All Forum Posts by: Priyanshu Adathakkar

Ultimately everything is dependent on local market conditions, we in Central Ohio are fortunate enough to have a good economy and an excellent market to allow landlords to play hardball. Yes, every tenant large or small is expected to sign a personal guarantee or lay down a large deposit. I represent a landlord who has a retail property in Mansfield and the tenant was a large grocery chain that went bankrupt. Thankfully the CEO had signed a personal guarantee and the landlord is still collecting rent on the vacant space (16,000 SF). We start negotiations @4% increase but will settle for less for a strong tenant.    

There are a number of ways the deal can be structured to safeguard your interests, what you need is an experienced commercial agent who can put this together. 

You are letting the tenant dictate the terms they will honor you with their tenancy. If I were you these would be my terms. 5 year term with 4% annual increase in rent. Escape clause: Tenant allowed to break the lease between month 13 to month 18 of the term. Cost of exercising this option: 6 months rent, plus prorated commission if any paid to RE Brokers. Knowing that the business is not stable, if not already done, the CEO or Owner of the business needs to personally guarantee the lease. This is just to give you an idea of what I would do as a landlord or as landlord's rep. 

OH BOY, I wish you owned property in my town! Or if there were suckers like you who owned property in Columbus!!!!! No Kidding!

Hi@Ananda El Bey ,

You are correct, this is a doctor's office. There is no suite number (the entire building is one office). Just come through the main door and there will be somebody to greet you there. I look forward to meeting you on Saturday. If you have trouble finding the place please call my mobile at 614-450-2510

Thanks

Pri

The developers might have covenants built into the title, find out if there are any and what they are. Also consider this, basically you are a partner in an enterprise, while also being an individual owner of a piece of the whole project. They are not only your partners but also your competitors and a decision taken by an individual partner might affect your investment. For example, if an individual owner decides to lower their rents or upgrade their units, you will be forced to do the same just to be on par! 35% on paper might look good, but is it really achievable? 

@George Georgeson most details of the event are here, what further information do you need?

@DeWitt Gibson if the owner currently occupies the property it is normally listed as "Owner User" however many times it is labeled as "Owner User" just because it is vacant and they are unable to lease it!

@Kim Hopkins the time it'll take to lease a space depends on the local market, did your agent give you an idea of the local market conditions and set expectations when they gave you a presentation to get the job? 4 weeks just to list the space for lease is not normal, in my market if the listing is not live in the first week, I would be out of the job in week 2! The tenants you did get for the 6K SF through this agent, were these deals co-brokered or did it involve just the listing agent (your agent)? If they are not co-brokered it could be just how it went down but it could also mean that your agent is entertaining only direct inquiries to earn full commission and is not interested in cooperating with other brokers in the market where the commissions will have to be split!  

Fire her and find somebody who can get the job done!

All commercial real estate deals (I am not talking about residential 2 plexes and 4 plexes, which no self-respecting commercial investor or agent would classify as commercial) are evaluated on CAP rates and Cash-on-Cash basis. Self-storage units are no different.