Commercial Real Estate Investment/Managing Jiffy Lube properties



We have several partnerships that own Jiffy Lube properties. These are pretty simple deals - we get the rents in one payment from Jiffy Lube /Shell, we pay in each property one land lease to a landlord, and then we distribute the profits to the partners. No mortgages. Five year leases that may be renewed. Leases are triple net.

The partnerships are :

One with two partners, three stores, all stores in NY

One with ten partners, 10 stores in NY, CT and MA

One with 8 partners, one store in CT

Any idea what a management firm would charge for

Monthly cash management
Managing lease renewals and rent resets
Tax returns and K-1s.
All necessary state filings.
Handling sale or re-lease if Jiffy does not renew a lease??




It is difficult to give you a simple answer.

Your description of the scope of the management describes an asset management/accounting role and property management/brokerage tasks.   Many items listed in your question - with the exclusion of lease renewals and sales -  are handled by an accountant or very experienced bookkeeper.   It may be prudent to hire a full service firm that has the capability to provide property management, leasing services, accounting and asset management services, etc.

You will need to contact several service providers, compare cost and determine which organization and style makes you most comfortable.   The charge(s) can be derived based on a flat monthly fee, a la carte extras, hourly charges, commission, percentage of collections, etc.    

The appropriate fee will depend upon the various market level fees established in each market area, the complexity of each state's records requirements, the amount of experience & savvy you desire, and the established reputation and level of success associated with the service provider.   A wise / experienced financial manager will be able to anticipate many connected issues advising you accordingly; but at a fee that will be on the higher end of the fee range.  

Good Luck,

- Jim  

Commercial Real Estate Investment

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Jim Avancena, CPM


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.


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.

Currently my three children keep me so busy that it is difficult to participate in organizations with continuing and specific time requirements.

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".

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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