Commercial Real Estate
Some businesses can thrive with only a virtual office, many others still need the brick-and-mortar location to function. As businesses grow, their requirements for space change. Odds are that most business people will find themselves either buying or selling commercial real estate or entering into a commercial lease either as tenant or landlord at several points during their business careers. Such transactions are typically far more complex and carry more potential liability than your average residential transaction. In each instance, legal counsel is a true necessity. I always strive to make sure that my client understands the deal, including the fine points than can come back to haunt you, to be a strong advocate for my client’s interests in negotiating the critical provisions and to ensure the final documents accurately reflect the parties’ intent.
What does triple net lease mean?
A triple net lease means the tenant pays the owner’s costs, including (but not always limited to) the property insurance, taxes and maintenance on the building in addition to the rent.
What does CAM mean?
CAM stands for Common Area Maintenance Fee. CAM is used to divide the expense of maintaining the common areas of an office building, office park or strip mall among the various tenants. The expenses might include repairs, insurance, property maintenance and sometimes the cost of the administrative staff who run the complex.
What does “Gross-Up” clause mean?
Sometimes the landlord pays all the maintenance costs for a facility then gets reimbursed from the tenants. If the facility is not fully rented out, then the landlord will not be fully reimbursed for those costs. If the tenant’s lease has a ‘gross-up’ clause, the landlord can look to the tenant to pay more if not all of the maintenance fees.