For some reason, my responses refuse to show up in this group. It's very frustrating. So, I'll keep it brief and just thank everyone for their input. If my responses start showing up, I'll post some updates or get my partner Natalie to post them. Thanks again!
On Tuesday, March 27, 2012 5:47:35 PM UTC-4, David Singer wrote: > > Natalie & Cody, > > Are you the only tenant in the building? > > You're paying $18.24 per square foot in base rent. I don't know how much > of the building you're renting -- but my question is whether that's market > rate for rent without a base year calculation -- in other words -- lots of > commercial leases factor in the first year's real estate taxes into the > base rent -- with the tenant paying its pro rata share of increases over > the base year. That not being the case here-- you want to be sure that > your $500 per month in real estate taxes is reflective of your > proportionate share of the building. If you're the only tenant -- you will > be paying the full freight for taxes and insurance (that will include both > property and liability insurance). If you're not the only tenant -- you > will likely be paying your pro rata share of the building property > insurance. In any event I would try to see if you can keep your rental > rate and pay taxes over a base year. > > Also -- if you're making improvements to the building -- that the landlord > is not contributing to (note that in many commercial leases you get free > rent and a tenant allowance for work) -- you may want to negotiate for a > longer free rent period. > > And why are you paying the brokerage commission? That should be the > landlord's obligation. > > Happy to try to answer other questions. > > Regards, > > David > > On Tue, Mar 27, 2012 at 3:10 PM, Natalie <[email protected]> wrote: > >> Hi everyone, >> >> >> Okay, my first post disappeared. I'm not sure why. Apologies in >> advance if it resurrects itself. I've been reading this forum for a >> few weeks. It's incredibly informative. Nonetheless, I find myself in >> a situation, and I can't find an exact answer. My partner and I are >> about to commit to a commercial space in Brooklyn. Here's the offer: >> >> >> 2,500 sq ft >> >> $3,800 with 2% increase (good for the area) >> >> 2 month abated rent >> >> But, we have to pay broker fee ($3,800), so it's like we're getting >> one month abated rent. >> >> 5-year lease (This seems good because the owner can't quickly jack up >> the price until it's time for renewal.) >> >> >> >> Here's the catch. The owner wants us to pay the property taxes, which >> are $500 a month. Is this very unusual? We may be able to lower the >> rent to compensate. The realtor also said that this rent will not go >> up if the interior design makes property value go up. (I'm also >> curious about occupancy tax. I read about it in this forum and wonder >> if we will need to pay it.) >> >> Lastly, he wants us to pay property insurance, but I think this just >> means general liability, which we have to do any way. >> >> Do you guys use lawyers when signing the lease? If so, any >> recommendation from New York area? >> >> Any suggestions/comments welcome! >> >> Thanks, >> Natalie and Cody >> >> -- >> You received this message because you are subscribed to the Google Groups >> "Coworking" group. >> To post to this group, send email to [email protected]. >> To unsubscribe from this group, send email to >> [email protected]. >> For more options, visit this group at >> http://groups.google.com/group/coworking?hl=en. >> >> > > > -- > David A. Singer > Singer Group Properties, LLC > c/o Elias Group, LLP > 411 Theodore Fremd Ave., Ste. 102 > Rye, NY 10580 > (914) 925-0000 - Office > (914) 980-7301 - Cell > -- You received this message because you are subscribed to the Google Groups "Coworking" group. To view this discussion on the web visit https://groups.google.com/d/msg/coworking/-/xZUW6ToSJp0J. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/coworking?hl=en.
