Problems with commercial tenants
Commercial tenant problems generally center around financial issues. A tenant going through bankruptcy or corporate reorganization may be unable to pay rent – and you, the landlord, may be unable to collect lost rent if the company goes bankrupt. In addition, failing business can discourage good tenants from moving in. With commercial leases, many experts believe that a vacancy is better than a problem tenant.

Getting successful businesses
Successful business tenants will be attracted to properties providing more space, better parking, better location for their specific business, and/or lower rent. Expanding franchises can provide new tenant opportunities, as well as business similar to the type of business tenant already located in your building.

Depending on your needs, you may select a large company because they offer large training programs and many services. Generally, you will pay for these benefits through your commission structure - the lower the split, the more services are offered. A boutique offers the distinct advantage of more individualized training, but on a smaller scale with less services offered to you. However, boutiques generally offer a higher commission split expecting you to do more on your own. It is up to you to weigh the value of what is being offered and the type of training/mentoring you think you need and make your decision accordingly.

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Tel: 310-285-7515
Fax: 310-271-9204

301 N. Canon Drive,
Suite 215,
Beverly Hills CA
90210

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