How does the tenant’s perspective factor in to budgeting?
Every penny counts. We are listening to our tenants as we find ways to support the future success of their business and look for common ground between their needs and the landlords. NAI Elliott VP and Director of Real Estate Management, Leanne Menashe, shares how we factor in our tenants when we are looking at budgets during this uncertain time.
When we are looking at expenses for 2021 budgets, our primary concerns are maintaining the integrity of the asset and whether expenses incurred will be passed onto the tenants or paid for by the building owner. After the uncertain year many tenants had, their primary concern right now are those pass-through expenses and when revenues are uncertain, we must look at all expenses carefully and validate if they are necessary or not.
As we examine revenue for 2021 budgets, we always look at when leases expire or renew, but with COVID-19 we’re also considering how a tenant is going to be successful through this uncertain time. Looking at who a tenant is, how they operate, what their financial strength is, and trying to find ways to support the future success of their business all filters into how we budget revenues during this uncertain time.