REoptimizer^® Blog

When you think about technological advancements, your mind likely turns to computers, mobile devices, automobiles and other gadgets that you use in your daily life, but technology isn't just impacting the world of consumer products. Technology is having an impact on all facets of life, and commercial real estate is no exception. Advances in technology are reshaping commercial real estate to the benefit of tenants.

Recent developments in the commercial real estate world could make it seem like leasing is becoming a less attractive choice. An ongoing climate of low interest rates make purchasing less expensive while skyrocketing property values in some markets could make it seem like if you don't own, you're missing out on an opportunity to participate in appreciation. At the same time, changes in lease accounting standards are removing some of the financial benefits of leasing.

Welcome back to the final part of our trilogy on common commercial lease clauses.  If you missed them, here is Part 1 & Part 2.

The process of commercial real estate benchmarking encompasses three broad steps. First, you compare a given space to itself to see if anything has changed over time. Second, you compare it to the rest of your portfolio to see if it is an outlier in any area. Finally, you compare your portfolio to competing properties. This three step process helps you ensure that you are getting the best possible performance out of your portfolio both in terms of cost and other factors.

There are three things to remember CAMs -- alternatively referred to as common area maintenance or common area management charges. First, they're really a form of rent. Second, they don't only apply to common areas. Third, they can be a significant part of your total occupancy cost. Read on to learn more about the CAM, how it impacts you and how to manage it.

As with most of your business's expenses, occupancy costs usually go up over time. Lease escalations are common clauses that make your rental payments go up on an automatic basis. Since they build over time, even small changes in their terms can have significant long-term effects.

Welcome back to Part 2 of "A Tenant's Guide to Commercial Lease Clauses."  Here is Part 1 in case you missed it.

After almost a decade-long process, the Financial Accounting Standards Board is finally going to change how leases are treated on the balance sheets of American companies. Since this process has been going on for such a long time, a number of myths have sprouted up about the new lease accounting procedures coming in 2019 or 2020. Here are the five most common ones, why they're myths and what will actually end up happening: