Presentation on theme: "By Aaron Doughty. Determine Space Requirements Location Amenity and Service Requirements Parking Number of employees/ offices etc Survey the Market/ Selection."— Presentation transcript:
Determine Space Requirements Location Amenity and Service Requirements Parking Number of employees/ offices etc Survey the Market/ Selection of Property Loopnet.com sign up for free membership (MLS for commercial properties) Proposal Process Letter of Intent (See Attached Handout)
Lease Negotiations #1 Recommend an Attorney No such thing as a standard lease agreement How do I get Paid?? Just like residential, all commissions are negotiable typically 3-6% of the gross lease value. Make sure you confirm with the other agent what the commission is in writing. See attached handout.
Leasing Terms and Definitions Base Rent- A set amount used as a min rent in a lease with provisions for increasing the rent over the term of the lease. Base Year- Actual taxes and operating expenses for a specified base year, most often the year the lease commences. Common Area- Two Types Building common area that affect the Load Factor, which include lobbies, corridors, restrooms etc. Exterior common areas such as sidewalks, parking lots, outdoor lighting, of which the tenant usually pays a prorata share.
Leasing Terms and Definitions Escalation Clause- A clause in a lease which provides for the rent to be increased. Full Service /Gross Lease- An all inclusive rental rate that includes operating expenses. Usually includes taxes, insurance, common area maintenance, utilities, janitorial, etc. (typically office space) Net Lease /NN or NNN lease- A lease where the tenant pays rent plus all expenses such as taxes, insurance, utilities, janitorial, repairs etc. Usable Square footage- Space within demising walls Rentable Square footage- Usable plus tenants pro-rata share of Building Common Areas such as restrooms, lobbies etc.
Leasing Terms and Definitions Tenant – Lessee Landlord- Lessor Tenant Improvements- Improvements made to the premises by or for a tenant. Generally in the negotiations some detail of the improvements will be outlined in a work letter. Trade Fixtures- Personal property that is attached to a structure that are used in the business. Since this property is part of the business and not deemed to be part of the real estate, it is typically removable upon lease termination.
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