Long Beach Office News

Case and point to use a Tenant Representative working exclusively for you, dedicated to your results.

A Current client approached established landlord for Class A space prior to contacting Encon Commercial to secure warehouse space in Los Angeles. Encon Commercial picked up the assignment thereafter. Two deals presented with equal space and equivalent landlords. Tenant Rep., beat Landlord rep., on all major economic points with real money savings and increasing our client’s bottom line. And, besides being a free service to the client, the sole objective is to win the space and save money for the tenant.

As always, we live that work with passion. Results negotiated were more free rent, lower rate and less security deposit, adding 2 + months of “Free rent equivalent” when all totalled. It is rare to see two deals side-by-side, but it is not rare for us to save our clients money across the board, and again, confirming why we focus on the tenant year in and year out.

Yes it is true that the building you rent may be sold without your knowledge by the landlord while you are occupying for a higher price, which results in a new landlord and an incease in YOUR expenses due to a higher annual taxable basis. Best case negotiate away any one time increase in taxes due to a sale.

Note for 2019, insurance requirements by landlords are on the rise, not just for the amount of coverage, often doubling and tripling, but also the addition of new coverage catagories designed to fully protect landlords’ assests at tenants’ expense; no end in sight and no industry standards to rely on!

Negotiate in advance. As always, check the requirements per the lease well before negotiating the final lease rate and know that a lower lease rate is the single most effective way to adjust the overall costs wherever one may find them in the lease. As John Scatoloni notes, “Be prepared to pay for more higher coverage as insurance becomes a barrier for businesses in leasing space”.

Contact Encon Commercial for more strategies to reduce and minimize additional costs in leasing commercial space.

Tenant Tip: Ask the benefits of buy vs. lease; with rising lease rates over three years and limited availability, purchasing may be the better way to create wealth and protect against inflation and market ups & downs. Ask us how and view our easy to under

stand comparison.

https://www.inc.com/geoffrey-james/its-official-open-plan-offices-are-now-dumbest-management-fad-of-all-time.html

Contrary to popular belief, a “Gross Lease” does not protect the tenant against annual increases in rent, annual increases in taxes after the first year, nor an increase in taxes due to a sale of the property.

Be Aware and Plan Accordingly!

GETTING TO THE DETAILS:

Finding the ideal commercial real estate property to meet all of your specific needs and preferences can be a real challenge, especially in hot markets where the prime spaces go quickly. Once you find that perfect space for your commercial needs, it can be tempting to sign the contract without going through all of the details. Here are a few key details to look for when examining the leasing contract:

UTILITIES RESPONSIBILITIES:

Like residential leases, commercial properties vary in the utility payment agreement. Take care to ensure that you understand what your responsibilities will be in paying for specific utility bills. Commercial leases often use a different set of legal terms to describe the responsibilities, so be sure that you understand the exact meanings of any unfamiliar terms in the agreement.

INSURANCE: In most commercial leases, the landlord does not cover the business equipment of the tenant. For this reason, it is imperative that you understand the coverage provided and take the necessary steps to ensure that you have adequate protection for all of your business equipment and office supplies.

In most commercial leases, the landlord does not cover the business equipment of the tenant. For this reason, it is imperative that you understand the coverage provided and take the necessary steps to ensure that you have adequate protection for all of your business equipment and office supplies.

UNDERSTANDING FEES: When going through the contract, you may find that there are a variety of fees that are not expected and are potential deal breakers. Talking to your future landlord may prove invaluable in negotiating these fees down so that you can put yourself in position to get the best deal.

When going through the contract, you may find that there are a variety of fees that are not expected and are potential deal breakers. Talking to your future landlord may prove invaluable in negotiating these fees down so that you can put yourself in position to get the best deal.

SUBLEASE OPTIONS: Although it is never ideal to have to break a lease, you should know your options if you need to get out of the contract. Every commercial lease contract should have a section clearly detailing your options.

Although it is never ideal to have to break a lease, you should know your options if you need to get out of the contract. Every commercial lease contract should have a section clearly detailing your options.

INSIGHT:

Just a few topics mentioned above that come up in our discussions with you regarding leasing. We can teach you how to have a keen eye to detail and help ensure that you understand all of the parameters of your contract before signing.