All Forum Posts by: William Thresh

I own several "flex space" buildings where there is a small office area with the rest being warehouse. It is in very high demand and lease rates keep going up. Companies are having to build their warehouses because the supply is so low. Further raising the prices. I am in Syracuse NY, Amazon just broke ground on a 3 Million SQFT warehouse here which will bring even more distributors to the area. As retail giants move to online sales they still need warehouses for inventory. I basically use the BRRRR strategy but with warehouses. It is a very interesting market.

Maybe consider a pole barn rather than block construction? build in a less favorable location, farm land close to a highway for easy access. Put off things like finishing the interior of the warehouse, leave it bare studs until you have the money. 

Thanks for the advice, I’ll get a addendum together. Only 5% of my tenants are not paying and they are mostly the small mom and pops so I am probably being too lenient. 

We are a mixture of both online and check payments, With most of our tenants their bill changes every month with different NNN charges. We have to send them statements every month, so they are aware how much to send. Your idea is good that would add a lot of structure to it just make sure they are aware of it all. It may be difficult for some tenants to immediately bounce back paying more rent then they are used to, so you may need to adjust there. Good advice though I may try and get all of my tenants on automated bank draft, not sure if my national NNN tenants will go along with it.

 I have not figured out how I’m going to structure it. I send statements out every month so my tenants will see how much they owe. I may just let them chip away however they like, but we will see. I only have about 5-10% of my tenants not paying so I’m not too worried.

I’m not charging late fees until the economy opens up, so rent is essentially differed. Then each tenant has 12 months to payback the back rent. 

All communicated over email. Is that enough? or should I write up an addendum for their leases outlining the payment plan?

Luckily I do not have any loans on my properties. Thank you for the advice, I think spreading it out like that is the best move. On one case I have just extended a tenants lease by two months. I do not want to do that with everyone though, I don't see that as the best way.

I have a good number of commercial properties and fortunately a lot of my tenants are essential. I just sent out my May statements and a few tenants responded that they are non essential so they will not be able to pay. Nothing that will hurt my business but still a good amount of money. I have waived late fees until this is over, but don't you think it is a bit premature to tell me your not paying me for May? I am about to send out a letter to tenants to make sure they understand they still owe rent for these months. Rent is "Deferred" not cancelled. How are you structuring deferred rent? Will they just be required to catch up once the pandemic is over? or are you making more set in stone payment plans. 

Everyone else has had great ideas here. If you want more so a hands off approach find a younger hungry agent and offer him more than 6%. I gave our agent 10% for representing a small office building of mine and he has done great.