Manage episode 295752857 series 2636060
Red flags. They are everywhere in life. An email shows up with a suspicious link. A call comes in trying to sell you a car warranty (do they know I drive a 10-year old car with 110,000 miles on it?). On today's episode Bob and Jan discuss red flags when it comes to your commercial real estate lease and what to do about them.
Today's topic aligns closely with a podcast we had two weeks ago regarding operating expenses - the bane of a tenant's life! Most of these red flags tie directly back to operating expenses in one way or the other.
- A significant jump in operating expenses (also known as additional rent).
- Change in property ownership/property management.
- Building undergoing capital improvements or renovations.
- Your lease is commencing/expiring.
- Sizable shifts in building occupancy levels.
- No or unlimited backup supplied to annual reconciliation statements.
- Building or landlord is in financial straits.