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Making sense of a commercial lease isn’t easy, particularly if you haven’t signed one before. There are many new terms to learn and many differences from residential leases. For example, a commercial landlord can sometimes pass maintenance requirements on to their tenants. If your landlord does perform maintenance and provides certain amenities, they will likely pass those expenses on to you in the form of common area maintenance (CAM) fees. What kinds of amenities will commercial landlords include in CAM fees, and how much will they cost you? CAM fees pay for services that benefit the entire building Perhaps you rent just the single retail storefronts in a small roadside mall. Maybe you occupy a small office space in a larger facility. Amenities in and outside of the building used by all of the tenants or their visitors may contribute to the fees you pay. For example, centralized security services, shared bathroom facilities and parking lots can all be part of the common areas that your CAM fees help pay to maintain. Utilities in areas shared by all tenants or throughout the building may factor into CAM fees. The same is true of landscaping, sidewalk maintenance and even repairs to the building. Generally, landlords can include most any reasonable maintenance expenses in the CAM fees they assess. However, you may be able to negotiate how much you pay, whether you ask for a reduced flat-rate fee for a lower percentage because you will have fewer customers or staff members making use of the space than other tenants in the building. Understanding the fees charged in your commercial lease can help you better negotiate beneficial terms.

Making sense of a commercial lease isn’t easy, particularly if you haven’t signed one before. There are many new terms to learn and many differences from residential leases. For example, a commercial landlord can sometimes pass maintenance requirements on to their tenants. If your landlord does perform maintenance and provides certain amenities, they will likely pass those expenses on to you in the form of common area maintenance (CAM) fees. What kinds of amenities will commercial landlords include in CAM fees, and how much will they cost you? CAM fees pay for services that benefit the entire building Perhaps you rent just the single retail storefronts in a small roadside mall. Maybe you occupy a small office space in a larger facility. Amenities in and outside of the building used by all of the tenants or their visitors may contribute to the fees you pay. For example, centralized security services, shared bathroom facilities and parking lots can all be part of the common areas that your CAM fees help pay to maintain. Utilities in areas shared by all tenants or throughout the building may factor into CAM fees. The same is true of landscaping, sidewalk maintenance and even repairs to the building. Generally, landlords can include most any reasonable maintenance expenses in the CAM fees they assess. However, you may be able to negotiate how much you pay, whether you ask for a reduced flat-rate fee for a lower percentage because you will have fewer customers or staff members making use of the space than other tenants in the building. Understanding the fees charged in your commercial lease can help you better negotiate beneficial terms.

Commercial leases sometimes include a build-to-suit provision that enables the business moving into the space to have it designed or remodeled in a specific manner. This gives them the option to have the building’s layout meet their needs in a very specific manner — without worrying about tying up their capital in any real estate before they are ready. But what if a business owner wants the option to purchase eventually? A purchase option that’s built into the lease can make that a real possibility and help keep plans for the future open. Why is a purchase option beneficial in a build-to-suit lease? Finding an ideal location for your business is sometimes difficult to do and building new construction is costly. When you find these via a build-to-suit lease, the last thing that you need to find out is that the building is being sold. When you have a purchase option put into the build-to-suit lease contract, you get the first chance to buy the property if the current owner puts it up for sale. There are usually terms in the contract that specify when and how this can be done, so be sure that you double-check those to ensure that they reflect what you discussed during the negotiations for your space. Review your purchase options carefully before you sign that contract Anyone who’s considering a build-to-suit lease should ensure they review the contract in its entirety. This gives you a chance to verify that you understand all terms and conditions that may apply — and that prevents unpleasant surprises down the road.

Commercial leases sometimes include a build-to-suit provision that enables the business moving into the space to have it designed or remodeled in a specific manner. This gives them the option to have the building’s layout meet their needs in a very specific manner — without worrying about tying up their capital in any real estate before they are ready. But what if a business owner wants the option to purchase eventually? A purchase option that’s built into the lease can make that a real possibility and help keep plans for the future open. Why is a purchase option beneficial in a build-to-suit lease? Finding an ideal location for your business is sometimes difficult to do and building new construction is costly. When you find these via a build-to-suit lease, the last thing that you need to find out is that the building is being sold. When you have a purchase option put into the build-to-suit lease contract, you get the first chance to buy the property if the current owner puts it up for sale. There are usually terms in the contract that specify when and how this can be done, so be sure that you double-check those to ensure that they reflect what you discussed during the negotiations for your space. Review your purchase options carefully before you sign that contract Anyone who’s considering a build-to-suit lease should ensure they review the contract in its entirety. This gives you a chance to verify that you understand all terms and conditions that may apply — and that prevents unpleasant surprises down the road.

When you make your living as a real estate developer, you soon learn to sniff out potential problems. Yet, if you are new to the game, there are plenty of pitfalls that could drain your finances and end your grand designs before you have started. Every industry has people willing to take advantage of others’ naivety, yet the stakes are much higher in real estate investment because of the considerable money involved. Proceeding with calm is crucial to making your way in the industry. Thorough research is vital before a real estate investment Here are a few things that could catch you out: Zoning laws: Understanding what you can and cannot do in a particular area is crucial. Remember zoning may change in the near future if other developers have their plans approved. For instance, you want to develop a piece of land for industrial use, yet if a rival developer gets the go-ahead for residential housing in a nearby area, the council may change the zoning laws to stop industrial use for several miles. Weather: You need to think far ahead if you want your investment to last. Consider how the area you intend to buy will fare in the increasingly hot and dry climate. Will it have water or be at risk of a forest fire? Planned projects that do not go ahead: The local government announces plans for 500 new houses. You see the opportunity for a set of shops to serve them. Yet, if the housing gets canceled, you will have no market for the land you bought. Plans you are not aware of: It is impossible to know all the ideas in people’s heads. Yet, the wider you cast your research net, the more likely you are to find out. It takes time and experience to do the research needed to ensure your first commercial real estate purchase does not become your last. Do not be afraid to ask for help.

When you make your living as a real estate developer, you soon learn to sniff out potential problems. Yet, if you are new to the game, there are plenty of pitfalls that could drain your finances and end your grand designs before you have started. Every industry has people willing to take advantage of others’ naivety, yet the stakes are much higher in real estate investment because of the considerable money involved. Proceeding with calm is crucial to making your way in the industry. Thorough research is vital before a real estate investment Here are a few things that could catch you out: Zoning laws: Understanding what you can and cannot do in a particular area is crucial. Remember zoning may change in the near future if other developers have their plans approved. For instance, you want to develop a piece of land for industrial use, yet if a rival developer gets the go-ahead for residential housing in a nearby area, the council may change the zoning laws to stop industrial use for several miles. Weather: You need to think far ahead if you want your investment to last. Consider how the area you intend to buy will fare in the increasingly hot and dry climate. Will it have water or be at risk of a forest fire? Planned projects that do not go ahead: The local government announces plans for 500 new houses. You see the opportunity for a set of shops to serve them. Yet, if the housing gets canceled, you will have no market for the land you bought. Plans you are not aware of: It is impossible to know all the ideas in people’s heads. Yet, the wider you cast your research net, the more likely you are to find out. It takes time and experience to do the research needed to ensure your first commercial real estate purchase does not become your last. Do not be afraid to ask for help.

Three industrial warehouses were recently acquired in Colton, about an hour away from Los Angeles. The properties, which offer commercial leases, are adjacent and span more than 740,000 square feet. A real estate investment firm ended up buying the properties, which a large real estate investment trust owned. One of the three properties quickly ended up being leased to the company Mattress Firm.  Meanwhile, the other properties were recently in lease negotiations. Multiple competitive bids on the properties were received from top-quality prospective tenants. The reason these properties have been in such high demand is that they are prime rental spaces. In fact, rental prices in the region in which these buildings are located have increased more than 7 percent during the past year. The warehouses feature loading that is dock high, sprinkler systems and office space that is state of the art. In addition, the minimum clear heights at the properties range from a convenient 32 feet to 36 feet. The city of Colton is particularly desirable because it offers lower utility rates compared with surrounding areas. On top of that, the properties’ area is close to State Route 60, Interstate 10 and Interstate 215, thus offering easy access to other parts of the region. Purchasing properties that feature commercial leases can be exciting due to the revenue-generating potential that comes with such properties. However, completing a commercial real estate deal can also be tricky and often overwhelming. Fortunately, a savvy Los Angeles attorney can provide the direction needed to complete a commercial real estate deal confidently and successfully. Source: inlandempire.us, “ 743,000 Square-foot Industrial Sale in Colton California “, March 26, 2018

Three industrial warehouses were recently acquired in Colton, about an hour away from Los Angeles. The properties, which offer commercial leases, are adjacent and span more than 740,000 square feet. A real estate investment firm ended up buying the properties, which a large real estate investment trust owned. One of the three properties quickly ended up being leased to the company Mattress Firm.  Meanwhile, the other properties were recently in lease negotiations. Multiple competitive bids on the properties were received from top-quality prospective tenants. The reason these properties have been in such high demand is that they are prime rental spaces. In fact, rental prices in the region in which these buildings are located have increased more than 7 percent during the past year. The warehouses feature loading that is dock high, sprinkler systems and office space that is state of the art. In addition, the minimum clear heights at the properties range from a convenient 32 feet to 36 feet. The city of Colton is particularly desirable because it offers lower utility rates compared with surrounding areas. On top of that, the properties’ area is close to State Route 60, Interstate 10 and Interstate 215, thus offering easy access to other parts of the region. Purchasing properties that feature commercial leases can be exciting due to the revenue-generating potential that comes with such properties. However, completing a commercial real estate deal can also be tricky and often overwhelming. Fortunately, a savvy Los Angeles attorney can provide the direction needed to complete a commercial real estate deal confidently and successfully. Source: inlandempire.us, “ 743,000 Square-foot Industrial Sale in Colton California “, March 26, 2018

A lease governs a tenant’s and landlord’s entire rental relationship. This includes what both sides’ duties are, the rent amount and what should happen if either side fails to comply with the terms of the lease. For this reason, understanding how leases work, especially commercial leases, is critical for aspiring tenants in Los Angeles. Business owners who operate retail establishments and are looking for commercial leases may benefit from insisting upon a type of provision that will prevent their landlords from renting any space near them to their competitors. They may also want to spell out any and all conditions under which they can break free from their leases, as well as what the notice requirements are. Furthermore, if a dispute arises, how will it end up being resolved? Detailing this in a commercial lease can be advantageous as well. Another important consideration when pursuing a commercial lease is ensuring that the lease agreement features spatial specifications. In other words, it may be helpful to have the lease spell out the amount of space being rented as well as what areas are included. After all, landlords’ measurements tend to be exaggerated. If would-be tenants end up finding discrepancies in the reported and the actual space amounts, this may be an invaluable bargaining tool. Negotiating a commercial lease is just another part of doing business, but that does not mean a business owner has to go about the process alone. A qualified real estate attorney in Los Angeles with knowledge of commercial leases can help the business owner to negotiate his or her lease effectively. The attorney’s goal is to ensure that the business owner’s rights are protected and promoted before he or he signs on the dotted line. Source: findlaw.com, “ Commercial Lease Negotiation Checklist “, Accessed on Feb. 6, 2018

A lease governs a tenant’s and landlord’s entire rental relationship. This includes what both sides’ duties are, the rent amount and what should happen if either side fails to comply with the terms of the lease. For this reason, understanding how leases work, especially commercial leases, is critical for aspiring tenants in Los Angeles. Business owners who operate retail establishments and are looking for commercial leases may benefit from insisting upon a type of provision that will prevent their landlords from renting any space near them to their competitors. They may also want to spell out any and all conditions under which they can break free from their leases, as well as what the notice requirements are. Furthermore, if a dispute arises, how will it end up being resolved? Detailing this in a commercial lease can be advantageous as well. Another important consideration when pursuing a commercial lease is ensuring that the lease agreement features spatial specifications. In other words, it may be helpful to have the lease spell out the amount of space being rented as well as what areas are included. After all, landlords’ measurements tend to be exaggerated. If would-be tenants end up finding discrepancies in the reported and the actual space amounts, this may be an invaluable bargaining tool. Negotiating a commercial lease is just another part of doing business, but that does not mean a business owner has to go about the process alone. A qualified real estate attorney in Los Angeles with knowledge of commercial leases can help the business owner to negotiate his or her lease effectively. The attorney’s goal is to ensure that the business owner’s rights are protected and promoted before he or he signs on the dotted line. Source: findlaw.com, “ Commercial Lease Negotiation Checklist “, Accessed on Feb. 6, 2018

Thanks to the advent of technology, machines may end up dictating real estate’s future in Los Angeles and other parts of California. After all, start-up real estate companies are trying to pinpoint new ways of selling not only residential property but also properties featuring commercial leases. This may result in cost savings that will benefit buyers and sellers as well as business owners interested in leasing spaces in commercial buildings. A company in Silicon Valley, known as Zenplace, utilizes a tablet for renting hundreds of properties throughout the northern part of the state. The company has made the whole leasing process more efficient so that the process takes between 15 and 20 minutes instead of days or even weeks. A real estate agent who is licensed essentially controls a robot remotely so that prospective buyers can tour a property with the robot’s help, for example. With the newest technologies, leasing agents can now do between 15 and 20 showings per day. In the past, agents were able to complete only three to four showings each day. The reason for the drastic change is that factors such as individuals running late, parking and traffic are no longer an issue when the agent can operate remotely. The changes taking place in the real estate world may seem exciting to business owners interested in commercial leases. However, some things do not change — such as the need to thoroughly review lease agreements and negotiate them effectively. A qualified attorney in Los Angeles can provide the necessary guidance to ensure that a business owner’s best interests are protected before he or she signs on the dotted line of a lease agreement. Source: wtkr.com, “ Are robots the future of real estate? “, Feb. 13, 2018

Thanks to the advent of technology, machines may end up dictating real estate’s future in Los Angeles and other parts of California. After all, start-up real estate companies are trying to pinpoint new ways of selling not only residential property but also properties featuring commercial leases. This may result in cost savings that will benefit buyers and sellers as well as business owners interested in leasing spaces in commercial buildings. A company in Silicon Valley, known as Zenplace, utilizes a tablet for renting hundreds of properties throughout the northern part of the state. The company has made the whole leasing process more efficient so that the process takes between 15 and 20 minutes instead of days or even weeks. A real estate agent who is licensed essentially controls a robot remotely so that prospective buyers can tour a property with the robot’s help, for example. With the newest technologies, leasing agents can now do between 15 and 20 showings per day. In the past, agents were able to complete only three to four showings each day. The reason for the drastic change is that factors such as individuals running late, parking and traffic are no longer an issue when the agent can operate remotely. The changes taking place in the real estate world may seem exciting to business owners interested in commercial leases. However, some things do not change — such as the need to thoroughly review lease agreements and negotiate them effectively. A qualified attorney in Los Angeles can provide the necessary guidance to ensure that a business owner’s best interests are protected before he or she signs on the dotted line of a lease agreement. Source: wtkr.com, “ Are robots the future of real estate? “, Feb. 13, 2018