We have made some interesting observations during the last several market downturns. In our current state of uncertainty, these observations may be helpful for commercial tenants to navigate through the unexpected changes we are all experiencing. 1) Some businesses find that whatever real estate they had before a crisis will not be the real estate…
Understanding Your Umbrella Coverage Could Save You Thousands In Annual Insurance Costs
If your company leases office space, you could be overpaying in insurance costs. While umbrella insurance coverage is commonly included in a lease agreement, you don’t need to blindly accept the coverages requested by the landlord. Understanding the insurance requirements outlined in your lease and coming to a mutually beneficial agreement about the coverages your…
The Benefits and Drawbacks of Subleasing
The unique circumstances of the parties and space on offer combined with a landlord’s position within a market can make for an amazing deal when subleasing. But subleasing can also be a risky move. Let’s look at the benefits and drawbacks. The Benefits Price In a soft market sublease space almost always trades below market…
Good Real Estate Business In A Bad Economy
The economy ebbs and flows. The real estate market is particularly vulnerable to its changes. But there are a couple of things about a ‘bad” economy that we can be thankful for as real estate professionals. Income and Appreciation Property investors know that the value of their property is created as much by the income…
The Build-Out Process : One Simple Way to Save Time and Money
For years, the process of planning a commercial build-out has been a slow moving and somewhat tedious game of guessing and waiting. It consists of handing off an idea to one professional who might make a few changes before sending it off to the next one. This typically results in a great deal of time…
Workletters Explained
A tenant improvement (TI) workletter is, more or less, a contract for construction. It is generally an addendum to a lease agreement involving third parties, architects, and contractors. Unless a tenant occupies a space “as-is”, a work letter defines the condition of a space when the tenant moves in. It also explains how that condition…
Two Ways To Save On “Pass Through” Operating Expenses
A property owner decides what expenses get passed through to his or her tenants. Understandably, they want to get as high a return as possible on their investment. The following two methods can protect you from inappropriate pass-through expenses and save you big on your lease costs. Ownership Expense Exclusions: Most commercial leases say something…
Four Strategies Landlords Use to Maximize Lease Renewal Profit – And How to Respond
Effectively planning and timing your company’s real estate transactions can mean the difference between whether your money stays in your pocket or ends up in your landlord’s pocket. Leverage in the negotiation of rent is directly proportionate to market competition. A landlord will charge you the highest price they think they can charge in the…
Three Ways to Improve the Efficiency of Your Company’s Real Estate
Today’s digital world demands that most companies focus their real estate on maximizing utilization and efficiency while trimming costs. Here are three areas to consider to make the most of your space: 1) Utilize second-generation space This alone could save your company and/or your landlord a significant amount in build-out costs and time. It is…