Commercial Real Estate Blog

CAM Expenses There are expenses included in a commercial lease agreement that can be controlled, because they can be competitively priced or bid upon by competing companies. These include services like landscaping, repaving a parking lot, or trash removal. The...

What is a Net? A “net ” is an expense that is a cost incurred by owning a property.  There are usually 3 main costs, which are: property insurance, real estate taxes, and operating expenses (or common area maintenance expenses). What kind of commercial...

There are three main expenses that each landlord has to pay.  The only source of income for the landlord is the rent that is paid by the tenants, so either the costs will be included in the cost of rent (gross lease) or they will be charged separately and...

The GLA should refer to the entire property, including the space that each tenant occupies, and any common or shared areas, such as parking lots, restrooms and hallways. The GLA is the denominator in the equation the landlord will use to determine a tenant’s...

The three “nets ” or payments (besides rent) for a commercial real estate lease are: taxes, insurance, and common area maintenance/operating expenses.  A lease agreement with base rent, plus the net payments, is referred to as a triple net, or NNN, lease. Is...