Browse Tag: Leasing

Tenants, Taxes, Insurance And Maintenance: Triple Net Leases Explained

Commercial property ownership doesn’t have to come with the classic landlord obligations of taxes, maintenance and insurance.  As some investors will tell you, success in property investment can be measured by net trips to the mailbox: if a property owner is writing more checks than she is receiving, there’s often a way to improve that situation by offloading costs onto tenants. In a nutshell, that’s what the triple-net lease does — assigns the costs of property taxes, insurance and maintenance to the tenant as enunciated in the lease agreement.

While the idea seems revolutionary to those who are first hearing it, it’s important to remember there’s no such thing as a free lunch. Triple net isn’t appropriate in every case. The fact is that the creditworthiness of tenants — related usually the degree to which they are backed with guarantees that come with national corporate presence — is the hinge point around which a triple net proposition revolves.

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Video: Excel How-To: Lease Pro-Forma

Would-be Excel jockeys, take a peek at this. It’s a 40-minute clip detailing the analysis of leases from the tenant and the landlord perspectives. Veterans and rookies alike can learn a thing or two about detailing a lease deal for either side of the table.

Learn about the major variables, learn about how tenants and landlords see these variables differently, and how the math differs between the two. When costs are shared through various means, the numbers jiggle around, and this clip shows how to stay on top of exactly that.

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Ground Leases: An Overview From CCIM

From the raw land, development and investment side of things: CCIM Institute’s newest podcast is a discussion with Philip “Fred” Himovitz, CCIM, all about the ins and outs of the ground lease.  The advantages and considerations of ground leases over fee simple ownership are explored, as well as seniority, management, financing and tenant issues. Even though the podcast is under nine minutes, a solid summation of ground lease structures and purposes is covered.

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