Even experienced tenants are sometimes caught off guard by how much their actual lease costs can exceed the base rent. In Los Angeles, it’s not just the advertised monthly rent that matters — triple-net (NNN) charges, property tax pass-throughs, ongoing maintenance expenses, and even seismic retrofit requirements can quickly add thousands of dollars to a tenant’s yearly budget.
These hidden costs aren’t always obvious upfront, and they can significantly impact a business’s bottom line. From unexpected operating expense escalations to clauses buried in the fine print, what seems like a straightforward lease can turn into a complex financial commitment.
As real estate professionals, we’ve all seen deals where these details became either deal-breakers or opportunities for savvy negotiation. Understanding these costs — and knowing how to structure or negotiate around them — is critical for protecting tenants and closing transactions successfully.
What’s the most surprising “hidden” cost you’ve come across in a commercial lease, and how did you handle it? Let’s share insights and experiences.
Read the full article here:
Hidden Commercial Lease Costs in LA Tenants Must Know
https://toljcommercial.com/hidden-commercial-lease-costs-in-la-tenants-must-know/
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