I have been in the industry now since 1987. In 30+ years, we have worked with hundreds of great, honest landlords. And, one that wasn’t. Though it hurts to give up business, we did because of our own ethics. We were doing the year end reconciliations for the owner and, at one property, there were… Continue reading The trust required between landlords and tenants
Often in retail, tenants will be required to pay their share of taxes using the square footage of the tax parcel of which they are apart. In other cases, they will be required to pay based upon the leasable area of the shopping center excluding separately assessed premises. Sometimes, just looking at the tax map… Continue reading Why look at a municipality’s tax maps or GIS data?
This past week, I was in Minneapolis with about 175 other shopping center professionals for ICSC’s John T. Riordan School of Professional Development. If you have not been, it is a tremendous experience, with tracks for leasing, management, marketing, development and leadership, with electives for finance, at levels for both newer and more experienced professionals.… Continue reading Two words that cannot exist in commercial real estate
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
No. It’s not a fight in the ring between two skyscrapers. It’s one of those capitalized/non-capitalized issues that can have a material impact on the cash flow of a property. Though many tenants may beg to differ, the majority of landlords do actually consider the financial health of their tenants. I cannot tell you the… Continue reading building vs. Building
Last week, we covered minimum occupancies as a percentage of GLA for denominator purposes. But, sometimes we see another type of minimum – absolute minimum denominators. That is where you might see language to the effect of “The tenant will pay its share of common area maintenance expenses based upon the leased area of the… Continue reading “Absolute” minimum denominators – Yeah! Right!
When a tenant’s prorata share is based upon the leased area of a shopping center (rather than leasable), a very common change to the lease language negotiated by tenants is the addition of a minimum occupancy. The language would read something to the effect of: “The tenant’s prorate share of CAM shall be based upon… Continue reading Minimum occupancies
Any change made to a lease has a value to one of the parties. Some have very straightforward calculable values – reducing minimum rent from $25/sf to $24/sf or changing the percentage rent rate from 6% to 5%. Others have an absolute calculable value, but take a little effort to determine that value – changing… Continue reading How do YOU determine the value of a negotiated exception to a lease?
Over the next week, I will be putting together a new class for ICSC’s John T Riordan School for Professional Development. The class will be offered as an elective for the Management, Marketing and Leasing tracks at the school which is being held September 23-27, 2018 in Minneapolis. A previous version of the class focused… Continue reading The economics of a lease
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