In order to entice a tenant you might offer very competitive initial rent. At the same time, you need to make sure that you maintain a certain level of income over time. Rent adjustments are typically a part of negotiations with a prospective tenant for space at the property you own. But if you...
Not all tenants are created equal when it comes to the way they are organized. That is, whether a tenant is a professional corporation, professional limited liability partnership, or professional limited liability company matters during lease negotiations, and it should guide the guaranty...
Vacancy rates are still a struggle for shopping center and office building owners in some areas. Maybe your local economy isn’t robust and businesses aren’t interested in new office space, your projections for how much foot traffic your center will see were higher in theory than in...
Commercial property owners, and especially those that own large or multiple properties, are likely to have several employees. If you have a staff of professionals who help you operate your properties, be very careful about how much official power you give to them and how much interaction they...
Unfortunately, at some point you may have to evict a tenant or pick up the pieces if a tenant abandons its space. It’s hard enough to have to regroup and find a new tenant quickly. But being forced to take on an undesirable tenant—one with a bad credit rating or that doesn’t...
While the economy has steadily improved in many areas, it’s still important to protect yourself from the perils of a bankrupt tenant. When negotiating with a prospective tenant—especially one that’s small or not financially strong—keep in mind that if it experiences...
If you must fill vacant space in your office building or shopping center while it's undergoing renovations, your new tenant might not have access to some of the amenities, equipment, or services that it expects to be able to use. Negotiate the lease to protect yourself from the tenant's...
Given the current state of the economy, it is not surprising that tenants struggling to stay in business are resorting to rarely used negotiation tactics to ride out the downturn. Specifically, there has been a rise in rent relief exchanges, in which owners temporarily reduce rent for...
A commercial tenant's negotiating power very often depends on its size. This is especially true about tenants who are “big-box” stores—for example, Wal-Mart, Sears, or Target. But a new trend, the opening of big-box “concept stores,” has commercial owners...
In today's stagnant economy, the Federal Reserve is aggressively cutting interest rates in an attempt to spark the economy. The rate cuts are giving property owners an opportunity to refinance and purchase new properties or to tap existing properties' equity for operating capital.
