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Just Elementary, Inc. » Entries tagged with "costs"

Fixed versus Variable Costs

Fixed versus Variable Costs

When it comes to analyzing the business model of a operating business, one of the important items to focus on is the expenses.  One way that people often quote the expenses of their business is as two types: Fixed and Variable. Fixed expenses are those recurring expenses that do not vary on a frequent basis, or are indexed and have predictable amounts.  Lease is a primary fixed expense, and is commonly indexed with periodic increases such … Read entire article »

Filed under: Business Tips

Is My Industrial Business Lease Good or Bad?

Simple Things to consider whether your lease is friendly to your business, or is it holding your business back from growth and great profits and your lifestyle growths. Number 1, the occupancy cost.  Simply put, this is the lease rate, plus NNN charges including other cost variables such as transportation costs and operational efficiencies.  Ideally, the occupancy cost would be as low as possible.  Given the fact that Industrial properties are not the ideal ‘outside investor’ type properties, the only major factor affecting real estate prices and lease rates is the health of the economy.  In this recessionary market, most local industrial markets have seen lease rates plummet with skyrocketing vacancies.  This means Industrial property prices have plunged and availabilities are high.  So the good news is that you can attempt … Read entire article »

Filed under: Commercial Leasing, Landlord, Negotiation, Real Estate Tips, Renegotiation