PHOENIX COMMERCIAL TENANT INFORMATION REPORT

Rising OPEX Pressure from Landlords, passed down to tenants, manifests in several measurable ways:

1. Higher operating costs per square foot due to inflation in utilities, insurance, property taxes, maintenance, and labor can be passed through to tenants in annual increases.

2. Increased capital expenditure requirements as landlords upgrade HVAC, security, and amenity spaces to attract tenants in a flight-to-quality environment can also be passed through to tenants, depending on lease language.

   
   

In negotiation, most tenants focus on free upfront rent, the rental rate increases, and parking concessions. But operating expense increases (OPEX) are just as crucial, and must be negotiated in addition to other lease terms.

COMPLIMENTARY VACANCY REPORTS: Renee Ervanian: Managing Broker https://www.corecommercialllc.com 602 330 7482 renee@corecommercialllc.com