Tax Escalation (by George [NY]) Jun 30, 2018 4:19 PM
Tax Escalation (by LiveTheDream [AZ]) Jul 1, 2018 12:11 AM
Tax Escalation (by Steve [MA]) Jul 1, 2018 4:00 AM
Tax Escalation (by nhsailmaker [NH]) Jul 1, 2018 5:02 AM
Tax Escalation (by Ray-N-Pa [PA]) Jul 1, 2018 4:44 PM
Tax Escalation (by Kim [TX]) Jul 2, 2018 12:51 PM
Tax Escalation (by George [NY]) Posted on: Jun 30, 2018 4:19 PM Message:
State Specific Question About: NEW YORK (NY)
In a commercial building the tenant has signed a lease to pay 3% of the escalated taxes, but now he points out (2 years after signing) that he only occupies 1% of the area of the building and threatens to go to court. Any suggestions? Thanks for any and all replies. --69.167.xx.xxx |
Tax Escalation (by LiveTheDream [AZ]) Posted on: Jul 1, 2018 12:11 AM Message:
Need to see a local lawyer. A contract is a contract. No law says it has to be fair. But in NY who knows if a court would honor it or not.
Does the tenant want to move? Sounds like it. When does the lease renew? --47.216.xx.xxx |
Tax Escalation (by Steve [MA]) Posted on: Jul 1, 2018 4:00 AM Message:
I go by what the lease says when it was signed. Just because he thinks something is unfair doesn't mean that you should rush to change the terms of the agreement which presumably he willing signed.
Does he actually only occupy 1% of the building?
Does he have use of more of the land / parking?
In my area & I imagine most place, RE tax assessments are comprised of land value, building value & any special improvements located on the property. You could go talk to your assessor to find out how they arrived at the value for the property.
Are all portions of the building identical? First floor vs other, private entrance, better view, better HVAC, nicer interior finishes, etc.
I have one property where there is an ocean view from the unit on the top floor. Even though it has less SF than the one on the first floor I rent it for more because of the view. The town puts a higher RE tax assessment on this building because of the view.
--72.93.xxx.xxx |
Tax Escalation (by nhsailmaker [NH]) Posted on: Jul 1, 2018 5:02 AM Message:
does he use the parking lot
does he benefit from exterior signs
Does he benefit from appealing landscaping
does he benefit from HVAC located on roofs
Who measured? - is it exterior to exterior
etc etc etc
if he doesn't pay when invoiced - evict and then ........Let him sue
--24.34.xx.xxx |
Tax Escalation (by Ray-N-Pa [PA]) Posted on: Jul 1, 2018 4:44 PM Message:
How big of a difference exist? If it is 1% of a 100,000sq/ft mall, then they are renting only 1,000 sq/ft. If taxes sudden;y spiked upward, you are only dealing with a percentage of the ESCALATED taxes.
That can mean two things. 1) The new higher tax amount or 2) a percentage of the change in taxes.
If you are dealing with 3% of an amount that equates to a 10% increase - is that amount really enough to go to court over?
I understand that you might feel like you are being ripped off, and maybe you are. What would happen if they would leave over the amount? I have a couple of mixed use buildings and some parts of the place can be a royal pain to get filled.......is it worth it to push the issue?
The way I see it - life is short...no since getting spun up unless it is real money --72.23.xxx.xx |
Tax Escalation (by Kim [TX]) Posted on: Jul 2, 2018 12:51 PM Message:
I would expect that your lease states that the commercial tenant pays their pro rata share of the increase, not the entire increase. It should be broken down by the square foot, dividing their square footage by the square footage of the building. --23.30.xx.xxx |
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