Rumors are the Somerset DC could be closing 12/31/2027. Anyone else hear these rumors?
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@ee In most commercial real estate sales, the buyer purchases the property subject to the existing leases. The lease is considered an asset that transfers with the building. Large commercial leases are typically long-term (10-20+ years) and often have guaranteed renewal options baked in to extend it even further if the company leasing it wants to stay.
That is all to say that commercial real estate operates very differently than residential real estate and companies have way more negotiating power than individuals. Change of ownership usually means nothing to the company leasing it short term. Chances are if you’ve rented in a large apartment building or complex for long enough, your building has at some point changed ownership and you’re none the wiser.
@ee not usually how sale leaseback works… usually get locked into a very long term lease arrangement and that’s a condition of the sale… cvs doesn’t own the property for a vast majority of their stores
If the property is being sold but the warehouse is staying, what happens when the new owner decides to raise the rent?
The property is being sold but the warehouse is staying supposedly.