IN THE WORKS

If you're leasing a commercial space, you might come across a lease structure that includes percent rent. This model allows you to pay a base rent plus a percentage of your gross sales, which can be a great option for businesses looking to manage costs during slower sales periods. But how does percent rent work from a tenant’s perspective, and what should you keep in mind when it's time to pay?

If you’re a multi-unit operator in the retail or restaurant industry, you know that managing percentage rent across different leases can be a daunting task. Percentage rent is a type of lease arrangement where you pay a base rent plus a percentage of your sales once those sales exceed a set threshold (the breakpoint). While this setup offers flexibility, the complexities multiply when dealing with several locations, each with unique terms.

Percentage rent is a common feature in commercial leases, particularly in the retail sector, where it allows landlords to benefit from the success of their tenants. But while the concept is straightforward, the process of calculating and managing percentage rent can be complex and time-consuming. To help you navigate this aspect of lease management, here’s a step-by-step guide to processing percentage rent.

Congratulations! Your company has expanded its footprint through a successful acquisition. Now comes the process of integrating the new locations into your existing operations. One crucial area demanding attention: lease management.

For multi-unit operators, back-office teams often operate in silos. This can be especially true when it comes to lease management, leading to inefficient workflows and the potential for costly mistakes.

Lease abstracting is a crucial process that ensures all pertinent information from a lease is distilled into a clear, concise format. This process can help property managers and lease administrators manage leases more efficiently, avoid costly mistakes, and make informed decisions. Before diving into this process, it’s essential to have certain tools and information at your disposal. Here are six must-haves for a successful lease abstracting process:

Congratulations on acquiring new franchise locations! While the excitement is high, a smooth integration can be the difference between a quick start and a frustrating slowdown. To avoid post-closing headaches, here's a checklist of 3 crucial items you need from the seller to ensure a speedy integration for your operations team:

After the deal is done and the acquisition team hands off a newly acquired portfolio of leases to the operations team, there can be confusion over what happens next. If your operations team is already working at capacity on the day-to-day tasks of running the business, finding time for someone to comb through each lease to set reminders for important dates, make notes of unusual terms, and reach out to every landlord can feel impossible. For many business owners, it's unclear who on their team these tasks should even fall to. This lack of clarity leads to a catch-up situation of just trying to not let too many items drop. Sound stressful? That's why Property Works has developed a proven Acquisitions to Operations Transition Process Support service to help you start strong.

When it comes to real estate acquisitions, the adage "knowledge is power" couldn't be truer. The success of an acquisition hinges on a comprehensive understanding of the existing leases. Imagine closing on a new property only to discover that a crucial lease expires just one year after the closing date—with no available renewal options. The ramifications of not uncovering these lease intricacies before closing can be substantial, ranging from missed negotiation opportunities to unforeseen financial burdens. In this blog, we'll explore why uncovering eight essential lease components before closing on an acquisition is paramount to ensuring a well-informed, strategic approach to property management.

One of the most daunting parts of buying or selling hundreds of units is reviewing hundreds of existing leases with landlords. There’s no getting around the enormity of this task.