by admin | Nov 20, 2024 | Commercial Real Estate, Residential Real Estate
Last week in a 50-0 vote, Chicago’s City Council voted against Mayor Brandon Johnson’s proposal to increase property taxes. The proposed property tax hike was part of the mayor’s plan to address a $500 million budget gap for fiscal year 2025. It will still be a challenge for the Mayor to make up the shortfall Chicago is facing.
If you own property, you will be able to better manage your expenses. If you own residential or commercial property in Chicago, property taxes should not be a concern for your buyers. If you are buying property in Chicago, you should not expect a tax hike.
IF you are looking to buy or sell real estate in Chicago, call Sharon Kantor Bogetz at 847-370-9131. She currently has listed a residential condo for sale and a commercial property for rent in Chicago. She has been a realtor with Century 21 Universal since 2019.
by admin | Nov 19, 2024 | Commercial Real Estate
This is the second of a series of 3 blogs explaining the different types of commercial rent structures. A Triple Net Lease (NNN lease) is a common leasing structure in commercial real estate where the tenant assumes responsibility for the property’s operating expenses in addition to paying base rent. These operating expenses typically include property taxes, building/property insurance, and common area maintenance (CAM) costs which might include snow removal, security, water, garbage, parking lot maintenance, etc. NNN Leases are common in retail, office and industrial real estate, offering stability for landlords while tenants bear the risks and rewards of property-related expenses.
Key Features Of A NNN Lease:
- Base Rent: This is the fixed rental payment the tenant agrees to pay the landlord. It compensates the landlord for the use of the property and often depends on the location, size, and market demand.
- CAM Charges: Common Area Maintenance expenses cover the upkeep of shared spaces, such as landscaping, parking lots, hallways, or lobbies. This ensures the property remains functional and attractive. A tenant would pay their proportionate share of of the total CAM charges for the property. This may be a variable expense item.
- Pass-Through Costs: Property taxes and insurance are passed directly to the tenant. These costs can fluctuate annually, depending on tax assessments and insurance premiums. A tenant would pay their proportionate share of of the total CAM charges for the property. This may be a variable expense item.
- CAM and Pass-Through Costs may also be called Additional Rent in your lease agreement.
Example Of A NNN Lease:
Consider a retail strip center where a tenant leases a 2,000 sq. ft. space for $25 per square foot annually in base rent. In addition to the base rent ($50,000 annually), the tenant also pays their proportionate share of the property taxes, insurance, and CAM. If the total annual operating expenses for the center are $120,000 and the tenant occupies 10% of the center’s rentable area, their share of the pass-through costs would be $12,000. Thus, the tenant’s total annual cost in this NNN lease would be $62,000.
If you are looking for a commercial space, contact Sharon Bogetz at 847-370-9131. She’s been working with owners, investors, healthcare providers and commercial tenants since 2019.
by admin | Nov 11, 2024 | Residential Real Estate
Today we honor the veterans who have fought to protect our freedom and those in other countries. I’m a proud to say that I have a number of veterans in my family including, my father, my mother in-law, father in-law, my brother in-law and another brother in-law. I appreciate their service!
by admin | Nov 6, 2024 | Residential Real Estate
Condo For Sale. Inviting corner unit offering 2 bedrooms and 1 bathroom, open concept living room dining room perfect for entertaining or enjoying cozy dinners. Brand-new stainless steel appliances and access to a spacious private patio—ideal for summer BBQs or relaxing with your morning coffee. Custom closets & a beautifully remodeled bathroom adds a touch of luxury to your daily routine. Additional perks include in-unit laundry and a pet-friendly building. Outdoor grills allowed. Washer/dryer included. Situated at the corner of Kenmore & Catalpa, this move-in-ready condo is just steps from the lake, parks, grocery stores, trendy dining spots, shopping, and public transportation, offering the ultimate urban lifestyle. These condos are rarely on the market. Investors welcome => You can buy it and rent it!
by admin | Nov 4, 2024 | Commercial Real Estate
This a the first of a series of 3 blogs explaining the different types of commercial rent structures.
When leasing commercial space, understanding the type of lease agreement is crucial. One common lease type is the gross lease, which is also sometimes referred to as a full-service lease. But what exactly does a gross lease entail, and is it the right choice for your business? Let’s dive into the basics and look at a practical example.
What is a Gross Lease?
A gross lease is a lease structure in which the tenant pays a fixed rent amount, while the landlord covers most, if not all, of the property’s expenses. These expenses can include property taxes, insurance, maintenance, and often even utilities. For tenants, this type of lease provides predictable monthly costs, which can make budgeting simpler and easier.
Because the landlord assumes responsibility for property expenses, gross leases are often found in office buildings and shared commercial spaces where landlords manage the majority of building operations.
Imagine renting office space in a large office complex with a gross lease. As the tenant, you pay a set amount each month. This amount is inclusive of the costs associated with property taxes, building insurance, and maintenance. The landlord handles all maintenance and operational expenses, such as cleaning common areas, maintaining landscaping, and ensuring the building is secure.
Example of a Gross Lease
With this setup, you’re able to focus on running your business without worrying about additional costs. Gross leases can be ideal for businesses looking for predictability and simplicity in their lease agreements.
Is a Gross Lease Right for You?
If you value consistent expenses and prefer not to manage variable costs like maintenance and insurance, a gross lease may be an excellent fit for your business. However, it’s essential to clarify which specific expenses are covered under your gross lease, as lease structures can vary.
Sharon Kantor Bogetz, MBA is a commercial real estate broker licensed in Illinois and Indiana. She works with owners, tenants and investors.
