Watch for a number of issues that could signal your landlord is having difficulties, or may be headed for them. They could be signs that your landlord may be in danger of losing its building. While this list is not intended to be complete, some indicators may include:
1. Significant increases in vacancy in your building
2. Increases in vacancy in other buildings where landlord has an ownership interest
3. Increases in vacancy in neighboring competitive buildings
4. Construction projects that start but, languish unfinished for extended time periods (typically a sign that contractors are not being paid on time or at all)
5. Decline in response time and / or communications for service, maintenance, or repairs (a sign that staff has been cut or is stretched too thin)
6. Increase in equipment and system breakdowns, such as elevators, HVAC systems, etc (indicates a decline in preventative maintenance, staff cuts, or more)
7. Fewer landlord or management company employees visible on site
8. Decline in security, life and property safety services
9. Consistent lack of consumable items in restrooms and other areas
10. Interior office, common area, or window cleaning occurs less often
11. Trash not disposed of in a timely manner or is stored in basements and other areas
12. Snow not removed from parking lots in a timely manner
13. Landscaping not updated or maintained. Grass is cut less often
14. General deterioration of the appearance of the building and grounds
15. Reduction of tenant events
16. Deferred capital improvements and preventative maintenance - announced or planned but, not implemented
17. Floors, glass, and metal and other interior components not polished or maintained
18. Band-aid repairs being made in place of needed capital replacements
19. Unresolved mechanics liens from contractors and other service providers
20. Real estate taxes delayed or not paid
21. Mortgage payments delayed or not paid
22. Delayed or unpaid water, utility, or other bills
23. Increase in unresolved or unpaid fines from the municipality and / or other governmental authorities
24. Substantial and / or unexplained increases in operating expenses and the cost of landlord or management company provided services passed on to tenants
25. Landlord making multiple requests for you to sign estoppel certificates or lease summaries (suggests that the landlord may be scrambling for financing or attempting to sell the building)
26. Real Estate brokers unwilling to show your building to prospective tenants (suggests that landlord is unable or unwilling to pay commissions - typically a sign of a cash crunch)
27. Contractors seeking payment from you instead of landlord (indicates a lack of confidence on the part of contractors in their ability to be paid on time, in full, or at all)
28. Contractors unwilling to work in your building (see above)
29. Multiple switching of leasing and / or managing agents, building managers, cleaning companies, security services, vendors, service providers
30. Landlord selling other assets
31. Landlord's inability to sell or refinance your building
32. Change in landlord's leasing program - agreeing to many short term leases to small, transient, and / or undesirable companies
What can you do to protect your company and assure that your environment remains productive, safe, and profitable, and that you receive the services to which you're entitled?
Watch for my next blog post.
