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.
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:
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.
Most professionals are diligent about posting meetings and conferences on their calendars. Beyond options and expirations, however, few people have a systematic method for tracking and managing timely lease-related action items.
Savvy business owners are increasingly relying on lease administration software to help keep track of their properties. But in the sea of real estate–management platforms, how does a business operator know which is the right fit?
The ICSC Law Conference's panel, "Accelerating Technology in Lease Reviews: Demystifying the Miraculous," delivered valuable insights, highlighting four pivotal takeaways with concrete examples:
5 Best Practices to Build a Real Estate-Driven Multi-Unit Company In the landscape of multi-unit businesses, real estate should be more than just a supporting player – it should be woven into the very fabric of your organization's decision-making process. Real estate acts as the vital thread connecting all activities beneath the real estate umbrella to your management's overarching goals. In essence, it becomes the primary tool for achieving your company's mission.
