I office with a management company that manages somewhere around 100 "C" Class strip centers in Phoenix, AZ. To answer your questions, it really depends on the Class of the Asset. Is it an "A" level, "B" level, or "C" level. Age, location, amount of deferred maintenance, and current tenants in place all go into what eventually makes up the Class of the center,which ultimately dictates the rate and structure. Does it have a large Anchor Tenant? Does it have a large parking area, or is it off the street? What percentage of the property could be considered "common area?" Answer all of these questions, and you will better be able to figure out the most appropriate structure. If you have a large Anchor Tenant for example that uses the majority of the property, you could negotiate into their lease, that they pay a larger portion of the CAMs which could be marketed to potential smaller tenants as an overall costs savings. As for the structure of the lease, it's about as standard as you can get.
The Rudel Company, Inc.
Mar 5, 2010