Base Year Stop Reimbursement Structures Explained
Breaking Down The Base Year Stop In Real Estate // In commercial real estate investing, often you’ll have expense reimbursement clauses in a lease which call for the tenant to reimburse the landlord for operating expenses associated with the property. These are usually relatively easy and straight-forward to calculate, but the base year stop calculation is trickier and a little more complex than the rest.
So in this video, we’re going to break down what the base year stop in real estate is, how to calculate the base year stop, and when you might see the base year stop expense reimbursement used in commercial real estate.
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Пікірлер: 12
Love to hear about Commercial REI!
@BreakIntoCRE
4 жыл бұрын
Great! You’re in the right place!
I was watching your AM course and this video is super helpful haha
Great video and accurate. Would you be able to do a video on gross up CAM? I see it more on office leases. For example, grossing up to 95% when occupancy is below 95%?
Can I refinance and keep the property in a syndication after I pay off investors their returns and give them back their principal?
How do you model a specific percentage over a certain dollar amount in Argus? Say, for example, 33% of any increase over $285,000?
Does base year refer to the total opex in a given year ?
where are these shirts from?
Great video and very informative. What if the property has been sold and the new owners insurance expense is less than the base year. Does that mean the new owners must reimburse the tenant it’s pro-rata share of the difference? Thank you!
@BreakIntoCRE
4 жыл бұрын
Hi Kate, good question and no, the owner wouldn't owe the tenant the difference. In cases where the expense is less than the base year amount, the tenant reimbursement amount would just be $0.
@kateh8151
4 жыл бұрын
@@BreakIntoCRE Thank you for your reply. As I understand this would be a general standard/rule. Please, will you be able to point me in the direction when I can find this as a written policy? This would be so helpful. Thank you very much in advance!
@BreakIntoCRE
4 жыл бұрын
@@kateh8151 definitely - this will all be spelled out in detail in the tenant's lease, likely within the section on expense reimbursements.