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Commercial Lease Total Rent Exposure Part 2

Commercial Lease Total Rent Exposure Part 2

By Forrest Blake, Senior Vice President of SVN Commercial – Phone 310-850-2381 – CalBRE Lic # 01054174

Due to the many components that make up the true cost of a leased space, identifying and budgeting for it can be difficult. Factor in landlord concessions and you arrive at what’s called “effective rent.”

In this video we’ll look at the impact of tax increases.

A rapid increase in property values and when exactly the landlord sells the building may dramatically impact the tenant’s expense. For example, a building purchased years ago will have much lower property tax valuation. When a building is sold, however, the new value is adjusted, and tenants will pay any tax increase. Currently, in Los Angeles, the tax percentage is 1.1% (1) of the current assessed value.

If you enjoyed this video and have further questions, please reach out.

Forrest Blake | Senior Vice President

SVN | Commercial – DTLA

800 South Figueroa Street, Suite 925, Los Angeles, CA 90017

Phone 213.618.4196 | Mobile 310.850.2381

forrest.blake@svn.com | www.svn.com

CalDRE# 01054174

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