Barkley Peschel Team

FAQs - Commercial Real Estate Insights

How will Hurricane Harvey Affect Commercial Real Estate?

I’ve been pondering this question over the last few weeks.  I have read numerous articles and opinions while watching our region start the long road to recovery. Two of my colleagues in our New York office called me right after the storm to ask me this very question.  Their client had bought a few development land tracts in Houston...Click Here To Read More. 

Gross Rent, Net Rent, Effective Rent and Face Rent: What’s the Difference?

Those of us in the commercial real estate industry sometimes use commercial real estate jargon and expect everyone around us to understand what we’re saying. Terms like Gross Rent, Net Rent, Effective Rent or Face Rent get thrown around in conversations with tenants, but not everybody knows the meaning of each term. Let me break it down for you in simple terms and then advise you as to which one is most important to you as a tenant when you are considering lease alternatives.

 

FACE RENT:  The quoted base rental rate before taking into account any rent increases or incentives.  This term is used interchangeably with ASKING RENT or FACE RATE. Face Rent may or may not include building expenses, depending on if the rent is quoted as “Gross” or “Net”.

 

GROSS RENT:  The rent calculated inclusive of all building costs (i.e., property insurance, taxes, common area maintenance expenses, etc.) Click Here To Read More. 

Don’t use a real estate "agent" to handle your commercial lease renewal!

You heard me right.  Don’t hire a real estate agent to handle your lease renewal.  But do hire a commercial real estate advisor who is an expert in lease negotiations for the type of real estate you occupy. 


You don’t need a real estate license to read a lease document and negotiate a lower rate with the Landlord (LL), so there’s no need to hire a real estate “agent” who will do the same thing and take a fee. Anyone can do that.  But you should hire a commercial real estate advisor to help you investigate, consider and negotiate all the aspects of the transaction that will impact your company for the next 3-10 years.  Why?  Let me count the ways...Click Here To Read More. 

The Barkley Peschel Team


Texas