A recent article in the Orange County Register http://ow.ly/KztX30dVNOG highlighted several restaurants in OC that are closing. Statements by the owners of the eateries cited that the lease was coming up for renewal and they simply decided to close rather than renew. This certainly brings up several issues as to why a successful location would close after years of profitability. Yes, one restaurant did file for a Chapter 7 bankruptcy and likely closed before the lease terminated but what about the others? At IN/House, we do not typically handle restaurant transactions. However, the issue of increased rates for leasing space applies to our office/industrial clients as well. Across the board
Common Area Maintenance Charges and/or Building Operating Expenses (BOE) can be a surprise cost to many tenants. Too often while negotiating leases the focus is on the base rent rather than the total cost of occupancy which may include: Base Rent Parking Tenant improvements costs (or amortized overage) Projected after hour HVAC use BOE’s over a Base Year or Expense Stop What are BOE’s and why do you have to pay them? They are often the most overlooked item. Those unexpected costs can become 3% or more on top of your contract base rental rate increase. At IN/House we educate our clients about this extra charge by using our chocolate bar analogy. Basically, those 16 squares (Part A) are the co
