24
Jun
Avoiding the Crumble: Reflecting On National Pecan Sandies Day 🍪
| While National Pecan Sandies Day is a great excuse to enjoy a classic shortbread treat, the science behind a great sandy offers a highly practical lesson for business and property planning. Anyone who has baked shortbread knows it is a delicate balance. Without just the right amount of each ingredient, the cookie completely crumbles. In commercial real estate, we look at transactions and lease structures through a very similar lens. Without the right amount of give and take, a deal that looks great on paper can quickly fall apart. The Secret Ingredients Planning (The Table): In making a Sandie, you must have the right equipment needed to stir all the ingredients together. So, you need to find the right location, you need to check the permitted uses, the parking availability, the market rents and many other due diligence items before you start to put anything into the bowl. Clear Binding Covenants (the Flour): A solid lease or purchase agreement must have strong contingencies as well as financial terms. Ensuring clear, unambiguous language around default clauses, maintenance obligations, and subleasing rights keeps both parties aligned and prevents future friction. The Crunch (The Reward): The pecans are the last to go into the mix. They represent rent abatements, flexible terms, seller financing or improvements to the property that add value to the occupancy or investment. As you look at your current business agreements and property assets this summer, take a moment to evaluate what would make them better. Are there any vulnerabilities that might cause them to crumble under pressure?  Ready to build a property strategy that holds together under any market conditions? Reach out today for Real Solutions for Real Estate that are built on a solid table and baked to perfection! 786.567.8474 |