Wednesday, November 28, 2012

Should Commercial Tenants Consider Foreclosed Properties? Part 1

Below are some of the advantages and disadvantages Tenants should consider before leasing a foreclosed or troubled property. This applies to existing tenants and potential tenants seeking to lease commercial space.

Tenant Advantages of a Foreclosure Property
    Lower rental rates
    Free Rent
    Better lease terms
    Upgrade into a higher class of property
    Signage Rights
    Renegotiate favorable terms to an existing lease.

Tenant Disadvantages of a Foreclosure Property
    Longer decision process
    Unknown direction of the property
    Unknown future ownership of the property
     Owner/Lender stop maintaining the property
     Building’s management people could change several times.
     Lenders are not looking for long term relationships with tenants

First, foreclosure is not good for the Owner, the Lender or the Tenants involved. Until an Owner with experience and capital buys the troubled property the building might not have stable ownership for several years . Negotiating a lease in a foreclosed building can be beneficial to a tenant and painful as well. Below is a snap shot of the foreclosure process. A tenant should learn more about the foreclosure process before negotiating a lease in a troubled property.

Take A Test Run On Market Data
Fell free to go to www.leasewithease.net and test our site for selecting office, medical office and retail space.  All you need to do is select “Test” submarket when entering your search criteria.  For more information please go to www.leasewithease.net.

The Move
Need help with preparing for “The Move” then feel free to contact LWE with any questions or if you need a referral for getting your office moved and set up smoothly.

Tenant Vendor List
LeaseWithEase can provide a vendor list to tenants seeking contacts for installing a security system or a contact for a coffee vendor. Also, if your company offers services to office, medical office or retail tenants we would like to include your company in our vendor list for our clients.  Feel free to forward information about your company and what you provide tenants.
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“Bringing The Local Real Estate Market To Your Desk”

Alan Gore
Partner
Texas Broker License #0449773

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