San Francisco | Be Careful and Diligent When Leasing Your Real Estate to the Government |Mortgage residential and commercial home loans SF
The general services administration (GSA) leases more than 150 million square feet of space from private building owners in over 2000 communities. This makes them an extremely important player in the real estate community. Because of the unique terms and conditions contained in government releases, buyers of office buildings where the government is already a tenant basis the learning curve.
The number of potential conflicts between building owner and government tenant increase as the square footage under lease increases. Some investors assume wrongly that entering into lease agreement with the government is the same as a standard commercial lease.
The examples below the list rate some of the many unique terms and conditions in government leases back and have a big financial impact:
They use a standard tax escalation clauses stating that the amount of any increase in taxes about the first fully assessed year will be paid in a lump sum payment. Yet buried in the contract is a clause that requires the lessor to submit the tax escalation claim within 60 days of the tax payment date. If they miss the deadline, the lessor forfeits the entire escalation.
When they want to make alterations to a space, the GSA may ask building owners to sign a “waiter of restoration” clause, stating that when the lease ends, it won’t be required to restore the space to its original condition. Some owners think that by refusing to sign the waiver, they stop any alterations. But in a standard lease, there is a clause that allows alterations to take place. The protections for owners lie in the fact that, by refusing to sign the waiver, they may be able to force a restoration when the government tenant moves out. Keeping good records is critical for this.
Conflicts occasionally occur, and when they do, there’s another interesting clause that comes into play. The day contract disputes that clause outlines procedures to follow its owners have a disagreement with the government they can’t resolve through negotiations. It allows of building owners to submit a claim against the government by simply writing a letter to the government contracting officer outlining the basis for the claim and the amount. The government contracting officer can then either negotiate, pay the client, or issue a denial of claim. The denial of clay is in the form of a “final decision” which is misleading because the decision is not final. If the owner doesn’t agree with what the contract in officer decides he can appeal to a board of contract appeals which renders unbiased decisions. This is all done simply by mailing a letter.
Ultimately, there could things and bad things associated with government leases. To avoid any unpleasant surprises, owner should do their homework and understand their options in the event of conflicts.
Powered by Agent San Francisco – SF San Francisco. All rights reserved.© 2012 Copyright by Agent San Francisco™. All rights reserved. Agent San Francisco is an independent real estate brokerage.
“Agent San Francisco real estate brokerage” is an independent real estate brokerage firm with CaBRE – California Bureau of Real Estate Lic #01173770 and Mortgage Loan Originator MLO – NMLS ID: #1203203 & NMLS ID: #1425778 – Agent San Francisco is equal opportunity housing mortgage broker and
real estate agent that abides by all California Bureau of Real Estate rules and regulations. Agent San Francisco Mortgage Loan originators MLO’s and advertising are in compliance with FTC, U.S. Department of Housing & Urban Development (HUD), Regulation Z [12 CFR §1026.24], Reg CaBRE, Mortgage Acts and Practices — Advertising rule, known as Regulation N – [12 Code of Federal Regulation §§1014 et seq.] – The Federal Trade Commission (FTC) and Consumer Financial Protection Bureau (CFPB).
Licensed and endorsed under California Bureau of Real Estate. (CaBRE)
CaBRE Broker #01173770
Mortgage Loan Originator (MLO) NMLS ID #1425778
Mortgage Loan Originator NMLS ID #1203203
Searches related to residential home and commercial real estate lenders San Francisco
residential home and commercial real estate loans San Francisco
San Francisco residential home refinance and commercial real estate lenders list
largest residential home refinance and commercial real estate lenders San Francisco
residential home refinance and commercial real estate funding San Francisco
residential home refinance and commercial real estate financing San Francisco
residential home refinance and commercial mortgage lenders San Francisco
residential home refinance and business real estate lenders San Francisco
residential home refinance and private commercial real estate lenders San Francisco
Home purchase loans and refinancing
