AboutJim Avancena Expertise I am best qualified to answer any questions that involve commercial leases, the complexities and inter-relationships of the myriad provisions that a lease may contain, and explain how they commonly effect a landlord or tenant in their day-to-day business operation. I can explain most matters that will come up during of the full lease cycle from standard industry practices regarding the lease acquistion process, concerns related to remodeling/improving the leased premises, moving-in, subletting or assigning the leased space, and a long list of other problems that may come up during the lease term. I have practical experience with most property management issues and resolving landlord and tenant disputes. Note that I am not an attorney and cannot provide legal advice.
Experience Twenty-eight years active experience in the commercial real estate industry as a licensed real estate broker in the Washington DC Metro area(DC, Northern Virginia & Maryland). I have been admitted (approved) by the Maryland and DC courts to testify as an expert witness on the subjects of Commercial Leasing and Property Management in the area of standard industry practices. I have had a business for the last 14 years advising virtually every form of business entity from large national corporations to the smallest ma & pa new businesses regarding a wide range of commercial real estate matters in addition to property management and commercial leasing.
Organizations Currently my three children keep me so busy that it is difficult to find time to participate in organizations.
Publications I publish a local commercial real estate newsletter titled: "Tenants First". My firm was the subject of a high profile Washington Post business section cover page (2.25 page)feature story on January 13, 1993; "Overcharging Overhead".
Education/Credentials BA in Political Science from Memphis University, and five years of study in the real estate development summer program at MIT. I was certified as a commercial property manager (CPM-IREM), and currently hold a brokers license licensed in Maryland and the District of Columbia.
Awards and Honors Routine, the same plaques and honors that most others in my industry have earned, none that are significant.
Past/Present Clients Past clients include: The World Bank, George Washington University, National Association of Criminal Defense Attorneys, US Department of Commerce, The American Benefits Council, K-Mart Development, many law firms, a national union, other major organizations, and many, many small business firms and retail operators that I am most honored to serve. I estimate more than 1,500 firms/organizations.
Question we are landlords and a tenant who wants a rent concession is down 20% of her gross income. is there any formula to figuring how much to give off?
Answer Georgia:
I believe that this recession has put landlords and tenants both in the position of having to find the way through this economic nightmare by first considering what is reasonable. I don't know of any rules of thumb in the industry at this time - nor how applicable they would really be.
I think it is reasonable for a landlord to meet with the tenant and request some explanation of the problems the tenant is experiencing and to review some proof of the related revenue loss. Then I would consider how long the tenant has been occupying the space, if the tenant helps draw other shoppers and creates a good mix, do the tenant's problems result from a nuance of the recession or because the tenant is simply not competitive, etc. Openly indicate your business concerns if they close vs. if they stay at a lower rental. Will the tenant be able to repay you for rental reductions at some time after the effects of the recession pass?
Can you replace the tenant with another at a solid rental if they close? Can you afford to build new improvements for a replacement tenant? You can make whatever adjustment you feel is acceptable with your tenant, but be mindful that other tenants may then come knocking at your door.
Some landlords have been very rigid on this issue, others have tried to be flexible. There are valid reasons for both.
