Old Building Conversion to NNN - things to watch out for and resources
I'm in 100 year old building that has been converted to offices in the 50's. The owner has decided to be hands-off and has hired a local agency to do the property management and they are changing it over to a triple net. I've never been in a NNN lease before and am concerned about paying for repairs that should have been Capitol Improvements decades ago.  


Will I be given or can I legally require them to provide me with a list of repairs with the probability of challenging the validity of the NNN fees? The building is currently only 50% occupied, how should the fees be divided up equitably when I'm heating other units with no one in occupancy?

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Anything else I missed?
[{"id": "iy11thp", "text": "That\u2019s a \u201cloaded\u201d question.\n\nConsult a broker and/or attorney.", "replies": [], "depth": 1}, {"id": "iy1jc7i", "text": "I would fight the NNN conversion, especially in an older building. I am not an attorney, but I am sure if he still decides to convert, you would be able to break the lease (leases usually state what type of lease it is\u2026NNN, MG, FS).\n\nIf systems such as HVAC operate under one unit, you should only have to pay your pro-rata share of expenses. As in, if you occupy 10% of the building, you pay 10% of the bill/expenses.\n\nHope this helps!", "replies": [{"id": "iy1ki5q", "text": "Good advice, probably not going to be able to fight it. It's new lease time and it costs a shit ton of effort and money to move an established business, so they've got me over a barrel...", "replies": [{"id": "iy1lwos", "text": "That sucks. Best of luck and keep us posted!", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "iy1wb0l", "text": "Before addressing the NNN leases the main question is: do you have a lease in place?\n\nIf NO - then the LL will ask you to enter into an agreement. That agreement , regardless if it's a NNN , gross or other variations will have to be negotiated. That will be the best time to engage a professional that will be able to assist you .\n\nIf YES, there is an agreement in place, that can't be changed just because a property has been renovated / upgraded. Check the lease and see what rights has the LL when it comes to major renovations. Is there a relocation clause that gives the LL the power to move you to a different place ?  If you don't have experience with leases , most likely you would need someone to help answer these questions.\n\nNNN is just a standard term of a lease agreement, where the tenants pay for \"using\" the building/facilities on top of a base rent.\nThis is very similar to leasing a car where you are just the \"driver\" that enjoys the benefit of a new car and also has the responsibility to maintain (same as NNN leases).", "replies": [{"id": "iy3s2e7", "text": "100% - comes down to lease language.  Make sure this reads how you want it to... engage attorney, engage a broker.  Good Luck.", "replies": [], "depth": 2}, {"id": "iy4siwa", "text": "Lease expires end of December. LL has contract with new PM. PM (most likely with LL blessing) is the one writing the new leases and converting building to NNN. He claims things like HVAC units etc. are Capitol improvements and won't be charged as part of NNN. However, the older double door with a full light (90\" wide) is 60-70 years old and appears to require frequent maintenance in colder weather. This should be replaced as a capitol improvement as it has way outlived its' useful life, but they plan on charging us for its' maintenance.  \n\n\nPM says costs will be the same, but I doubt it.", "replies": [{"id": "iy5580z", "text": "If I were you I would ask assistance from a lawyer / commercial real estate broker  as it appears that you have limited experience with NNN leases . This will help you better understand your obligations / responsibilities and avoid future disputes.", "replies": [{"id": "j1905p7", "text": "Thanks, but one of my issues is my business is struggling and I don't have enough funds to consult. Catch 22!", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "iy4xzug", "text": "Did you give renewal notice? End of December is very fast if you\u2019re going to be leaving", "replies": [{"id": "j18xu4a", "text": "No, PM has consulted with owner and I'm on m2m until I get current with my rent.\n\nSince I am on m2m, does that mean that terms of soon to be expired lease are still in effect and PM cannot charge me NNN, just my original Load fee?", "replies": [{"id": "j19a7co", "text": "You\u2019re M2M with no changes. I guess you have leverage if you can find new space and move within 30 days\u2026", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "izcuygc", "text": "I\u2019d try to avoid any full MEP responsibilities.  Get them verified functional, life span recorded then try to annual cap them at least, if you can\u2019t defer back to LL.", "replies": [], "depth": 1}]