News Articles & Press Releases
|News Articles & Press Releases
Newmark Cornish & Carey is proud of the media coverage it receives and believes that it is a reflection of the successful community and business relationships developed by the company over the years, as well as the firm’s tremendous growth in nearly eight decades in business.
About Newmark Cornish & Carey
A dominant regional real estate force since 1935, Newmark Cornish & Carey has an expansive reach as part of Newmark Grubb Knight Frank, one of the world's leading commercial real estate advisory firms. Regionally, Newmark Cornish & Carey has more than 280 agents in 13 strategically located offices throughout Northern California, creating a powerful platform from which to deliver superior services locally, while upholding its core values of integrity and knowledge.
About Newmark Grubb Knight Frank
A part of BGC Partners, Inc. (NASDAQ:BGCP), Newmark Grubb Knight Frank is one of the largest commercial real estate service firms in the U.S. It brings together the strategic consultative approach to creating value for clients and leading position in the New York market that are hallmarks of Newmark Knight Frank; the complementary strengths of Grubb & Ellis in leasing and management, investment sales, valuation and capital markets services; and BGC's financial strength, proprietary technology, expertise in global capital markets and deep relationships with many of the world's leading financial institutions.
Newmark Grubb Knight Frank and its London-based partner Knight Frank together operate from more than 300 offices in established and emerging property markets on five continents. This major force in real estate is meeting the local and global needs of tenants, owners, investors and developers worldwide.
Awards & Community
Newmark Cornish & Carey proudly supports a great number of community events and is a frequent sponsor and contributor to many non-profit agencies, organizations and local institutions. Our commitment to community extends beyond monetary grants, as dozens of our professionals often donate time and expertise to drive the union of public-private partnerships that enhance the communities in which we live, work and play.
Newmark Cornish & Carey embraces charitable giving because it creates a reservoir of local goodwill and also, because it is our responsibility as good corporate citizens. Our actions help build healthier, more livable and economically stronger communities.
Over the years, the firm ’s charitable giving has touched dozens of public and private-sector aspects of life and business and with an emphasis on education and athletics. We firmly believe that providing opportunities for the children of our communities to develop strong minds and bodies – and complement them by teaching good work habits -- creates a solid foundation for our future.
Beneficiaries have included the St. Nicholas School and St. Nicholas Parish, the Ronald McDonald House of Stanford, Silicon Valley Community Foundation Real Estate Trust, YMCA, and The UCLA Fund, among many others. Newmark Cornish & Carey professionals have served on numerous boards, such as the College of Business at California State University at Chico, and supported industry associations, including the Urban Land Institute and the Belden Real Estate Club of California. And they have coached children’s teams in nearly every sport played on fields, courts, diamonds and gymnasiums, including AYSO and CYSA Soccer, NJB Basketball, Little League Baseball, tennis, gymnastics and youth football programs.
Glossary of Terms
ABOVE BUILDING STANDARD
Quantities and/or qualities of materials that exceed the limits established by the landlord. Such limits are typically described by landlord’s work letter specifications or dollar amounts.
Stairs that join two or more floors, but do not join an exit.
AGGREGATE TOTAL RENT
The base rent plus all consideration paid to landlord during the term of the lease, including: operating expenses, cost of living increases, and any and all additional rent.
The unused right to development, which may be purchased by an adjacent owner enabling him or her to exceed the density requirements for his or her property.
The number of square feet designated in a space plan for a particular function.
“AS IS” CONDITION
Premises taken by buyer or tenant without any modifications and with no warranty as to the condition of the premises.
The value of a building for tax purposes which is determined by the municipality and does not necessarily represent the sale or fair market value.
A levy against property in addition to general taxes, usually for improvements such as streets, sewers, etc.
To agree to continue as a tenant under a new Landlord. Without such a provision in a sublease, should the Sublessor default under the Master Lease, the rights of the Subtenant will terminate regardless of the term of the sublease.
The primary rental to be paid, exclusive of expense pass-throughs, additional rent, or rental increases.
The year on which the tenant’s operating costs are based – typically the calendar year during which the tenant’s occupancy commences.
The opening between two columns or walls which forms a room-like space. May be industrial space, parking space, or other use.
The area from the core of the building to the exterior edge – important for measuring efficiency and locating offices.
(1) A bench, ledge, or other resting place part way up a hill or slope.
(2) A mound used for drainage control, landscaping, or screening.
(3) A mound used for landscaping and to screen unsightly views or noise.
The process by which contractors and subcontractors submit their prices for completing a job which meets the requirements depicted in construction plans and documents.
Building Owners and Managers Association.
A standardized method for measuring floor space. BOMA standards are accepted by the American National Standards institute as a suitable way to measure leased space.
Premises delivered free of debris and floors swept clean.
Laws – local, state, and national – which govern building construction. Industry standard is the Uniform Building Code, or UBC.
Permission granted by a public authority to proceed with construction according to the approved plans.
C.C. & R.’S
Covenants, conditions and restrictions of record concerning a particular property. Includes items such as setbacks, easements and property-oriented restrictions.
CERTIFICATE OF OCCUPANCY
Issued by a public authority upon completion of construction of tenant improvements. Authorizes use of the space for specific activities and for a defined number of people.
Space which allows for the movement of people between offices and workstations. Typically, 30-40% of an area’s total square footage will be allocated to circulation.
A system of underground tanks engineered to dissipate waste water, acids and other harmful agents prior to disposal into sewer or septic tank.
A room constructed to maintain a controlled atmosphere (humidity, temperature, dust, germ free, etc.).
Area within building unobstructed by columns or posts.
Fire and building codes set by local governments. Space planning documents and construction documents must comply with these codes.
“Cost of Living.” An index provided by the Bureau of Statistics (i.e. CPI) which reflects the rate of general inflation in a specific geographic area. The index may be used, by mutual agreement in a lease, to increase rent over time.
Those areas in the building which are used by all office tenants or which service all office areas. Common areas include corridors, public lobbies, janitorial closets, rest rooms and, in some buildings, mechanical space, loading docks and other service areas which benefit all tenants.
COMMON AREA MAINTENANCE
CAM refers to the maintenance of any and all areas which are for the convenience of all tenants. The costs associated therewith may be paid by the landlord by incorporation in the rent structure with a base year established and increases passed on to the tenants, or by a formula in which all costs including management thereof are directly passed on to the tenant.
The mechanical compressing of loose soil to a structural standard capable of supporting a specific load.
Those inducements offered by a landlord to a tenant to sign a lease. Common concessions in a tenants’ market include free rent, extra tenant improvement allowance, absorption of moving costs and lease assumptions.
Method of construction whereby concrete walls of a structure are poured in forms on the ground, allowed to set, then elevated to position by means of a crane.
The exercise of a governmental power which results in the taking of property by a governmental agency for public purposes.
A metal pipe, usually flexible, through which electrical wiring is installed.
The set of documents which detail all of the interior design, including electrical, mechanical, plumbing, cabinetry (millwork), and finishes. A complete package of drawings may contain as few as 9 sheets or as many as 40 sheets. Often accompanies by a written set of specifications.
Generally refers to actually touching or bordering on, as in contiguous space.
The part of a building used for public restrooms, public corridors, elevator lobbies, janitor closets and other multi-tenant purposes. Core space does not include areas that cut through the floor slab and affect more than one floor, such as stairs, elevator shafts and pipes.
The expensive process of cutting into a floor to lay down electrical wires and place electrical outlets.
Consumer Price Index (see C.O.L.)
A designation of Certified Property Manager conferred by the Institute of Real Property Management upon one who has completed certain required courses and has been active in property management.
An outside wall which lends no structural support to a building, but acts merely to enclose.
The constant weight of all permanent materials in a structure.
Demising walls that separate tenants from each other and from public corridors. These partitions require high fire proof ratings, typically run higher than the ceiling height, and often run to the concrete slab of the floor above.
The average number of individuals expected to occupancy the building area.
Fire retardant partitions (usually of sheet metal or drywall) which attach to the interior of a roof to divide a building in order to prevent the spread of fire within the building.
The standard material used to construct interior walls. It comes in 4’ x 8’, 4’ x 12’ sheets and in different thicknesses (1/2”, 5/8”) is made of gypsum and is inert and fire retardant.
A right to use the real property of another party, generally for a specific purpose.
The percentage of rentable area which is usable. For example, a 90% efficient floor provides 900 usable square feet for every 1,000 rentable square feet.
Amperage – A term indicating the amount or consumption of electrical current.
Kilovolt-Ampere (K.V.A.) – A unit of electromotive force equal to 1,000 volt amperes.
Three Phase Power – A 3-wire electrical service used to power machinery.
Bus Duct – A metal clad enclosure containing electrical wiring designed foe randomly plugging in electrical drops to machinery at desired locations.
Voltage – 110, 208, 240, 480-type service.
An identified dollar amount, usually on a dollar per square foot per year basis, that the landlord is responsible for paying for operating costs. Any expenses over the stop will be charged to the tenant.
The flooring over the subfloor, usually of hardwood, tile, or other finish on which one may walk. In some modern construction where carpeting is installed by the builder, plywood is used as a finish floor.
FIRE RESISTANCE RATING
Specifies the amount of time a wall, ceiling or floor must remain intact in the event of a fire. This rating is given in hours.
FIRE SPRINKLER SYSTEM
Calculated or designed to put out a specific volume of water within a given area. Design depends on process or type of storage to be conducted in premises. Fire Marshall rates in four classifications: (1) low hazard; (2) ordinary hazard; (3) high hazard; (4) very high hazard.
An increase in rent which is predetermined and agreed upon in the lease.
FLOOR AREA RATIO
The FAR determines the total floor area that can be built in a particular location according to current zoning laws – e.g. a 40% FAR means the equivalent of 40% of the square footage of the land can be built as floor area in a building.
A floor support member used at right angles to the main supports (girders) and on which the flooring or subflooring sits.
The weight, or load, the floor is constructed to withstand. Floor loading limits are particularly important in locating a major file room or a library. It may be necessary to rein force such areas with supplemental steel.
The plan or configuration of a floor within a building.
The outline or exterior shape of a building on the site.
Narrow strips of wood or metal which are applied to walls, floors, ceilings, etc., as a means of leveling the area before applying the surface boards or laths.
GLUE LAMINATED BEAMS
Beams supporting roof structure constructed of layers of wood glued and pressed together (as opposed to steel beams).
The total floor area located within the exterior walls of the building.
A fire protection system suitable for rooms that house computers or other costly equipment which could be destroyed by water. This system releases afire quenching halon gas. Once used, the halon gas must be removed from the area; therefore routine testing is cumbersome.
Acronym that stands for heating, ventilating and air conditioning systems.
LEASE TYPES INDUSTRIAL LEASE
Net Lease – where the rent that is paid to the Landlord is exclusive of all operating expenses, and typically the tenant has the responsibility for all services, taxes, maintenance, etc.
Industrial Gross – where the tenant has the responsibility for the payment of internal maintenance, repairs, utilities, janitorial, etc., and the Landlord has the responsibility for taxes, insurance, external maintenance, etc.
Modified Net – where each and every expense must be identified as to where the responsibility for payment lies. Taxes are always paid for by the tenant; all other expenses may be negotiated.
Full Service Lease – where the Landlord contracts for all services and operational costs and includes those expenses in a rental amount.
Net Lease – where, despite the fact that the Landlord contracts for all services and pays all operational costs directly, the costs are prorated and bill to each tenant separately in addition to the tenant’s base rent.
A right, hold, or claim against specific property as security for a debt.
Government and building code regulations for buildings of a certain size relative to seismic, fire, handicapped and existing requirements.
Expressed in pounds per square foot, the live load equals the total weight of all occupants, materials and equipment to be found in a building.
LOSS FACTOR, OR LOAD FACTOR
The factor (expressed as a %) that when multiplied by the usable square footage of a multi-tenant building yields the proration of common area allocated to that usable space. Rentable area is then the usable square footage plus the common area proration.
MEANS OF EGRESS
A path to an exit. This includes any combination of doors, stairwells and passageways.
Custom woodwork, produced in a mill or shop, specifically for a building. The items could be doors, sashes, trim, railings, or custom fixtures.
All expenses associated with the operation of a building including, but not limited to, utilities, taxes, insurance, maintenance, janitorial service and security.
OPERATING EXPENSE PASS THROUGH
An agreement between the tenant and landlord which states that the tenant will pay a pro-rate share of the increases in operating expenses over those in the designated base year, or in addition to the expense stop.
A floorplan, which shows the degree to which your space requirements and layout will fit into a particular space. This plan typically shows interior office walls only.
PROPORTIONATE SHARE, OR PRO rate SHARE
The area of the building, expressed as a percentage, which a tenant leases (the tenant’s rentable area divided by the total rentable area of the building). This number is used in allocating building operating expenses and taxes.
An itemized list that notes any incomplete or un-satisfactory construction. It is prepared after the contractor has notified the owner that the tenant improvements are substantially complete. Major problems on the punch list should be fixed prior to move-in. Minor ones are usually dealt with after the move-in.
Drill Track – Connects main line with individual spurs and is maintained by the railroad.
Spur Track – Serves individual properties installed and maintained by the industry user.
A process whereby metal flooring is placed over existing flooring to allow for cables to be installed in between. Raised flooring is often recommended for computer installations and for tenants who must frequently reconfigure their space. Raised flooring reduces the floor-to-ceiling height of a room by 4 to 8 inches.
RENT COMMENCEMENT DATE
The date on which the tenant begins paying rent. Depending on the nature of the market, it may coincide with the lease commencement date or it may be several months after that.
The total area for which rent is paid. It includes the space actually occupied by the tenant, as well as a pro-rate allocation for common areas such as public corridors, building lobbies, core areas, and restrooms.
Effective Rent – The dollar per square foot per year figure, which the tenant pays on an average over the term of the lease. Example: A 5-year lease with 6 months’ free rent offers an effective rate with a 10% discount from the face rate.
Face Rate – The identified rental rate in a lease, which is subsequently discounted by concessions offered by the landlord, also known as contract rate.
Free Rent – Period of time in which the tenant occupies the premises under the lease, but does not pay rent.
Full Service – A rental rate which includes normal building standard services as provided by the landlord within the base year rental. Tenant will pay its pro-rate share of subsequent increases in the operating expenses over the base year or expense stop.
Net Rent – A lease in which the tenant is responsible for operating expenses associated with its proportionate share of occupancy of the building as of the lease commencement date. There is no base year or expense stop.
Rent Escalations – Changes in the base rent during the term of the lease. Usually tied to “fair market” or C.P.I. reviews.
Stair-Stepped Rent – A rental rate which increases by fixed amounts during the period of the lease term.
A reduced scale representation of a vertical slice through a space or structure.
Part of a zoning ordinance. Regulates the distance from the lot line to the point where improvements may be constructed.
See Preliminary Plan.
Unobstructed area between columns within an industrial building.
Vertical supporting members in the walls.
An agreement to give priority to a right over another right.
The substitution of one creditor for another, coupled with transference of the claims and rights of the old creditor. Thus, without a “waiver of subrogation”, if a tenant negli- gently causes the destruction of or damage to the lease hold premises, the landlord’s insurance company, after paying for the damage, will have the rights of the landlord to sue the tenant for its negligence.
The point in the construction process when the contractor certifies that the majority of work has been completed, after which the tenant is expected to move in. To avoid unnecessary expense and confusion, a tenant should make sure his understanding of substantial completion is the same as the landlord’s. Without a mutually agreed upon definition, a tenant may be expected to move in before long-lead-time items are complete (such as the installation of glass doors or special lighting), or before the tenant has had a chance to compile a punch list that identifies items needing repair or completion.
TENANT IMPROVEMENT ALLOWANCE
A dollar amount or a list of items which the landlord contributes to the tenant in exchange for the rent being charged.
Refers to the design of a building which provides loading through doors at truck level. Normal height would be between 42 and 52 inches.
A cutout inside a building to provide inside truck area.
A ramp and/or level area below ground level which creates loading at truck height. A pump is required to clear water from the well following rains.
A complete build-out of the tenant’s premises to the tenant’s specifications.
A metal duct built into the floor for telephone and electrical cable access.
The space which the occupant actually occupies, which is less than the rentable area.
WAIVER OF CIVIL CODE SECTIONS
Civil Code Sections 1932(2) & 1933(4) – Provides that a lease shall terminate on a major destruction of the premises. These Civil Codes must be waived, because the tenant’s rights in the event of such destruction will be governed solely by the lease provisions.
Civil Code Section 1942 – Provides that if the landlord neglects to make certain repairs to the premises as required by the lease, the tenant may vacate the premises and terminate the lease. This provision is customarily required to be waived by the landlord, because it would otherwise give the tenant the right to terminate the lease for a relatively small repair cost.
Those divisions on large windows which can accept tenant partitioning to create offices.
A letter that is a part of the lease. It defines the landlord’s contribution toward the construction of the tenant improvements.
Detailed construction drawings required for obtaining building permits and the buildout of the space. (See Construction Documents).
The identified portions of an office area served by the HVAC system which have separate thermostatic and temperature controls.
Frequently Asked Questions
A landlord needs an experienced broker to negotiate in situations like Use clauses and Exclusive Use clauses that could hinder a landlord’s right to other preferred uses in the project. Also, by hiring a broker, a landlord will minimize loss of rent by exposing the project to a much higher number of prospective tenants.
Ask the advice of an experienced broker when you start planning a development. Up-to-date knowledge of current market conditions will help you build the appropriate space to meet market demands.
Depending on the size of the project, many brokers provide written reports once per month. However, a broker should be spending time finding tenants or buyers rather than preparing written reports. So frequent verbal contact makes better use of their time.
You will need to bring a copy of your most current financial statement or a balance sheet showing all of assets and liabilities for each party signing as a tenant. You should also bring any information about your current or proposed business. Interior photographs of your existing business or catalogue pictures are also important to show the landlord what your plans are for the space. If it is a new business, you should bring a business plan and information about your business experience.
Typical retail leases run between five years and 15 years, often with an option to renew for an additional five years.
Landlords understand that retail tenants need time to get city permits for improvements. Typically restaurants and other uses that require more remodeling will receive more time than a retail store. However, landlords often grant from thirty to one hundred and twenty days rent-free.
The most common issues between landlords and tenants usually involve tenant improvements. That’s why it’s important for you, as a tenant, to have an experienced and licensed contractor and architect to build out improvements and get the necessary governmental permits. In the long run, it will save both time and money.
You will need to provide the following information for the landlord’s approval:
• A copy of your insurance policy
• A tenant improvement plans prior to submitting to the city
• Contractor information (such as license number) before you sign any construction agreements.
You may wish to contact the telephone company to get your company name and number in the phone book, and also change all entry door locks.