AboutJohn Smiley Expertise I am a commercial lease negotiator who specializes in representing dentists, doctors and other professionals. I have represented every manner of tenant (retail, industrial, office, professional) and only negotiate on behalf of tenants. I can answer questions that deal with commercial landlord/tenant relationships, negotiating factors and strategies, process-oriented questions, and other matters that pertain to commercial landlord and tenant rights and obligations.
Experience I am a commercial tenant representative, specializing in negotiations on behalf of doctors, dentists, chiropractors, and other professionals. I have been a real estate professional for 10 years and have negotiated over 600 commercial lease transactions or 20,000 lease amendments, almost all representing the tenant.
Education/Credentials B.Mgmt. (Finance)
Real Estate License
Question The original owner fo the commercial property sold the property. The new owner took over and added a management fee that never existed before to the CAM charges. The Management group is a Company he set up as himself (the owner). Now i am getting changed this fee as a pass through and has dramatically increased my CAM Changes. The fees were never included before with the old owner, but the original lease does provide for some sort of management fee.
Why should i be subject to the additional fees just because a new owener took over?
Answer Hi James,
This is a common problem when there is a change in ownership. Given that it was agreed to in the original lease, you can be subjected to a charge even though the last owner didn't charge one. Unfortunately, there's very little you can do about it. You might try approaching him and requesting (on bended knee, I might add) that it be reduced to a more reasonable charge, since it is going to his own management company.
A typical market charge for management is about 15% of the total CAM charges, or 4% to 5% of total rent (basic plus CAM).
