Just Elementary, Inc. » Entries tagged with "NNN"
Rent Abatement, What is it and how to get it. Why would a landlord give it?
In simple terms getting free rent is rent abatement. Important to note that if you are able to secure rent abatement, it likely only applies to the base rent. This means that CAM/NNN charges would still be due. So when can you get rent abatement/reduction? When negotiating a brand new lease When adding significant Tenant Improvements Down economic markets How you negotiate the rent abatements depends on the situation In terms of new lease negotiations, this would be easiest time to … Read entire article »
Filed under: Commercial Leasing, Renegotiation
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
Negotiating Retail Lease Terms – Base Rate, Lease Indexing, CAM, NNN, Personal Guaranty, Lease Assignment
When it comes to negotiating a retail lease, it is important to consider all of the terms and the entire lease. In this blog post, we will focus on a few of Lease Terms that are important to negotiate The Base Rate in Gross Lease Versus a Net Lease NNN & CAM Charges Lease Indexing: Fixed versus Variable Personal Guaranty Clause Lease Assignment Clause Here is a presentation by Commercial Business Broker Pramod Patel discussing the terms listed above. Gross versus Net … Read entire article »
Filed under: Commercial Leasing, Negotiation
Lease Expiring Soon, Want to Renegotiate Terms to get a Better Deal on the Renewal or Extension of Lease
Is the premises lease for your business expiring soon? If so, you may be in the CatBird seat. Consider yourself fortunate that you are in position to renew or extend your lease terms in a ‘down’ leasing market. This means you may be able to accomplish one or more of the following things: Reduce your base lease rate Reduce your NNN/CAM charges Reduce or eliminate the Personal Guaranty liability Reduce or modify your security deposit Adjust premises maintenance responsibilities Improve Signage … Read entire article »
Filed under: Commercial Leasing, Negotiation, Renegotiation
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
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