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Building Sold – Tenant Pays More

Yes it is true that the building you rent may be sold without your knowledge by the landlord while you are occupying for a higher price, which results in a new landlord and an incease in YOUR expenses due to a higher annual taxable basis. Best case negotiate away any one time increase in taxes due to a sale.


Tenants’ Insurance Costs Up in California – Gone are Industry Standards

Note for 2019, insurance requirements by landlords are on the rise, not just for the amount of coverage, often doubling and tripling, but also the addition of new coverage catagories designed to fully protect landlords’ assests at tenants’ expense; no end in sight and no industry standards to rely on!

Negotiate in advance. As always, check the requirements per the lease well before negotiating the final lease rate and know that a lower lease rate is the single most effective way to adjust the overall costs wherever one may find them in the lease. As John Scatoloni notes, “Be prepared to pay for more higher coverage as insurance becomes a barrier for businesses in leasing space”.

Contact Encon Commercial for more strategies to reduce and minimize additional costs in leasing commercial space.

Moving Your Warehouse?

Tenant Tip: Ask the benefits of buy vs. lease; with rising lease rates over three years and limited availability, purchasing may be the better way to create wealth and protect against inflation and market ups & downs. Ask us how and view our easy to under

stand comparison.

Open Office Layout…Maybe Not

Merry Christmas for All of us at Encon Commercial 2018

Encon Commercial Sponsors Fusion Christmas Party South Bay

The Gross Lease Delema

Contrary to popular belief, a “Gross Lease” does not protect the tenant against annual increases in rent, annual increases in taxes after the first year, nor an increase in taxes due to a sale of the property.

Be Aware and Plan Accordingly!