Commercial Leasing FAQs
Welcome to Larken Associates! We’re thrilled that you're considering leasing commercial space with us. Whether you're looking for office, retail, medical, or industrial space for rent, our goal is to make your leasing experience as seamless and efficient as possible. Our diverse portfolio offers flexible leasing options and customizable spaces to meet the unique needs of your business.
Below, you’ll find answers to frequently asked questions about the leasing process, from lease terms to maintenance requests. If you need additional information or personalized assistance, please don’t hesitate to contact us. Our team is ready to help every step of the way.
Let's get started on finding the perfect space for your business!
Frequently Asked Questions (FAQs)
What kind of Commercial Space does Larken Associates rent?
Larken Associates offers a diverse commercial portfolio, comprising of approximately four million square feet of office, medical, industrial, retail, and mixed-use spaces accommodating over 1,000 tenants across New Jersey and Pennsylvania.
Do you provide Turn-Key or Built-to-Suit options?
Larken Associates offers a variety of Turn-Key and Built-to-Suit options across its diverse office, medical, industrial, and retail portfolio. Our in-house construction team, Core Enterprises, can tailor your space to meet your business requirements for a custom Built-to-Suit option. Additionally, we provide vanilla box options, where the basic infrastructure is completed, allowing tenants the flexibility to build out their space with their preferred General Contractor.
What is a Commencement Agreement?
A Commencement Agreement formally memorializes Lease Commencement, Rent Commencement, and Lease Expiration, clarifying key dates and terms and ensuring the tenant and landlord are aligned on the lease details.
What is the minimum or maximum initial Lease Term that Larken Associates provides?
Larken Associates’ Lease Terms vary depending on property type, business type, location, and the tenant’s lease agreement. Lease Terms for commercial spaces can range from a minimum of one year to a maximum of 15 years.
Can a tenant extend their Lease Term?
Yes, a tenant can extend their Lease Term at a Larken Associates commercial property through a Renewal Option Term. This provision in the lease agreement grants the tenant the right, but not the obligation, to extend or renew their lease for a specific period.
How long does a tenant have to move out of their space once their Lease Term is completed?
A tenant is expected to vacate the property by the last day of their Lease Term unless their lease includes a Holdover Clause. This clause specifies the tenant's responsibilities and obligations during the holdover period.
What are CAMs and Taxes?
In Commercial real estate, CAMs (Common Area Maintenance) and Property Taxes are additional cost tenants may need to pay in addition to their base rent.
- CAM Charges specifically cover the expenses related to maintaining and operating shared or common areas of a property, such as parking lots, hallways, lobbies, landscaping, and snow removal. CAM is one part of the broader category of operating expenses. Tenants are responsible for paying their proportionate share of these expenses based on the percentage of space they occupy or lease.
- Property Taxes are local taxes on the property itself. Tenants pay their share based on the percentage of space they lease.
- CAMs and Property Taxes are often part of Triple-Net Leases (NNN), where tenants pay rent plus their proportionate share of Operating Expenses.
What is included in an Operating Expense?
Operating Expenses are costs incurred by Larken Associates to operate, maintain, and manage a commercial property. These expenses include CAMs, Property Taxes, Property Insurance, utilities for Common Areas, administrative and management fees, trash removal, snow removal, landscaping, security services, and repairs and maintenance.
Do I require Property Insurance when I lease space at one of Larken Associates’ commercial properties?
Yes, all tenants are required to have Comprehensive General Liability Insurance in compliance with the terms, conditions, and covenants of their lease agreement.
What is CAM Reconciliation, and how often does Larken Associates perform it?
CAM Reconciliation is the process of reviewing and adjusting the Common Area Maintenance (CAM) charges at the end of a lease year to ensure tenants pay their fair share of maintenance costs. This process is typically performed in the first quarter of each year.
At the start of the lease, the landlord estimates CAM charges and bills the tenant. At the end of the year, the landlord calculates the actual costs.
During reconciliation, the estimated charges are compared to the actual expenses. If the tenant overpaid, they will receive a refund; if they underpaid, they must pay the difference.
What are examples of property Common Areas?
Common Areas refer to shared spaces within a building or property. Indoor spaces include lobbies, hallways, elevators, mechanical rooms, restrooms, and lounges. Outdoor spaces include parking lots, gardens, courtyards, and walkways. Common Areas can also include amenity spaces like fitness centers, shared conference rooms, and breakrooms.
What is the difference between a NNN, Gross, and Modified Gross Lease? Which lease type is offered at Larken Associates’ commercial properties?
A Gross Lease requires the tenant to pay a single rent amount, which typically covers the base rent, CAMs, and Operating Expenses including Property Taxes, Property Insurance, and maintenance costs.
A Modified Gross Lease is the same as a Gross Lease. The difference is that a Modified Gross Lease has a defined base year and the lease is subject to CAM Reconciliation.
NNN (Triple Net) and Modified Gross Leases are subject to CAM Reconciliation, where the actual Operating Expenses are compared to estimated charges, and any overages or under-ages are reconciled. Gross Leases generally do not include this type of reconciliation process.
Larken Associates offers different lease types depending on the building, with each property designated under a single lease type.
What is the difference between NSF, RSF, and GSF?
In real estate, NSF (Net Square Footage), RSF (Rentable Square Footage) and GSF (Gross Square Footage) help define different parts of a leased space.
Net Square Footage (NSF): The usable space a tenant can exclusively use, excluding walls, columns, and non-usable areas like mechanical rooms.
Rentable Square Footage (RSF): The space a tenant pays for, including usable space (NSF) and a share of common areas (e.g., lobbies, hallways).
Gross Square Footage (GSF): The total size of the building, measured from the outside walls, including NSF, RSF, and non-leasable spaces (e.g., mechanical rooms, stairwells).
In leasing, NSF is the tenant’s functional area, RSF is the billable area and GSF represents the building’s total size.
What is a Rentable-to-Usable Ratio?
The R/U Ratio helps tenants and landlords understand how much of the leased space is usable versus shared (e.g., lobbies, hallways, gyms, shared conference rooms). This ratio is important for breaking down how much rent is allotted between the tenant’s private space and the property’s common areas.
What is an Occupancy Load?
An Occupancy Load refers to the maximum number of people legally allowed to occupy a space, as determined by local building codes, fire safety regulations, and the type of space (e.g., office, retail, industrial, or residential).
Can tenants sell or transfer their businesses if they haven’t completed their lease term with Larken Associates?
Yes, tenants can transfer their businesses through a Lease Assignment. A Lease Assignment occurs when a tenant (the assignor) transfers their rights and obligations under a lease agreement to another party (the assignee). The assignee assumes all responsibilities under the original lease terms. A Lease Assignment is subject to the terms, conditions, and covenants of the Lease Agreement.
How do I put in maintenance requests and make payments?
Larken Associates offers an easy-to-use online portal accessible through their website, where tenants can submit maintenance requests and make payments. The portal provides a convenient way to track maintenance issues, submit requests directly to the maintenance team, and ensure prompt resolution. Additionally, tenants can securely process rent payments and other fees online, providing a hassle-free way to manage their accounts and stay up-to-date on any outstanding balances.