Articles Comments

Just Elementary, Inc. » Renegotiation

Rent Abatement, What is it and how to get it. Why would a landlord give it?

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

Why Your Landlord Denies your Request for a Rent Reduction and Other Lease Modifications

Why Your Landlord Denies your Request for a Rent Reduction and Other Lease Modifications

In the course of helping our clients with renegotiating the terms of their lease and modifying their rent, we come across some situations where landlords have denied their current tenant’s request for rent reductions.  In some of those cases there are things that can be done to change the landlord’s mind. The #1 reason a landlord denies a rent reduction request is that they feel that the tenant has not taken all possible steps to streamline … Read entire article »

Filed under: Commercial Leasing, Landlord, Negotiation, Renegotiation

Lease Expiring Soon, Want to Renegotiate Terms to get a Better Deal on the Renewal or Extension of Lease

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

Five Rules for Negotiating Commercial Leases

Five Rules for Negotiating Commercial Leases

Your Bottom Line, is it important to you?  Yes, ok, then let’s see where you can increase it.  Occupancy cost is typically the first expense item we review as Commercial Brokers are at Just Elementary, Inc.  Every business has a physical cost to exist and occupy space, even virtual businesses (think server space). For  those business owners that lease the space that their business occupies, this post will cover Five basic Rules to negotiating or … Read entire article »

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

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