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 I am looking for a sample letter to present to our property manager and owner requesting a rent reduction. I own a hair salon in the Salt City area Utah. Our sales has been flat and it's getting worst. More than 60% of the building is now empty, no leg traffic, etc.
I appreciate a sample letter I can use.
Thank you for your time and efforts.
Answer Ann-
I have never tried writing such a "sample letter". I would be sure to include reference to the current state of the national economy as my primary justification for the request.
Perhaps something like this:
Dear ____________,
You are obviously aware of the severe problems in the national economy and the struggling retail industry. The income for my shop has declined sharply since the recession began, and I am certain that other tenants here and in the area are experiencing the same difficulties as others throughout the nation.
I wish to be straight forward with you and ask if you may have a suggestion to reduce my rental obligation each month significantly until the economy corrects itself. It seems that it would be better for you to have your tenants paying some portion of the rent required by the lease, than to have your tenants go out of business and leave you with empty retail shops that don't provide any rental income.
I would be happy to consider a formal change to my lease that we would both agree to that would reduce my stipulated rent to a lower, mutually agreeable monthly rent payment until our economy recovers. At that time I would be happy to return to my former rental basis. I, like you, have seen many retail centers become empty recently, and I know that no one benefits from vacant retail space.
Like so many others in that have their own small businesses, I do not know how much longer that I can continue to operate without a rental reduction. I appreciate that you have your own obligations, however, I would like to think that there are other means of dealing with the economic situation aside from bankrupt retail shop owners and foreclosures.
Please contact me with any thoughts you may have that would introduce some flexibility regarding the lowering of my monthly rental payment.
My thanks,
XXXXXX
I really do not consider that this suggested letter will be more successful than any other letter. I would be certain to remind the landlord that this crisis is going on nationally, that you are flexible about resuming your normal rent payments once the economy recovers, and leave the wording about bankruptcy by tenants to remind him that he will not get any of his rent after a tenant files for bankruptcy. If the landlord agrees to changing your rental payments until a later time, be certain that the means of determining when the economy has recovered is realistic and that the agreement doesn't require that you have to pay the landlord some large lump sum reimbursement payment at a later date.
We are all suffering economically, and I believe it is time for all parties to begin dealing honestly and realistically with each other.
I am sorry that I can provide no magic words for you.
