Occupancy costs

Occupancy costs

June 11, 2025
Don Catalano
landlord costs

When Every New Tenant Costs More: Inside the Office Market’s Construction Cost Spiral

Landlords aren’t just struggling to fill space—they’re bleeding out trying to build it back. The new reality in commercial real estate? Every tenant that walks out the door leaves behind a deeper hole—and replacing them isn’t just harder, it’s significantly more expensive. So, any way landlords bring in new tenants is through one expensive concession […]
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vacancy tax san francisco

Will a Vacancy Tax on Commercial Properties Save Downtowns? Probably Not.

Commercial Landlords Are Down—Now California Wants to Finish the Job. California’s Senate Bill 789 is a vacancy tax pitched as a cure for downtown decay. But tenants should ask: what happens when you tax the landlords out of existence? The proposed bill would slap a $5-per-square-foot annual tax on commercial properties vacant for 182+ days, […]
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HVAC

The Ultimate Warehouse HVAC Guide: Effective Warehouse Ventilation Systems

Stagnant air, soaring utility bills, and equipment breakdowns? That’s not a warehouse—it’s a liability factory. Inadequate airflow turns warehouses into pressure cookers for product loss, energy waste, and health violations.   The solution starts with the right HVAC system, designed to maintain airflow patterns, regulate indoor temperatures, and handle the unique challenges of your warehouse […]
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The Hold Over Clause and The High Stakes of Holdover Tenancy

This article will guide you through: The essentials of holdover clauses The scenarios that lead to holdover tenancy How to navigate these situations to protect your interests as an office tenant Holdover clauses are a critical component of lease agreements that tenants often overlook. But when it comes to holdover tenancy, the old saying “prevention […]
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How to Control Occupancy Costs in Your Commercial Lease

In this article, you’ll discover: The impact of rent abatement and rent escalation clauses on long-term expenses. How operating expenses can significantly influence your total occupancy cost. Importance of Tenant Improvement Allowances (TIA) and strategies for minimizing renovation-related costs. How a True Tenant Rep™ can negotiate better lease terms and reduce costs. When you’re in […]
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What’s the Relationship Between Office Occupancy and Vacancy Rates?

In this article, you’ll learn: About the high risk of obsolescence facing 30% of U.S. office buildings. Why vacancy rates alone don’t fully capture market dynamics post-pandemic. How occupancy and vacancy rates together reveal potential market trajectories. Strategies for businesses to adapt to changing real estate landscapes for success. With 30% of U.S. office buildings, […]
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Is This a New Era of Office Rent Based on Occupancy and Utilization?

In this article, you’ll discover: Landlords are offering flexible lease terms due to increased remote work. Rent at 25 Kent Ave. adjusts based on occupancy, incentivizing utilization. Occupancy-based rents benefit both tenants and landlords with flexibility and cost savings. Enhanced landlord concessions and amenities are designed to attract tenants. Workplace flexibility is still a top […]
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Common Area Maintenance (CAM) Charges: What to Know

In this article, you’ll learn: What CAM charges cover, including typical maintenance costs Differences between CAM charges and other operating expenses in your lease How CAM fees are handled in full-service vs. triple net leases How to calculate and verify your share of CAM charges Why working with a Tenant Rep is crucial for negotiating […]
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How To Navigate Commercial Rent Escalation Clauses

In this article, you’ll learn: What rent escalation clauses are and how they impact your commercial lease Common types of rent escalation, including fixed, percentage, and CPI-based increases How escalation clauses in renewal options can affect your lease terms Strategies for controlling operating cost escalations and CAM charges How a Tenant Rep can help you […]
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