COMMON TENANT OVERSIGHTS

A corporate under-estimation of location & cumulative rental value.

Even small tenants pay a lot.

Rent:

$30 p.s.f.

Location Size:

Yearly Rent:

Lease Term

A 5% difference in rent and a $1 psf in operating cost exclusions 
= $57,500.00

x

x

X

$75,000.00

$75,000.00

$75,000.00

$75,000.00

$75,000.00

$75,000.00

$75,000.00

$75,000.00

$75,000.00

$75,000.00

2,500

square feet

$75,000.00

number of company locations

A failure to spend sufficient time understanding lease terms that substantially impact control and flexibility over your location. 

Only a few well-placed words in a lease can allow a landlord to easily terminate your lease with little notice.

A focus on "net/base" rent with little or no attention paid to operating costs, taxes and gross-up factors.

Operating Costs often exceed base rents and should be negotiated accordingly.

What you are REALLY paying
 
$
What you think you are paying

A failure to question how real estate fees work, how much is being paid, who is paying it and fiduciary duties related to agency. 

When an agent says "don't worry, the landlord pays my fee..." ...you should be worried.

Real estate fees are always amortized onto the rent.​

The TENANT pays the rent.

More time spent researching the $400 barbecue purchased on the weekend than the landlord they will pay $1,000,000.00 in rent to over the next 10 years. 

The average tenancy in Canada is 14 years...as long as many marriages. Know who you are spending your future with.

Expert advice, advanced financial analysis, and comprehensive market information is available to commercial tenants. 

From single transaction assistance to outsourcing.  From hourly consulting to comprehensive national mandates, our goal is to increase tenant profitability through real estate.

© 2017 Orange Group Commercial Real Estate Inc.

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