As a landlord the best return from real estate is where the asset is positioned for best use and where your recoveries meet or exceed 100%.
As a Tenant the rents paid can sometimes comprise a major component of the business expense and require careful budgetary consideration.
The type of business and motivation of both parties at deal time will dictate the financial arrangement. Consider the two most common types of Leases generally know as a Net Lease (Triple net) and a Gross Lease.
1. Gross Lease - Where the tenant pays a set or flat rental amount and the Landlord is responsible for any additional Common area or Property tax expenses.
2. Net Lease - in Commercial real estate this type of lease requires the Tenant to pay in addition to the market rent, some or all of the other expenses normally paid by the Owner.
While not much has changed by way of definition on the above, the Covid - 19 pandemic certainly has changed priorities and expectations such that Landlords and Tenants have in some cases revisited their lease obligations and repositioned the Terms.
At Molina Real Estate we incorporate years of experience working with landlord centric leases to assist in your transaction and help you navigate the terms. There are situations where the lease type can be renegotiated.
In contrast are you a Landlord looking to move things forward with your tenant, looking to clean up receivables and improve cashflow by moving things forward?
Contact us to review your specific business needs and let us work with you to develop a strategy that makes financial sense.