CRE Mistakes Series: Retailers not understanding their rent obligations
At Compass we get a lot of calls from retailers who leased space without representation. Sadly, they didn’t read, much less understand, the lease they signed. They got their space, moved in, and started paying rent. Then they get the bill from the landlord for the net charges. In addition to rent they are supposed to pay for taxes, insurance and common area maintenance.
Unfortunately, they were not aware of these additonal expenses, and sometimes end up being evicted. See our series on “The Math of Commercial Real Estate” to help you avoid this situation.