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Negotiating the operating costs as rent

from By Dale Willerton and Jeff Grandfield

When it comes to negotiating commercial leases and renewals, there are aspects of operating costs that can indeed be changed to the tenant's favor (although most commercial real estate professionals may tell you otherwise). The landlord wants to make sure that tenants pay for all the operating costs for the property — there's nothing unusual about that. But when we do operating cost reviews for groups of tenants in a building, we frequently find that the tenants are subsidizing capital improvements that the landlord is using to increase property value. more

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