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TIL a 24-hour diner in my town has been a triple-net lease tenant for 38 years
Was chatting with the owner at 3am during my coffee break (night shift perks, I guess) and he pulled out his original lease from 1987. I had no idea triple-net leases could go that long without a major renegotiation. He said the landlord tried to raise the CAM charges by 40% back in '95 but they fought it and won. Has anyone else seen a commercial lease last that long with the same tenant? Seems wild in this market.
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grantnelson4mo ago
Start playing devil's advocate here but that lease sounds like a disaster for the landlord. Locked into 38 year old terms with zero ability to adjust for inflation or market changes. The owner probably lost thousands every year compared to what he could get from a new tenant at current rates. That CAM fight in '95 probably cost him more in legal fees than the increase was worth.
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angela1914mo ago
Grantnelson, you make a fair point about the landlord being stuck with old terms, but I see it a bit differently. That lease was a deal he agreed to, and he had 38 years to plan for it or negotiate a buyout. The CAM fight in '95 may have been costly, but it probably set a precedent that saved him money down the road by stopping future tenant challenges. Landlords who sign long leases know the risks, and this one should have built in escalators or renegotiation options if he was really losing that much.
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