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Why Should I Work with EJMB?
Terms, description, definitions, legal jargon, fine print, contracts, documents, real estate in general…our team knows it all. Specializing in complex financial analysis and negotiations, tenant leasing and retail development, with attention to the legal implications, our brokers have the industry experience and sophisticated knowledge to secure the right terms protecting your interests. Our clients’ individual needs are always our top priority.
A great benefit to tenants in New York City is the fact that the landlord always pays the entire brokerage commission/fee. Business owners get the advantages of being represented by a commercial real estate broker at no cost to them.
Like you, both Marc Bengualid and Elissa Patterson know what it takes to own a business. Elissa owned and operated her own chain of retail pet supply stores in NYC for 10 years. She then continued on to build a brand with her development and production company – delivering Emmy Award winning results for her work as a producer on Classical Baby for HBO. Marc’s experience as a business owner of multiple companies has taken him through all facets of commercial real estate. His passion led him to law where he started his own law firm and currently practices as a trial attorney. These businesses were built on the success of their locations and truly satisfied customers. Their shared passion for New York City, the real estate market and quality customer service drove them to join forces and launch EJMB Commercial. They soon expanded the team to a full line of experienced brokers with proven track records of success. Their combined experience as business owners, being the customer in many instances, and their expertise in the real estate market, allows for a shared mindset. They truly have walked in your shoes.
These Impact Your Bottom Line
This is also known as TI. When opening or relocating a business, certain requirements are often needed outside the building standard buildout. In order to make a property more attractive, a landlord may opt to pay for some of these expenses to create a custom space. In many cases, these allowances are given in lump sums of money, known as a Tenant Improvement Allowance.
Additional Rent refers to items that a tenant may be charged for that are not included in the rent costs. These costs can include: after-hours services, electric charges, mailroom fees, common area maintenance (CAM) fees and any other costs not included in the base rent.
The percentage of the rentable area the tenant cannot use. If the Rentable Area is 10,000 SF and the Usable Area is 7,500 SF, the Loss Factor is 2,500 divided by 10,000, or 25%.
Tenants pay the base rent, as well as additional fees for expenses related to the upkeep of the common areas of the building. These fees are called CAM fees. Examples of CAM fees include: water/ sewer, sprinkler, trash removal and guard fees.
In New York City the landlord always pays the entire brokerage commission/ fee. Business owners get the advantages of being represented by a commercial real estate broker at no cost to them.
Usable square footage is the actual space you occupy from wall to wall. Usable square footage does not include common areas of a building such as lobbies, restrooms, stairwells, storage rooms, and shared hallways.
Rentable square footage is your usable square footage plus a portion of the building’s shared space. The increase in the rentable square footage above your usable square footage is referred to as the loss factor.
It's All in the Details
Similar to a doorman in an apartment building, an attended lobby offers the services of a front door attendant to check in guests, maintain security, and direct postal/shipping services.
BTS is a landlord’s agreement to renovate or build a space to suit the requirements of a particular tenant. Tenants and landlords work together to create the scope of work and the landlord generally hires the architect and contractors. BTS agreements are more common in long term leases.
Class A – buildings competing for prime office users with above average rents for the area. Buildings have high quality standard finishes, state-of-the-art systems, exceptional accessibility, and suggest a definitive market presence.
Class B – buildings competing for a wide range of office users with average rents for the area. Building finishes are fair to good for the area and systems are adequate. The buildings do not compete with class A at the same prices.
Class C – buildings competing for tenants requiring functional space at low to average rents for the area.
When the space entry is directly off the elevators, not around a corner, or down the hall.
An abbreviation for a system for- heating, ventilating, and air conditioning. It’s often pronounced as “H-VAC”.
New Building Installation is a term used by brokers to describe a space that is newly built or newly renovated and has not been occupied.
A “Prebuild” or prebuilt space is a space that a landlord has renovated and built out in order to make it more appealing and readily available to a prospective tenant.
A commercial space that is already outfitted with all telecommunication and wiring needs, where the infrastructure is maintained by the landlord.
A term used to describe a space that is ready for move-in, as all services are already in place, including wiring, fixtures, floors and paint.
The interior condition of a space where the improvements generally consist of: heating/cooling, lighting, electrical switches and outlets, bathrooms, a finished ceiling, walls that are prepped for painting, and a concrete slab floor.
Learn the Lingo
The lessor is the landlord. The party receiving the rent and granting permission to use the space. Sometimes this is an owner, but it may also be a property management company or commercial leasing company.
The lessee is the tenant. The party occupying a leased space and paying rent. Your business entity should be the official lessee on all documents relating to the lease.
In commercial leasing, landlord representatives are hired by the owners of commercial properties to represent the landlords in leasing transactions. Successful landlord reps maintain long term relationships with owners and may be in charge of multi- unit office buildings, retail properties, or even portfolios of several properties.
Tenant Representation brokers represent tenants looking to lease commercial property. The Tenant Rep’s responsibilities include: analyzing the tenant’s space needs, identifying properties that fit the tenant’s needs, and protecting the tenant’s interests in the negotiation process.
Landlords include a “Good Guy Guarantee” in most New York City commercial leases. Having the “Good Guy Guarantee” reduces the likelihood of a tenant remaining in a space should a rent default occur; obviously a plus for the landlord.
The “Good Guy Guarantee” is a very limited form of personal guaranty. Usually an owner or principal of a company will sign the “Good Guy Guarantee”.
A “Good Guy Guarantee” differs from a personal guaranty of the lease, in that it is guarantee of payment, not of term. Should the tenant (the company) break a lease and leave a space before the end of the lease term, the “Good Guy Guarantor” has no financial obligation, so long as the tenant is not behind on their rent at the time they leave their space. On the other hand, if the tenant stops paying rent and is behind on their rent at the time that the landlord recovers the space, the “Good Guy Guarantor” becomes financially responsible to the landlord for the amount owed during the period of time the tenant occupied the space. If the tenant leaves the space broom clean, turns in the keys to the landlord and is current on all rent expenses, the guarantor is no longer financially responsible for rent payments, even if there is time remaining on the lease term.
Often referred to as a LOI or term sheet. A letter of intent to lease a commercial office space is a written document that solidifies the tenant’s commitment to rent the space. This comes before signing the lease agreement and typically summarizes the terms of the lease, including the negotiations, concessions, and time frames agreed to.
Financial information from prospective tenants is used as a tool by Landlords to determine if they are interested in having the tenant in their buildings. The stronger a tenant is financially, the more attractive they will be to the landlord. Landlords also use financials to determine the amount of security deposit they will require for the lease. The documentation requested is usually the last 2 years of the company’s tax returns. If the company is a start-up or the tax returns are not an indication of the company’s finances, a prospective tenant should include other information such as bank statements and statements certified by their accountants such as profit/loss, summary of assets, etc.
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