Leasing 101 - Part 6

6) Operating Expenses: Management matters

• Before you sign a lease, have your broker ask to see a copy of the expense statement from the previous three years.
• Have expenses been increasing from year-to-year?
• If so, find out why?
• Ask to see an operating budget for the current year.
• What is the CAM or Load factor for the building?
• How does the Landlord define operating expenses?
• Who manages the building?
• What is the management company’s reputation?
• Have you talked to existing tenants about the building’s management?
• A building that is poorly managed is a bad building.