Richard Smith

Richard Smith

Bernstein Shur


Latest Publications

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Ground Leasing Part 1: Leasing Land Instead of a Building

If a business cannot purchase or lease all or part of a building for its operations, a ground lease may be a viable alternative....more

6/17/2013 - Ground Leases Landlords Leases Lenders Rent Subletting Tenants

Real Estate Tip – On-Site Power Generation Part 2: Who Pays Fuel Tax on Your Natural Gas Honda Civic?

Today’s tip expands the topic of on-site power generation. Instead of “going green” with renewable power, consider installing battery-buffered petroleum generators, natural gas generators or fuel cells to...more

5/24/2013 - Fuel Tax Natural Gas

Real Estate Tip – Renewable On-Site Power: Who Pays to Charge a Tenant’s Chevy Volt?

In two previous LEED tips, Part 1 and Part 2, we explored how taking steps that result in LEED certification may yield little if any improvement in energy efficiency. Another efficiency-neutral LEED concern is clean on-site...more

5/10/2013 - Electricity Emergency Generators LEED Certified LEED Rules Renewable Energy

Real Estate Tip – Hedge Against Future Inflation: Understanding The Capitalization Rate

Net operating income ÷ building capital cost = capitalization rate - If you bought a building in 2007 for $450,000 that produces $36,000 in net operating income, your cap rate is 8 percent. If you think of the cap...more

4/29/2013 - Capitalized Cost Inflation Adjustments Interest Rates Landlords Property Valuation

Real Estate Tip – Tenant Fit-Up: When is the Job Complete?

Rent payments may be tied to a fit-up completion date, such as the tenant’s opening or receipt of an architect’s certificate. Once the fit-up work is complete and the tenant is paying rent, what happens if the landlord...more

4/12/2013 - Landlords Mechanics Lien Rent Tenants

Real Estate Tip – Casualty Loss: High Insurance Deductibles Can Inflate Common Area Maintenance Charges

A single casualty loss can affect both the tenant’s commercial space and the landlord’s structure. When that happens, a surprise cost can effectively reduce tenant’s insurance proceeds. The landlord may pass along its high...more

3/29/2013 - CAM Charge Casualty and Liability Policies Deductibles

Real Estate Tip – Permitting: A $48m Lesson on the Importance of Notifying All Neighbors

In a recent Missouri case, a landlord lost a very significant commercial tenant and a title search company lost $48 million because of an incomplete permitting process. The tenant sued the title search company for failing to...more

3/15/2013 - Landlords Notice Requirements Permits Tenants Title Search

Real Estate Tip: LEED Certification and Energy Efficiency Part 2

In our last real estate tip, we reminded energy-conscious tenants that some rental spaces may have obtained LEED certification with few, if any, energy-efficiency points. If the owner built with energy efficiency in mind, ask...more

3/1/2013 - Energy Efficiency LEED Certified

Real Estate Tip – LEED Certification and Energy Efficiency Part 1

A commercial tenant may expect lower than normal energy costs when considering a green building, but lower energy costs are not guaranteed. The U.S. Green Building Council’s Leadership in Energy and Environmental Design’s new...more

2/14/2013 - Commercial Tenants Green Buildings LEED Certified

Real Estate Tip – “Signed and Sealed” Still Makes a Difference

In many states, including Maine, “signed and sealed” documents may be enforced for a longer period of time than documents that are not sealed. The statute of limitations for sealed documents may be 20 years, but only six...more

2/4/2013 - Sealed Records Statute of Limitations

Real Estate Tip – Avoid a Grinch-y No Coverage Surprise: Add a UCC Policy to Your Title Insurance Checklist

No matter the time of year, an unknown lien against income producing assets may turn the jolliest landlords and tenants into humbugs. Owner’s or leasehold owner’s title insurance policies protect real estate interests, but as...more

12/15/2012 - Liens Title Insurance UCC Uniform Commercial Code Policy

Real Estate Tip – Is Your Awning Personal Property or Real Estate: Who Decides?

Is Your Awning Personal Property or Real Estate: Who Decides? Is an awning, HVAC component or entire building classified as personal property or real estate? The law honors and allows landlords, tenants and suppliers...more

11/30/2012 - Fixtures

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