Longmont , CO
(720) 600-9513
Longmont , CO
(720) 600-9513

Gross Leases: Are They the Right Fit for Your Property?

Category: For Lease

Gross Leases: Are They the Right Fit for Your Property?

February 2, 2024

What is a Gross Lease?

A gross lease is a type of lease that requires the tenant to pay one flat fee to the landlord to rent a given space. 

Rather than the tenant paying additional fees, the owner designs the rental amount to cover all operating expenses. These expenses generally include property taxes, insurance, and utilities, but the tenant could negotiate to have additional services such as cleaning included. 

In commercial real estate, there are several types of leases to choose from, depending on the property you own. Each variety of lease affects how your tenant-landlord relationship functions, so it’s best to consider all your options before making a choice. 

Types of Gross Leases

While all gross leases are similar, they fall into two general categories: modified gross and full service. 

A full service lease, as described above, includes all operating expenses in a flat rental amount. The tenant is not responsible for additional charges outside of their weekly, monthly, or yearly fee. 

Alternatively, a modified gross lease is tailored to the landlord’s needs. In this scenario, the rental amount may include property taxes and insurance but not utilities. A modified gross lease combines a gross lease and a net lease (where the tenant is responsible for operating expenses). 

Pros and Cons

Before deciding on a gross lease, it’s essential to understand the pros and cons. On the upside, a gross lease allows the landlord to collect a higher rental amount and pass along operating expenses to the tenant, especially as costs increase over time.

On the other hand, a gross lease requires more attention from the property owner as they are in charge of ensuring maintenance is taken care of, and bills are paid.

Be sure to partner with a real estate professional to help you decipher which type of lease is best for you and your property. Please contact Steve Longenecker at WeBrokerCORealEstate or 720-600-9513 regarding any commercial real estate needs in Longmont, CO, and our neighboring communities.

We give out $250 gift cards for referrals that become our real estate clients.

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#longmontcommercialrealestate #commercialrealestatebroker #northerncocommercialrealestate

5 Common Mistakes of Commercial Landlords

December 20, 2023

We’ve all heard the horror stories of commercial and residential landlords. From tenants destroying property to simply not paying their rent, it’s easy to be scared away from being a rental property owner. There are, however, some tried and true methods to ensure the success of your investment.

Let’s take a look at a few common mistakes of commercial landlords and how you might be able to steer clear of potential issues.

Common Mistakes of Commercial Landlords

The following are a few of the most common mistakes of commercial landlords:

1. Negotiations

Whether you are purchasing commercial property or working on the details of a lease, understanding the negotiation process is crucial. Landlords and buyers often go into negotiations without proper representation and not having solidified their desired terms. 

2. Property Management

The wrong property manager or poor management systems can be the downfall of a commercial investment. Picking the best property manager for your building is equally as important as choosing the right tenant. 

3. Maintenance

Deferred maintenance leads to more significant expenses down the road. A landlord who notices an issue and immediately addresses it saves time, money, and energy in the long run. 

4. Due Diligence

Due diligence is paramount when buying commercial real estate or considering a prospective tenant. Investigating each aspect of the building and tenant to ensure they are a good fit for you and your portfolio will increase profitability. 

5. Leases

Any ambiguity in a lease can lead to conflict. A correctly drafted lease with black-and-white terms keeps everyone on the same page regarding rules and responsibilities. 

An Agent Ally

A commercial real estate agent ally can make all the difference. Your broker should be well-versed in the above-mentioned issues and will guide you toward success.

Please contact Steve Longenecker at WeBrokerCORealEstate or 720-600-9513 regarding any commercial real estate needs in Longmont, CO, and our neighboring communities.

We give out $250 gift cards for referrals that become our real estate clients.

Like, Share & Follow us on LinkedIn and Facebook.

#longmontcommercialrealestate #commercialrealestatebroker #northerncocommercialrealestate

How to Attract the Best Commercial Tenants

December 6, 2023

The type of tenants you have in your commercial property can dramatically impact your return on investment. 

Hand-holding or excessive wear and tear can quickly reduce cash flow and increase staffing and building expenses. On the other hand, a renter who operates autonomously and goes above and beyond with building care and maintenance may increase the value of your commercial asset. 

Attracting tenants that best fit your space and management style is the key to being a successful landlord.

Attracting and Retaining Great Tenants

Here are a few things to consider in your attempts to attract and retain great tenants:

  • Location: Always at the top of the list when it comes to real estate, an appealing location will attract many tenants, allowing you a larger pool to choose from. 
  • Access: Buildings with easy access and plenty of parking can be hard to come by. Having great accessibility at your commercial property can help secure an exceptional tenant. 
  • Safety: Safety is typically at the top of the wish list of a high-quality tenant. Offering top-notch building security is extremely attractive for prospective renters.  
  • Appearance: Appealing interior and exterior appearance helps your building stand out amongst other options, driving higher cash flow and quality tenants.
  • Amenities: Shared amenities (conference rooms, lounges, kitchens, etc.) are great tools in marketing to a wide variety of renters. 
  • Responsiveness: As a landlord, responsiveness is crucial in attracting and retaining great tenants. Whether scheduling showings or following up on maintenance requests, quick responses are always appreciated.
  • Feedback: Collecting feedback and doing all you can to keep renters satisfied is the best way to keep solid tenants.

Use Your Broker 

Using your broker for property marketing and recommendations on best landlord practices will guarantee high-quality tenants. Experienced commercial real estate agents know where to look to find great tenants and the right questions to ask to ensure a smooth lease going forward. 

Please contact Steve Longenecker at WeBrokerCORealEstate or 720-600-9513 regarding any commercial real estate needs in Longmont, CO, and our neighboring communities.

We give out $250 gift cards for referrals that become our real estate clients.

Like, Share & Follow us on LinkedIn and Facebook.

#longmontcommercialrealestate #commercialrealestatebroker #northerncocommercialrealestate

What to Consider Before Investing in Office Buildings

September 13, 2023

Investing in Office Buildings

If you are pondering a commercial real estate investment, office buildings are likely on your radar. If you’re already invested in residential real estate and other types of commercial property, office buildings can be a unique way to diversify. They can provide cash flow opportunities, tax benefits, and long-term appreciation. 

When people think of office space, some immediately go to skyscrapers in downtown Denver. Office space, however, can be acquired on a much smaller scale and attract various tenants aside from corporate giants.

If it seems like office space would be a great addition to your portfolio, there are a few things you should consider before you take the leap.

What to Consider

Before investing in an office building, here is what you should consider:

  • Location: As with any piece of real estate, location is critical. Choose a site that will fit your potential renters and their businesses. 
  • Quality: Not all office spaces are created equal. Consider your budget and try to find the building with the highest quality structure, mechanical systems, and finishes. 
  • Size: The amount of property you are willing to manage and the type of tenant you hope to attract will dictate the building size you choose. 
  • Layout: Does the building provide an open concept or a walled office setup? Reconfiguring layouts can take significant time and money, so be sure the space is usable for your potential tenants. 
  • Tenants: The type of tenants you want will significantly impact the building you invest in. Every kind of tenant requires a different location, layout, and amenities. 
  • Leases: Whether there are existing leases or if you will be acquiring all new tenants, it’s essential to consider what types of leases you prefer. 

The Real Estate Cycle

As we all know, real estate is cyclical. Commercial buildings, including office space, are no different. A good investment stands the test of time and is versatile through all cycles. If you are considering investing in commercial office space, consult an experienced commercial real estate broker to be sure you make the right investment. 

Please contact Steve Longenecker at WeBrokerCORealEstate or 720-600-9513 regarding any commercial real estate needs in Longmont, CO, and our neighboring communities.

We give out $250 gift cards for referrals that become our real estate clients.

Like, Share & Follow us on LinkedIn and Facebook.

#longmontcommercialrealestate #commercialrealestatebroker #northerncoloradocommercialrealestate

1840 Delaware Place – Industrial Space For Lease

March 6, 2023

Industrial Space For Lease in Longmont, CO

Tour of 1840 Delaware Place, Units O, and C.

  • 4,860 total square feet
  • 1,022 SF office
  • 3,838 SF warehouse
  • Five 12′ Drive-In garage doors
  •  1/2 Acre Fenced Lot


Call Steve Longenecker: at 720-600-9513 or Chris Wynja: at 303-570-3472 or fill out our form for more details and to schedule a tour. 

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