Commercial Lease Total Rent Exposure Part 3
By Forrest Blake, Senior Vice President of SVN Commercial - Phone 310-850-2381 - CalBRE Lic # 01054174
Decision makers must have a clear picture of the total occupancy cost to eliminate surprises and to maintain cash flow and profitability. An accurate budget with both variable and fixed expenses will help the team make the right decision between staying in the current building or relocating.
In our last video, we focused on the impact of property tax increases on your total occupancy cost or effective rent. Let’s now look at parking space...
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In 2015, I found myself alone and ISOLATED. It had been two years since I’d sold my golf teaching company and returned to Commercial Real Estate. The only good news is that I’d learned the benefit of carryover losses. No, it wasn’t billions like some people we know.
The plans to fill up the 10,000 square feet office on the 45th floor of Gas Company tower here in DTLA hadn’t come to screeching halt. My company was on the path to merge with another major company and no longer was growing the office. My 400-square foot office only made me feel more alone in the large suite. My quest to develop...
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By: Forrest Blake
Commercial leasing transaction success is not about doing deals, it is about working deals. Doing is a passive action of processing paperwork that almost always leaves good money on the table. Working a commercial real estate deal means digging in for a good fight that demands your total attention to get your best value. From today forward, I want you to approach every deal with a full commitment to create a comprehensive plan—one that constantly looks for leverage and strategy to satisfy your needs and get the deal done (the way you want).
I measure a successful transaction...
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By: Forrest Blake
Over two decades I have made representing tenants in commercial real estate a major part of my professional life. I have always questioned the standard method of measuring the success of a commercial office lease transaction based on the rate-per-square-foot. If this was an accurate measurement, then all my professional service clients should have leased warehouse space in Commerce, CA at only $0.45 per square foot. Their rents would be cut by 75%, but likely the same percentage of staff would quit because of the poor working conditions. Yes, I am giving a dramatic example...
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