All Forum Posts by: Mike Giudici

about 30 tenants

I should add that this property comprises of two six story multi-tenant towers that are about 135k SF each. The Landlord controls all expenses.

I understand the differences between the two lease formats. I'm wondering if one format is better than the other for an office property, and why.

Which would you say is best for a property owner on a commercial class B office building and why?

The property in question is currently on NNN leases, the thought came up today to transition everything over to Gross leases.

I personally think that the leases should be left alone as NNN.

You could always approach them and ask if they would like to sign a new lease now before the term is up. Some Tenants would, some won't. No harm in asking though.

Just trying to help. My background is 100% commercial, no residential.

Mike

If you send in your notice and the lease terminates mid month, you would only pay the pro-rated amount on the 1st. You wouldn't pay a full months worth up front and wait for a refund. 

In this scenario, the pro-rated amount would be the "rent in full".

I understand the lease does not have a section specifically addressing pro-rating, but that doesn't mean you couldn't do it. Legally you would not be in default of the lease as long as you gave proper notice, and any reasonable landlord wouldn't have problem with it. 

Doing things on the first and the last day of the month just makes lease administration and accounting easier.

It doesn't matter. Using that logic, the language of the lease would require a 1 month notice to terminate the tenancy instead of a 30 day notice.

You could give your 30 day notice today and the lease would terminate at 11:59pm on 11/13/14.

Can you petition to reduce the property taxes?

30 days is 30 days. You can send your notice any time. The last month will just be pro-rated if the last day doesn't fall on the end of the month.