Have a Question? We have the answer – Select the category below that most accurately applies to your question. Ask your question anonymously if you so choose and receive answers from the category specialists. It’s just that easy. With CRE-Advice.com you can expect prompt answers from real experts. This is just one of the differences between a directory and a community. Our ASK an EXPERT section is a valuable source of commercial real estate intelligence. Feel free to browse other questions and answers in other categories.

Categories:

Auctions	General Question	Hospitality	Industrial Sales \| Leasing
Industrial Tenant Rep	Land	Medical Office	Mobile Home Parks
Multifamily	Office Sales \| Leasing	Office Tenant Rep	Property Management
Retail Sales \| Leasing	Retail Tenant Rep	Net Leased Investments	Self-Storage

Office Tenant Rep

Add Question:

Name:	optional
Email:	optional
Your Question:		Thank you for your question. Our experts have been notified and will respond within 24 hours. If you leave your email address you will be notified when answers start to appear.

I am currently reviewing several options to relocate our offices. Rents are being offered at gross and full service. Doesn't seem to be much consistency in the way they are offered. How do I compare the two?

Related Answers:

Posted by: Lynch, Kevin Arlington Heights	There are so many interpretations of gross and full service gross rent. Assume nothing. Every lease has to be read and understood. Current expenses should be provided so you can understand real estate tax and operating stops. Also, now is the time to evaluate each landlord. Will they be around in two years? Get a broker that knows the market and hire the broker to review the lease. In the end, a good broker will be negotiating the lease for you.
Posted by: Arnold, Walt Albuquerque	In the office market, gross and full service are different words for the same thing. They both mean that all expenses are included in the rent. The only charge to the tenant is the rent. Most office leases will establish a base year or expense stop for operating costs, and if the operating costs increase the increase is passed through to the tenant on a pro-rata basis in the form of increased rent. Leases establish different ways to calculate this increase. Be diligent when analyzing the different ways costs will be passed through to the tenant
Answer this question

Im interested in leasing a 5,000 square foot commercial property. What financial factors do I need to consider when negotiating a lease?

Related Answers:

Posted by: Lynch, Kevin Arlington Heights	A commercial lease is usually a very detailed legal document which clearly described who is responsible for what. The lease should be the summation of all agreements during the offer phase in negotiations. Expenses that should be discussed in the lease include the rent, escalations and how they are determined (i.e. annual increases, CPI increases...), real estate taxes/tax stop, building insurance/insurance stop and maintenance expenses/CAM charges. Additionally, you should understand who pays for utility costs, internet, phones, janitorial... If the building is not fully occupied, you have to determine the possible expenses such as a real estate tax increase due to a change in increased occupancy at a later date. A lease on a multi-tenant property may be "net", gross, or some other version. Assume nothing. Every lease has to be read and understood. Current expenses that are known should be provided so you can understand real estate tax and operating stops and some of the other possible expenses. Also, now is the time to evaluate each landlord. Will they be around in two years? Get a broker that knows the market and hire the broker to review the lease. In the end, a good broker will be negotiating the lease for you and your counsel.
Answer this question