Podcast: Retail Services

retail services

When it comes to retail services, you need an expert. At Champions DFW Commercial Realty, Rudy Janecka is an authority on the topic as the Director of Retail Services at Champions DFW. Here’s an excerpt of his conversation with Jim Kelley from the Champions DFW radio show and podcast…

Jim Kelley: Mr. Rudy is joining us as our director of retail services. Rudy, base rent versus net operating expenses. I mean we get a call, “Okay, what’s the rent?” And we give them, “Okay, this is your base rent.” What do you mean? You know, there’s additional expenses that are incurred. Can we talk for a few minutes about the base rent versus operating expense?

Rudy Janecka: Yes, so what Jim’s referring to is what we call in the industry a triple net lease and the base rent would be, you know, the amount that’s charged on an annual basis for the tenant to lease the space from the landlord and the triple nets would be a percentage of the cost that the landlord incurs that is passed along to the individual tenants based on the proportionate share of space they’re leasing to cover insurance cost for the shell building in the property, to cover common area maintenance costs, you know, to run the pole lights, the sign at the street, electricity, things like that and then the taxes that the landlord incurs on the shell building portion are passed along to the tenant above and beyond the base rent.

Jim Kelley: And sometimes that common area expense is called CAM so if you hear that word CAM, common area maintenance expense. So everything from the trash service to the parking lot to the lights, the landscaping etc. So I think that’s a key point there in commercial leases. Let’s talk about rentable versus usable space Rudy, we hear that bantered about?

Rudy Janecka: It’s not normally seen as much in commercial retail as it is, maybe in some office use but that would be where you may have some common restrooms that are shared with multiple tenants. You know, you’re paying a portion of that lease but you’re not actually using it for your prime business would be an example of that.

Learn more about retail services here on our website or in the complete podcast on iTunes.

Learn more about our Director of Retail Services, here.

Learn more about Jim Kelley, here.

Share

Comments are closed.