why would a landlord ask for the a statement of gross sales for a triple net lease

Also what is a radiis restriction?
With a build out allowance, is it possible to have the landlord pay directly to the contractor rather than decrease rent by half each month until the alloted allowance is used?
If a tenant signs a LOI is it still possible to negotiate?
Have you heard of having a provision in the lease at which time the lease is voided if the city will not permit for the use intended?
I know a lot of questions. Thank you in advance.
In Leasing Property - Asked by dru o. - Sep 13, 2012
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Answer(s)

Rob M.
Lender/Mortgage Broker
Houston, TX

With that many questions, you might consider getting a commercial real estate agent.

Sep 14, 2012
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steve p.
Owner/Investor
Austell, GA

To see if the tenant is not only able to pay the rent, but also pay the property taxes, insurance and R &M. If the tenant fails to pay only one of these, the landlord could become liable in the event of a claim.

Sep 14, 2012
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Chris R.
Broker/Agent
Denton, TX

* Verify the tenant has a level of sales and income to justify the deal, insure the tenant can pay the rent; * TI Allowance / payments - all negotiable. If the tenant pays the contractor direct then he is out the funds up front, by decreasing the rent each month - one would assume that the tenant pays the contractor and is reimbursed by rental reduction each month - again - negotiable. Landlord CAN pay contractor direct - yes; LOI - an LOI is a non-binding agreement of the major points only to get to where a lease is then negotiated which continues the negotiating on the deal until all lease terms are agreed to and the deal is signed; Lease provision - yes - leases can contain such a clause;

Sep 14, 2012
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Jeff R.
Lender/Mortgage Broker
Birmingham, MI

As far as the first question, they likely want to see if your making money as a tenant. Theyre qualifying you

Sep 26, 2012
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Chris S.
Broker/Agent
Coeur D'alene, ID

1. To determine the strength of the tenant.
2. This applies in a percentage rent situation, landlord does not want competiting business to draw away from your sales.
3. Yes, this is part of the negotiations.
4. Yes, but it's generally bad form.
5. Yes, pretty typical but do you should do that homework ahead of time.
These are actually all pretty common questions asked by tenants. A good broker should be able to assist.

Oct 9, 2012
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