Are you wanting to get into the real estate game but don't know any of the lingo? Parse through this plethora of lessons where you will learn the meaning and specific application of dozens of real estate terms taught by the incredibly successful Michael Burer.
Featured Coaching Excerpt - Notes & Transcript, Part 1
Common Area: For lease purposes, the areas of a building (and its site) that are available for the non-exclusive use of all its tenants, such as lobbies, corridors, and parking lots.
Lesson Nugget: Common areas are not limited to one specific tenant but are open to and used by all tenants. Each tenant pays a percentage amount on top of their base rent.
Real estate common area term like digital tutors [MUSIC PLAYING], an alternative to lynda.com
-All right, Thrive Nation, we are here with Michael "there is no real estate topic too obscure" Burer. And we are talking about common area. It's a real estate term you need to know. We're in sunny San Diego on Thrive15.com, an alternative to lynda.com . And really, we have chosen to set the day aside to be here to talk about this concept of common area. So Mike, I'll read the definition, and if you can provide me the ample example that my mind can handle, I'd appreciate it.
-For lease purposes, the areas of a building and its site that are available for the non-exclusive use of all its tenets, such as lobbies, corridors, and parking lots. What?
-You said it. So this is the area of the building that is not specific to a tenant, not part of their usable area, but is often included in their rentable area. All the tenants can use it. So the lobby, the elevators, the stairwells.
-But you pay for it on your lease.
-Often you do if it's a lease that's based on a rentable area.
-In my building, I talked about this on one of our other episodes, but in case the thrivers haven't seen it, I know with one of my businesses, I leased let's say 4,000 square feet. I'm getting a bill that's much larger than what I thought I agreed to. And they said, oh, we're charging you for the lobby. Is this common?
-It is. So you pay for your pro rata share or your percentage share of the common areas in the project in a multi-tenant building.
-Does that help the lease income for you though when you have a property, like in Hawaii? Because you guys have properties all over the world. When you're in Hawaii, and you have an unbelievable lobby or a beautiful-- that helps you a lot, right?
I mean, even though people aren't going to use it individually, it might be worth it if you're trying to put on a show or wow clients or create a certain prestige, right?
-Yeah, if you have those amenities. It's just really an industry practice on how you determine the rentable area, is you include those common areas of the building.
-Michael, I wanted to read you something touching. And I process, a lot of times, intense emotion with laughter. So if I laugh at any point, it's just because of how intense my appreciation for you is. I wrote this last night.
-About 6:00 pm. I was kind of looking into the ocean. If you stacked all the appreciation I have for you on top of each other, it would extend to at least Saturn. Thank you.
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