When examining your commercial lease agreement, pay close attention to the following areas of the commercial real estate lease to ensure that you have a firm grasp of any and all terms listed in the agreement:

• Lease term – This is essentially the length of the lease; where it begins, and where it ends, and whether there are any renewal options.

• Monthly rent – This section, of course, details your monthly rental obligations; however, it may also contain allowable increases (commonly referred to as escalations). Pay close attention to this section; in particular, how the landlord will figure out allowable increases.

Your monthly rent section will also detail whether your rent amount covers other items, such as insurance, property taxes and maintenance costs, or whether the landlord will charge you separately for these items. Generally, a “gross” lease is one that includes all fees and costs; while a “net” lease will include only the monthly rental payment.

• Security Deposit – This section will detail the security deposit amount for which you are responsible. More importantly, however, it will detail the conditions you must meet to see the return of your security deposit once the lease has ended.

• Rental Space – This section of the commercial real estate lease agreement will detail exactly what space you are renting and how the landlord has measured the space. Expect common areas, such as hallways, bathrooms and elevators, to be included in this space.

• Improvements, Modifications, Build Outs – If the landlord has agreed to make certain improvements or build outs to your space, this section will detail this. It will also include detailed information regarding what is being finished or improved, who will pay for them, and who will own them once the lease ends.

• Repair and Maintenance – This section of the lease will detail who is responsible for maintaining and repairing the commercial space.

• Sublet Options – This section of the lease will detail whether you may sublease the space to another tenant.

Consider Local Laws Regarding the Termination of a Lease

One of the first issues you will need to consider when deciding whether to release your tenant from their lease involves your state’s laws; in other words, commercial and residential tenant situations are far different, in the eyes of the law. You must also consider whether you will be able rent the vacant space in a reasonable amount of time, and whether the tenant is willing to offer up a concession in return for cancelling their lease.

Should you Release your Tenant from their Lease?

It is important to realize that, unless your tenant is willing to offer up a really valuable concession, or if you have another tenant ready and willing to take the current tenant’s place, then it probably isn’t in your best interest to release a tenant from their lease.

In fact, if the tenant moves without finishing up the current lease, you will likely be able to recoup your rent costs through litigation. Often times, you can avoid litigation if the tenant is willing to offer you a buyout on the lease. There are also situations where you can retrieve the difference in rent if your tenant leaves before the end of their lease and you are forced to rent out the commercial space at a lower rate.

All of these options typically require the help of a qualified commercial real estate attorney, so don’t head into this territory without one, or it could cost you big.

Consider your Ability to Re-Rent the Property

The bottom line is that you must ask yourself the most important question: How long will it take me to rent out the commercial property? If you are able to secure a new tenant in a short amount of time then it is probably not worth the time or the effort to collect the unpaid rent from the tenant. However, in slow markets like this one, you may be unable to rent out the space for a long period of time; this is most definitely a case where litigation is necessary to recoup some of your losses.

In the end, however, it is important to pay close attention to your local laws regarding terminating leases, as many times your tenant may be able to do so legally, such as a transfer or loss of a business.

The art of negotiating can save you big on your lease, so don’t automatically dismiss the idea of negotiating. It can pay! You just have to know how.
How to Negotiate like a Pro for Houston Office Space:

• Don’t even think about using the building’s broker to negotiate your lease for you. The very best thing you can do, from the beginning, is to hire a broker and a lawyer, both of whom can help you though the potentially confusing process of leasing Houston office space.

• Don’t take the square footage numbers as gospel – measure them yourself. A miscalculation of numbers on your Houston office space lease could mean hundreds of dollars more in rent every month. Don’t accept approximate square footage from the landlord, either; insist on an accurate number so that you can best understand what you are paying for your Houston office space.

• Try to negotiate the annual increases for your rent. If possible, ask the landlord to place a cap on your rent increases so that you don’t end up far exceeding your rent budget in the upcoming years.

• If you want to rent Houston office space, but you are afraid that you may outgrow the space before the end of your lease, negotiate a cancellation clause into your lease; this will allow you to cancel your lease after a predetermined time and then pay for the unamortized costs.

• Negotiate the option to renew. If, upon renewal, you find that the market is lower, then you have the option to renegotiate your lease at that time.

• Negotiate down the restrictions on your Houston office space lease about subleasing. You want to be able to sublease the space, if necessary, during your lease term, so make sure this clause is clear about the right to sublease.

For tenants leasing San Antonio office space, they may be in a position now to save big on their lease. The trick is figuring out just how to do it.

The following tips can guide you in the right direction so you can begin saving on your San Antonio office space today:

1. There is plenty of empty office space in and around San Antonio; and it’s up to you to take advantage of it as a lessee. Consider subletting from another company that is stuck in a long-term lease but doesn’t need all of the space they are renting. In fact, smart subletting can save you as much as 25 percent off what you would normally pay for the same space. San Antonio office space is varied and widely available, thereby allowing you to cash in on some great subletting deals.

2. Consider the location when searching for San Antonio office space. What sort of incentives are being offered? Could you find San Antonio office space in an economic development zone? There are many areas that offer great amenities to attract tenants, but it is up to you find them.

3. Consider sharing space with another company. Sharing a larger San Antonio office space can be quite lucrative if you partner up with a company in the same situation as you are in. Think of joining forces with another company and save big. You may also be able to share a lobby, a receptionist, office equipment and kitchen areas, just to name a few.

4. Consider bartering for your San Antonio office space. Can you offer your landlord something in return for a break on the rent? A computer service company, for example, recently worked a deal with their landlord to lower their rent for their San Antonio office space in return for servicing the computer systems for the landlord’s other company.

Low Occupancy Rates, Looming Foreclosure

However, this Dallas high-rise will close its doors soon due to low occupancy rates and a looming foreclosure. The pending foreclosure on part of the project has left the owners of Elm Place no other option than to close the doors and shut down the property.

Dallas office space will lose a prominent address due to the closure of Elm Place, although the owners have expressed deep regret that there is simply nothing else they can do. Most of the tenants in the building have either already left or are in the process of moving out.

The Unforgiving Dallas Commercial Real Estate Market

The rough and unforgiving Dallas commercial real estate market took its share of drastic hits over the last year and, unfortunately, Elm Place was one of the ones that just couldn’t survive. As a result, occupancy in the tower over the last year fell to a depressing 20 percent.

In other words, the rent being paid out by the few tenants was nowhere meeting the operating expenses of the building. This comes as quite a hit to the owners of Elm Place who, over the last few years, have dumped more than $12 million into the building to make up for a lack of rental income.

The Decline of the Commercial Real Estate Industry

As the doors close on Elm Street, this large, stately building will be a sad example of the suffering felt throughout the commercial real estate industry in Dallas over the last year or so. It will be the largest empty building in downtown Dallas.

Elm Place, which was originally built in 1964, stood as an icon in the downtown Dallas area, and it housed many of Dallas’ prominent companies, including First National Bank. The Bank of America was relocated last year, emptying out the lower nine floors of the building.

Elm Place may be an example of the older buildings in the central business district losing out to the newer buildings located throughout downtown, Uptown and the surrounding suburbs. Much of the empty Dallas office space buildings last year were older ones like Elm Place.

It is important to understand both your rights and obligations as a landlord. The following tips can help guide you through the process:

1. The first order of business after you have discovered that your Dallas commercial real estate tenant has filed for bankruptcy is to consider whether the lease is to be assumed or rejected. The United States Bankruptcy Code requires that your tenant either assume or reject the lease within 60 days of the bankruptcy petition date. If your tenant fails to assume the lease during this time period then the lease is deemed rejected. As the landlord, you may petition the bankruptcy court to receive the answer from your tenant before the 60 days has expired, particular if you feel that you may lose another potential tenant as a result.

2. If the tenant chooses to assume the lease, you have the right, as the landlord, to monitor the bankruptcy case and make sure that the tenant remains in compliance with its debt obligations, as bankruptcy laws require that the tenant continue to perform its obligations under the lease.

3. It is vital that the landlord file its proof of claim in Chapter 7 bankruptcy cases. The proof of claim includes accrued rent, CAM charges, taxes and related fees. Filing a proof of claim is more complex in Chapter 11 cases, and will depend on whether the lease has been assumed or rejected. It is important, however, that you, as the landlord, file your proof of claim in a timely manner to ensure that the lease amount is paid.

4. You may need to submit a tenant letter of credit (in lieu of a tenant security deposit) as to avoid caps on lease rejection damages. Although the letter of credit does not produce guaranteed results, it does provide the landlord with an opportunity to the details of the lease as it is being drafted and signed. This route is often effective when dealing with larger tenants.

RLand Properties president Kipp Whitman is thrilled to break ground on the Boot Hill Market Center, which totals 120,000 square feet. Boot Hill Market Center is a trio of premier Fort Worth retail space. The plans for the project include a turn-of-the-century building plan that is solely based on Whitman’s own legend. To better understand this rare, comedic design lets hear from Whitman himself.

“Humor is the motivation for RLand’s designs. For example, one of the three retail centers will appear to be upside down,” said Whitman. The one retail center should appear to patrons as if it fell off the edge of a steep cliff.

Whitman shows his personal investment to the property by using his own unique designs and by handpicking each tenant. Whitman picks the tenants based on his personal experience as a customer of their store. Whitman wants the creative settings and the quality tenants to “create and experience” for each patron that makes them fall in-love with RLand Properties’ designs.

So with plans that are totally “upside down” many people are excited about this new retail space that will bring tourists to the northern part of Fort Worth, Texas. This is definitely the most unique and exciting news to come from the Fort Worth commercial real estate market, in fact this news is turning the market completely “upside down”.

There are hundreds of companies that are investing in commercial real estate in certain areas of Texas, such as Austin, Houston, Dallas and Fort Worth. There was news lately of construction in the city of Austin, Texas.

Land/Creek Development is executing their plans to construct a eighteen thousand square foot building that will be used as an even mix of both retail and office space. The building will be a wonderful addition to pre-existing Austin retail space.

The building is being constructed on Anderson Mill Road, in the heart of Austin, Texas. It is predicted that Arboretum Park will be completed in January of 2008.

Scott Taylor, employed with Land/Creek Development will be in charge of the leasing of the property. The firm, Sixth River Architects, are in charge of design and building of the office/retail space.

Austin, Texas is becoming a popular area for relocaters, including professionals, students and families. The same can be said for businesses, as dozens of new businesses crop up each week in the city of Austin. This is the perfect time to invest in Austin, Texas commercial real estate.

It is predicted that the economic boom in Texas, will continue for the next two decades. The boom can be seen in projects such as this one at Arboretum Park.

There is a new Dallas commercial real estate property that has investors swooping down on the area. The Banner Place North & South is available for lease. The North building of this impressive property consists of suites that are from five-hundred to twenty-one thousand square feet. The South building contains three floors, ranging in size from two thousand to six thousand square feet.

This centrally located Dallas office space has a variety of amenities that include a deli, cark key access, day care and a full-service bank. Also, Banner Place has a parking lot which is four levels. This lot can house approximately eight-hundred cars. Many investors are interested in this commercial real estate investment because there is immediate access to both the BBJ Freeway and the North Central Expressway.

The city of Dallas offers investors opportunities to jump upon premier industrial, retail and office space. With the growing population, of the area, there is a need for new businesses and other ventures. An investor that is looking for a sure-fire profit should consider Banner Place North & South.

The year 2008 was rung in with the completion of an industrial park. The industrial business center adds 160,000 square feet to valuable pre-existing San Antonio industrial space. The industrial park is located in the north central part of the city.

This is just one venture among many for East Group Properties. East Group Properties has announced the completion of the Westmore Business Center II for the beginning of January. The industrial business center is a “three-building campus” that is a part of the submarket of North Central.

The industrial business center is designed to provide access to the San Antonio International Airport, Wurzbach Parkway and Highway 281. There are plans being drawn up to add a fourth building that will total over one-hundred thousand square feet. It is unclear when construction on the fourth building will begin.

San Antonio commercial real estate is a terrific investment. The leasing of all of the buildings and the management of the property is being handled by Cavender & Hill Properties.

The new industrial business center is a prime opportunity to become a part of the San Antonio real estate market. This is one hot commercial development project that will be completed within the next few weeks. There are other development projects that are currently underway in the city.