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Commercial Real Estate Investment/Renegotiate Existing Lease for Business

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Expert: - 8/23/2011


Question
Can you give me a sample letter to renegotiate our existing lease in Irvine, CA and Beverly Hills, CA.

Thank you

Cruz

Answer
Cruz:

You need to narrow the scope of what you want.   A sample letter to a landlord to renegotiate your lease could be from one or two sentences to the length of an encyclopedia.  Please give me an idea of what aspects of renegotiating your lease you are having difficulty preparing.  

I suggest that you simply tell the landlord the basic terms of lease you seek; such as the term of the renewal you prefer, the improvements you want made to your existing suite, if you need to add any space to what you lease now - if any is available, if you need any additional parking spaces, etc., and ask the landlord to send in response a renewal proposal that outlines the basic economic terms that the landlord will require and if it can meet the basic terms delineated in your initial correspondence.

Such correspondence should definitely get the renewal process started.  However, based on the broad request you made for a "sample letter", it sounds to me as if you should consider hiring a broker to advise and represent you in this effort.   Usually your agent's fee will be paid by the landlord - but not in every lease transaction.  I suggest you find a "tenant's agent" who will advise you further in this matter based on the established industry practices in your area.

Jim  

Commercial Real Estate Investment

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Jim Avancena, CPM

Expertise

Best qualified to answer questions that involve commercial leases, that is, basic issues as well as the often unexpected effects of the complexities and inter-relationships of the provisions a lease may contain, explain how seemingly innocuous text in your lease can have a major impact on a Tenant or Landlord and their business operations, and the common practices utilized in the industry. I can untangle most matters that may come up from the time a tenant begins searching for a office or store space and the lease acquisition process, concerns related to remodeling/improving the leased premises, moving-in, subletting or assigning the leased space, and a long list of problems that may come up during the lease term and even after a tenant moves out. I have practical experience with most property management issues and resolving landlord and tenant disputes - especially those involving what may appear to be overcharges assessed for additional lease charges like CAM costs, operating expense reimbursement, real estate taxes, utilities, construction improvements etc. Note that I am not an attorney and cannot provide legal advice.

Experience

Thirty 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 participate in organizations with continuing and specific time requirements.

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 full pages) feature story on January 13, 1993; titled "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 in Maryland and the District of Columbia.

Awards and Honors
The same plaques and honors that most others in my industry have earned. I have none that I consider especially meaningful.

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.

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