Not renewing lease for commercial tenant CA

[Khaled Seirafi]

Hi all,

My family owns a commercial space in a building in California. Their lease is coming to an end in September and we're not going to renew it nor are we going to allow the tenants to sell the business. It's a liquor store and we're trying to clean up the property.

My question is how can I ensure that the tenants will actually remove all their personal belongings (refrigerators and counters mostly)? The lease does state that any fixtures are considered the tenant's personal property. They're pretty nasty tenants and I'm expecting that they're going to make this as difficult as possible for us. They've been in the property for 30 years and don't want to leave.

Any thoughts?

[Joel Owens]

Kal get a commercial retail tenant rep broker to prepare a VOID ANALYSIS for you. This can show in the area what is missing and what optimally could go there at the most per sq ft in rent. If you can land a national tenant it tends to help the value of the property the most for selling at lower cap rate. Regional tends to be second best and weakest is usually mom and pop tenant.

Some places in California thrive on mom and pop unique type tenants so that might make up more of your market than national brands. For example in Chicago most national brands like Domino's and Papa Johns tend to not have much footprint because the local family businesses dominate the markets with tradition and higher quality foods.