag: due diligence

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Administering CAM, Tax and Insurance – How viewing a site plan or lease plan without preconceived notions can improve your reimbursement ratios

Jack NugentLeave a comment

As a landlord, we talk about triple net all of the time. Often, our goal is to have our net cash flow be as close as possible to total minimum rent as possible. In order to do that, we want to get as close to 100% recoveries on reimbursable expenses – CAM, tax and insurance… Continue reading Administering CAM, Tax and Insurance – How viewing a site plan or lease plan without preconceived notions can improve your reimbursement ratios

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

Jack NugentLeave a comment

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

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

Real estate tax timing in a purchase

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A little more than a year ago, we addressed the timing/matching of real estate periods. Perhaps it was taxes reconciled for a calendar year, but taxes were paid on a fiscal year. Some landlord would take six months of one fiscal period and six months of another to match those fiscal periods to the calendar… Continue reading Real estate tax timing in a purchase

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

Applying the K.I.S.S. method in leases

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“Keep it simple, stupid!” That hits home so often as I am reading leases. I have taught classes for ICSC for nearly 25 years. One of my favorite example has been base rents or fixed CAM charges increased by the CPI. That in and of itself is pretty simple. But, you often see caps on… Continue reading Applying the K.I.S.S. method in leases

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

Could this be worse than a Most Favored Nations clause?

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We have addressed the Most Dreaded Lease Clause a few times over the past couple of years. We have also addressed another lease language concept – co-participation. But what happens when you combines the concepts? That combination was evident in an acquisition we were working on this week. If you have time, take a minute… Continue reading Could this be worse than a Most Favored Nations clause?

commercial real estate · Malls · Retail leases · Uncategorized

Extending a lease term – by exercise of option or amendment

Jack Nugent2 Comments

Exercising an option that was granted in a lease with no change in terms should be a fairly simple exercise as specifically defined in the lease – often sending notice to the landlord on the intent to exercise with no additional action required by any party. The lease continues. However, sometimes the parties overcomplicate the… Continue reading Extending a lease term – by exercise of option or amendment

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

Taxes and insurance addressed in CAM – and then again, separately

Jack NugentLeave a comment

It’s not unusual to see terms referenced several times throughout a lease. Often, it will be a definition of a concept in one clause and the use of that defined term in another. But, sometimes, it can be confusing as to why a term is mentioned multiple times. Case in point is when insurance or… Continue reading Taxes and insurance addressed in CAM – and then again, separately

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

An approach to lease administration and due diligence

Jack Nugent2 Comments

When we are verifying rents at a property, we do all of our calculations – prorata shares, caps, breakpoints, CPI calculations, lease year language applications and so on – prior to looking at what the current landlord has done. I don’t know about you, but I can be fairly easily led by what someone else… Continue reading An approach to lease administration and due diligence