Structural costs

[JIT]

Hi there,

What costs pertain to the ''structure'' of a commercial building?

Can such costs be palmed off to tenants?

Or are they usually attributed to the landlord?

Thanks.

 

[cu@thetop]

Airconditioning is always a favourite- light fittings, plumbing and apperturbances too (things that stick out from the wall). If the tenant agrees in the lease to maintain and fix even to the point of capital expenditures then happy days are here again!

 

[Ridin-High]

Hi Jit,

It seems anything can be palmed off to the tenant in comm (besides retail) but wether they agree to it when drawing up the lease is another thing

 

[TheShuffler]

You can get a net lease where the tenant pays rent plus outgoings (outgoings can include most R&M items) or you can get what is called a 'triple net lease' where the tenant pays for all outgoings PLUS structural costs. Therefore the tenant is responsible for maintaining everything including plant and structure.

These types of leases are not as common and can be very good for the landlord. Generally are found on specialised facilities or longer term leases - landlord needs to be carefull that tenant does not do bandaid type repairs to structural issues that will see them through the lease term however will cost more in the longrun.