http://www.kbalease.com/2009/11/capital-expenditures-includable-or-not/ A Commerical Real Estate Lease Blog by Lease Experts Fri, 23 Sep 2011 12:29:04 +0000 hourly 1 http://wordpress.org/?v=3.2.1 http://www.kbalease.com/2009/11/capital-expenditures-includable-or-not/comment-page-1/#comment-713 LoriAnn Fri, 23 Sep 2011 12:29:04 +0000 http://visuallease.com/kbaleaseaudit/?p=1717#comment-713 While somewhat vintage, what a fantastic article nonetheless. In that across all regions, we as real estate professionals are working to lease in the wake of multiple/extensive vacancies in both office and retail. In many instances landlord's are working feverishly to recapture the losses realized predominantly in 2008-present. As a tenant representative, I find a trend that is perplexing and frustrating in attempting to secure most basic OE data including any historic inclusion of capital expenditures in pass-thrus, the basic methods for a respective landlord's calculation of same BEFORE we consider a location for a candidate. It is almost laughable the perpetual response from some brokerage entities that "We'll work that out when we get to a lease" - (of COURSE we will, when this important issue is riddled among planning, build-out and all other near commitment actions) Hardly. Today's tenant is savvy, smart and want to know every detail reasonably possible when considering a site in CANDIDATE status. It is no longer uncommon for wise, credit tenants to walk away from opportunities where the landlord is not straight forward about all expense details, assuring there are no surprises later in their lease. You "nailed" a very predominant issues as capital expenditures are disguised in so many different ways - again, particularly in the wake of a plethora of vacancies making for a "new day" toward the manner in which information is gather BEFORE we talk about a lease. Thanks and have a great day. While somewhat vintage, what a fantastic article nonetheless. In that across all regions, we as real estate professionals are working to lease in the wake of multiple/extensive vacancies in both office and retail. In many instances landlord’s are working feverishly to recapture the losses realized predominantly in 2008-present. As a tenant representative, I find a trend that is perplexing and frustrating in attempting to secure most basic OE data including any historic inclusion of capital expenditures in pass-thrus, the basic methods for a respective landlord’s calculation of same BEFORE we consider a location for a candidate. It is almost laughable the perpetual response from some brokerage entities that “We’ll work that out when we get to a lease” – (of COURSE we will, when this important issue is riddled among planning, build-out and all other near commitment actions) Hardly. Today’s tenant is savvy, smart and want to know every detail reasonably possible when considering a site in CANDIDATE status. It is no longer uncommon for wise, credit tenants to walk away from opportunities where the landlord is not straight forward about all expense details, assuring there are no surprises later in their lease. You “nailed” a very predominant issues as capital expenditures are disguised in so many different ways – again, particularly in the wake of a plethora of vacancies making for a “new day” toward the manner in which information is gather BEFORE we talk about a lease. Thanks and have a great day.

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