Ways a Sale or Lease Clause Can Save You Money

Serving Santa Barbara, Ventura & San Luis Obispo Counties

October 2018

Why A Lease or Sale Clause Can Save Your Life! 

There are several significant ways that a real estate broker ends up saving a Seller, Lessor, Buyer, or Tenant money during the real estate selling or leasing process.

The single best way for an owner to maximize value is to select an experienced brokerage specialist—and there are many benefits to doing so! Commercial real estate specialists utilize their extensive experience and knowledge to track the market and make accurate judgments about the value of a property. Retail specialists bring an entire arsenal of creativity, tenant relationships and knowledge, tenant broker knowledge, and local jurisdictional experience to the hands of their clients.  “We know which tenants are expanding, and which aren’t.  And we understand the business points in the lease that a retailer will attempt to negotiate.”

Commercial brokerage is complicated work, dealing with business owners, municipalities and building owners—but we at GPS relish the challenges and enjoy the personal satisfaction of assisting clients.

Ways a Lease Clause Will Save The Lessor Money

  • Have a clause in the lease that the Tenant pays all increases in taxes when the property is sold and a new tax base is created. With the cost of CA real estate taxes upon a sale, the impact on the net income is devastating. Include this clause.
  • Go back to market rent at some reasonable time in the future. The best you can negotiate.
  • Don’t give too many options. They are always more favorable to the tenant.

Ways a Sales Clause Will Save The Seller Money

  • Read any changes to the contract made by the Buyer. This may sound simple but many times, people get casual and this can cost them money.
  • Time the contingencies based upon a reasonable estimated time period. Each contingency takes a different amount of time. Have the contract reflect that accordingly.
  • After a reasonable period of time, get monthly amounts for extensions. These can be attributed to the selling price or not.

For more information about this topic or any other of our blog posts please contact:

Pamela Scott | 805.560.0040 | pscott@gpscre.com

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