Selling and Leasing of Commercial/Office Property

Selling and leasing commercial and office property requires specialized knowledge and skills. Nothing affects the value of income real estate more than the tenants and leases for the property. Finding good quality tenants with financial stability is important for your cash flow and affects the value of your property. Recognizing this fact, Century Sales & Management, LLC has a commercial tenant screening application and process to help owners assess the financial stability of a potential tenant. The other key to maintaining a property’s value is well negotiated and properly drafted leases.

As most office and commercial property owners are aware, commercial leases are quite lengthy and comprehensive. The various clauses in a lease do have direct impact on how the property will operate. Century Sales & Management, LLC is familiar with commercial leases and the impact they have on owners from both a financial perspective as well as an operational standpoint. In lease negotiating, Century Sales & Management, LLC provides helpful input on:

1. Market Rent: What is the market rate for rent for the type and quality of space that you have available? Who is your competition and what are they offering?
2. Rent Schedule: How should the rental rate be structured to protect the value of the property during the duration of the lease?
3. Passthrough Costs: What costs will you as the owner potentially incur? Will you passthrough those costs to the tenant (i.e. real estate taxes, insurance, common area maintenance costs as in a net, net, net lease) or will you, the owner, bear the costs of these items? Will any increases in these costs be passed through?
4. CAM Administration: If the lease is a net, net, net lease or a partially net lease, how are the passthrough costs administered and accounted for?
5. Buildout Costs: If a space is not finished or needs to be renovated, approximately how much will it cost to finish the space? Are you offering a build out allowance? What happens if the buildout costs exceed what you are offering?
6. Tenant Compatibility: Will this tenant work well with other existing tenants in the space? Are there any anti-competitive clauses in other leases that prohibit this type of tenant from moving in? Are there parking issues that need to be addressed?
7. Renewal Clauses: Are these clauses in your best interests? If allowed, how will the rent be determined?

These are just a few of the issues that will arise while leasing commercial space. It is important for, you the owner, to have a lease in place that protects the value of your investment and provides a good cash flow. Both of these stem from having a well negotiated lease with a good quality tenant. Let Century Sales & Management, LLC assist you in finding new tenants for a building or in negotiating existing leases.

Contact Century Sales & Management.