“You miss 100 percent of the shots you never take, and if you think it’s expensive to hire a professional to do the job, wait until you hire an amateur “ I AM YOUR LAND / INDUSTRIAL AND INVESTMENT SPECIALIST / LOOKING FOR OWNERS Call me if you want to sell your property and need an estimated value. Direct : 602-759-1209, Prefer cell: 520-975-5207 or email me walterunger@ccim.net. A CLICK HERE TO VIEW ALL MY $ 60 MIL OF LISTINGS .
Operating Expense Overview for Building Tenants
What are industrial operating expenses, and what do they include? In working with hundreds of industrial tenants over the years, these are the two most common questions that tenants ask.
This guide is intended to help you better understand the operating expense component of rent.
What are Industrial Operating Expenses?
Operating expenses (commonly referred to as op/ex) are the landlord’s way of recouping the costs to own and maintain their building. While rental rates can drive profit, operating expenses are simply a reimbursement of the landlord’s costs associated with operating and maintaining a building. Depending on your lease structure, you will either pay operating expenses as a component of gross rent or in addition to base rent. In a triple net (NNN) lease, operating expenses are paid on top of the quoted NNN rental rate.
Typically, tenants pay their pro-rata share of the building’s total operating expenses based on the size of their space relative to the building. In a multi-tenant property, each tenant will pay a portion of the building’s total op/ex proportionate to their size in the building. In a single-tenant building, the tenant is typically responsible for 100% of total operating expenses.
What is Included in Industrial Operating Expenses?
There are three main items that make up operating expenses:
- Property Taxes
- Insurance
- Common Area Maintenance (CAM) fees
Common Area Maintenance (CAM) expenses are fees paid by tenants to the building landlord in order to help cover the building’s overhead costs for common areas. Common areas are spaces used for or benefited by all tenants, like parking lots and landscaped areas. Industrial CAM expenses typically include lighting of common areas and parking lots, water for irrigation, landscaping, parking lot maintenance and administrative fees.
What’s Not Included?
Unlike most office CAM fees, industrial CAM expenses do not include electrical and janitorial (E&J) costs. In industrial properties, electrical costs are generally submetered by the tenant, because industrial users can vary drastically in the amount of electricity they require depending on what they do. For instance, a manufacturer may run heavy machinery 24 hours a day, racking up exorbitant electric fees, while a neighboring tenant who uses the space as a storage warehouse may only use minimal electricity.
Janitorial is also not included in industrial CAM. This is because, unlike office buildings, most industrial buildings do not share common interior spaces like lobbies and restrooms. Because of this, it is common for industrial tenants to be required to contract their own janitorial services.
Your operating expenses and CAM charges should be specifically spelled out in your lease to avoid any ambiguity about what is included. A qualified tenant representation broker can help you understand operating expenses and CAM charges, and help negotiate these in your next lease.
About the Author: Leigh Ellis
As AQUILA’s resident industrial specialist, Leigh Ellis has represented national and local companies in industrial, flex and office transactions throughout Central Texas. Before joining AQUILA, Leigh worked at CRE Solutions, an Austin-based tenant representation firm.
SEE IT ALL: https://www.loopnet.com/learn/a-guide-to-industrial-operating-expenses/181121178/
“You miss 100 percent of the shots you never take, and if you think it’s expensive to hire a professional to do the job, wait until you hire an amateur “ I AM YOUR LAND / INDUSTRIAL AND INVESTMENT SPECIALIST / LOOKING FOR OWNERS Call me if you want to sell your property and need an estimated value. Direct : 602-759-1209, Prefer cell: 520-975-5207 or email me walterunger@ccim.net. A CLICK HERE TO VIEW ALL MY $ 60 MIL OF LISTINGS .
FROM ME:
Phoenix Commercial Real Estate and Investment Real Estate: Investors and Owner / Users need to really know the market today before making a move in owner user Commercial Properties, Investment Properties and land in Phoenix / Maricopa County, Pinal County / Arizona, Properties and Investment Properties. I am marketing my listings on Costar, Loop-net CCIM, Kasten Long Commercial Group. I also sold hundreds millions of dollars’ worth of Investment Properties / Owner User Properties in Retail, Office Industrial, Multi-family and Land in Arizona and therefore I am working with brokers, Investors and Developers. I am also a CCIM and through this origination ( www.ccim.com ) I have access to marketing not only in the United States, but also international as the market has a lot of moving parts today. What is going on socio-economically, what is going on demographically, what is going on with location, with competing businesses, with public policy in general — all of these things affect the quality of selling or purchasing your Commercial Properties, Commercial Investment Properties and Commercial and large tracts of Residential Land Therefore, you need a broker, a CCIM (Certified Commercial Investment Member) who is a recognized expert in the commercial and investment real estate industry and who understands Commercial en.wikipedia.org/wiki/CCIM I AM YOUR LAND / INDUSTRIAL AND INVESTMENT SPECIALIST / LOOKING FOR OWNERS CLICK HERE TO VIEW ALL MY $ 60 MIL OF LISTINGS PLEASE CALL ME – Direct : 602-759-1209 , cell: 520-975-5207 or email me walterunger@ccim.net
WEEKLY LAND SALES
“The major fortunes in America have been made in land.” John D. Rockefeller
WEEKLY LAND CLOSING UPDATE / July 12, 2019 / Phoenix Arizona Metro, Maricopa County, Pinal County.
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I AM YOUR LAND / INDUSTRIAL AND INVESTMENT SPECIALIST / LOOKING FOR OWNERS CLICK HERE TO VIEW ALL MY $ 60 MIL OF LISTINGS
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Walter Unger CCIM
Senior Associate Broker
Kasten Long Commercial Group
5110 N 40th Street, Suite 110
Phoenix , AZ 85018
CELL: 520-975-5207
Direct: 602-759-1209
Office: 602-445-4112
Fax: 602-865-7461
CLICK HERE TO VIEW ALL MY LISTINGS
“You miss 100 percent of the shots you never take, and if you think it’s expensive to hire a professional to do the job, wait until you hire an amateur “ ARE YOU READY TO SELL OR PURCHASE YOUR INDUSTRIAL / OFFICE OR RETAIL BUILDING OR YOUR LAND in Phoenix, Maricopa County and Pinal County, Arizona, please call me. Office: 602-445-4113, Direct : 602-759-1209 , cell: 520-975-5207 or email me walterunger@ccim.net. … CLICK HERE TO VIEW ALL MY LISTINGS.
Let me know if you are interested in Apartments: CLICK HERE FOR APARTMENTS FOR SALE
CLICK HERE: Arizona Opportunity Zones As We Understand /maps. Interested!!! Please contact me.
History of Arizona from 900 BC – 2017 -Timeline.
8 Reasons You Should Invest in Land
History of Arizona from 900 BC – 2017 -Timeline.
WHY PHOENIX? AMAZING!!! POPULATION IN 1950 – 350 K PEOPLE; “NOW 5 MIL”. – “5TH. BIGGEST CITY IN USA”
DOT – LOOP 202 / SOUTH MOUNTAIN FREEWAY / PHOENIX AZ – UNDER CONSTRUCTION
ARIZONA FACTS – YEAR 1848 TO 2013
- DEMOGRAPHIC FACTS ABOUT MARICOPA COUNTY:
- The average age of the population is 34 years old.
- The health cost index score in this area is 102.1. (100 = national average)
- Here are some of the distributions of commute times for the area: <15 min (22.7%), 15-29 min (36.8%), 30-44 min (25.1%), 45-59 min (8.6%), >60 min (6.8%).
PHOENIX PROJECTED AS NUMBER ONE US HOUSING MARKET FOR 2017
LIST OF ECONOMIC DEVELOPMENT PROJECTS IN PINAL COUNTY, REVISED 2-14-17
Reasons to Consider me for Commercial Referrals – I have the Knowledge and Experience
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Walter Unger CCIM – walterunger@ccim.net – 1-520-975-5207 – http://walter-unger.com
2016 Official Arizona Visitors Guide
Timeline of Phoenix, Arizona history
Facts of Arizona – year 1848 to 2013
Feel free to contact Walter regarding any of these stories, the current market, distressed commercial real estate opportunities and needs, your property or your Investment Needs for Comercial Properties in Phoenix, Tucson, Arizona.
Walter Unger CCIM
Senior Associate Broker
Kasten Long Commercial Group
5110 N 40th Street, Suite 110
Phoenix , AZ 85018
Direct: 602-759-1209
CELL: 520-975-5207
Office: 602-445-4112
Fax: 602-865-7461
CLICK HERE TO VIEW ALL MY LISTINGS
“You miss 100 percent of the shots you never take, and if you think it’s expensive to hire a professional to do the job, wait until you hire an amateur “
Also Call me if you need an estimated value of your Property.
Call me if you want to see a map with what is in the Construction Pipeline for Apartments.
Direct : 602-759-1209, Prefer cell: 520-975-5207, or email me walterunger@ccim.net. CLICK HERE TO VIEW ALL MY LISTINGS.
Check out my professional profile and connect with me on LinkedIn.
Kasten Long Commercial Group tracks all advertised apartment communities, including those advertised by other brokerages. The interactive map shows the location of each community (10+ units) and each location is color coded by the size (number of total units).
Walter Unger CCIM, CCSS, CCLS
I am a successful Commercial / Investment Real Estate Broker in Arizona now for 20 years. If you have any questions about Commercial / Investment Properties in Phoenix or Commercial / Investment Properties in Arizona, I will gladly sit down with you and share my expertise and my professional opinion with you. I am also in this to make money therefore it will be a win-win situation for all of us.
Please reply by e-mail walterunger@ccim.net or call me on my cell 520-975-5207
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