I think you are in a difficult spot. If you kick the current tenants out, before you get your NNN signed, you might end up with vacancies all around.
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There is a possibility that a cluster of commercial properties that my partners and I own may be leased to a national tenant with a triple net lease (NNN). We have had preliminary discussions with their representatives and they are supposed to bring us a letter of intent in the next few weeks. It a cluster of 4 commercial units that they want to convert into 1 large space (I won divulge into which company this is until things progress or in the unfortunate event that they Air Force 1 Shoes Womens
The tenant who is struggling might be very happy to get out of his lease.
Do you have any other buildings you could move your tenants to? If one of the tenants is sound, it might even pay to purchase a new building to move him to. Offer a better deal on rent, more space, or a better location, and it should be possible to get him to move.
how that could potentially be an issue, however NNN deals on the outside seem to provide stability and peace of mind. Also, if there is anything else you could tell me as far as what to look out for when dealing with such tenants and what type of stipulations to expect the tenant to Nike Air Force 1 Black On Feet Women
Originally posted by Jon Klaus:I let others address the first question. We pay you $X to move within 120 days)? Some might be really happy about this if they are looking to cut expenses, but were stuck with your lease. Would your new NNN prospect be willing to finance part or all of the buy outs?
My first question is, what are the pros and cons of being a landlord to a NNN lease? Through early conversation, they say they are willing to pay a premium on the ppsf, sign a 25 year NNN lease and cover all construction costs. Sounds great to me, but obviously it not set until it in writing. As a potential risk, if there is a huge jump in the market in 5 10 year then I can see Air Force Men Shoes
If you sign the NNN lease and one of your current tenants refuses to move, you are in serious trouble. You can deliver and the NNN type businesses usually have very big lawyers.
The NNN prospect will not finance any part of the buyouts. I assumed I would need to buy them out, but I not sure as to how to formulate the proper offer. What factors would play into such a buy out? Square footage, rent, years left on lease, business revenue etc.? Or is it basically whatever number gets them Nike Air Force 1 Gold Medal to walk away? I know that 1 of these business is not doing great financially so I would think they would accept a buyout. My thinking is that I could use the letter of intent to secure a loan to cover the buyouts.
fall through). The company has an investment grade credit rating. 2 of these commercial spaces are currently occupied by tenants with 4 and 5 year leases and would need to be broken for this deal to happen.
include in the lease.
First, NNN leases are usually a very good deal. If you decide to sell the building, a long term NNN will make it very attractive to buyers.
landlord breaking leases
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My 2nd question is, what is the cost of a landlord breaking a lease with a tenant and what to expect from this process as far as cost, time, etc.? Any recommendations on how to go about it if the need should arise?
I did my own research, but I wanted to reach out to BP as I know there is a load of knowledge and experience on here. Here is one of the articles I have read: [LINK REMOVED]
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