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18's or bust
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Anyone here have/had their own business and leased something in a strip mall type building (1k to 3k sqft)? Anything to try and avoid or steer away from based on lease terms?


I see that if it's not NNN then you would also pay taxes, utilities, maintenance and etc separately.
 

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move the eff over
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Thats's what the boss does for a living. Builds strip mall and rents out the space. But that's the extent of what I know about his business. I will say this though.... There's a lot more money in renting them out than renting them.

and... IBTMIDDY
 

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Anyone here have/had their own business and leased something in a strip mall type building (1k to 3k sqft)? Anything to try and avoid or steer away from based on lease terms?


I see that if it's not NNN then you would also pay taxes, utilities, maintenance and etc separately.
NNN means that the tenant (you) pays a share of taxes, utilities, maintenance, etc. -- sometimes separately, sometimes the landlord just bills you for your share.

Gross or full-service means that all of those expenses are paid by the landlord. They're effectively included in your rent, but there shouldn't be a separate invoice.


Thats's what the boss does for a living. Builds strip mall and rents out the space. But that's the extent of what I know about his business. I will say this though.... There's a lot more money in renting them out than renting them.

and... IBTMIDDY
OHAITHUR
 

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18's or bust
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Discussion Starter #4
Thanks for the clarification Middy.
 

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18's or bust
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Discussion Starter #5
WTH does MG mean after the sqft price?
 

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Thanks for the clarification Middy.
No sweat :thumbs:



WTH does MG mean after the sqft price?
It probably means "modified gross", which means the landlord will pay for some stuff, but not all of it. Typically, landlords try to exclude utilities, janitorial, and maintenance.
 

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BOOMER SOONER!!!
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If the property is managed by a property management firm the lease is going to be pretty standardized. I would scrutinize anything from a self managed property much more intensely.
 

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Typically the difference between NNN and FS or gross is negligible in the first year. In the long run though a gross lease can yield benifits if you place capps on your expense increases. I.E. your janitorial cap is 5%, even if the actual expense went up 7%, you'd only get cherged the 5%. Be careful though, some companies word it so they can charge you the full extent of your cap even if that year it was below. Also, try to get as much free rent as possible. Sometimes a landlord will give you an extra 6 months free if you sign for a high psf rate. This can be beneficial, and usually a clear sign they intend to sell in the near future.
 

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Mugwump
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My first lease of a building was a NNN lease. Worst part of that was the unknown. We had a large parking area and when it snowed the landlord sent me a bill for the snow removal. I didn't have a say in who was used or possibly doing it myself. One year I spent 9000 in just snow removal. I would get invoices from the landlord for everything. He had the furnace replaced in the building because it was worn out. I ended up getting a bill for that. Now the rent was not that high but it made it hard to budget when you have no idea what bill was coming next. That was a five year lease and when it was up and I ran all the numbers it would be cheaper for me to purchase my own building and that is what I did. Now I lease out half of the building I bought......
 

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Anyone here have/had their own business and leased something in a strip mall type building (1k to 3k sqft)? Anything to try and avoid or steer away from based on lease terms?


I see that if it's not NNN then you would also pay taxes, utilities, maintenance and etc separately.
What's the question.

Leased out approx 36k sq-ft to JLR (Jaguar Land Rover). Pain in the butt to deal with. Large lawyer force.

Lease out approx 20k sq-Ft to a bank. Relatively easy with more bring induced transactions and agreements.
 

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That's how the landlord and the bosses make their own money, You have to pay for the sq if you want to have a business, or you have to build your own place, but you will have to pay the taxes and the rest of the fees. This is what I've done, I had a small store at the beginning. I was selling PC components in my home town. The business was going very well, and I had a lot of money every month. That's what my boss seen and that's why he told me that the monthly payment for the place will increase twice. I thought, it would be nice to build my own place or to buy it. The problem was that I did not have the necessary amount of money, and the best idea for me was to have a credit. I started to search for a good credit company and I found it after a couple of days. This is the company https://foxycredit.com/dk/ where I was able to have all the money I need for a short term. I bought the place, but I still have to pay the taxes and the fees
 
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