The Fundamentals of Commercial Real Estate Bankruptcy

The_Fundamentals_of
Understand the key steps in the bankruptcy process and how they affect the various parties related to commercial real estate. Bankruptcy cases involving commercial real estate present a multitude of problems. Depending on the party and its relation to the real estate, significant differences in concerns, legal issues and strategies come into play. Knowing the bankruptcy process, certain key provisions of the Bankruptcy Code applicable to commercial real estate, and what to expect in a bankruptcy case involving such real estate are vital in evaluating the best path. Owners of commercial real estate, tenants of commercial real estate, and mortgagees on such properties must each understand their respective positions, claims, and rights in a bankruptcy case. Knowledge of these issues in advance of a bankruptcy filing can greatly enhance preparation and expectations for counsel and their clients if and when a bankruptcy is filed.
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Negotiating CAM Provisions in Commercial Leases: Standard Inclusions, Capped CAM, Fixed Costs, and Gross Leases

Commercial leases often require tenants in a multi-tenant development (such as a shopping center or office building) to pay CAM charges in addition to monthly rent. These lease provisions often are misunderstood or taken for granted by landlords and tenants and, as a result, are frequently violated, knowingly or otherwise. Sophisticated tenants require CAM charges to be "actually paid or incurred" or "expended" by the landlord to be reimbursable, and they are careful to prohibit landlords from passing their overhead on as disguised CAM charges. To guard against this practice, tenants should negotiate (and then review) their leases carefully, require landlords to deliver "reasonably detailed statements" of CAM charges as often as the lease requires, and should scrutinize those statements to ensure that all charges are allowed by the lease. CAM charges often include property management fees. In addition, most leases permit the landlord to estimate CAM charges and force tenants to pay their share of those estimates monthly. Generally, they require the landlord to reconcile or justify the actual CAM charges to its tenant after the end of each year. Commercial landlords that also manage the project themselves often charge tenants, in addition to CAM expenses incurred, an arbitrary, "industry standard" percentage of the rent as "a property management fee," even though the lease does not expressly provide for that, and no third-party management fees are paid or incurred by the landlord. When the CAM charges are based on actual costs, a tenant might want to negotiate a cap on how much they will be required to pay for their share of common area maintenance. Putting a cap on CAM charges helps protect the tenant from their lease expenses increasing outside of their budget or sudden surprises at the beginning of the year. In turn, this adds some risk to the landlord to cover additional expenses themselves. With fixed CAM charges, property owners set a flat fee for common area maintenance and usually add small annual increases to that fee to cover the cost of inflation. Tenants may still want to review the property expenses to ensure their CAM charges aren't significantly higher than they should be. Fixed CAM charges can either apply to property taxes, insurance, and actual maintenance costs or only to maintenance costs while leaving the property taxes and insurance adjustable. Listen as our authoritative panel discusses the best practices in negotiating CAM provisions, what types of provisions to include, and when to choose between a capped or fixed cost CAM provision.
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How To Achieve 100+ Real Estate Transactions Every Year

Realvolve

Does 100+ transactions a year sound unachievable to you? It shouldn’t… And no matter the market conditions you can achieve success. But it doesn’t come down to simply telling yourself you’re a great agent or schlepping even more clients around all weekend. Krista Mashore joins Dale Warner to show YOU how she uses hard work, boundless energy, established business processes, and systematized workflows from her CRM to propel her through any difficult market condition.
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Rethinking Seniors Housing Resident Engagement — Technology That Improves Staff Efficiencies While Enhancing the Resident Experience

Why is resident engagement vital within seniors housing communities? How has resident engagement changed during COVID? How can operators create a better living experience for residents, while also creating staff and operational efficiencies? Tune in for an upcoming discussion to understand how new technology can improve the quality of life for seniors while reducing operator costs.
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Sustainability and Health for Residential and Commercial Construction

Dodge Data & Analytics

This webinar features data on sustainability trends drawn from three Dodge Data & Analytics research reports. Continued growth in green building in the single family and multifamily markets are discussed, along with the factors influencing that growth and the products considered most valuable.
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