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Could new ways to shop retail put malls out of business?

Many California residents believe that online shopping is the best thing since sliced bread. No more battling traffic and crowds in order to shop, and the goods are delivered right to the front door. While this immensely popular way to shop retail is good for consumers, could it mean the end of malls?

Malls used to be the place to go to shop since they provided a cool or warm and dry place to shop at many stores. Large anchor stores capped off wings with numerous small shops lining the way. Food courts provided hungry shoppers with a respite before they continued their shopping. Parents would drop off teens who would hang out in malls for hours at a time. People used malls as a place to get exercise since they could walk regardless of the weather outside.

When the loss of an anchor tenant strains business

At the end of the year, we wrote a post about how leasing space in shopping centers is all about anchor tenants (when it comes to altering the typical landlord-tenant power dynamic). If you are an anchor tenant, this changes how you approach commercial lease negotiations. In short, being an anchor tenant means that you generally have more power and flexibility in negotiating the terms of your lease, because the anchor tenant usually drives significant, consistent business to the shopping center, making the landlord keen on signing a lease.

But what happens to the other tenants when that anchor tenant decides to leave?

Be wary of these mistakes when negotiating a commercial lease

Opening a business here in Orange County can be an exciting prospect. While contemplating the prospect of opening the doors, building a customer base and enjoying some success, an entrepreneur has many tasks to complete. One of them may be negotiating and signing a commercial lease.

During those negotiations, it may be a good idea to watch out for several pitfalls that could end up costing the business at some point. For instance, be sure to read the fine print. Failing to completely understand the terms of the lease may put the company in a precarious position.

Many developers benefit from help with their ventures

You are the one who comes up with ideas and recruits others who see your vision. You may be good at rounding up the capital you need in order to make your project a reality. When it comes to the paperwork and complying with Orange County, California and federal laws that may apply to your project, you may not be sure where to start. Developers often turn to others to assist them with these requirements.

From the time you find the perfect piece of property until it is fully leased, you would more than likely benefit from the assistance from an Orange County real estate attorney. When it comes time to negotiate the contract for the purchase of the property, having someone on your side could make all the difference. Signing such an agreement is just the first step.

Who pays when there's toxic mold? You or your landlord?

Mold has become a big topic of conversation in the media here in California and elsewhere in recent years. While most of the press covered household toxic mold issues, commercial buildings are just as susceptible. As a commercial tenant, you may wonder whether you or your landlord pay for the damage the mold has done.

Mold, toxic or otherwise, can occur in any damp environment and grow on virtually any damp surface. Even if it begins in the commercial space next to yours, it could find its way into the space you rent. For instance if the roof is leaking in the space next to yours, it could provide a breeding ground for mold. If maintenance issues regarding leaks or other sources of moisture that are not controlled in the building are lacking, you could end up with a problem.

Leasing space in shopping centers is all about anchor tenants

As a large retail corporation, you know that developers may court you to lease space on their properties. You know that for them, leasing space in shopping centers is all about anchor tenants, of which you are one. This puts you in a unique position when it comes to negotiating commercial leases for retail space here in Orange County.

Many shopping center owners have their own lease agreements that they offer to prospective tenants. Like most other anchor tenants, you may consider this just a starting point for negotiations. Your retail store may have specific needs regarding the space, and the first order of business may be to determine whether the owner of the shopping center can meet those needs.

Watch out for 'administrative fees' in common area maintenance charges

Last month we talked about common area maintenance and the wildly fluctuating fees property owners charge tenants in some cases. Fees for CAM, as the name suggests, go toward the maintenance of common areas, like parking lots. A given tenant's CAM costs principally depend on the amount of rented square footage, but the property owner has a lot of discretion in determining CAM costs. In other words, tenants should double-check that they aren't being over-charged.

What goes into the monthy payment for your retail space?

Starting a new business here in Orange County, or anywhere in the state, requires you to look at numerous financial considerations. One of the monetary issues that you need to include in your planning involves the amount of rent you will pay for your retail space. This number ultimately involves more than just a price per square foot.

However, the price per square foot is a good place to start. After that, your prospective landlord will more than likely pass on a portion of its costs to your business. You may end up paying part of the property taxes and/or part of the maintenance costs for the common areas such as the parking lot, among other things. You may also find your company paying a portion of the insurance premium for the space your business occupies.

Commercial tenant growth skyrockets in Orange County

It is a good time to be a landlord in Orange County. The area has seen the highest increase in commercial tenant growth in the United States. In the last two years, the rental market has increased by a staggering 23 percent. Rents have gone up as well.

Why is there such a large rise in rental income for commercial building owners in Orange County? The tech industry has run out of room for its operations in the usual places. As technology continues to advance, and the demand for it continues to rise, tech companies continue to grow, and they need a place to work. These companies are willing to pay premium rental rates for office space.

What to look for as a commercial tenant when signing a lease

Many businesses here in Orange County rent the space in which they conduct their business. As a commercial tenant, many of them are presented with boiler plate lease documents that more than likely favor the landlord. What they need to know is that they can negotiate better terms.

The first lease document presented to a potential commercial tenant may be viewed as an opening to negotiations. After reviewing the initial documents, a counteroffer could be constructed. Often, landlords will add in some "wiggle room" when it comes to the rental price a tenant is expected to pay for the space. Knowing this, it is acceptable to offer a lower price.