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Imagine you own a small shopping center that consists of 6 retail spaces with a total area of 30,000 square feet. You have interested tenants
Imagine you own a small shopping center that consists of 6 retail spaces with a total area of 30,000 square feet. You have interested tenants for each of the spaces and would ideally like to sign at least 5-year, triple-net leases at the current market rents. However, you are worried about two types of risk: a) the risk that market rents may go up significantly in the next year or two; and b) the risk that expenses will go up significantly in the next year or two. What techniques can you use to mitigate or even eliminate these two risks? More specifically, how can you structure the lease contract such that you as a landlord are not absorbing all of the risks mentioned above
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