Investment R/E Source Published Articles
Landlord/Tenant Issues: Defining “Broom Clean” and “Normal Wear and Tear” Condition at Move Out
By Robert Kehiayan, CPM
This article can help prevent a law suit arising over the interpretation of the terms “broom clean” and “normal wear and tear” at the early stages of drafting a lease agreement. If the lease is already in effect with these ambiguous terms, then this author offers a suggestion to prevent a conflict after the tenant moves out.
Most commercial leases contain agreements regarding termination of a lease and move-out conditions. Additionally, the lease will stipulate what the tenant’s versus the landlord’s obligations and rights are regarding maintenance throughout the lease term. Often, the lease language places the obligation with the tenant to maintain the premises and repair damages made by the tenant to the premises prior to move-out. The common exception to repairs is the “normal wear and tear” that occurs to the premises from the course of reasonable use. Further, the lease may stipulate the tenant leave the premises “broom clean” and free of debris. Disputes arise from this terminology and the differing interpretations and points of view taken between the landlord and tenant.
To read the full article, click here: Thomson Reuters
Documenting Your Real
Pro Active Guidelines to
By Robert Kehiayan, CPM
Accurate and comprehensive documentation is crucial in real estate transactions. Whether you are dealing with residential or commercial, inaccuracies or the inability to trace the steps in your dealings can be detrimental to any possible legal actions you may find yourself in. As a commercial real estate expert witness and as commercial real estate broker who has completed hundreds of commercial transactions, I have seen what happens when there is poor documentation of a transaction. Proper documentation can prevent litigation before it starts and save you if it does.
To read the full article, click here: IREM
Published originally in The Source: IREM Orange County Magazine
Caution: Double-dip Recession Ahead?
(Economic forecast for the United States)
Journal of Property Management: May-June 2002
By Robert Kehiayan, CPM
Certain economic conditions suggest the current recovery may be short-lived, and that a more serious "double-dip" recession could lie ahead.
Property and asset managers must be able to interpret the economic climate in real time in order to identify the turning point in the economy. Even more importantly, they need to be able to identify the magnitude of either the growth or decline of the economy at any particular time, in order to make articulate budgeting, financing and leasing recommendations to their owners. The sophistication of investors and lenders today requires that their property and asset managers plan strategically (long-term) by providing five- and ten-year forecasts in addition to a traditional annual operating budget.
A number of statistics indicate clear skies are ahead. Business inventories are back in line, manufacturing is expanding, orders for durable goods are growing, interest rates and inflation are low, oil stocks and prices are reasonable, productivity is high, liquidity is good, banks' balance sheets are better than ever, the growth of the money supply is brisk, unemployment looks to have bottomed, the yield curve slope is positive, and consumer confidence is good.
Further indications that the recovery is at hand can be found in a recent survey of 35 top forecasters and economists by the Federal Reserve Bank of Philadelphia. In that survey, the majority of respondents see a turnaround in process with reasonably good growth forecasts moving forward. Also, in February, Anaarvan Banerji, research director for Economic Cycle Research Institute (ERCI) said he believes that this recovery is sustainable, and a double-dip is not likely.
Anthony Chan, chief economist for Banc One Investment Advisors, told attendees at IREM's 19th Annual Asset Management Symposium in San Diego in March that economic indicators are positive. "The Federal Reserve is not in a rush to raise interest rates, productivity is increasing and the markets are inching up," he said. "Slow-term expansion is what long-term recovery is all about." Chan predicted that things will pick up in the second half of the year, but does nor expect significant improvement until 2003.
To read the full article, Click here: JPM
Robert Kehiayan, CPM® Named CPM Of The Year by IREM - February 2000
SunCoast Properties Vice President, Robert Kehiayan, was awarded CPM of the Year by the Institute of Real Estate Management. Robert Kehiayan, CPM® is Vice President of SunCoast Properties, the property and asset management firm devoted exclusively to the management of real estate holdings of the Brutoco Companies. During his 20-year Property Management career, Kehiayan has managed and leased all property types. His specialty has been value-added and repositioning of commercial property. For the past three years Kehiayan’s has served on the Orange County Chapter of the Institute of Real Estate Management (IREM) Executive Council. He was recognized by IREM in 1996 as the Chairperson of the year for his efforts on the Professional Opportunities Committee. He earned his Certified Property Manager (CPM®) designation with a grade of "Pass Superior" on his Management Plan. Also, he was selected as CPM Candidate of the Year in 1997.
Kehiayan began his property management career in 1980 by building a successful fee management business in north Los Angeles County. After selling the company Robert worked for a developer in West Los Angeles where he gained valuable ground-up construction, due diligence, and acquisition/disposition experience. In the 1991, Kehiayan became General Manager of a declining, substantially vacant, 200,000 SF mixed use Orange County commercial property in loan default. In the middle of a deep recession he coordinated a team effort that tripled the occupancy, and secured approval of new permanent financing. In addition to these accomplishments, Kehiayan turned around a 600,000 SF portfolio of shopping centers, and repositioned mid-rise office and multi-tenant industrial buildings.
For SunCoast Properties, Kehiayan has led the team with the acquisition and renovation of a tired and empty 60,000 SF office building in Anaheim. There is currently over 100,000 SF of potential interest in this building, with 90% occupancy expected to be achieved only 7 months after acquisition.