Posted Nov 24, 2018, 7:50 PM
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BANNED
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Join Date: Jul 2018
Posts: 4,537
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Quote:
Originally Posted by SFUVancouver
Would TI inducements become part of residential leases? Could good tenants require landlord agreement to restrictive covenants on follow-on occupancy? Don't you dare rent to someone in my career field for 60 months after I leave.
Honestly, triple net is rent seeking in its most pure form, and as ChangingCity notes, it's absurd to burden commercial tenants with the full property tax impact of windfall property value appreciation. Plus, triple net creates a perverse incentive for property owners to invest as little as possible in their building's energy performance since they aren't paying for the consequences of poor insulation, wasteful HVAC, and the like. That's how we end up with hilariously poor performing buildings that try to heat and cool the great outdoors; the building owner doesn't care because they've externalized the costs while retaining all the benefits.
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Well there are clauses that limit maintenance fees, also larger tenants tend to invest in energy savings upgrades. Or sometimes they split the bill of upgrades with the Owner.
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