PRACTICAL PERSPECTIVES FOR COMMERCIAL REAL ESTATE OWNERS
Our articles provide practical insights on property management, leasing, operations, financial performance, and market trends shaped by real-world experience owning, developing, and managing commercial real estate.
One of the most overlooked financial drags on a property's performance is tenant expense leakage. This leakage occurs when operating expenses that directly benefit tenants—like parking lot maintenance, landscaping, or security—go unreimbursed under the lease. And while it may seem minor at first glance, the long-term impact on Net Operating Income (NOI) and asset valuation is profound. CAM leakage is not usually due to an explicit exclusion in lease language. Rather, it's the
Insurance compliance is one of the most overlooked yet critical components of retail and flex industrial property management. Despite its importance, it remains an operational blind spot for many landlords and third-party managers. Industry experience suggests few properties exceeded 20% insurance compliance. That statistic isn't just alarming—it underscores a systemic industry failure. The root of the problem is multifaceted. Like lease abstracting, insurance tracking is ted
Ask most shopping center owners what rent their tenants pay per square foot, and they'll quickly respond with a base rent number. Ask them what tenants pay in Common Area Maintenance (CAM), property taxes, and insurance, and many won't know the answer with the same confidence. That's because there has long been a belief that these are simply pass-through expenses. Since tenants reimburse them, many owners view them as having little impact on property performance. Instead, the
