Category Archives: CRE Data News Info

Types of Rent…………………..

Rent $

Among the most common questions asked by our clients is, “So what is the total gross rent that we will be paying?”  The answer to this question starts by stating that each building can be slightly different and most landlords have different definitions as to what constitutes gross rent for the space they are leasing.

The simplest approach as far as tenants are concerned, gross rent will include all real estate costs associated with renting a space ( except sales tax in Florida):

  • Base Rent
  • Property Taxes
  • Building Insurance ( Landlord’s)
  • Common Area Maintenance (CAM’s)
  • Building Management
  • Parking Costs
  • Gas & Electric Utilities
  • Janitorial
  • Trash Removal
  • Tenant Insurance
  • Tenant Improvements

1. Gross Rent Example Two (Modified Gross “MG”): Base Rent + Additional Rent (Utilities?) = Gross Rent Additional Rent varies from property to property, so always ask what additional rent includes. Gross Rent / 12 months = Monthly Gross Rent

  • Example One (Triple Net “NNN”): Base Rent + NNN = Gross Rent NNN = Taxes + Building Insurance + CAM’s Gross Rent / 12 months = Monthly Gross Rent
  • These costs are not always clearly laid out in the marketing material of various property listings and some of the costs vary broadly from property to property (i.e. taxes on office/flex space vs downtown office space). In addition, some of these costs are entirely founded in what the tenant may require and are outside of the landlord’s control. Items like data wiring or tenant specific improvements need to be assessed prior to finalizing any deal and signing a lease. We define these costs by placing them into two categories: gross rent & variable costs.
  • Will you please send me a breakdown of your NNN’s or additional rent?
  • Do these expenses include items like management, gas & electric utilities?
  • If gas & electric utilities are not included, how are they charged? Are they seperately metered or pro-rated?
  • Can you send me a 12-month average if utilities are not included? (This information can also be achieved by calling the utility provider for the building.)Variable costs are paid by the tenant, either directly, or indirectly as they are assumed in the rent as offered. Some of the costs are defined below:

2. Variable Costs

  • Tenant Improvements: Some spaces are ready “turn-key”; the tenant signs the lease, grabs the keys and moves right in. Other spaces require a build-out, meaning that to prepare the space to meet the tenants needs, the landlord and tenant must negotiate who will pay for and be responsible for completing a certain amount of finish.
  • Telephone/Data: Always carefully review your costs as they are associated to your connectivity. Some buildings are wired with access to high speed internet while others do not have a major service provider like Comcast or Century Link. Keep in mind data costs will vary broadly as service providers have different definitions of “high speed.” Make sure you are comparing this real cost to weigh your options when looking at various properties!
  • Landlord Incentives: I find it is often overlooked that landlords may offer incentives. These discounted costs deviate from one building and it’s landlord to another, but always keep in mind to ask.
  • As you can see, there is no straightforward answer regarding what gross rent does and does not include. Whether you are a tenant or a landlord, these costs should be clearly defined in your lease agreement. Sourced by the Colorado Group

TMC-The Mahr Company : 4 July 2014

 

“WE hold these Truths to be self-evident, that all Men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty, and the Pursuit of Happiness”

John Hancock, President of Congress was the first to sign the Declaration of Independence, writing his name in large, plain letters and saying:

“There! John Bull can read my name without spectacles. Now let him double the price on my head, for this is my defiance”

Then he turned to the other members, and solemnly declared:

“We must be unanimous. There must be no pulling different ways. We must all hang together”

“Yes” said Franklin, quaintly. “we must all hang together, or most assuredly we shall all hang separately”

There were 58 members of the 2nd continental congress. On July 1st, 1776 12 of the 13 Colonies voted in favor of Richard Henry Lee’s motion of independence (New York had to get permission). After 2 days of revising the language, congress and all 13 colonies officially adopted the Declaration of Independence on July 4th. Later to be signed by 56 of the 58 members. The 2nd continental congress knew their fate that day, war was inevitable. Yet each and every one of them placed their individual freedom above their own lives, and in so doing, placed our freedom, and the freedom of our country, right there alongside their own.

For 238 years, men and women, daughters, sons, mothers, fathers, family, friends, and people we will never know, have been defending our freedoms with the same resolve, the same dedication, and the same sacrifice as the 56 signers of the Declaration of Independence were willing to make that fateful July 4th afternoon in Philadelphia. As we all gather this weekend with family, friends, and loved ones, take a moment to remember the anniversary of our independence, and our forefathers who made our freedoms possible. More importantly, those who have served to preserve our freedoms…. our Lives, our Liberty, and all that is ours to cherish

We all have someone to remember and to thank, and in special recognition, lets join in honoring all of our neighbors, friends and family having served and assumed a post in the defense and preservation of our freedom. Most humbly…Thank you! authored by Tom Tolworthy, CEO Twinlab

TMC-The Mahr Company: Connecting the Dots

TMC-The Mahr Company We Connect the Dots………..Lots of them in our service to you

TMC-The Mahr Company offering the highest level of professional service with attention to detail

Connect The DotsYour goals and commercial real estate needs, whatever they may be, wherever they make take us and whatever they may require are our commitment to you.

 

TMC-The Mahr Company offering the highest level of professional service with attention to detail

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graphic by: Andre J. van Rensburg

TMC- The Mahr Company Your goals and commercial real estate needs, whatever they may be, wherever they make take us and whatever they may require are our commitment to you.

TMC – “Slide to Market Variances”

Commercial Real Estate Trends
TMC-The Mahr Company understands that Commercial Real Estate Sectors and Markets are Dynamic not Static. We have learned to slide to market variances. At any snapshot in time, the picture of the market based on facts of the ground, is what it is. Our commitment to you is to know what the market is at any given time and to be proactive to it. TMC-The Mahr Company, YOUR Senior Vice President of Real Estate. Our commitment to you is Excellence……

It’s always about the numbers. We are reminded as this week is Palidrome Week 4.13.14 through 4.19.14 ……

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April 2014 : This is Palindrome Week as every date this week is a palindromic number. A palindromic number is a number that remains the same when its digits are reversed. It is an amusing way to look at numbers. How do your numbers luck in your business ? Are they aligned ?  Is there room to improve?  Do they need to be adjusted as to your real estate occupancy costs, spatial needs or investment portfolio.

TMC-The Mahr Company– We are committed to providing you the highest level of service, attention to detail and commitment to excel excellence. TMC has the skill sets, market(s) knowledge, experience, resources, energy and determination to take a proactive approach to achieve your goals.” If you are not engaged in the game, the sidelines only offer a spectator’s view.” fsm

What are your plans and goals for the Second 1/4 and beyond of 2014 ?

If you are not engaged in the game, the sidelines only offer a spectator’s view.

2014 As we approach the 2nd qurater of 2014 how are you positioned
TMC The Mahr Company is available to assist you in positioning your business model in 2014. As we are starting the second quarter of 2014 how are you and your business model positioned to take advantage of the emerging trends in commercial real estate? We have the skill sets, market knowledge, experience, energy and determination to take a proactive approach to achieve your goals. If you are not engaged in the game, the sidelines only offer a spectator’s view.

Our commitment to you is Excellence…………..

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1. We know our purpose. In our day-to-day business at TMC-The Mahr Company, we embrace and live by a sense of meaning. At TMC-The Mahr Company, it is not about walking into the office, grabbing a coffee, checking emails and taking the day “on the fly” That doesn’t get it done. We strive to know what we are going to get done that day. Knowing our purpose makes the biggest impact.

2. We give positive meaning to everything. Business is about risks. The more we take the more we win (and lose). At TMC-The Mahr Company it’s how we respond to the losses that makes us stand apart and special. We keep a positive attitude (regardless of the issue) ALWAYS, and keep in the game and ready for the next opportunity.

3. We realize that everything we do has a consequence. There is no neutral. Interactions are either positive or negative. Every action we take matters, and we know it. It’s not just about being on our best behavior; it’s about knowing our strengths and using them to reach our desired outcome.

4. We know that everyone is unique, different and amazing. Commercial Real Estate is a competitive environment where people put themselves on the line every day. We at TMC look through the lens that everyone and everything has meaning. As such every facet of our performance is constantly being looked at and committed to excellence.

5. We are driven by our desire for adventure. What drives us at TMC? It’s not our competitors, be assured of that, rather it’s our desire for excellence in the details of serving our clients and business model. TMC is focused on successes — on finding solutions for our clients and the achievement of their goals. We are focused on the task/situation at hand all the while preparing to engage in the next need and taking action steps, ALWAYS

6. We expect the unexpected. We at TMC expect the best but are prepared for the unexpected. When any situation arises, we slide to its variance and work with an action response to solve it and take the next step.

The 6 steps were originally created by Anthony Robbins, TMC has modified their description and practice. TMC-The Mahr Company, YOUR Senior Vice President of Real Estate. Our commitment to you is Excellence…………..