[Protech]

I'm looking at some commercial property for office/warehouse use.

I just looked at a lease and the guy wants to be indemnified from "any and all liability, actions, claims and damages" arising after I move in. That sounds pretty oppressive. So let's say the roof caves in because he failed to maintain it or Jerry rigged it in place of proper maintenance, He's not responsible for my injuries or any one else's? I don't freaking think so.

He also has a clause that says I'm required to maintain $800,000.00 worth of personal injury insurance as well as $500,000.00 worth of property damage insurance as part of a public liability policy THAT I MUST PAY FOR?!?!?

I'm no real estate guru, but that is usually the property owner's responsibility not the tenant's. I wouldn't have had a problem with the insurance being my burden to bear if he had just said that in the first place. Instead he says "the rent is $***X per month including utilities". He didn't mention that I would be responsible for a paying an expensive insurance policy on top of that. That sounds like classic bait and switch tactic. I can't stand that crap. Don't tell me the rent is "X" and then try and slide all kinds of hidden costs in right in the middle of the lease. That's some sleazy stuff in you ask me or am I off base here?

 

[RealLivePlumber]

A friend of mine rented a commercial property a couple of years ago.

He is required to maintain/repair EVERYTHING in the bldg. I just installed a water heater for him. It was like 10 years old, but once he moved in, he owned it, untill his lease is up. I have repaired the urinal, and wc, as well.

He is also required to have the heat/air serviced 2x a year, on his dime. If he doesn't provide an invoice for it, the owner will send someone and then bill him for it.

also, the dirty ass carpets that were there when he moved in will need to be replaced when he moves out.

Read the fine print, then have a competent attorney read it.

 

[Master Mark]

how much $$ per month???

another company in town recently moved out of
their commercial property that they had been in for over 15 years....
this was back in an industrial park so their was
no walk in traffic, it was just a place to store toilet seats..

becasue of teh slow down in business and the owner of the
property wanting to raise the price of the lease...
they moved out
they were paying about 3000 per month for
thiis place for the past 15 years!!! plus utilities


they went out and bought property that used to be a
tree nursery with a large barn on it and now rent the home
and use the barn for their business. (cheap)


I could run this company out of a large rental storage garage $250 per month
over paying that amount of money, and it would save me lights and property taxes.
I think if I had a 14 foot box truck, that might even suffice......


whatever your plans are....
good luck with all that

 

[ToUtahNow]

I'm looking at some commercial property for office/warehouse use.

I just looked at a lease and the guy wants to be indemnified from "any and all liability, actions, claims and damages" arising after I move in. That sounds pretty oppressive. So let's say the roof caves in because he failed to maintain it or Jerry rigged it in place of proper maintenance, He's not responsible for my injuries or any one else's? I don't freaking think so.

He also has a clause that says I'm required to maintain $800,000.00 worth of personal injury insurance as well as $500,000.00 worth of property damage insurance as part of a public liability policy THAT I MUST PAY FOR?!?!?

I'm no real estate guru, but that is usually the property owner's responsibility not the tenant's. I wouldn't have had a problem with the insurance being my burden to bear if he had just said that in the first place. Instead he says "the rent is $***X per month including utilities". He didn't mention that I would be responsible for a paying an expensive insurance policy on top of that. That sounds like classic bait and switch tactic. I can't stand that crap. Don't tell me the rent is "X" and then try and slide all kinds of hidden costs in right in the middle of the lease. That's some sleazy stuff in you ask me or am I off base here?

That is pretty typical. The indemnification is in case you cause a toxic spill or endanger other properties. It is just saying if he gets sued because of something you do, you will protect him.

Mark

 

[ckoch407]

I've been in 3 commercial leases and all 3 of them had to add that to the G/L policy. It was fairly inexpensive. The other CAM terms like dumpsters, ground maintenance, building maintenance, property taxes, FL sales tax, inflation, etc are varied from owner to owner. SOme probably dont report it and dont collect or pay the sales tax, some do the various maintenance, some dont. Depends on what overhead they have. Paid for building with other tenants dont usualy charge a CAM. New building with a mortgage forget about it. Through the roof. And as To Utah says, the indemnification is standard. Leases are written by lawyers for lawyers. Like insurance policys. Dont rely on a handshake or verbal anything if it is written otherwise.

 

[ROCKSTARPLUMBER]

Congratulations on your growing venture.

 

[grandpa]

Commercial leases often are "triple net", meaning lessee pays everything! But anything is negotiable, and the number one rule is whatever is WRITTEN in the lease is the law. Nothing in real estate that is oral agreements or understandings holds any water.

 

[ChrisConnor]

I considered a great property location with great visibility once, but upon inspection and noting that the so-called "standard" lease would require me to maintain everything including the roof,including floors, ceiling walls,plumbing, electrical and HVAC, I decided to abstain. Ironically, it looked as if nothing had ever been maintained in that place.

I talked to the tenant that was moving out and he told me that the landlord stalked the place trying to find something that could need repair and would try to badger him into replacing whatever the item could be, citing the conditions of the lease.

The whole reason that I contacted the moving out tenant was because the landlord told me that he preferred cash payments for the rent and that I should bring it to his home. So, I figured this a little peculiar.The moving out tenant told me that the landlord would show up on the first of the month demanding the lease first thing in the morning, often being there before they opened and heaven forbid the first be on a Sunday or the landlord would call you repeatedly and would never accept the "checks in the mail" as an answer.

 

[Protech]

I walked away from the deal. I found a brand new warehouse that has more square footage as well as cubic footage for about the same price with NO LEASE WHAT SO EVER. Month to month payments. No insurance required (though he did say it wasn't a bad idea to have it). The unit is big enough to pull both of my 21' long by 10.5' high box trucks into and still has space to fit an office and plenty of warehouse space.

Also, I just looked at a commercial property my mother is buying right on the main drag in downtown with excellent sign exposure. I think I'm going to split the place with her. Her law office in the front, my warehouse in the back. I also get 1/2 of the frontage for my own sign. All this for the same price as the first guy wanted with no oppressive lease terms. :thumbup:

Also, both locations that I just mentioned have the ability to accept semi-truck deliveries and have space for loading docks.

I think the plan is to stay in the month to month place until she takes position of the downtown location and guts the back ½ of it for me.