Don’t Let Spring Pests Undermine Your Trees!

Leaf-eating insects and tree borers don’t wait for an invitation. As spring approaches, they’ll be ready to feast on the trees across your property—weakening their health, impacting aesthetics, and driving up long-term maintenance costs.  Early action and preventative treatments can stop costly pest infestations before they start—keeping your property looking professional and protecting your landscape investment.

Key pests that should concern you:

•              Aphids: These sap-sucking insects cause leaf curling, yellowing, and sticky honeydew that can lead to sooty mold.

•              Leafhoppers: Known for stippling damage and leaf discoloration, they can also spread plant diseases.

•              Lace Bugs: They cause chlorotic spotting on leaves, leading to reduced aesthetic value and weakened tree health.

•              Tent Caterpillars: Defoliators that can strip trees of their leaves quickly, stressing the tree.

•              Leaf Beetles: These insects chew through foliage, creating skeletonized leaves and reducing the tree’s vigor.

•              Emerald Ash Borer (EAB): This invasive pest is a major threat to ash trees. It tunnels under the bark, disrupting nutrient flow, and can kill a tree within 2-3 years.

•              Bronze Birch Borer: A common pest targeting stressed birch trees, this insect causes dieback in the upper canopy and can ultimately lead to tree mortality.

•              Flatheaded Borers: These metallic-colored beetles attack weakened trees, leaving characteristic D-shaped exit holes and causing internal damage.

•              Western Pine Beetle: Common in pine species, this beetle can cause extensive die-off during drought or stress conditions.

•              Douglas-Fir Beetle: A bark beetle that targets weakened Douglas-firs, often following wind damage or other environmental stress.

Stay ahead of the problem and let your trees thrive this season.

Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.

SUBLEASING

Most commercial leases prohibit a tenant from assigning or subleasing the leased premises to another party without first obtaining the landlord’s consent.  Often, a commercial tenant will execute a lease failing to insert language that a landlord will act reasonably when a tenant requests the landlord’s consent to an assignment or sublease.  A tenant, at the very least, should negotiate that a landlord’s consent to an assignment or sublease should not be unreasonably withheld, conditioned, or delayed.  Most tenants do not realize that they could be in default under a lease simply because of the sale of their company and/or reorganization of their company, which could require an assignment of their lease.  Landlords could possibly hold up the sale/merger of a company because the landlord wants to renegotiate the lease as a condition to granting an assignment. . 

We are here to help you and your clients with all aspects of commercial property management.  Please contact us for further assistance!

Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.

HOT WEATHER MAINTENANCE

Extreme heat can damage commercial buildings by causing building materials to expand and contract repeatedly, which can lead to cracks, fractures, and structural failure. Regular maintenance and inspections can help identify and address these issues.  Here are some ways to reduce the effects of heat on commercial buildings:

Insulation:   Increase insulation in the walls, ceilings, and floors, and add foam insulation to wall cavities.

Cool roofs:   Install roofs that reflect sunlight and absorb less heat than traditional roofs.

Energy-efficient lighting:   Install energy-efficient lighting, refrigerators, and office equipment.

Other cooling methods:   Use heat pumps that use air or water, HVLS fans, or other cooling systems.

Enjoy the sunshine!

Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.

“Lease Commencement” vs. “Rent Commencement”

For some commercial tenants, they often get confused with the term “Lease Commencement” and “Rent Commencement” thinking they are one in the same.  However, a lease commencement is the specific date on which the lease agreement becomes effective, and the tenant takes possession of the leased property.  The rent commencement is the date from which the tenant becomes liable to pay rent to the landlord.  More so than often these terms are the same date, but there could be the exception to the lease agreement when free rent is granted for a few months as incentive. 

We are here to help you and your clients with all aspects of commercial property management.  Please contact us for further assistance!

There are no warranties, express or implied, including fitness for a particular purpose, made with respect to this communication. Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should obtain the advice of an attorney well versed in these matters

Damage and Destruction

The “Damage and Destruction” provision in a lease specifies what will happen if the leased premises, or the building housing the leased premises, is damaged or destroyed.  It typically provides that the landlord may elect, in its sole discretion, to continue the lease or to terminate it.  In the case of continuation, it usually provides for an abatement of rent (reduction) in the same proportion that tenant's use of the leased premises is impaired.  The tenant must make sure that the abatement of rent language is fair.  Some leases base it on the amount of square footage of the leased premises that is damaged or destroyed.  This is unfair since sometimes the entire leased premises may not be useable even when the damage is to a small area.  For example, if the entry is blocked, it does not matter if the rest of the premises is not damaged; no one can enter.  In this case it would be landlord's responsibility to repair damage, make sure the tenant retains the right to complete improvements following the landlord's repair or reconstruction before rent obligation resumes.

We are here to help you and your clients with all aspects of commercial property management.  Please contact us for further assistance!

There are no warranties, express or implied, including fitness for a particular purpose, made with respect to this communication. Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should obtain the advice of an attorney well versed in these matters.

A DAY IN THE LIFE...

A day in the life of a commercial property manager today dramatically differs from that of a decade ago.  Commercial property managers have greater responsibilities beyond traditional rent collection and bill paying. They now arrange insurance; provide tax information; collect renovation bids; develop marketing plans; hire and manage staff; coordinate maintenance services; improve landscaping; oversee property security; ensure compliance with government regulations; and report income and expenses.  To accomplish these tasks, today`s property managers must evaluate and respond to changing market conditions, be aware of new developments in technology, and find additional ways to increase fee income. At the same time, they must maintain the personal tenant relationships that are so integral to their business.

We are here to help you and your clients with all aspect of commercial property management.  Please contact us for further assistance!

There are no warranties, express or implied, including fitness for a particular purpose, made with respect to this communication. Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should obtain the advice of an attorney well versed in these matters.

COLD WEATHER MAINTENANCE

Cold temperatures can reach areas of your facility that you seldom visit or cannot see, such as crawl spaces, closets, enclosed spaces (e.g., attics, lofts, roof spaces), and isolated storage areas.  Preparing for cold weather can help reduce potential business interruptions and related losses resulting from cold temperatures.  In severe cold, domestic water pipes have the potential to freeze and break.  If it’s safe to do so, make sure pipes that are in isolated or poorly heated spaces are shut off and drained or protected with a supplemental heating source.

 Protect your fire protection sprinklers by ensuring that wet piping systems are sufficiently heated to prevent freezing.  Severe cold weather can also delay the response time of the local fire department. It’s imperative to properly maintain your fire protection systems.  If heating is lost in a building protected by wet sprinklers, it should be restored immediately.  Sprinkler systems should be shut off and completely drained only after exhausting all options to re-establish sufficient heat.  If this is necessary, be sure to take appropriate precautions, including notifying local fire officials.

 Strategies to Help Prevent Frozen Pipes: 

 *Properly insulate and/or provide approved heat tracing for water-filled pipes located in exterior walls or unheated spaces.

*Drain any piping that is not required during the winter months.

*Maintain a minimum temperature of 40° F (4.4° C) in building areas with systems and structures susceptible to freezing, like wet-pipe sprinkler systems, fire pump houses and dry-pipe valve enclosures.

*Ensure that anti-freeze sprinkler systems have sufficient concentration (appropriate specific gravity readings) of antifreeze to withstand freezing weather.

*Inspect dry systems to help ensure air settings are correct, air maintenance systems are in good operating condition, and any pipe closets are well insulated. If heat tape or heating systems are being used, ensure that they are UL-listed for this specific purpose and are in good operating condition. Dry-pipe sprinkler systems low points and auxiliary drains should be opened and drained of any water or condensation.

*Any branch lines on wet sprinkler systems exposed or subject to extreme cold weather should be insulated and heat traced. Electric heat tracing products should be UL-listed for this specific purpose.

*Fire pump test headers should be checked to ensure they have been properly drained.

*Fire pump and dry-pipe sprinkler system equipment rooms should be checked routinely to ensure the heaters are in good operating condition.

*The use of low temperature monitoring solutions can help to ensure rooms are being properly heated. 

* Contact your insurance agent to discuss your specific coverage needs to protect your business.

 For more information see https://www.travelers.com/resources/business-topics/facilities-management/preventing-frozen-pipes-for-businesses

Tips For Leasing Commercial Space During the Holidays

The holidays will slow the commercial lease process down even more.  You pretty much lose a week for Thanksgiving in November and 2 weeks in December for Christmas and New Years.   Many tenants think that leasing commercial space during the holidays will be faster since they have more time and things tend to slow down.  However, most of the people needed to provide information and finalize a commercial lease transaction are mostly unavailable during the holidays.  Below is a list, according to TenantAdvisors.com, of helpful tips on leasing commercial space during the holidays.

Tips For Leasing Commercial Space During the Holidays

1. Negotiate more time for build out before the rent commencement date begins.  If you are counting on important items to be completed during the months of November and December, you need to incorporate some sort of contingency in your time frame.  Expect and plan for delays.  Maybe add another month or two to the rent commencement date and insert language in the lease to appease the landlord that you will occupy and start paying rent as soon as work is completed, and you have a certificate of occupancy.

2. Find out who will be available during months of November and December and If you are in the middle of negotiating the lease contract, find out exactly when the attorneys will be available and set deadlines for responses.  Same goes for your contractors.  Find out when they are available and only work with ones who will commit to being available during those months.

3. Confirm the city’s holiday schedule.  If you are relying on the city for inspections and a certificate of occupancy, then make sure you stay connected with those contacts and be sure to know what their holiday schedule will be.

4. Communicate with your existing landlord if applicable.  There is a chance that you don’t get your CO in the new space and end up holding over in your old space for another month or two.  Be sure to communicate often with your existing landlord.

4. Communicate well with everyone involved and do so often.  Try not to rely on email alone.  Be sure to coordinate conference calls with key players to ensure everything is moving according to plan.

Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.

“Quiet Enjoyment”

What is the right to “Quiet Enjoyment” in a commercial lease?  In an article about quiet enjoyment*, it explains that quiet enjoyment is a covenant that promises that you will not do anything to interfere with a tenant’s reasonable use and enjoyment of their leased premises and that you will ensure that a tenant’s use and enjoyment of the property will not be disturbed.  Commercial leases usually contain a very specific quiet enjoyment clause.  In a commercial lease the quiet enjoyment clause can be modified or even waived .  For that reason, quiet enjoyment in a commercial lease is determined by the specific terms of that lease.  Because commercial leases are more variable in their terms and because of the larger investment made by tenants, lawsuits based on quiet enjoyment are more common than in residential leases.

*Robert Green of GLE contributed an article in GLE “What Does Quiet Enjoyment Mean for Property Managers?”

There are no warranties, express or implied, including fitness for a particular purpose, made with respect to this communication. Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should obtain the advice of an attorney well versed in these matters.

Go-Dark clauses

What is a “Go-Dark” clause in a commercial lease?  Most leases require you to continuously operate your business while you are leasing space in the property and if you violate your center's hours of operation or close completely, you could end up in default. A go-dark clause gives you the opportunity to shut down your operation without sanction from the landlord as long as you continue paying your rent.  Landlords frequently oppose granting go-dark clauses because they can lead to rolling vacancies as tenants move out to avoid being in a center with gradually shrinking traffic. One of the lease terms that a landlord may offer you instead is a go-dim clause that requires you to modify the way you operate or your operation hours to reduce your costs.  Another option that your lease may contain is a recapture clause. Recapture lease terms let your landlord take your space back and cancel your lease obligations if you go dark. While this can be valuable if you want to get out of the space, it also means that going dark could make you lose your space once and for all if the landlord recaptures it.

We are here to help you and your clients!

Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.

The Property Management Decision Matrix

The backbone of any commercial property is strong property management. If you have recently purchased a commercial building or have a client that owns a building, there comes a time that you must truly consider hiring professional property management. What many owners don’t realize is that the right management company will, in many cases, save the property more money than the management fees being paid.  There are key factors to look for when considering hiring a property management company. Many important factors to consider are:

Experience of the Firms’ Owner(s).  Make sure you know the background and history of any firm you are considering.

Experience of the Property Managers. Make sure the property managers have the proper education, training and background and ask to meet the individual managers.

Maintenance. Major service calls need to be addressed immediately for the integrity of the building. Minor items should be handled as quickly as possible since these sometimes “annoying” items will slowly build animosity from the tenant toward management and ownership.

Tenant Relations Procedures. Experienced firms have tenant relations procedures in place, such as after- hours contact systems and emergency procedures.

Tenant Retention. The management firm should have an established plan to maintain relations and efforts made to retain tenants now and upon their lease expiration.

Financial Reporting. The management firm should provide monthly financial reports and a budget for the building. 

Management Software. There are a few very strong property management software programs.  These are the leading programs for a reason. The right software will integrate everything from accounting to tenant information and maintenance request tracking.

We are here to help! Contact us for an asset management plan.

Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing. 

AS IS OR???

In a commercial lease, when it states a tenant will accept the premises “as is”, does it really mean that the tenant accepts the premises with ALL faults?  Even though that may be the intention of the parties, there may be laws that preclude a landlord from completely passing the buck on certain issues, such as environmental cleanup and hazardous waste.  In addition, the law sometimes requires mandatory disclosure of defective conditions or other problems with the premises or property.

We are here to help you and your clients with all aspects of commercial property management.  Please contact us for further assistance!

Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.

SNOW REMOVAL - HOW TO CHOOSE A CONTRACTOR.

The biggest mistake you can make when it comes to snow removal is choosing the wrong company.  You might seek out numerous bids but do you know what sets the pros apart from the amateurs?  The best snow removal contractors plan well in advance of the season’s first snow. They visit your property and perform pre-season inspections.  These inspections identify potential hazards or problem areas.  For example, some areas might require plowing and others deicing.  Having this information before rendering services allows for the most efficient snow removal.

 When choosing a full-service snow removal company, consider the following five things:

 *Does the company use sustainable snow removal practices?

*Are the chemicals used safe for concrete, pavement, and other services?

*What other properties in the area does the company service?

*What equipment does the snow removal service use?

*What services does the bid include?

 Hiring a commercial snow removal service is the best way to protect customers, tenants and employees.  It’s also a great way to avoid slip-and-fall lawsuits.  Never let snow or ice accumulate on your property for long. Work with a trusted, local snow removal contractor for safety and peace of mind.

Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.

DAMAGE & DESTRUCTION

The Damage and Destruction provision in a lease specifies what will happen if the leased premises or the building housing the leased premises is damaged or destroyed.  It typically provides that the landlord may elect, in its sole discretion, to continue the lease or to terminate it.  In the case of continuation, it usually provides for an abatement of rent (reduction) in the same proportion that tenant's use of the leased premises is impaired.  The tenant must make sure that the abatement of rent language is fair.  Some leases base it on the amount of square footage of the leased premises that is damaged or destroyed.  This is unfair since sometimes the entire leased premises may not be useable even when the damage is to a small area.  For example, if the entry is blocked, it does not matter if the rest of the premises is not damaged; no one can enter.  In this case it would be landlord's responsibility to repair damage, make sure the tenant retains the right to complete improvements following the landlord's repair before rent obligation resumes. 

We are here to help you and your clients with all aspects of commercial property management.  Please contact us for further assistance!

Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.

COMMERCIAL LEASE RENEWAL

It can take upwards of two years to make up for the income lost when a tenant vacates instead of renewing the lease.  The chance of lease renewal by a satisfied tenant is triple the chance of lease renewal by a dissatisfied tenant.  To ensure that your commercial real estate tenants are satisfied with their leased space in your property, it is important to develop a strategic plan for tenant management.  The plan should include an assessment of, and a plan to meet, their business needs.  You should develop a regular communications program with a single point of contact as well as an assessment program to measure the level of tenant satisfaction.

 We are here to help you and your clients with all aspects of commercial property management. Please contact us for further assistance!

 Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.

What is a “Go-Dark” clause?

What is a “Go-Dark” clause in a commercial lease?  Most leases require you to continuously operate your business while you are leasing space in the property and if you violate your center's hours of operation or close down completely, you could end up in default. A go-dark clause gives you the opportunity to shut down your operation without sanction from the landlord as long as you continue paying your rent.  Landlords frequently oppose granting go-dark clauses because they can lead to rolling vacancies as tenants move out to avoid being in a center with gradually shrinking traffic. One of the lease terms that a landlord may offer you instead is a go-dim clause that requires you to modify the way you operate or your operation hours to reduce your costs.  Another option that your lease may contain is a recapture clause. Recapture lease terms let your landlord take your space back and cancel your lease obligations if you go dark. While this can be valuable if you want to get out of the space, it also means that going dark could make you lose your space once and for all if the landlord recaptures it.

We are here to help you and your clients!

Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.

CORPORATE TENANTS IN COMMERCIAL SPACE

One of the mistakes corporate tenants should avoid making is not hiring broker representation.  Signing a commercial lease is an important business decision and one of the greatest financial commitments that business owners make.  Don’t forgo hiring a commercial real estate broker. Even if you have extensive transaction experience or an internal real estate team, the decision to hire a tenant representation broker can do wonders for your business. Brokers have the market knowledge and skillset to find a property that meets your specific requirement and negotiate a favorable lease on your behalf. Many tenants worry about the cost of commissions; oftentimes, your landlord will cover that fee. You may also see a significant return on investment in the form of lower rent rates, higher tenant improvement dollars and other landlord concessions.

We are here to help you and your clients with all aspects of the commercial property management and leasing market. Please contact us for further assistance!

Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.

WHIRLWIND 20 MONTHS

A recent article in the National Law Review comments about the whirlwind 20 months for commercial real estate (CRE), which was hit particularly hard by COVID-19.  According to a recent report “The pandemic created the worst recession the office sector has ever faced — leaving property owners to seek out new ways to entice tenants, navigate changing lease structures, and manage any number of other COVID-related issues. Moreover, COVID-19 has caused many observers to challenge and question the fundamental way we work and, more importantly, where we work.  On the flip side, despite the pandemic’s persistence, other areas in CRE have proven remarkably resilient.  As the economy continues to recover, PwC data shows that an enormous amount of investment is surging into real estate.”

The challenges of CRE will surely continue into 2022, presenting new challenges, opportunities and uncertainties.  Many tenants want flexible and short-term lease structures.  However, one study shows that more than 75 percent of new leases signed in the first half of 2021 were for terms greater than four years, and 25 percent were for terms of 10+ years — percentages consistent with pre-pandemic levels.  The article states “The full impact of COVID-driven changes in working and space use may not be realized until larger, existing leases come up for renewal or until there is clarity around the extent to which remote working will effect a permanent change in office space usage and, ultimately, demand.”

We are here to help you and your clients with all aspects of commercial property management.  Please contact us for further assistance!

Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing

AS-IS or NONE OF THE ABOVE

In a commercial lease, does “as is” really mean that the tenant takes the premises “as is”?  Even though that may be the intention of the parties, there may be laws that preclude a landlord from completely passing the buck on certain issues, such as environmental cleanup and hazardous waste.  Also, the law sometimes requires mandatory disclosure of defective conditions or other problems with the premises or property.

 We are here to help you and your clients with all aspects of commercial property management.  Please contact us for further assistance!

 Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing

COVID-19 - SOMETHING POSITIVE?????

Believe it or not, there have been some positive effects of COVID 19 as a result of our mandatory slow down.  We have gotten back some much needed family time.  It’s amazing what can happen when families are together more and some of their primary entertainment sources are taken out of the equation. Many families are cooking together, playing board games, having discussions, spending more quality time together, and bonding in ways they haven’t in a long time.  Nature has returned to balance with fewer cars on the road and less emissions, many large cities around the world saw clear blue skies. Wildlife populations also returned to areas in which they hadn’t been seen in decades. We’ve realized how valuable human connection is as sometimes we get so wrapped up in our technology that we forget how great it is to have face-to-face contact with other people.  Masks have increased the value of smiles and hugs, two of the things that we miss the most. 

None of these things can replace the lives lost due to COVID-19, but for many of us, this experience has brought us some necessary connection with one another and reminded us just how special our world and our loved ones are.

We are here to help you and your clients with all aspects of commercial property management.  Please contact us for further assistance!

Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.