What are controllable CAM costs?

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...

All The Nets

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...

GLA = Gross Leasable Area

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...

NNN Lease

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...