Just Elementary, Inc. » Entries tagged with "Lease"
Lease Expiring: Holdover Clauses in Industrial & Retail Leases
When the premises lease for a business expires, what happens? Does it just become a month to month lease at the same rate as before? Do you have the right to stay in the premises? Once a Commercial Retail or Industrial lease expires, the lease doesn’t necessarily convert to a month to month lease. Often times a Commercial Retail or Industrial lease will have a Holdover clause that will dictate the terms of maintaining possession of … Read entire article »
Filed under: Commercial Leasing
The initial terms to negotiate with a landlord for a retail business lease
Already found a suitable location for your business? Then, the next step is Negotiating a Lease for your Business? Here are Five basic terms to start with. But remember that there is plenty more to negotiate after you have reached an understanding on the following four points: The Base Rate The Lease Indexing The Length of the Lease Number of Option Terms Personal Guaranty Terms Starting with the Base Rate is the most common lease term to negotiate. It is important … Read entire article »
Filed under: Commercial Leasing
Books & Records and Your Lease Two Factors That Impact the Attractiveness of Your Business to Potential Buyers
Two Tips to Sell Your Business Easier for a a Higher Price In most cases, there will come a time when the timing will be right to sell the business. To maximize the value of your business, you will want attract as many qualified buyers as possible. What are the things you can do to make your business as attractive as possible to maximize your buyer pool? Here are two topics that we’ll address in this post: #1. … Read entire article »
Filed under: Business Tips, Commercial Leasing, Selling A Business
Tips to make your business easier to sell or transfer to heirs or employees
If you are going to one day sell or transfer your business to heirs or employees via an E.S.O.P., then you need to consider factors that will make the business easier to transition to a qualified buyer or even your heirs. Here are 10 tips to consider. #1. Have a good lease that is reasonably assignable. If your lease is a problem, then renegotiate it. Difficult leases are a non-starter for good buyers, they don’t want an … Read entire article »
Filed under: Business Tips, Selling A Business
Occupancy Costs, Should you Move your B2B Business?
For a B2B business, such as a manufacturing, distribution or service business, Occupancy Cost is the total periodic expense incurred for the right to occupy the physical real estate it occupies. Occupancy Cost is commonly referred to as ‘Rent.’ Rent is more than just the base rent, it also includes all of the NNN/CAM charges that go along with it. See our post on NNN/CAM charges for a greater explanation of these additional expenses. However, there … Read entire article »
Filed under: Business Tips, Commercial Leasing
Triple Net (NNN)?, CAMs? & Gross Leases
What does a Gross Lease entail, what are exactly are Triple Nets (NNN), and what about CAM charges in Commercial leasing? Let’s start with a Gross Lease. Gross Lease means a lease that has no additionally itemized charges for the operating expenses of the commercial property. This lease offers a simple and predictable periodic lease payment for a lessee (tenant). Gross leases are common in Industrial properties and other properties that have less maintenance and operating … Read entire article »
Filed under: Commercial Leasing
Negotiating Commercial Lease Rate & Terms
Let’s face it, this is the time to negotiate or renegotiate your commercial, retail or industrial lease. The primary metric motivating landlords is the vacancy factor. Across the board, from retail to industrial, vacancy rates are high, which means landlords have more and more spaces to fill and keep occupied. Of course, this is a factor of an economic dip and your business is likely suffering a decrease in revenues from the boom times. But, … Read entire article »
Filed under: Commercial Leasing
Condemnation Clauses for Commercial Leases
The Condemnation clause is an often overlooked clause in negotiating a commercial lease. Even though it rarely comes in play, it is well worth negotiating just in case to protect the many years of blood, sweat and tears a lessee/business owner has put in to the business. A condemnation clause dictates how compensation to the property owner is allocated to the tenant(s) at the property in the case that the property is seized via eminent … Read entire article »
Filed under: Business Tips, Commercial Leasing, Landlord, Negotiation
Applying for a Lease
Here are some basic rules to keep in mind when applying for a lease of a commercial property. #1. Have a Business Plan. This is much easier if you are buying an existing business. If not, Be prepared to justify all the things you make up in the business plan. #2. Have a Credit Report Ready. The landlord wants to know if you have a habit of making payments on time. Because if you don’t, they’ll know that they are setting themselves up for trouble. If you do have blemishes on your credit report, well, ask yourself why. If the reason is good, such as lost a job or unforeseen medical bills, then write a detailed explanation and INCLUDE it with the Credit Report when submitting a package to the Landlord. If … Read entire article »
Filed under: Commercial Leasing
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