Episode 107 - How to ADD VALUE to Your LEASE RENEWALS!

Today hosts Braden Cheek, Brian Duck and Joel Thompson discuss how to add easy value to your lease renewals in commercial real estate.

Hey, business is a little rough. I, we may need a rent reduction. We may need a month or two of free rent. Now, I after you hear that statement, I want you to repeat after me and then stop everything. That's fine. We require financials and tax returns to evaluate rent reductions. Please submit those at your earliest convenience and we'd be happy to take a look at it for you. Boom. 9.99999 times out of 10. You don't get that information, you don't get that information and then it proceeds back to the rent increase, right? All right. What is up and welcome back to how to invest in commercial real estate. And we have a really cool topic discussing how to add easy value in your lease renewals. Now, most of these are going to be applicable to retail shopping centers, but they're just as easily applicable to light industrial. You could insert several of these points or, or kind of the thought process or ideals into like multifamily leases. I'm sure they, they would be applicable to office as well on some level. Yeah, absolutely. Before we get into that though, we just wrapped up I CS E Vegas. This massive, I would call it worldwide conference in Las Vegas.

I would say it's pretty worldwide. Although uh they may have other huge ones in like Dubai or Hong Kong or Singapore. But this one is, it's massive. If you want to be overwhelmed with commercial real estate companies go to this conference. It's May every year in Las Vegas and we tried to overdo it, scheduled a meeting every 30 minutes and it was 15 minute walk between each, each booth. So, uh we learned a little something there. But anyway, if you've been looking for, I mean, there's so many people who say, how do you find these deals? How do you know these people in Saint Louis? How do you, how do you know that guy? And I mean, I get that question all the time. Do you guys get that? I feel like we just did a podcast on how we buy stuff across the country. This is how right go to I CS E. Get your mind blown if you're looking at buying property and, and wherever you can find 50 brokers in that city, 50 property managers in that city that are going to I CS E and you can meet them all in one day. Yeah, we came across, you cannot, you cannot meet them all in one day. We, we barely met two handfuls of people in one day. I think it was 30,000 people were there uh that one day, but it's really impressive.

And if you wanted to learn about commercial real estate and you just wanted to walk through and stop at each booth and just ask them, hey, what do you guys do? Uh When did you guys get started? What's your specialty? You would learn a lot uh about the different players in the industry. There's management companies, there's brokers, there's developers, there's equity partners, all of it. Yeah, we talked to all those people and came away with uh good contacts and, and they've already started uh new deals based on it. Some new investments. So anyway, if you want to get hooked up I CS E dot com, super easy to buy tickets. They're egregiously expensive, not sponsored by S E I CS E. If I was, they would be super cheap tickets. Anyway, we're gonna get into the show today is all about how to maximize value with lease renewals on your property. If you've been watching or listening this show at all, you know, this is one of the biggest times we get to add value because lease term in commercial real estate is typically 57, 10 years plus sometimes um unless you're in apartments, right, then you have a one year lease. So these leases are so long when they come up for renewal, you have to make sure you're thinking of everything you possibly can to add value in that lease renewal?

And how would you want to be doing this? How I personally go about doing this is think as if I'm going to sell it, if I was going to sell this property, how would I want to buy this property? How would I want everything to be structured and uh to make it as simple as possible. You're trying to make it as easy as possible for a buyer to come in and underwrite your property property and understand profitability. So you've got base rent, you've got expenses and then you've got profitability, right? But if all of your leases are completely triple net leases, then you can just your, your base rent is your N O Y, right? It's as simple as that because your tenants are paying their proportionate share of all the expenses. So first and foremost, we want to try as hard as we possibly can before doing anything else to make sure our tenants are paying their full proportionate triple net share plus admin fees if we can get it. And the important reason we do that is when I go to buy a property, like Brian said, I'm evaluating the net operating income and I'm putting a multiple on that, that's where we get the cap rate. But the more uh unsure I am of that income, uh the more I have to hedge on my purchase price because I don't know exactly what I'm getting it into.

The reason that big corporate, uh, guarantee tenants get the lowest cap rates is because the income isn't in doubt. You have a big corporation like, uh, you know, like a Walgreens or a Starbucks guaranteeing that lease, then you know, that money's gonna be coming in, you know what they're gonna pay. So it removes uncertainty. Well, that's what we're gonna be talking about today is trying to remove uncertainty in A N O I number in order for you to get that, that maximum purchase price when you sell. And the first step like Braden said is transfer, transition all of your leases to triple net leases. A lot of times we see when we look at properties, some are on triple net, some are on double net, some are on gross leases, they all have different terms. And so what we wanna do is standardize that from day one. Uh as those leases come renewed is we want to get everybody on a full triple nets, full taxes, their prorated share, full insurance, all the common area maintenance that goes along with that property. They're gonna pay their pro rata share of all of those expenses. And, and when you say that plus try to get admin fee. I've never, I've never paid admin fee. What, what, what are you paying for there? And why are you putting that in there? That's your time? That's our time is as, as the management or what is the fee?

Yeah, so let's pretend you're the tenant who's, who's paying the taxes. I am. No, you are and I'm paying you. Yeah, there you go. So who's, who's paying the insurance? I, I, I'm getting the insurance policy. I'm quoting it out to make sure it's a good deal. You, hopefully I'm quoting out for you. Right. And not just taking the highest bidder that would suck for you. So, my time to quote out the insurance commentary, maintenance has probably a dozen vendors. At least that you're, that I'm arranging for, I'm bidding out. I'm throwing in a budget. I'm making sure they're paid, I'm making sure they're showing up. Right. So you don't call me and complain. That's the argument that I would use as a landlord with the tenant is, hey, I'm doing all these things for you. The least I can do. Get paid for it is get paid for it. Yeah. And, and there's a little bit of debate that can be had between a landlord and tenant on uh the admin fee and the management fee. Uh And so, you know, if you have an aggressive management fee, you definitely want to have the, the administration fee in there because you're gonna be doing a lot of work on the tenant's behalf to try to save them money. Uh If you have a really high management fee, you, you may uh be able to bend a little bit on the uh the other fee. What the administration fee because you're already getting, you know, maybe above market rent on your management fee.

So it's a give and take there, but you should be trying to get that administration fee in there. Uh, it's just 15% on top of, uh, the expenses, uh, since you're handling all of them. Ok. Well, not all of these are in order but I, I would say we're starting out strong with, with a decent order here that I mean triple nets is the first thing I check. Are they full triple net? Do they have an admin fee? The next topic we're moving to is we want rent increases, right? 99.99999 times out of 10, we get a rent increase every year or just every lease at least. Right. Right there. Right. Like we, we can dive in, yeah, we want annual rent escalations, we want annual rent escalations. Buyers want annual rent escalations, everybody. I mean, it makes sense. Inflation right now is, is freaking insane if you haven't uh been living under a rock recently. So yeah, annual rent increases. But yeah, we I mean them being full triple net versus a rent increase. So you know why would you want to do triple net coverage before a rent increase? I mean, it's kind of like net dollars either way again, we're just trying to make it as easy as possible to understand the income.

So if you're getting a dollar either way, I'd rather have it in triple net, reimbursement, making sure that's solid than, than messing with the rent. That being said, if they're already triple net or if they're not, we're moving that rent up. Yeah, I think what, what generally, what happens with people that own, uh, commercial assets, especially retail or office or industrial. A little bit more the multi families every year. And you're looking at market rent, so it's a little bit easier to, to adjust them is they're, they're just be getting comfortable and they're saying, well, ok, the rent was this uh now I'll give them a small increase or we'll do an increase in five years. Uh But we want to encourage you, you have to push rent and one way you do that is compounding yearly increases. You know, if you tell a tenant uh 2% you know, let's say, let's say, uh after five years, I'm gonna raise it 10% or 2%. Compounding 2%. Compounding yearly is gives you way higher increase than 10 than 10% after five years. And so, but the perception of the tenant is 2% is basically 10% every five.

They're very different, but conceptually they're very similar. So you want to get that tenant used to budgeting for that increase, used to uh moving up every year uh instead of, you know, wanting a flat rent and that'll help psychologically them to be ok with those increases, once you get them used to those annual increases, uh it really starts to, to push that rent up over time. So if you deal with tenants, you're gonna start to notice that every now and then tenants are going to have their shit together every now and then. And when a tenant really has their shit together, in my opinion, they immediately hit you below the belt, right? Because they're trying to anchor low. They know a thing or two about negotiating and they're like, hey, business is a little rough. I we may need a rent reduction. We may need a month or two of free rent. Now, I after you hear that statement, I want you to repeat after me and then stop everything. That's fine. We require financials and tax returns to evaluate rent reductions. Please submit those at your earliest convenience and we'd be happy to take a look at it for you. Boom. 9.99999 times out of 10. You don't get that information. You don't get that information and then it proceeds back to the rent increase, right?

Yeah, but it's a good point. I mean, if they are truly struggling, then that gives you evidence that they're struggling. Obviously in any negotiation, you're not gonna take their word for it. And so when they say, oh, I I need a rent reduction, I can't make the rent. Then we say, ok, prove it to us but even after that, uh, let's say they, they weren't making a ton of money. My, my first, uh my first uh decision once they say I need a rent reduction and I've looked at their financials and let's say they're not making that much money. I say, man, that I'm really sorry that you guys didn't do well in the space, is it ok? If we start marketing your space to see if we can get a better tenant in there instantly puts them back on their back foot. But here's what happens when you say that is that they're uh they're either gonna react one of two ways, right? They're gonna be like, yeah, go ahead. You know, either they're negotiating or not. That's a great play because then it tells me that they're serious about leaving and may, I may not want them to leave the other reaction you're gonna get is, hey, ok, I mean, I'm not, let's not show the space to other tenants here, let's just, you know, negotiate. Well, then I know that they really do want to and this is all negotiating. So everything you do um when a renewal is coming up, it's all geared in negotiations towards both understanding what the tenant's motivations are.

How likely are they to leave and how much rent increase can you get away with without damaging their business? At the end of the day, you need successful businesses that are profitable to pay you rent to stay in business. Right. So you can't go above and beyond. I, I think that's how we end this, right? You need to, you need to measure the business, you need to measure the market rent for the area, the sub market, you know, there's several shopping centers that we own where I know they can't go get a comparable space within miles for anywhere close to what they're paying me. So we go fairly aggressive on our leach renews because we kind of have the crappiest space in the corridor. So like if, if you want a space in that corridor, you're gonna have to go pay double the amount of rent. I mean, like this is a good deal and then they go, they chop it out and then they're coming back. Ok? Yeah, this is, this is fairly and look, we, we are gonna be tough negotiators and we hope that everyone listening will be tough, negotiators on their property as well. But what I will say is that we always also try to be reasonable, tough but reasonable. And so there's been instances where I knew the tenant wasn't gonna go anywhere and I knew their, their rent was well below market and I could have given it a 40% increase.

That that isn't reasonable. And, and so, you know, the most I think I've ever given someone, even when they're way below market is 15% 20% increase just to try to get them up, but we're not gonna blow people's business up just because we can, we're gonna try to be reasonable. But we also wanna over time, five years, 10 years work them up to market rent. So, all right. Next point, this is a fun one because probably your biggest exposure in commercial real estate assets is the inherent real estate. And we don't talk about that a lot on the show because it's, it's really about the money. Uh uh again, you know, the inherent real estate you kind of get for free, right? But the money is why we're buying this real estate is because it's in demand, people lease it from us. So every now and then, you know, the building is going to start to deteriorate. It's gonna need a new roof and H AC unit. It's gonna go out, your parking lot is gonna need resurfaced. And, and again, this stuff is insanely expensive T P O roofing is like 7 to 7 to 10 plus dollars per square foot. If you have a, a 50,000 square foot shopping center, that could be a half a million dollar plus roof, assuming there's no like catastrophic damage under that parking lot is the exact same way.

You can spend hundreds and hundreds and millions of dollars on concrete and asphalt. At the end of the day, the tenants in the shopping center and their customers and their usage is what's deteriorating this. So we think, and a lot of people in the industry think that the tenants should be paying their proportionate share of these um, deferred maintenance items like the roof and the parking lot and the H V AC. So we're very diligent on putting that back in our commentary, maintenance charge. And again, do you specifically say in the, in the lease? You should specifically say parking lot H V AC. Yeah, roof repair is included cam or whatever or maybe it's a separate item. I don't know. Yeah, there's a whole page almost of operating expenses that we're specifically allowed to bill and we don't limit it to that. But obviously, when you're specific versus vague in a contract specificity, specificity always wins. So you need to specifically put in there that operating expenses can include roof repair and replacement, H V C repair and replacement, um parking lot repair and replacement and, and like Joel said earlier, you know, tough but fair, right.

It's not like we're just gonna say half a million dollars bill it in one year and, and you know, all these tenants are paying a proportion share of this, half a million dollars. How do you do? So you do have a half a million dollars. How do you uh proportion that out to the different tenants? We try to do do it is uh let's say that we're going to replace the parking lot. We may come up with uh a repayment plan where we bill a pro rata share back to the tenants over two or three years or four years, maybe even longer. Uh, you know, obviously if someone has one year left on their lease and they're not planning on renewing and I'm gonna replace the parking lot. I don't want to hit them with their full pro rata share that year when they're not going to be around to, to see the value of that parking lot and same with the roof, you know, another one is the, the H V AC, you know, they, they need it replaced. Well, they're gonna be the ones using it and they're the ones that have used it over the years. So typically say, ok, we're gonna assign a life to the value of that, uh, H V AC. Maybe it's 60 months, maybe it's 120 months and we're gonna divide the cost of that H V AC by 1 20 let's say, or 60 or 84 or seven years.

And then we're gonna build them monthly for that and, and then, so if they stay, they, uh, for 10 years, then they're gonna pay that whole thing off. But they get the whole use of the, the whole life of that. If they only stay three years, they'll say, have three years left to do, they only have to pay three years, only the time that they're using that brand new H V AC. So that's how we try to be reasonable and fair. And that, and the other point that you didn't mention on this on this is that we don't put uh, cam caps or cam limits, you know. Um, is that a common thing that, well, it's a common thing to cap cam because what, what tens will say is, well, I want to cap the cam because I don't want you to be able just to increase it by whatever amount. The thing is, if, if, if your landlord is, is good and reasonable, they're not going to be passing on any costs that aren't associated with the property. What typically happens is long care will go up. Insurance costs go up, taxes can for sure, go up 100%. Taxes are going up and especially on a sale or a refinance, they may jump it significantly. And so the tenant, they may say, well, I don't want my, my cost to jump. Well, that's, that's, that's tough. I mean, it's the cost of the center and as long as we're doing our due diligence to get the best pricing on all of those items.

Uh We, we have to pass those on uh in order to run an efficient property. And so we don't allow ca ca caps. We may inherit some but we don't, we don't, you know, propagate them, we don't keep them going. We, we stop them on lease renewals and all we're asking there is that they just pay their pro rata share of whatever cost we incur to manage the center that they're taking advantage of. Ok. Boom, three points. All in one. I love, I love it. All right. Um Next one options, right. So let's talk about options. A lot of people can look at an O M and say there's, you know, seven years of lease term remaining on an initial 10 year lease. So, right, they're three years in a lease, they have seven years left, but they've got a a 15 year option. I've literally had people say, oh, they've got, they've got 12 years of term left like no, they don't. They've, they've seven and they have a five year option. Here's another scenario I've seen all the time is a 15 year lease, but at the end of year 10, they have the right to cancel. That is a ten-year lease or a five year option. Who gets the benefit of the option, 100% of the time the tenant gets the benefit 100% of the time, the benefit, right?

Because as a landlord, let's say it's a ten-year lease, we we didn't have the ability to negotiate change add, do anything different for 10 years, right? If they have an option for an additional five, they just write you a letter that says, hey, I'm extending for an additional five. Can an option be ok? If the option says that there's a certain increase in, in rent. Sure. But again, you're, you're just immediately inhibiting yourself to negotiate anything. I mean, think about this, Brian, ok, you have a, you have an increase built into that option, period and it comes up to, to the tenant gets to decide whether to take that option. He's gonna do whatever is his favorite. Right? So if the, if, if the, the increase is not enough, it's lower than market, he's gonna take that option. You don't have a chance to increase it. If it's too high, he'll say I don't want my option and he'll start negotiating with you at a lower price and, and he can threaten to leave as well. I just had this happen to me at, um, a center we own and I, I'll leave it at that. But tenant had an option to uh, extend for another three years at a predetermined rate that I myself had determined. It was a renewal I did.

So it wasn't somebody else's, it was a decent option. I gave it to them. They asked for it. They, they got it. Um, they reached out to me a month ago, two months ago maybe. And they want to renew their lease. They already have an option. I'm like, hey, you already have an option. Yeah. You know, we're, we're trying to get these tenant improvement dollars. Yeah. Yeah. Yeah, they're negotiating. Um, the option is about to expire. I think it just expired. So now the rent is inherently going to be more expensive than that option. They did not take the option. And now, you know, I'm, I'm going up, you, you have the option. I gave you this great deal. I gave you six months before you lease expired to accept it. And you didn't. It's just funny how a lot of landlords think that options are somehow a benefit to them. They look at these leases and they're like, well, they have an initial five year term and they got 65 year options. That means they want to stay. I mean, that means nothing. Those are totally irrelevant to a value discussion because any one of those, they can, they can leave. And typically when you have that many option periods, you're gonna be way behind on market rent by the time you get to those. Uh because they're, they're just, you can't foresee inflation, uh especially what we've had the last year or two.

So we are not a big fan of options. If I'm gonna give an option, I'm gonna give it at, let's say, uh market rent, fair, market value, fair, market value uh for the rent that way, at least whatever the market rent is, the time we can fight over it and I can try to get it, but it's not gonna be a fixed set where if, if you know market rent is higher, they can take that option and get a deal. Uh You know, that's the best I'll do for them typically. All right. Um All right, we've talked about Triple Nets a lot. I can't harp on how important the, the triple net coverage is making sure your triple net language in your lease is as tight as possible. And the tenants are used to paying their actual proportionate share of the actual expenses of the center to do that. Right. In the beginning, you're just coming up with the budget, you're saying, hey, you know, big round numbers for the example, we plan on spending $100,000 in expenses for insurance, property taxes and culinary maintenance. So we'll bill you 1/12 of that every single month for your proportionate share. And then at the end of the year, we'll reconcile it out based on what we actually spent.

Say, we, we spent 100 and $10,000. Well, then I'm gonna send you a bill in January, February March of the following year and say, hey, last year we were planning on spending 100 we ended up spending 100 and 10. Here's your bill for the overage, right? We put language in there that says after we give you that bill and reconciliation, you have 30 days uh before it's due. Once it's due, it's no longer able to be disputed 30 days to dispute. It is, is what the language says. It's not what it says, but that's essentially what it means. It's 30 days until it's due after it's due. It's not able to be disputed. Ok. Right. So you have tenants drag their feet, right? Because it's a bill. They didn't look into it and then, you know, two months later they're like, hey, you know, I don't think this is right. You guys shouldn't have spent 100 and $10,000 next year. Well, you had a month to look it over, uh, George or, you know, a B nails LLC and, and now unfortunately, it's due next year. Be sure to catch me in that 30 day window after the reconciliation. We'll be sure to look through it for you. I mean, we give them copies of everything we spent, we give them copies of the budget.

It's easily readable, but it's just what if it's what if it's a big bill and they don't have the money because sometimes there's unforeseen events during the year that, that, you know, maybe increases the cam total cam charges to up 20 to 30%. I mean, we, yeah, we've sent out some, some big came reconciliation bills. We sent out one um to a tenant and it was $24,000. I mean, it's a substantial tenant. I think the tenant has, you know, like tens and tens of thousands of square feet with us. So it's not out of line. But yeah, from our perspective, somebody owing you $24,000 from the camera reconciliation. That that's a, that's a big bill and that was this instance, you know, hey, we're gonna pay it. Hey, we're gonna pay it. Hey, we're gonna pay it. Hey, wait, we don't think we should pay this. It's like, first of all, stop lying to me and second of all, it's, it's due now. So at that point, I would say you would have to treat it just like anything just like past due rent, right? Like you're gonna have to figure out a payment plan. You're gonna have to start evicting them whatever. But that's why you want to have this language in there. So it's due and payable and it's treated as rent and you can actually evict them on it. Yeah, we, we typically allow a payment plan so they can pay that out over uh over 12 months, let's say or something.

And then we really do try not to come up with those, those big variances and sometimes we come in under and we give checks back so it can go either way. The time we come up with big variances is when we acquire properties, right? So, you know, they go through six months of paying half the basis in property tax, right? And then the guy bought it for five million, we bought it for 10 million. So the property tax literally doubles, right? You've got to be really expeditious in getting that increase out to them or yeah, you're gonna have a big reconciliation at the end of the year. All right. Next and last point, we've dedicated an entire episode to this topic. It's so important, but we, we feel like we should mention it now because it is lease renewals. We're talking about adding value. But this is just a reminder that the face value of your rent. Let's say it a different way. The the rent you're getting is the most important thing that you could possibly have. So we've done the equation about how you can entice tenants to pay more rent for giving them tenant improvement dollars or free rent, right?

And you're essentially giving them 5 $10,000 in tenant improvements. But the value of your property because they're paying more rent could be hundreds of thousands more. So we're just reminding you that if you can give tenant improvements and it increases the value of your property and the face value of your rent, you should, you should really look at evaluating that and doing it. If you've got the T I dollars available, there's again a lot of mom and pop owners of commercial real estate think, oh, I don't want to give you any money. The property just continually goes down in value. The tenants start looking shabby and shabby and shabby because nobody's reinvesting into this. The rent is artificially low because you're just saying, hey, you know, if you leave, I'm gonna have to pay this next 10 and 100 grand to come in and remodel. So I'll just, I'll let you have this for super cheap as long as you stay. That is the wrong mentality, guys. That is completely wrong. Yeah. So if you buy an eight cap, uh every dollar of N O Y, you can basically take 12 times that roughly and get the value and a purchase price. So if you can get, you know, if you give a tenant, let's say $5000 and then you can get, you know, $5000 more in rent a year.

Well, you're gonna get 12 times that in a sale price or $60,000. Now, that's not necessarily the math. You'll, you'll have maybe you give the tenant $20,000 and you give, you get 5000 in additional rent every year. That means think about it this way you give 25 but you get 5000 year in rent. Well, they think it's a great deal, right? They get 25,000 up front and they only pay 5000 year extra rent. But, but that's 25% return on your money. If you continue to get it over time, I gave 25 but I get five every year. But then when I sell, I get 12 times five, let's just say uh or 60,000. So just think of that math. I, I earn 25% a year and then I get, I get 12 times that amount at the end, you're always gonna be money ahead if you structure it correctly. And it's a way to benefit the tenant. They can go in there and fix up their store. It's way nicer. They have to pay a very small yearly amount uh to get that cash. Uh And they've improved the value of your property uh both when you sell, but also if they leave the, the space will be nicer. So this isn't a show about tenants trying to get amazing lease renewals, but I I will give you one tip because there's a lot of landlords who are inherently tenants in spaces like like Brian over here, right?

It's always cheaper to go get a loan from a bank stop asking your landlord for T I dollars. I mean, go get a loan. Like if you've got a good enough concept, a good enough business and a good enough balance sheet, you're gonna go get a loan from a bank and it's usually not a whole lot of money, right? And, and here, ok. So if you are a tenant and you want T I dollars finalize the rent negotiation first, then tell them you have to have T I dollars to do it that way. They're not sticking that, that tenant improvement dollars into the base rent. Uh So I would do that and then if you can't get him to pay your T I, then yeah, go to a bank or another source. So, last tip we didn't talk about it. Don't let your property manager renew your leases. Yeah. Don't do it because they don't have the incentive that, that you do. Right. They don't care. They're, they're looking for a fee. They wanted to get it pushed across the finish line as fast as they can. They're not getting anything on the exit. They don't care about your exit. They don't care if the value of your exit or the value of lease renewal. They want that check on their desk as fast as freaking possible. That little, that percentage that they're getting and maybe some increase. It doesn't mean a lot to them. So they just want to get the thing done and get the check, always handle your own renewals. And you know, I just thought of a new show topic is we need to do one for tenets, how to negotiate your landlord that well because uh both if tenants are listening to their benefit, but uh landlords will benefit from hearing uh the arguments from the tenants and they'll be less susceptible to fall into traps that the tenant if the tenant isn't a good negotiator.

Yeah, that's a good idea because you guys have had some good negotiators, right? Something big companies, they're good negotiate negotiator. It'll show landlords how to combat the arguments that the tenants are giving them these big companies. They have people. That's all they do. See, doesn't like it. He's just not the super secret tips. I mean, maybe some of the he doesn't feel confident and out negotiating a strong tenant. Uh Now I feel confident I can give away all the secrets and I'll still out negotiate, but Brayden hasn't had quite that experience. Punch him in the face. All right guys, I hope that was beneficial. Uh Eight easy ways to maximize value on leash renewals. Don't say eight. We literally said that in the beginning. I was, I was kidding about, don't say it. All right guys, we'll catch you next week on how to invest in real estate.