All Forum Posts by: Charles Roby

Hello Landlords, I own a 2 acre industrial site with one tenant.  The property includes a 3-story office building, a shop/maintenance area, and yard space for storage and parking.  I'm in the midst of renegotiating the lease with my tenant. The overall relationship is healthy and the lease has a traditional tripe-net structure.  

The 3rd floor of the office building has been vacant and my tenant would now like to expand into that space.  The options I can envision are 1) have them pay for the build out, 2) split the cost of the build out, or 3) I pay the entire cost of the build out and look to make a nice return on that investment, like around 10% or so.

Can anyone provide guidance on how its best for me to structure this?  My tenant I know prefers that I pay for the build out and I'm happy to do that as long as I get a solid return.

Thank you in advance for your input!

Matt P,  apologies for my slow follow up.  You make some excellent points and I agree fully that renting is much less desirable than having the homes owned.  It would be great to connect and discuss things further if you a have a few moments.

Paul C thank you as well.

If there are any fellow mobile home park investors out there, it would be great to hear any input you might have.  I'm a partial equity investor in 4 parks in Michigan.  I know the lead investor and park manager well.  They are currently looking to raise capital to purchase additional homes for one of the parks.  The occupancy is below the ideal level in this park because there are empty lots, ie the homes don't exist.  There seems to be fairly solid demand to rent the homes out.  This would be structured as debt and would be my first experience with this type of structure.  Any thoughts regarding this scenario are welcome.  Thanks very much!