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Commercial Real Estate Investment/Questions Answered by Expert Jim Avancena, CPM
| Subject | Date Asked |
| CAM- | 2/4/2012 |
| Q: I bought a business & signed a lease in 2009. At the time the landlord didn't clarify how much I had ... A: Max: You need to contact a local attorney familiar with "Landlord and Tenant" law regarding whether ... | |
| CAM charges | 2/2/2012 |
| Q: Our contract with a tenant says they share in the parking lot maintenance and repair via the CAM ... A: Jeff: Reasonably determining if an expenditure was maintenance or capital improvement is often ... | |
| CAM refund | 1/27/2012 |
| Q: Can a landlord ask for repayment of a CAM refund? In May 2010, the 2009 CAM reconciliation showing ... A: Karen: This is a legal question based on the Landlord & Tenant law in your jurisdiction. I have ... | |
| CAM for partial year tenants | 1/9/2012 |
| Q: If a lease commences during the middle of the year, what is the appropriate way to calculate CAM ... A: Tricia: Your lease text should be very specific about your question. What does your lease specify ... | |
| Real estate investment options | 1/5/2012 |
| Q: -I have $20000 cash -My revenues minus my expenses i am left with $300 every month What kind of ... A: Claude: Depending upon the economic level of the market where you are located, I would think you ... | |
| Real estate investment options | 1/4/2012 |
| Q: -I have $20000 cash -My revenues minus my expenses i am left with $300 every month What kind of ... A: Claude: Get into an investment that has limited risk, is uncomplicated, and fairly simple to ... | |
| Office lease: t.i.'s | 12/22/2011 |
| Q: FACTS: I'm at final stages of negotiating a 5 1/2 year lease for office space in Los Angeles. The ... A: Stefanie: My experience is that a landlord will factor in an additional charge of about 2% above ... | |
| Option to Renew Commercial Lease | 10/10/2011 |
| Q: we have been leasing a space for our bakery for five years and now, just at the time of the lease ... A: Bruce: I am not an attorney and cannot offer any legal advice. Your lease and other correspondence ... | |
| free rent commission calculation | 9/22/2011 |
| Q: i have a 20,000 sf gross office lease. rent is $20/sf in year one, escalating $1/ year. term is 5 ... A: Paul: I come up with $ 98,799.96 with my calculator while I am driving out of state to see a ... | |
| Renegotiate Existing Lease for Business | 8/23/2011 |
| Q: Can you give me a sample letter to renegotiate our existing lease in Irvine, CA and Beverly Hills, ... A: Cruz: You need to narrow the scope of what you want. A sample letter to a landlord to renegotiate ... | |
| Fixing A Bad Lease Situation | 8/22/2011 |
| Q: Our non-profit is currently half way through a 3 year lease of a small commercial property which ... A: Karl: Sorry to learn about your situation. You are not as knowledgeable about the commercial real ... | |
| Real Estate | 8/10/2011 |
| Q: My name is Rashad. I have invested in real estate for a living a few years back. I am in the ... A: Rashad: I suggest that you attend every available learning opportunity in the area of real estate ... | |
| commercial lease additional rent fees | 8/1/2011 |
| Q: I have a three year lease in a shopping mall. I pay $20.00 a square foot for my base rent. 875 sq ... A: Kendra: You or your real estate agent must have asked the landlord or its leasing agent how much ... | |
| Commercial Lease | 7/18/2011 |
| Q: I am currently under a commercial lease that is now into its 8th year, even though I initially ... A: Linda: The sad truth is that you got involved in commercial leasing and sub-leasing without knowing ... | |
| Real Estate discussion question | 6/29/2011 |
| Q: My teacher would like for me to interview a actual real estate salesperson. I hope that you can ... A: Dewayne: I have specialized in commercial real estate only for the last thirty (30) years and I can ... | |
| Landlord holding security deposit while past CAM is reconciled | 6/7/2011 |
| Q: We moved out of our commercially leased property last month (per the lease). When I inquired about ... A: Beatrice: Go to the building where they actually have the legal trials for landlord and tenant ... | |
| Landlord holding security deposit while past CAM is reconciled | 5/25/2011 |
| Q: We moved out of our commercially leased property last month (per the lease). When I inquired about ... A: Beatrice: Usually the cost of clearing snow is a Common Area Maintenance(CAM)cost that tenant's ... | |
| Lockout and property seizure | 5/18/2011 |
| Q: a marine technician was contacted by a landlord in Bradenton , Florida to rent a former storage ... A: Kate: It sounds as if this matter has gotten away from both parties without equitable resolution ... | |
| getting security deposit back | 5/16/2011 |
| Q: After a year and a half of losing money in a commercial space, we sold our business to another ... A: Mairim: It all depends on the specific terms of your current lease as to if this matter was ... | |
| Commercial Lease Modification | 5/12/2011 |
| Q: We own an office warehouse complex that is 5 years old. One of our tenants took occupancy the latter ... A: Linda: Tell your tenant that you suggest terminating their current lease responsibility if they ... | |
| disputed cam charges for 2008 | 5/4/2011 |
| Q: The business I have reference to is in Illinois. At the present time (2011), the plaza owners are ... A: Mary: The best overall answer to your questions is to ask the landlord for the specific supporting ... | |
| CAM Charges & Proportionate Share | 4/29/2011 |
| Q: My additional rent reconciliation letter from my PM this year states that they have been ... A: Joe: I am not an attorney, and cannot practice law, however, from what you have indicated in your ... | |
| My landlord is not providing parking | 4/14/2011 |
| Q: I rent a small commercial space in NJ. Contractually, I am allowed 2 parking spaces at all times in ... A: Mr. Jamison: This is more a legal matter for many reasons. However, let me tell you a few things ... | |
| Using CPI to calculate rent increase | 4/10/2011 |
| Q: I inherited a commercial building and am negotiating a 5 year lease with a new tenant. The previous ... A: Becky: Reasonable? The answer is dependent upon how strong the demand is for the the premises that ... | |
| Increase in CAM Charges | 4/9/2011 |
| Q: Have enjoyed reading your posts. I am dealing with a situation and I was wondering if you could ... A: Pace: Something is wrong with this picture. Your problem could be found in so many areas from ... | |
| Expense Escalation CAPS | 4/8/2011 |
| Q: If your lease reads "after the first full calendar year of operation then the increase in ... A: Kevin: The cap applies to the reconciliation of the expenses, however the estimates should closely ... | |
| CAM Reconcilliation | 3/25/2011 |
| Q: Our property manager has not been providing annual CAM reconcilliations within 90 days of year-end ... A: Susan: Is this unusual? Unfortunately no. Do you need to pay it? You will need to ask that ... | |
| Commercial Lease CPI Increase | 3/19/2011 |
| Q: I am the Lessee in a California commercial lease. I would like to know how far back can the Lessor ... A: Becky: Unfortunately, it is very likely that you have to pay the arrears CPI increases. However, ... | |
| cam charge dispute | 2/18/2011 |
| Q: We recently asked our landlord to provide cam charge expense details, our lease allows this. Our ... A: Laura: Certainly it is a Conflict of Interest. But is it ultimately actionable? You may be ... | |
| Management Fee | 2/14/2011 |
| Q: What is the average management fee charged on commercial real estate (1.2acre,7000 sqft building and ... A: Michael: The management fee that is charged for managing a commercial property is primarily related ... | |
| Response time for commercial real estate agents | 2/2/2011 |
| Q: I am wondering what a reasonable response time would be to expect from a commercial real estate ... A: Lindsay: A response to an initial inquiry regarding simply prices and vacancies from the listing ... | |
| Commsion Needs Calculation | 1/28/2011 |
| Q: How do accurately calculate a commission where my tenant wants to lease a shopping center of 33,339 ... A: Joe: It depends on knowing some other specifics about the commission information provided that are ... | |
| Rent overcharging/incorrect Sq footage question. | 1/19/2011 |
| Q: Three years ago I leased a commercial space in Washington state. At the time of the negotiations ... A: Marcus: Your dispute and the component legal issues involved are seen commonly in American ... | |
| commercial space rental no cert of occupancy | 1/13/2011 |
| Q: I am renting a comm space in NJ for about 7 months now and the landlord will not provide me with any ... A: Melissa: Have you been paying rent, operating and doing business in the space for the last seven ... | |
| Reservations clause in commercial lease | 1/11/2011 |
| Q: We a nonprofit organization located in California. We signed a 5 year commercial lease in 2007. ... A: Debbie: Wow! You learn fast! I am impressed. Mold and hazardous materials are a very fast growing ... | |
| CAM Charges | 1/11/2011 |
| Q: Question My tenant is in the 7th year of a 10 year commercial lease. The lease specifies that my ... A: Paul: I am sorry that I cannot be of more help to you, however, the correct answer to your question ... | |
| Reservations clause in commercial lease | 1/10/2011 |
| Q: We a nonprofit organization located in California. We signed a 5 year commercial lease in 2007. ... A: Debbie: There is likely little that you can do aside from simply asking the landlord if it would ... | |
| Common Area Maintenance | 1/3/2011 |
| Q: My family owns a small business in a strip shopping center, and for the past 10 years they have been ... A: Kathryn: Beware of doing anything yet that will cause the new landlord to examine your lease terms ... | |
| right to sell a business | 12/28/2010 |
| Q: I recently decided to sell my business and have a buyer who has agreed to a price. The buyer has ... A: Seth: I don't know why you felt you were required to show your landlord a copy of the sales ... | |
| right to sell a business | 12/27/2010 |
| Q: I recently decided to sell my business and have a buyer who has agreed to a price. The buyer has ... A: Seth: You will need an attorney to answer this question. The provision you provided in your ... | |
| terminating a lease and taking wall/floor cabinetry | 12/23/2010 |
| Q: Our commercial lease is coming to an end on February 28, 2011. We have given the landlord the ... A: Sarah: You need to review your lease for any wording in the text that discusses how the tenant ... | |
| serious confusion over lease sq foot, nnn, cam, overal cost | 10/29/2010 |
| Q: Jim, I am a therapist and have a commerical NNN lease (i no-dumb move).my lease began in july 2008. ... A: Laura: You have a problem that tenant's often discover AFTER they sign their lease. Although it ... | |
| commercial lease | 10/29/2010 |
| Q: My husband and I are thinking of closing our business. We have been renting our current location ... A: Elaine: Your question is primarily a legal matter that needs to be answered by an attorney. I ... | |
| signatures on a commercial lease | 10/27/2010 |
| Q: My brother and sister-in law may be asked to sign a commercial lease in a small 3 story building. ... A: Steve: I cannot verify what the law might be in your state regarding signatory to a lease, perhaps ... | |
| signatures on a commercial lease | 10/26/2010 |
| Q: My brother and sister-in law may be asked to sign a commercial lease in a small 3 story building. ... A: Steve: Allow me to beg the question. Regardless of the business form that your brother and ... | |
| Cam Fees | 10/19/2010 |
| Q: I have had a breach in my lease that seems to now focus on the Cam fees and not the breach. The main ... A: Jeanne: I am not an attorney and cannot give you legal advice, so check with your attorney about ... | |
| braking a commercial lease | 9/24/2010 |
| Q: i have a beauty salon in queens,ny i been in the same location for 6 years and last year signed a 10 ... A: Ana: I would like to help you, however, there are a multitude of considerations and lease related ... | |
| CAM reimbursements and mgmt fee | 9/23/2010 |
| Q: I am purchasing a building with a minor partner, and I, alone, will be receiving a 5% management ... A: Karen: It is most common for your management fee percentage to apply to base rent and any form of ... | |
| lease commencement date | 9/19/2010 |
| Q: is the move in date and the commencement date the same, if not then when does the commencement date ... A: Robert- The move-in date and commencement date could be the same day, however, they could just as ... | |
| Commercial Power meters | 9/15/2010 |
| Q: Is it legal in Maine for a Commercial Landlord Sharing Business property to only have one Electrical ... A: Cathy- If you were promised a separate electric meter by your landlord - in writing - it is far ... | |
| CAM and Rent Increases charged in arrears | 8/30/2010 |
| Q: I have a small business in Illinois and am in the final week of a 5 year lease. The landlord ... A: Christine: Perhaps you are not concerned about being evicted with only five (5) days remaining ... | |
| Tenant Improvement | 8/20/2010 |
| Q: I would like to accommodate an existing tenant that has grown out of his space. The tenant's lease ... A: Alexis: I am sorry for taking so long to answer your question, I was out of town for all of last ... | |
| Small office building in CBD | 8/15/2010 |
| Q: I am trying to find how to maximise my tax position for for a small office building in the Auckland ... A: Marco: I am not certain that I understand what your intentions/goals are regarding the Net lease ... | |
| Actual sq. footage less than stated in lease | 8/5/2010 |
| Q: I have already signed a lease for retail space stated to be 1200 sq. ft. In the process of ... A: Cheryl - I hope the following extended response will explain your "recourse". Often in a lease ... | |
| CPI | 7/29/2010 |
| Q: Sorry Jim, In my email to you I mentioned using the numbers starting in July the prior year. I know ... A: Gary- OK. I was trying to explain that if the lease requires that the rent shall increase on the ... | |
| CPI increases | 7/29/2010 |
| Q: Jim to continue with the CPI questions, my lease has an allowable increase of 3% or CPI whichever is ... A: Gary: First, check the precise wording of your lease to be certain that it does not say to use "the ... | |
| CAM Charges | 7/26/2010 |
| Q: Good afternoon Tim, I read your response regarding a tenant feeling like he was being cheated by ... A: Chris: I have several thoughts about your questions. First, be sure that the materials that you ... | |
| Tenant TI's | 7/16/2010 |
| Q: Jim, My organization recently purchased a 450,000 SF commerical builidng in a major downtown city. ... A: Bruce - There are so many variables involved, and the potential for so many unexpected events in ... | |
| Administrative Fees | 6/24/2010 |
| Q: Landlord is allocating risk management, data processing, payroll accounting and accounts payable ... A: Mike: Your question implies that several of the costs being assessed might be double dipping by ... | |
| commercial lease audit | 6/23/2010 |
| Q: I have a commercial lease that will expire in seven months. My Landlord just sent me a letter ... A: Kim - It is difficult to generalize about such things. It may be that the landlord has hired ... | |
| commercial lease audit | 6/22/2010 |
| Q: I have a commercial lease that will expire in seven months. My Landlord just sent me a letter ... A: Kim - You have not indicated the timing of the audit matters up until today, but it may be best ... | |
| CAM fees dispute | 6/22/2010 |
| Q: I signed a commercial lease in 2005 with $2.31/sq.ft for CAM (property tax, insurance and ... A: Johnny: I do not know without further investigation why the CAM expense categories you indicate ... | |
| Agreed to lease retail space but they are still showing it to other potential tenants | 6/9/2010 |
| Q: I've been looking for a space to open a vintage clothing store in or near my community since ... A: Jamey - You should contact an attorney familiar with landlord/tenant law to assist you with this ... | |
| Commerical utility bill | 6/9/2010 |
| Q: I lease a 3000 sq ft. warehouse.My lease states I am responsible for utilities. From the first day ... A: Karen- Don't you hate it when the landlord makes a mess of something and then you must clean it up? ... | |
| Utility Use | 6/7/2010 |
| Q: I own a small 1600 squ. ft. Cafe. I am having issues with the utility charges assessed. I have ... A: Aimee- First, try to contact the people that leased the space you have before you did. They may ... | |
| Commercial Rent Increase | 5/17/2010 |
| Q: We have a preschool that we have a 9 month lease for that we renew each year. This year the landlord ... A: Jeanette- Owning commercial property is very much a for profit business and is where investors put ... | |
| Need Help Finding Access to Commercial Listing/Lease Agreements online for own use | 5/15/2010 |
| Q: I would like to present a "counter contract" for a industrial commercial land lease that is designed ... A: Jan- You might check with the local bar association, being sure to tell them you are a local ... | |
| Retail Tenant dispute with landlord/ cam charges | 5/14/2010 |
| Q: I was recently given a monthly cam increase that was not the normal 4% but an additional 5,000 ea ... A: Katrina- Another thought; if you know an attorney, any attorney, a divorce attorney will do, ask ... | |
| Retail Tenant dispute with landlord/ cam charges | 5/13/2010 |
| Q: I was recently given a monthly cam increase that was not the normal 4% but an additional 5,000 ea ... A: Katrina- I am not sure I understand the specifics of your problem. The 4th line of your question ... | |
| Credit Check for commercial lease | 4/25/2010 |
| Q: I use a rental research agency that is very economical to do credit checks for residential property. ... A: Pete- Most organizations use agencies to do the level of background review that you stipulate is ... | |
| Lease w/improvements in property | 4/12/2010 |
| Q: I own an office condo in an office park mostly made up of physicians in Trenton, NJ. It's 1,000 SF ... A: Alex- I beleive that your choice of terms for escalating the base rent annually will come down to ... | |
| Lease w/improvements in property | 4/12/2010 |
| Q: I own an office condo in an office park mostly made up of physicians in Trenton, NJ. It's 1,000 SF ... A: Alex- Be sure to find an attorney that is experienced with Landlord and Tenant ("L&T") Law, or ... | |
| Lease w/improvements in property | 4/11/2010 |
| Q: I own an office condo in an office park mostly made up of physicians in Trenton, NJ. It's 1,000 SF ... A: Alex: WOW! Let me catch my breath after reading your text! Maximum flexibility is what every ... | |
| Landlord's responsibility | 4/7/2010 |
| Q: We signed a 10 year lease 8 years ago. The lease states that the landlord must do an overlay of the ... A: Elaine- You can officially notify your landlord that he is in default of the terms of the Lease, ... | |
| CAM and NNN charges | 4/2/2010 |
| Q: Our NNN and CAM has double in less than two years. Everyone (tenants) in the shopping center trying ... A: Eric: Your questions require a much more complicated answer than you imagine. Meeting with an ... | |
| NO PERSONAL GUARANTEE | 3/26/2010 |
| Q: I HAVE A COMMERCIAL LEASE WITH 18 MONTHS REMAINING. THERE IS NO PERSONAL GUARANTEE. THE LANDLORD ... A: Edward- Ask your attorney for his advice in this regard; however, I suggest that if you have had ... | |
| CAM charges | 3/22/2010 |
| Q: On a commercial lease agreement with annual CAM charges can/should a landlord include interest paid ... A: Sher- No. Never, unless you signed a lease that stated you would pay for the landlord's interest as ... | |
| Business Lease | 3/18/2010 |
| Q: I was thinking about leasing a bar business. The owner was asking for $37,000.00 up front and ... A: Nancy- I am not involved in leasing or selling "businesses", although there are specialists in that ... | |
| Lease Measurement Innacuracy | 3/15/2010 |
| Q: Jim I'm currently in a Commercial Retail Lease which date(s) back to 1983 The lease states that ... A: Jeff: If you are correct about the measurements of your leased premises being so excessive for so ... | |
| additional rent | 3/9/2010 |
| Q: With rent due on the first of each month: If a lease commencement date is not on the first of a ... A: Sue: The answer to your question is No. As long as your lease makes it clear that $5 was ... | |
| Rent increase dates | 3/9/2010 |
| Q: With rent due on the first of each month: If a lease commencement date is not on the first of a ... A: Sue- If you could send me the verbatim text from the lease that deals with: 1.) The "rent start ... | |
| Rent increase dates | 3/8/2010 |
| Q: With rent due on the first of each month: If a lease commencement date is not on the first of a ... A: Sue: In my experience most leases contain very specific language regarding your question and I ... | |
| rent increase | 3/7/2010 |
| Q: I was just wondering, legally what is the percentage that my landlord can increase my rent for the ... A: Mr. Minaya; If you are saying that you do not have a binding lease that contains the rental terms ... | |
| rent increase based on cpi | 3/5/2010 |
| Q: I own commercial property that is currently tied in a 10 yr lease. The lease period ends May of ... A: Jodi: This may be your lucky day. You can go to the "www.bls.gov" website which will contain more ... | |
| rent increase based on cpi | 3/4/2010 |
| Q: I own commercial property that is currently tied in a 10 yr lease. The lease period ends May of ... A: Jodi: Are you saying that you can raise the rent BASED ON THE CPI after the first ten year term? ... | |
| Commission | 3/2/2010 |
| Q: When determining Commission on a Commercial Lease, do you add Cam Fees to the Base amount before ... A: Denise- I have seen commission being calculated both ways. It is commonly related the the ... | |
| Go big or go home | 2/27/2010 |
| Q: Jim, I am looking for some sound advice pertaining to leasing 30,000ft of commercial space in ... A: Brandon- There are entire set of books published ("Friedman on Leases")that discuss all the things ... | |
| rental rights | 2/24/2010 |
| Q: I need to give you a little background on this situation. I recently took over a salon in which ... A: Shari- There is only one thing that can be done to solve your problem because otherwise I would ... | |
| Commercial landlord | 2/22/2010 |
| Q: Does the landlord have the right to demand keys of your premises and the offices within your ... A: Dan- A majority of leases address the issue of who can have a key to special locks in the tenant ... | |
| Contract for Deed | 2/9/2010 |
| Q: I have a few questions as to what my rights are for holding a Contract for Deed. We sold a ... A: Nate: I would need a copy of your agreement detailing the terms of your sale in order to advise you ... | |
| ICE COLD RETAIL SPACE | 1/16/2010 |
| Q: Our lease states A/C & HEAT will be supplied during business hours, Mon - Fri 9:00AM - 6:00PM & SAT ... A: Bruce: Often a Landlord will leave certain provisions in your lease purposely vague to give them ... | |
| CAM fees | 1/8/2010 |
| Q: I signed a 5 year lease with the owner of a multiple story medical office building in 2005. Since ... A: Jason- Landlords are in this business to make money and they know the nuances of a lease better than ... | |
| ICE COLD RETAIL SPACE | 1/3/2010 |
| Q: Our lease states A/C & HEAT will be supplied during business hours, Mon - Fri 9:00AM - 6:00PM & SAT ... A: Bruce: If your lease does not specifically address how this situation should be handled between the ... | |
| Trouble charging our tenants with CAM Charges | 12/29/2009 |
| Q: My employer purchased several properties in Texas about 5 years ago. Almost all of these properties ... A: Owen- This may be settled by the existing Landlord & Tenant law in each jurisdiction where your ... | |
| computing common space area in an office building | 12/18/2009 |
| Q: If an office building is comprised of 30,000 sq. ft. 2 floors The first floor is comprised of ... A: James- Although there are many high profile named methods of measuring space in office, retail and ... | |
| cumulative vs non-cumlative increase caps | 12/5/2009 |
| Q: can you tell me by this lease language if the CAP is cumulative or not? Operating Expense ... A: Lynn: This parties intent regarding the application of the 8% limitation in your lease provision is ... | |
| Late fees on Commercial Leases | 10/30/2009 |
| Q: Avacena, My parents have a commercial property in Washington DC and I was curious to know if there ... A: Debora- I do no residential work whatsoever and I am unfamiliar with the "L%26T Guideline" for ... | |
| Late fees on Commercial Leases | 10/27/2009 |
| Q: Avacena, My parents have a commercial property in Washington DC and I was curious to know if there ... A: Deb- You should check the website for the District of Columbia Government as they have several ... | |
| commercial lease | 10/27/2009 |
| Q: I trusted my landlord, but questioned repeatedly the sq.ft. of my space. He kept saying the arial ... A: Mary- You need to check on a few things about your lease, especially regarding your measurement. ... | |
| CAM Calculation | 10/22/2009 |
| Q: I started my commercial lease in 2007 and that's also the first year during which on 6/15/07 my ... A: Bill: You confirmed that the landlord uses a cash accounting method. Landlords have often ... | |
| CAM Calculation | 10/21/2009 |
| Q: I started my commercial lease in 2007 and that's also the first year during which on 6/15/07 my ... A: Bill- The complete answer to your question could be very long and extended; far to much to detail ... | |
| Landlord Locked Us Out | 10/18/2009 |
| Q: We have a commercial lease that ends on Nov. 30, 2009 in which case due to a fire in an adjacent ... A: Brenda: There is much information in your question, however, there are a massive amount of ... | |
| Commercial lease renewal | 10/16/2009 |
| Q: This may be a legal question, but I would still be interested in hearing your gut feeling. ... A: Tom: I am not an attorney so I cannot advise you as a legal matter. Your landlord apparently ... | |
| when to give a rental break? | 10/12/2009 |
| Q: we are landlords and a tenant who wants a rent concession is down 20% of her gross income. is there ... A: Georgia: I believe that this recession has put landlords and tenants both in the position of having ... | |
| subway | 10/11/2009 |
| Q: We just received a summons from a big Mall against my husband and myself as well as Subway for ... A: Jackie- I wish I could be of help, however, I am not an attorney. It sounds as if the gravity of ... | |
| CAM charges | 10/2/2009 |
| Q: We lease 3 separate suites in a small shopping center. We just received a bill for 2008 CAM charges ... A: Mr. Jenkins: The answer to you question depends on the details of what was done in both instances ... | |
| Cam Charge | 9/10/2009 |
| Q: Our Cam Charges have increased 3 times the original amount in 6 Years. I questioned the Property ... A: Dave- Suck it up buddy. Usually $80,000 is considered a capital expense. I would not consider it ... | |
| Non-renewal of Lease | 8/4/2009 |
| Q: Our one year lease in the state of Kentucky ended 7/31/09. The August payment due on the 1st ... A: Brian- I do not know the law in Kentucky, and in your case Kentucky law is the only law that applies ... | |
| Error in square footage stated in lease | 7/31/2009 |
| Q: Jim, 5 months into a 60-month lease I discovered the space within a suite I rented is 522 sq. ft. ... A: Barbara- The point is that there should have been a "meeting of the minds" as to what the terms of ... | |
| Error in square footage stated in lease | 7/31/2009 |
| Q: Jim, 5 months into a 60-month lease I discovered the space within a suite I rented is 522 sq. ft. ... A: Barbara- This is a very common surprise for many tenants. I will skip the historical explanations ... | |
| CAM reconciliation for mixed-use projects | 7/18/2009 |
| Q: Do you know of good guidelines for expense recovery language for mixed-use office/retail buildings? ... A: Bonita- This is a rather complex subject. However, there is a paperback book titled: "The ... | |
| Thinking | 7/18/2009 |
| Q: I never owned property before. I just have been using master card for over 15 years. I know I have ... A: Karam- There are entire books written everyday advising people how to make profit and cash flow ... | |
| finders and management fees | 6/29/2009 |
| Q: is it standard practice for the property manager to get both management fees and a finder's fee for ... A: Lori - In my experience, it is common to be paid a management fee based on the total amount of ... | |
| Commercial Property Managment Commissions | 6/25/2009 |
| Q: I am an agent for a company in Canada that own several condominium office units in a large building ... A: Summer- There is no such thing as a "standard" commission, but there is likely a common practice in ... | |
| Lease/CAM Charge | 6/22/2009 |
| Q: First I do apologize for the long message. Any help or advice is greatly appreciated. Thanks in ... A: Jay- Two comments. First, if the landlord will show you his actual expenses - those that were the ... | |
| Lease/CAM Charge | 6/20/2009 |
| Q: First I do apologize for the long message. Any help or advice is greatly appreciated. Thanks in ... A: Jay- According to this provision you are obligated to pay for 20% (1/5th) of whatever the total ... | |
| Commercial Real Estate Lease Commissions | 6/10/2009 |
| Q: What is the prevailing commission schedule for a commercial building being leased out on a 5-year ... A: Maria- There is no "prevailing commission" schedule for a commercial building being leased on a NNN ... | |
| Tenant vacated space before lease expiration | 6/5/2009 |
| Q: I had a tenant that occupied whole floor (11000sqf) in my Chicago office building. That tenant ... A: Chris- Allow me to answer your questions in order. Note that I am not an attorney and cannot ... | |
| rent reduction | 5/29/2009 |
| Q: would appreciate any help on how to approach landlord (whom I don't know) on reducing my commercial ... A: Joanne- I am sure you know that this happens to be one of the worst times ever to be needing a ... | |
| Landlord using my space for other things | 5/15/2009 |
| Q: I vacated my retail space 18 months before the lease expired and continue to pay on a payment plan. ... A: J Rod- Why did you vacate the premises if you are going to have to pay the rent anyway? You must ... | |
| A CAM Math Question | 5/15/2009 |
| Q: Lets say that a center has 20 spaces, and for sake of argument all are the exact same size. So each ... A: J Rod- Your math logic is OK but it excludes other potential explanations for the variations in the ... | |
| Landlord using my space for other things | 5/15/2009 |
| Q: I vacated my retail space 18 months before the lease expired and continue to pay on a payment plan. ... A: J Rod- The specifics of the wording of the "payment plan" you signed with the landlord could have a ... | |
| changing name on lease | 5/14/2009 |
| Q: Is there a way to change the responsible party on a commercial lease? I am poised to sign a ... A: Sharon- The lease will need to explicitly address and detail this change in responsibility for the ... | |
| Commercial lockout--still collect rent? | 5/13/2009 |
| Q: I hope you can help out. Tenant rented a commercial property from Landlord. Tenant sublet property ... A: Andrew: I will tell you what I can to help you with this situation. I am not an attorney and ... | |
| CAM expenses | 5/5/2009 |
| Q: Our building was recently sold; we have just completed the 6th year of a 10 year lease. Our new ... A: Darius- If you are certain that your lease does not require that you pay CAM expenses, there is ... | |
| Real estate management | 4/16/2009 |
| Q: Discuss issues that surround the commercial tenant’s fixtures & any other improvements that are made ... A: Ratanang- Generally,the accepted practice in leasing is that the landlord retains all of the ... | |
| personal guarranty /lease | 4/15/2009 |
| Q: Jim, I am partners with two other individuals in a restaurant venture that opened 5 months ago. We ... A: Lou- Your idea may be the best that you can do at this stage in the process. I would discuss the ... | |
| personal guarranty /lease | 4/14/2009 |
| Q: Jim, I am partners with two other individuals in a restaurant venture that opened 5 months ago. We ... A: Lou- I think another guaranty from the same two individuals already responsible for for debts of ... | |
| personal guarranty /lease | 4/13/2009 |
| Q: Jim, I am partners with two other individuals in a restaurant venture that opened 5 months ago. We ... A: Lou- Never give a written personal guaranty unless you are certain you will continue in the ... | |
| Commercial Leasing: Silicon Valley | 4/8/2009 |
| Q: Jim, My husband is a mental health professional currently leasing space under a master lease held by ... A: Mary- Please allow me to comment on the thoughts as they appear in your correspondence. If the two ... | |
| Commercial Leasing: Silicon Valley | 4/7/2009 |
| Q: Jim, My husband is a mental health professional currently leasing space under a master lease held by ... A: Mary- Medical space seems far less likely to be impacted by the economic mess than all the other ... | |
| retail store rent reduction | 3/26/2009 |
| Q: I am looking for a sample letter to present to our property manager and owner requesting a rent ... A: Ann- I have never tried writing such a "sample letter". I would be sure to include reference to ... | |
| overtime utility fees | 3/25/2009 |
| Q: i am trying to find out what is the standard fee to charge a tenant when they use utility beyond the ... A: Moshe: Sorry, I am not at all familiar with the Schenectady, N. Y. area. I do not know how many ... | |
| overtime utility fees | 3/25/2009 |
| Q: i am trying to find out what is the standard fee to charge a tenant when they use utility beyond the ... A: Moshe- There is no standard. The amount is usually whatever the actual expense is that is incurred ... | |
| Property Management | 3/24/2009 |
| Q: Jim, I am interested in knowing in the Seattle area, what are the typical CAM charge line items ... A: Marcia- I admire your straight forward, confident style of finding the information you need and ... | |
| leasing commericial property fees/comissions | 3/8/2009 |
| Q: vacant retail and restaurant in the hardest hit parts of suburban Detroit, Wayne County. 26,000 sq. ... A: Deborah- You should definitely get a retail leasing specialist to assist you with leasing the retail ... | |
| Getting out of lease | 3/6/2009 |
| Q: If I sign a three year lease and after one year go out of business and the renter go after the ... A: Luis- If your lease is worded with standard leasing terms, the landlord will very likely make every ... | |
| CAM - What should the language be | 3/4/2009 |
| Q: Jim, I have a few questions on CAM reconciliation and management fees. I am looking into renew my ... A: Mark- Landlords want tenants to accept a lease that includes vague and inclusive language to ... | |
| TI Expenses | 2/26/2009 |
| Q: I am not comfortable with the Tenant Improvements (i.e. the cost to build out the shell). My reason ... A: ABOF- There is no industry standard regarding build-out allowance, however there may be a general ... | |
| Question | 2/24/2009 |
| Q: I am helping my mom with her property. I am in the process of getting insurance and working with a ... A: MA- If this is a lease, most leases have a specific provision that details exactly what kinds of ... | |
| TI Expenses | 2/24/2009 |
| Q: I am not comfortable with the Tenant Improvements (i.e. the cost to build out the shell). My reason ... A: ABOF- As a prospective tenant, you will always be faced with determining if the landlord's offer is ... | |
| CAMS | 2/22/2009 |
| Q: I have a business in a commercial shopping center. There are about 9 different types of businesses ... A: Ash- If everyone else in the shopping center managed to negotiate a annual cap on their CAM costs, ... | |
| Commercial Lease Listing Agreement | 2/20/2009 |
| Q: I am about to sign an exclusive leasing agreement and find that there are no provisions to protect ... A: Ed- Of course you can insert a clause dealing with a default by the broker. Your agreement must ... | |
| Quiznos on campus | 2/18/2009 |
| Q: I have a Quiznos restaurant with a three 5 year option lease. My last 5 year option will begin Aug ... A: Ken- He doesn't have to calculate anything a certain way. He will come up with some figure based on ... | |
| Quiznos on campus | 2/17/2009 |
| Q: I have a Quiznos restaurant with a three 5 year option lease. My last 5 year option will begin Aug ... A: Ken- Unless your lease; especially the language related to the term extensions, includes language ... | |
| getting out of commercial real estate lease in CA | 2/15/2009 |
| Q: we have a little more than 3 years left on a 5 year commercial real estate lease in Southern ... A: Anthony- It is unlikely you can get our of your lease, unless you negotiated a very unusual ... | |
| Compensation for renegotiating commercial lease | 2/12/2009 |
| Q: Mr. Avancena. My name is Aliona. My question is the following. The company I am working for has 5 ... A: Aliona- I do not believe that there are any hard and fast rules on the brokerage situation that you ... | |
| CAM is killing me | 2/10/2009 |
| Q: I have a Subway restaurant. We purchased the store last year and have not been able to turn a profit ... A: Joe- I do not have enough information to know where to start to help you in this situation. Could ... | |
| Lease renewal | 2/3/2009 |
| Q: We just bought a small retail shopping center with 4 commercial units. The lease on one of the ... A: Dan- The answer to your questions depends heavily upon how strong the retail leasing market is for ... | |
| finish out vervage | 1/30/2009 |
| Q: gray box or green box finish out allowance. A: Albert- The definitions your request change significantly depending upon practice in each ... | |
| misplaced commercial security deposit | 1/30/2009 |
| Q: I joined a medical practice in 2001. The practice has been in the same office suite since 1982. ... A: David- This is a common problem. I believe that an attorney may need to handle this matter for you. ... | |
| real estate taxes | 1/28/2009 |
| Q: I am in the midst of a lawsuit against a prior shopping center landlord for overcharging of CAM, ... A: Angela- I have fought the specific battle you describe many times. Several things need to be ... | |
| CAM charge | 1/26/2009 |
| Q: My previous office of 3 years with the same landlord was $3 per sq. ft. I was asked to change ... A: Gena- I understand so much more now! Yet I still am not certain of the new lease terms. OK, let me ... | |
| lease contract | 1/25/2009 |
| Q: I am not licensed to manage properties nor is it my profession, however a friend has asked me to ... A: Kathleen- You should talk with a licensed attorney regarding the questions you have posed. There ... | |
| commercial security deposits in dc | 1/24/2009 |
| Q: Could you tell me if commercial security deposits need to be returned with interest in DC? A: Kevin- You should call the District of Columbia Landlord / Tenant court in the District of Columbia. ... | |
| rent abatement | 1/21/2009 |
| Q: I am looking for a sample letter to present to our property manager requesting a rent abatement. ... A: Teri: The retail world is coming apart and I am sorry to tell you that it is going to get MUCH worse ... | |
| CAM charge | 1/21/2009 |
| Q: My previous office of 3 years with the same landlord was $3 per sq. ft. I was asked to change ... A: Gena - No. Do not accept what they are doing if it isn't what they told you it would be. There are ... | |
| lock out law | 1/5/2009 |
| Q: my friend has a commercial property and the renters have not paid rent in 3 months he need to know ... A: Mike- This is a legal question regarding the law in your particular jurisdiction. Many states ... | |
| Getting Started | 12/30/2008 |
| Q: I just received my NC real estate license and am interested in getting started in the Commercial ... A: Robert- Raleigh NC is a great place to be starting in Commercial RE and a very fast growing area. ... | |
| Commercial Security Deposit | 12/30/2008 |
| Q: We have fulfilled our obligation according to our lease agreement and have relocated to another ... A: Joseph- This is largely a legal question that requires knowledge of other provisions of your lease ... | |
| My rights | 12/28/2008 |
| Q: There are 3 people on a lease for commercial property and I wasn't informed that we were behind by ... A: Angielita- The key to your questions involves determining who is legally bound and responsible in ... | |
| Back CAM Charges Michigan | 12/26/2008 |
| Q: I just ended my commercial lease in Michigan. I paid my CAM charges monthly on time for the duration ... A: Mike- You won't know the answer to your questions until you determine the true and accurate ... | |
| Commssion on Commercial Lease | 12/23/2008 |
| Q: Is it standard for Real Estate Contracts between Tenant and Broker to stated that commissions will ... A: Tim- Established commission practices are specific to each market area and product type throughout ... | |
| My rights | 12/20/2008 |
| Q: There are 3 people on a lease for commercial property and I wasn't informed that we were behind by ... A: Angielita, Unfortunately, "3 people on a lease" means various things to different people. Do you ... | |
| Paying CAM's | 12/18/2008 |
| Q: In my lease my cams include all of the buildings shared utilities. Power, Water, Gas, septic, snow ... A: Martin- If the water is not appropriate for the uses it was provided for, I believe that the health ... | |
| Lease Renewal - Option at FMV | 12/5/2008 |
| Q: I have an option to renew my lease for another 5 year term at "Fair Market Value." With the ... A: Henry- Tenants never seem to notice the ambiguity and potential risks involved with the language of ... | |
| cam charges | 12/2/2008 |
| Q: Cam has not been charged to tenants for several years altho their lease specifies it is to be paid. ... A: Larry- Back charging for past CAM charges that were overlooked is a legal matter that is addressed ... | |
| Reconciling CAM Charges | 11/29/2008 |
| Q: I am a Tenant. What does "reconcile" mean in regards to CAM charges? My landlord is attempting to ... A: Erik- Your CAM situation may be more efficiently resolved by treating it as a legal problem. ... | |
| Reconciling CAM Charges | 11/28/2008 |
| Q: I am a Tenant. What does "reconcile" mean in regards to CAM charges? My landlord is attempting to ... A: Erik- I do not understand what you mean by recovering money "lost in CAM's in the next lease year". ... | |
| Reconciling CAM Charges | 11/27/2008 |
| Q: I am a Tenant. What does "reconcile" mean in regards to CAM charges? My landlord is attempting to ... A: Erik- This is a rather complicated process to understand so do your best to make sense of my ... | |
| broker commissions | 11/20/2008 |
| Q: I recently purchased a small commercial building with one tenant. During the transaction, I was ... A: Clint- You say you have no "contract" and were "told" that you were responsible for a 6% commission ... | |
| Am I still on the hook for the remainder? | 11/17/2008 |
| Q: My business closed one and a half years into a three year lease. I am responsible for the remainder ... A: Dave- The answer to your question normally is yes. In most areas, a landlord is legally required ... | |
| commercial real estate management fees | 11/10/2008 |
| Q: Jim-We inherited five commercial rental properties recently, all with single tenants, and long ... A: Bob- Your question is difficult to answer because it involves so many considerations about each ... | |
| Commercial Leasing | 11/10/2008 |
| Q: My parents are planning on leasing our commercial building to this guy, but he has a history of ... A: Jonathan- It is always best to avoid doing business with those parties that do not honor their ... | |
| Commissions and Length of Listing | 11/3/2008 |
| Q: Can you please advise what an agents typical commission would be on real estate property with the ... A: Joni- Please allow me to answer your two questions in reverse order. There is no typical time for ... | |
| common area maintances charge | 10/27/2008 |
| Q: i am tannents @ strips center for 20 years.as per lease i am suppoesed to pay 2% cam charges.in this ... A: Al- As I understand your problem with CAM charges, there have been questionable changes - including ... | |
| Built out office | 10/23/2008 |
| Q: My wife and I have a built out office in a professional/medical building. It would be great for a ... A: Leo- No. The chances are that you could end up losing even more money. You might be mixing up ... | |
| Amortization of TI's | 10/23/2008 |
| Q: I'm a commercial property developer and broker. I continue to get a debate when pricing a lease to ... A: Fred- It sounds to me like you are correct about everything in your statement. Whatever the actual ... | |
| Built out office | 10/23/2008 |
| Q: My wife and I have a built out office in a professional/medical building. It would be great for a ... A: Leo- I am sorry to tell you that you have very little chance of recovering any of your original ... | |
| Tenant Security Deposit | 10/20/2008 |
| Q: and thank you for taking the time to help with my question. I was wondering if I put down a security ... A: Cory- I do not know the answer to your question; however it presents an interesting situation. The ... | |
| Back charges for CAM and Real Estate | 10/3/2008 |
| Q: I recently sold my business and had the last year of the lease assigned to the new owner. Everything ... A: Dana- This is a legal matter. I would be very angry about this. I have been involved with clients ... | |
| CAM Charges | 10/1/2008 |
| Q: I have a similar question to Cam charges like you answered, however I have a twist. The center I am ... A: Robert- You may not realize what you are getting into - but bravo for having the guts to consider ... | |
| commercial management fees | 9/30/2008 |
| Q: Jim: What is the average management fee charged on commercial real estate in Boston and if there is ... A: Laurel- This is a more complicated question than you might think. There really is no "average fee" ... | |
| Purchasing Bare Land | 9/26/2008 |
| Q: I am interested in learning if one can make money in real estate by just buying land in different ... A: Mike- Your idea would be a fascinating adventure if you have the funds to endure a few purchases ... | |
| commercial eviction | 9/17/2008 |
| Q: I currently am leasing a commercial store space and am behind in making payments for back rent owed. ... A: Michelle- I am not an attorney, nor do I know the particulars of the Landlord/Tenant laws in your ... | |
| Commission on Option/renewals/extension | 9/12/2008 |
| Q: Jim, I am in the process of hiring a listing agent to list my commercial unit. He is asking for a ... A: Jay- Mostly I would say you are correct, however, real estate commission agreements can have ... | |
| interest on commercial lease deposit | 9/8/2008 |
| Q: Can you please tell me if my landlord was to have placed my security deposit in an interest bearing ... A: Gary- This is a question for an attorney. I am not an attorney, nor can I give legal advice, ... | |
| broker fees in pa. | 9/8/2008 |
| Q: my husband & I are looking to sell our commercial property & business. it is located in ... A: Susan- My answer below assumes that you understand that a real estate brokers license does not ... | |
| Removing a sub-letter from a commercial premises | 9/6/2008 |
| Q: We are in NY. We sold a business with the lease still in our name with the provision that the new ... A: Karen- This is a matter that will be best addressed by an attorney - you may have to actually file ... | |
| COMMERCIAL LEASE EXPIRED | 8/27/2008 |
| Q: I HAVE A COMMERCIAL LEASE THAT EXPIRED 7/31 I PAID RENT THAT MONTH.ITS BEEN A NIGHTMARE OF A LEASE ... A: Michelle- I an not an attorney and cannot therefore provide you with any legal advice, however, in ... | |
| Commercial lease and back taxes | 8/26/2008 |
| Q: I live in Massachusetts and I am a first time small business owner. Last year an opportunity came up ... A: Allison- Since you have been kind enough to already have released me from liability for providing ... | |
| Commercial lease with option | 8/22/2008 |
| Q: I have a commercial lease with the option to buy. It is a 5 year lease renewable for one additional ... A: Tina- You live in an area that - like the old West - lacks civility. This is not really a real ... | |
| Lease office space | 8/19/2008 |
| Q: I am looking at an office space that is already built out; however, I will obviously still need to ... A: Kaye- Unfortunately the economic terms you have quoted in your question only have significance in ... | |
| Template | 8/15/2008 |
| Q: I work for a retired real estate broker, and currently the spreadsheet for I had prepared. He does ... A: Rosemary- Please send me a follow-up question, I do not understand exactly what it is that you ... | |
| 2 commercial lease questions | 8/8/2008 |
| Q: I own a small bakery in Georgia where I lease the building and have invested (stupidly) $50K towards ... A: Jill- This is a bit complicated because the specific text of your lease (more than simply the text ... | |
| Commercial Building - Updates worth it? | 8/6/2008 |
| Q: I am not positive if this is the type of question you answer or not, it is a question about what ... A: j- I would not make any upgrades to your property as it stands now other than to police the grounds ... | |
| Commercial Eviction / Lock Out | 8/5/2008 |
| Q: I am a partner in a corporation that operates 2 day care centers. In April of 2007, my partner, as ... A: Ken- I am very sorry for the problems you are having to resolve. This is clearly a matter to refer ... | |
| security deposit | 8/2/2008 |
| Q: I have a tenant who was to be out by the 30th of July. I think he moved out but never contacted me ... A: Laura- Does your tenant have a clause in his lease requiring them to return the keys to you as an ... | |
| commercial lease expired | 8/2/2008 |
| Q: I have a tenant who was supposed 2 move out the 30th of July. I think he did but he still has not ... A: Laura- The Landlord/Tenant law regarding your questions can vary depending upon where you are ... | |
| Commercial Lease | 7/31/2008 |
| Q: If a lease contains incorrect information - i.e. square footage is wrong - does this render the ... A: Carla- You have asked a question that is complicated to answer, and is primarily a legal matter. I ... | |
| Is Central Air Unit replacement Landlord responsiblity | 7/30/2008 |
| Q: We have the basic commercial lease in Massachussetts. Our AC unit was not working at maximum. So our ... A: Michelle- Your lease should address this matter with some level of specifics as to who is ... | |
| Commerical Real Estate Commission | 7/24/2008 |
| Q: I am asking in reference to a commercial space in Massachusetts. We are leasing a space in an ... A: Susan- Sorry to tell you, it is very common to pay the entire commission for the full five (5) year ... | |
| Commerical Real Estate Commission | 7/24/2008 |
| Q: I am asking in reference to a commercial space in Massachusetts. We are leasing a space in an ... A: Susan- Do you own the space you are leasing and you therefore are the landlord; or are you a tenant ... | |
| Commecial Real Estate budgeting | 7/11/2008 |
| Q: This is not specific to leases, but I would like to ask if you know of any resources for budgeting ... A: Nik- I have always relied on the various media related to the commercial property management ... | |
| CAM | 7/9/2008 |
| Q: I have read through all of your Q&A's and you are providing a fabulous service! Thank you. I am a ... A: Jan- You are either a commercial real estate management prodigy or you have had someone coaching ... | |
| CAM expenses | 7/8/2008 |
| Q: Is there any legal basis to contest CAM charges paid into a reserve account if I have signed my ... A: Brent- I still cannot believe that any tenant allows a landlord to charge them for "reserves". ... | |
| Vacant land purchase for resell | 7/7/2008 |
| Q: I would like to "lock Up" a vacant parcel in my area that I believe would be of interest for ... A: Patrick- Either earn a commission by getting a limited exclusive from either the buyer or the ... | |
| Landlord Management Fee | 6/25/2008 |
| Q: We have a new property management company for one of our stores. They are telling me that the ... A: Michaele- It is new to me also. Perhaps they are mixing up how you calculate a percentage RENT on ... | |
| starting a commercial dividion | 6/25/2008 |
| Q: I was asked to start a commercial division as part of a Santa Fe NM residential firm. I have ... A: Marvin- I love Santa Fe and have always been jealous of the inhabitants. That little train station ... | |
| Real Estate Broker Commission on a Personal Lease | 6/17/2008 |
| Q: is there a standard broker compensation on a commercial real estate lease in Maryland. A: Kim - No. Most owners and lessors in a specific market area of Maryland will commonly offer the ... | |
| landlord invoices me for items reimbursed to me | 6/12/2008 |
| Q: I received an invoice from my landlord with copies of bills that she paid from structural work on ... A: Shannon- There is much I could tell you about the incidents you have detailed in your question, ... | |
| commercial CAM charges | 6/3/2008 |
| Q: how to split and calculated CAM charges between tenants A: Powell- Interesting, but very large question! As you probably know, each tenant has their own ... | |
| appraisal | 5/23/2008 |
| Q: My husband is a doctor who was in a practice with two other partners who own their own building ... A: Mrs. Danforth, Now I understand the situation! Your clarification makes it all clear. I wish I ... | |
| appraisal | 5/22/2008 |
| Q: My husband is a doctor who was in a practice with two other partners who own their own building ... A: Mrs. Danforth: I think semantics is disrupting my understanding of your question and it would help ... | |
| customary buyers agent fee on industrial lease | 5/6/2008 |
| Q: I am an owner and a new broker and have advertized my commercial property for lease. The lease is ... A: Jim- Three percent (3%) each. Again, that is the current practice in one particular market area on ... | |
| customary buyers agent fee on industrial lease | 5/5/2008 |
| Q: I am an owner and a new broker and have advertized my commercial property for lease. The lease is ... A: Jim- Commission rates can vary depending upon the geographic area and are greatly influenced by the ... | |
| Sublease | 5/4/2008 |
| Q: I closed a sublease deal on April 16 and was scheduled to move into the property. The owner was ... A: Laura- I will need some more detailed information to be able to assist you with the problem you ... | |
| Commericial Lease with Option to Buy | 5/1/2008 |
| Q: We have a new "start-up" church and have located a building and the owner has offered Lease with ... A: Paster Witherspoon- Although the lease,sale,and rezoning process you describe may sound relatively ... | |
| commerical lease cam charges | 4/28/2008 |
| Q: Are there standards for cam charges as to what they cover? Taxes, common electric water and sewage, ... A: Nanette; Generally there are many types of CAM costs that are USUALLY included together and form a ... | |
| which should i go for first? | 4/24/2008 |
| Q: I want to get my real estate and mortgage broker license's unfortunately I'm not sure which i should ... A: Christi- I suggest you get a real estate license license first and then follow with a mortgage ... | |
| Commercial Appraiser | 4/14/2008 |
| Q: How in the WORLD can I find an appraiser in our area (SW Va) that is CERTIFIED in COMMERCIAL ... A: KP, My guess is that you do not have an abundance of commercial property in your particular area. ... | |
| retail (plaza) rates | 4/3/2008 |
| Q: I am looking at renting retail space in northern new york (40,000 pop) in a plaza setting (total ... A: Larry- If the market is "stagnant" as you have described, I would expect that you have great ... | |
| CAM | 4/2/2008 |
| Q: We lease one building in a set of 3 commercial buildings. Our landlord occupies the other 2 ... A: Elaine: My initial thought would be that a parking lot is clearly something different from a ... | |
| CAM | 4/1/2008 |
| Q: We lease one building in a set of 3 commercial buildings. Our landlord occupies the other 2 ... A: Elaine: You seem to be learning quickly! I am certain you have read all the fine print in your ... | |
| CAM | 4/1/2008 |
| Q: We lease one building in a set of 3 commercial buildings. Our landlord occupies the other 2 ... A: Elaine, You have an interesting question which may require further information to answer with any ... | |
| CAM Charges | 3/19/2008 |
| Q: I am an asset manager and we own several buildings (Class A) which we provide onsite management ... A: Allan: You are the first asset manager I have found that is concerned with what is reasonable to ... | |
| Commercial Lease Options | 3/7/2008 |
| Q: How can somebody purchase an option on a commercial lease? Are these options out there? Can ... A: Carson- Purchasing a commercial lease option may be governed by law in certain areas, I do not ... | |
| real estate development | 2/26/2008 |
| Q: I'm not sure if you can answer this or not, but I have a question about how to get into real estate ... A: Danielle- I have often thought of writing a screen play portraying the industry as it is rather ... | |
| COMMERCIAL LEASING | 2/22/2008 |
| Q: I am in the process of obtaining my broker's license and am interested in leasing commercial ... A: Mark- Although I have not made any transactions in Chicago, it is most common for office space ... | |
| Residential & Commercial Property Mgmt. IL | 2/22/2008 |
| Q: Currently I own two retail centers that I self-manage. I am in the process of starting a ... A: Connie- I do not have enough expertise to advise you regarding residential management fees, you may ... | |
| Tenant Improvements | 2/11/2008 |
| Q: We're looking at making our first move into commercial real estate space from executive office ... A: Sumeet, You should ALWAYS use a knowledgeable and responsible broker to help you acquire your ... | |
| Landlord padding CAM charges with | 2/5/2008 |
| Q: Jim, Hi there, I see that you have answered similar questions in the past and hope you may be able ... A: CAM Confused: You have a ugly problem to straighten out. Yes, the 20% administrative add-on charge ... | |
| Landlord padding CAM charges with "Management Fees" | 1/31/2008 |
| Q: Jim, Hi there, I see that you have answered similar questions in the past and hope you may be able ... A: To the CAM Confused: You must have leased a store in a shopping center where customers pay ... | |
| cpi | 1/26/2008 |
| Q: I own a property which has been leased for about 10 years with a lease that calls for an adjustment ... A: Ed, Landlord/Tenant law varies widely accordingly to the jurisdiction on whether you are entitled to ... | |
| commercial lease | 1/23/2008 |
| Q: Can I use an extension agreement to a lease where the lesees have gone to a month to month tenancy? ... A: Harry- This is a legal question and I am not an attorney. Please confirm this with an attorney in ... | |
| Commercial Lease | 1/17/2008 |
| Q: .my question is: can you get out of a commercial lease? Let me explain, we are a small retail ... A: Lisa- I am sorry for the nightmare you have been going through. What you have described is a ... | |
| CAM Expenses | 1/7/2008 |
| Q: What specific expenses should be included as Common Area Maintenance and which should be excluded? ... A: Tom- It is acceptable to include property taxes in the CAM portion of the rent in the future as long ... | |
| CAM Expenses | 1/4/2008 |
| Q: What specific expenses should be included as Common Area Maintenance and which should be excluded? A: Tom: The specific expenses included as CAM Expenses will be different depending upon what type of ... | |
| Pro-Rata CAM Charges | 12/10/2007 |
| Q: We assumed a lease a couple years ago for a commercial property that has a CAM charge of around ... A: Jeff- You are asking me two questions without knowing it. What do you mean by "assumed"? Are you ... | |
| Commision on a commercial lease | 11/28/2007 |
| Q: Exactly how is the commision to a buyer's agent calculated on a commercial lease? If it states a ... A: Kent: Normally, once a transaction progresses to the point that it appears probable a commercial ... | |
| charge for cam and snow removal | 11/18/2007 |
| Q: I have a business of renting to residential properties and the tenant is responsible for snow ... A: Dina- If I understand you correctly, what you described is exactly how all of the snow is removed ... | |
| what is standard practice? | 11/8/2007 |
| Q: We are speaking with a broker about leasing some oil tanks for us. He is asking for a 6% commission ... A: Nancy- Oil tanks seem to me a specialized market that may have very different accepted practices ... | |
| Commercial Lease commisions | 11/6/2007 |
| Q: I am a recently licensed Broker in Illinois and have made the move from residential to commercial ... A: Andrew: Don't be shy. You are a Broker, you have apparently a strong relationship with this single ... | |
| Commercial Subleaseing | 11/2/2007 |
| Q: If I hired a brokers to represent me in subleasing my current office space, why should I have the ... A: Gwen- About twenty years ago the commercial real estate industry became a step more specialized when ... | |
| Closing a business | 10/22/2007 |
| Q: I currently own a business that is located in a 1200 sq. ft. space. I have a 3 year lease and I ... A: Caroline- This should be a very long and involved answer, others have written books that answer your ... | |
| Commercial leasing protocol | 10/12/2007 |
| Q: Jim, I am a licensed real estate salesperson in Texas. I am currently working for a dentist who ... A: Jim- You will learn a lot in this process! First, 2,400 square feet for a dental office is very ... | |
| signage | 9/25/2007 |
| Q: We are leasing a building for our restaurant--the owners of the building have there sign out fron of ... A: Brendan: I am very sorry to tell you the answer to your question is, no. However, have you checked ... | |
| commercial lease | 9/6/2007 |
| Q: We have a small building that I will be manging once it is completed. Where can I find lease ... A: Trang- The Institute of Real Estate Management (IREM) on Michigan Avenue in Chicago has many ... | |
| How to find office space I can rent or sublet one or two days a week? | 9/6/2007 |
| Q: I'm a paychotherapist in private practice. I need to find an office to rent only 1-2 days per week, ... A: Laura- Your requirement is never easy to find. Everyone I have met that was in your situation seems ... | |
| business? | 8/31/2007 |
| Q: i want to start a junk yard and i like to know what kind of land should i be looking for A: Hastings: Contact whatever government entity (municipal, county, state, etc.) that would have ... | |
| capital improvements | 8/29/2007 |
| Q: I am negotiating leasing out a 6,000 sq ft commercial space I own. I am willing to make some ... A: Frank- No, there is no "standard percentage range". Do you mean that you are willing to make some ... | |
| Leasor Rights | 8/26/2007 |
| Q: We own a small business in a redevelopment area in a resort town. Our business relies on a heavy ... A: MaryAnn- Clearly this is a matter that should be handled by an attorney, however, I will tell you ... | |
| leasehold improvements | 8/22/2007 |
| Q: I am looking to lease a 1600 sq ft office/warehouse that will need about $15,000 in improvements to ... A: Dustin- "Usually" doesn't apply to this situation except when we have knowledge of all of the ... | |
| CAM charges | 8/20/2007 |
| Q: The fire inspector has required us to replace the sprinklers in an industrial building. The tenant ... A: Judy- Unless there is no lease yet on this space, this should be very easy to resolve. How does the ... | |
| Question | 8/17/2007 |
| Q: With property foreclosures on the rise and home prices either declining or at a stand still in most ... A: B: I get this question constantly now. The answer of course will be highly subjective depending ... | |
| live in a warehouse | 7/26/2007 |
| Q: Can you live in a warehouse? is there special permit required? I want to buy a warehouse and convert ... A: Sid, Depending upon what city, county or state that you live in there will be a government office ... | |
| Recoup investment on leasehold improvements? | 6/20/2007 |
| Q: My commercial lease expires in a few months. I made a lot of improvements to the space to get it ... A: Chris: I wish I could give you a positive answer to your question. Your landlord has likely ... | |
| commercial lease renewel | 5/23/2007 |
| Q: I have been a tenant in a building for ten years I have paid my rent and all re- taxes and c.p.i ... A: Peter: Your situation is not uncommon, although frustrating. I suggest you hire a retail broker ... | |
| Commercial Office Lease | 3/17/2007 |
| Q: When I lease a commercial office space, is it absolutely necessary to hire an attorney to go over ... A: Mike- Although real estate attorneys and realtors deal in many of the same issues, each has ... | |
| Lease options questions | 2/14/2007 |
| Q: I'd like to lease my property and building which is currently a restaurant. The tenant wants a 20 ... A: Ron- There are many options; each with certain benefits and associated risks. There will also be ... | |
| CAM Charges | 2/1/2007 |
| Q: Is the garden center considered a building and part of the structure to prorate the square footage ... A: Jay- You would be pleased if I said there is a hard and fast rule in the retail commercial real ... | |
Commercial Real Estate Investment
Answers by Expert:
Jim Avancena, CPM
Top Expert on this page
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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