Frequently Asked Questions
1. Why do we not post rent rates online?
The rent we charge for an available space can differ due to a number of factors, including:
- The location of the property
- The other types of tenants in that property
- The financial strength of the proposed tenant
- The length of lease term the new tenant desires
- The experience of the new tenant
- The type of business the new tenant would operate
- How long it might take the new tenant to open
- The type of improvements the new tenant would make to the building
- The time of year the new lease would start
- Whether or not the new tenant is represented by a real estate broker
Because of so many variables, we prefer to consider each inquiry on a case by case basis, so please call or email us today to discuss.
2. What are "CAM" or "triple net (NNN) costs and why are they separate?
Triple Net Charges (NNN) are the costs associated with the day-to-day operation and maintenance of a property and include common area maintenance (CAM), property taxes, and insurance. CAM includes costs for landscaping, parking lot sweeping, parking and exterior lighting, etc. Property taxes for the property are based on actual tax bills received from the County Assessor. Insurance costs include building casualty insurance and general liability insurance for the common area: tenants are still required to carry their own insurance as losses or injuries sustained inside tenant’s individual premises are not be covered by the shopping center insurance policy. Tenants pay NNN charges based on a percentage which is calculated by dividing the square footage of an individual tenant’s premises by the total square footage of the shopping center; for example, a tenant with 1,000 SF in a shopping center of 25,000 SF would pay 4% of the total NNN costs of the shopping center. This percentage is commonly referred to as a “prorata share” and is used as a way to fairly distribute NNN costs to all tenants of a shopping center. NNN charges are added to Minimum Rent to determine a tenant’s total monthly payment. NNN charges are separate from rent becasue lease terms for retail leases normally go for a long period (typical terms are between 1 and 10 years). The inability to predict inflation or property tax rate changes over such a long period of time is why these costs are seperated out.
