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Top Landlord Mistakes
01. Signing leases without a strategic plan. A whole-building approach to leasing is critical to achieve the best rates and best tenants.
02. Leasing the best space first. This can devalue the rest of the building's available space, such as leasing half of a floor with a better view, or leaving small spaces vacant.
03. Failing to ensure each tenant's lease terms support the longterm investment objectives for repositioning or disposition.
04. Faulty termination clauses that allow tenants easy "outs" can leave you, the landlord, with unamortized costs from tenant improvements (TIs), incentives and fees.
05. Hiring a broker without the right specialization or experience working with properties of a similar type and location.
06. Failing to investigate the tenant's finances, business plan and revenue stream, and failing to require a substantial security deposit.
07. Allocating capital incorrectly: spending money on things that won't help lease the building, such as replacing sconces on the exterior of a building. A better use of funds might be replacing dated light lenses in a vacant space to refresh it. Ask, "Does my improvement help lease the building more quickly or at a higher rate" before spending.
08. Choosing incompatible tenants. Placing a staid law firm next to a bustling sales organization or a come-as-you-are creative firm is bound to create friction.
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