Does the Department of Labor report real estate values???

[Rockrz]

What is the name of your state? Texas

I have a question about a portion of a lease on a piece of commercial property that has a large convenience store on it that is owned by a major, multi-billion dollar, worldwide corporation (we won't mention any names here for obvious reasons). This is a long term lease between my family, and this company.

I have a long term lease with this company that states I will be paid additional rent for the property (over & above the price schedule mention in the lease) according to the Consumer's Price Index of the U.S. Department of Labor, Bureau of Statistics.

The problem is, we've been under paid since 1987 for the rental of this property, and I want to get paid according to the property's actual value from then until present.

I've just search the U.S. Department of Labor's website and it appears that they have nothing to do with the value of real estate. If they do, it's not on their website. This leads me to believe that they have nothing to do with real estate pricing values.

I need to know if this can be a claim that the contract is invalid. They have no clause in there that states that if any part of this contract is found to be illegal, or of no effect, that the rest of the contract will remain in force.

Here's the pargraph in question:

Over and above the minimum Net Base Rental above provided, Tenant shall pay to Landlord during each five-year Additional Renewal Period as additional rent, beginning July 1, 1987, an amount per month equal to the same percent of the monthly Net Base Rental for the first month of such Additional Renewal Period as the percent of increase, if any, which the then applicable and current Consumer's Price Index of the U.S. Department of Labor, Bureau of Statistics, bears to the same Index for the first month of the previous 5-year renewal term or Additional Renewal Period

This paragraph doesn't really make sense if the Consumer's Price Index of the U.S. Department of Labor, Bureau of Statistics doesn't set the standard for the value of commercial real estate property.

Can this be contested????

 

[JETX]

I think what is confusing you is that you are trying to find some type of real estate index at their site and it doesn't exist. Further, your lease has nothing to do with any real estate value.

The key to this is the CPI (Consumer Price Index) which is reported by the Bureau of Labor Statistics, part of the Department of Labor. Their site is:
http://www.bls.gov/cpi/home.htm

As I read your excerpt, it appears that your rent is set to increase based on the change in the CPI from the previous 'rate date'.

For example, lets say your original rent was $10000 per month. One year later, the CPI has increased 4% from the previous period. Your rent would increase that same rate (4%) and would be $10,400 for the next period. This would continue for the duration of the lease.

 

[HomeGuru]

What is the name of your state? Texas

I have a question about a portion of a lease on a piece of commercial property that has a large convenience store on it that is owned by a major, multi-billion dollar, worldwide corporation (we won't mention any names here for obvious reasons). This is a long term lease between my family, and this company.

I have a long term lease with this company that states I will be paid additional rent for the property (over & above the price schedule mention in the lease) according to the Consumer's Price Index of the U.S. Department of Labor, Bureau of Statistics.

The problem is, we've been under paid since 1987 for the rental of this property, and I want to get paid according to the property's actual value from then until present.

I've just search the U.S. Department of Labor's website and it appears that they have nothing to do with the value of real estate. If they do, it's not on their website. This leads me to believe that they have nothing to do with real estate pricing values.

I need to know if this can be a claim that the contract is invalid. They have no clause in there that states that if any part of this contract is found to be illegal, or of no effect, that the rest of the contract will remain in force.

Here's the pargraph in question:

Over and above the minimum Net Base Rental above provided, Tenant shall pay to Landlord during each five-year Additional Renewal Period as additional rent, beginning July 1, 1987, an amount per month equal to the same percent of the monthly Net Base Rental for the first month of such Additional Renewal Period as the percent of increase, if any, which the then applicable and current Consumer's Price Index of the U.S. Department of Labor, Bureau of Statistics, bears to the same Index for the first month of the previous 5-year renewal term or Additional Renewal Period

This paragraph doesn't really make sense if the Consumer's Price Index of the U.S. Department of Labor, Bureau of Statistics doesn't set the standard for the value of commercial real estate property.

Can this be contested????

**A: please consult with a local real esate attorney.

 

[Rockrz]

**A: please consult with a local real estate attorney.

We already are. He's studying the situation now. I'm just trying to get a better understanding of what's going on so I can double check whatever the lawyer says.

Just because a lawyer is on the case doesn't mean what he says is gospel. Lawyers can make mistakes and mis-judgments too ya know...

I don't want to get into a situation where our lawyer is recommending that we sue when he thinks we really can't win because he's going to collect his fee whether we win or not. I wouldn't think too many lawyers are going to tell someone they cannot win (unless it's really obvious) because he's just talked himself out of a case that he's going to make money on.

Therefore, I'm out to get all the information that I can from both my family's point of view, and from the big corporation's point of view so I can make an educated assessment of the situation with which to make a decision from.

Make sense?

 

[HomeGuru]

**A: please consult with a local real estate attorney.

We already are. He's studying the situation now. I'm just trying to get a better understanding of what's going on so I can double check whatever the lawyer says.

Just because a lawyer is on the case doesn't mean what he says is gospel. Lawyers can make mistakes and mis-judgments too ya know...

I don't want to get into a situation where our lawyer is recommending that we sue when he thinks we really can't win because he's going to collect his fee whether we win or not. I wouldn't think too many lawyers are going to tell someone they cannot win (unless it's really obvious) because he's just talked himself out of a case that he's going to make money on.

Therefore, I'm out to get all the information that I can from both my family's point of view, and from the big corporation's point of view so I can make an educated assessment of the situation with which to make a decision from.

Make sense?

**A: ok, please post what your lawyer says and we'll double check it got you.

 

[Rockrz]

double check it got you???

What do you mean?

 

[HomeGuru]

I meant double check it for you. Got it?

 

[Rockrz]

OK. I got it.

 

[HomeGuru]

ok.

 

[Rockrz]

Okee-Dokee

 

[JETX]

Roger Dodger!!
Over and out!