In the San Diego commercial real estate market, these days it is relatively common for landlords to ask prospective tenants to enter into a standard AIR (American Industrial Real Estate) commercial lease. The AIR standard lease was drafted by the AIR Commercial Real Estate Association with the intention of balancing…
Common Area Expenses (or CAM expenses) are nothing new in the commercial leasing business. However, new business owners are often caught off guard by the thought of the additional expense that sometimes is as high as the base rent itself, especially where there is so little control over how the…
As the San Diego commercial real estate market continues to struggle, foreclosures are becoming more and more common. The prevailing wisdom is that it’s going to get worse before it gets better. While this writer cautiously takes a more optimistic view, there can be little doubt that many San Diego…
Commercial leases often appear daunting, especially to new and growing San Diego businesses. After negotiating the rent, business owners often feel they have little choice but to accept the remaining terms if they want to move forward. It is always advisable to consult with a commercial lease lawyer, but the…
Common CAM expense exclusions include: Initial cost of the land or the construction of the original buildings, parking and other improvements; Mortgage principal, interest and related expenses; Refinancing costs; Ground rent and related costs; Depreciation and amortization of property and equipment; Cost of complying with government regulations including compliance with…
It’s now estimated that the San Diego commercial lease market will hit bottom in 2010. Whatever the future has in store for commercial real estate, the present news is not good for commercial property owners. Office vacancies in San Diego are at almost 20% and retail vacancies, while not as…
In today’s San Diego commercial leasing market, some business owners are taking advantage of increased bargaining power when negotiating lease terms. Others see an opportunity to purchase property as the commercial real estate market continues to decline in value. The primary advantage of buying commercial space over leasing is the…
Property owners in San Diego know that their commercial leases are valuable assets. In the face of a struggling market and conflicting input from accountants and lawyers, they recognize the benefits that a long term existing tenant offers. They are inundated with bad news from the media. The San Diego…
As the San Diego commercial leasing market continues to struggle, opportunities abound for young and growing businesses to obtain favorable leasing terms. With the abundance of “For Lease” signs reminding folks of the current recession, commercial property owners are anxious to fill space and are willing to negotiate to do…
It is a great time for small businesses in San Diego to lease commercial space. The recent economic downturn has resulted in an increase in the supply of commercial space putting downward pressure on rents. More importantly, small businesses now have the ability to negotiate better lease terms as commercial…