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> Yes, you will be asked (and expected) to provide a tenant improvement allowance for their new improvements. In addition, expect any deficiencies in the property that would detract from the customer retail experience to need to be remedied.

hmmm, I didn't realize there was significant cost when leasing to new retail tenant. That does make industrial more appealing.

>In a true NNN lease, you are responsible for nothing.

Wow, not even the property tax? That would explain why I sometimes see property tax mentioned when I look at properties available for lease. That leads me to another question, though. Are taxes on commercial property in California also governed by Prop. 13's "1% of purchase price" or are they taxed differently. If they are under Prop 13, then I assume if the building is sold during a tenant's existing lease at a price that creates a higher tax, the new owner would need to pick up the difference until the lease expires.

Thank you, Joe, for all your comments! They are so valuable!
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