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Common Area Costs & Concerns

Should common areas outside your storefront be included in your rent?

Are you using this space or should you share costs of maintaining walkways with your neighbors?

Great questions that your brokers at Encon Commercial are here to explain, fight for and negotiate on your behalf.

Just Leased – City of Industry, Los Angeles

Centrally located, dock high loading warehouse with exceptional office space and showroom becomes new long-term

head headquarters for prominent local home improvement importer. This new facility will function as a distribution location and a combined sales and marketing hub for all West Coast operations.

Encon Tenant Rep., Side by Side Results

Case and point to use a Tenant Representative working exclusively for you, dedicated to your results.

A Current client approached established landlord for Class A space prior to contacting Encon Commercial to secure warehouse space in Los Angeles. Encon Commercial picked up the assignment thereafter. Two deals presented with equal space and equivalent landlords. Tenant Rep., beat Landlord rep., on all major economic points with real money savings and increasing our client’s bottom line. And, besides being a free service to the client, the sole objective is to win the space and save money for the tenant.

As always, we live that work with passion. Results negotiated were more free rent, lower rate and less security deposit, adding 2 + months of “Free rent equivalent” when all totalled. It is rare to see two deals side-by-side, but it is not rare for us to save our clients money across the board, and again, confirming why we focus on the tenant year in and year out.

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