Charlotte NC Commercial

by Rob Cassam, CCIM

The Question of Value In A Shopping Center

Written June 1, 2023 by
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In this issue

    • The Question of Value In A Shopping Center

    When a person is either a buyer or a seller of a shopping center, the question of value for a sale is paramount. How do you appraise such a property?
    In commercial properties, there are three types of methods commonly used to establish a value for appraisal. They are Market Data, The Cost of Replacement and The Income method….(more)

    • Consider A Condominium Conversion

    ​​When an investor is seeking an investment in a new condominium project, the possibility of purchasing an existing rental property for conversion to condominiums should be considered. While building a new property can be profitable, there are many benefits to converting the existing property…….(more)

    • Well-Planned Landscaping

    Owners and property managers must watch the nickels and dimes as well as the dollars that are spent on the property. Save one dollar in operating costs and (assuming a 10% cap rate) value of the property increases by $10. That is why owners are always looking for new ways to economize. In addition to saving money, we are always looking for a way to invest a little in the property for a good return…..(more)

Negotiating The Termination Of A Lease

Written May 1, 2023 by
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In this issue

    • Negotiating The Termination Of A Lease

    One or both of the parties to a lease of commercial or office space may want to sever the relationship prior to the end of the lease term. A tenant may want to terminate the tenancy, for example, because his business has grown since he first moved in and he requires larger quarters. A landlord may want to terminate the tenancy because there is a better prospective tenant available. …(more)

    • Your Real Estate Investment Check-Up

    When you make an investment in real estate, it is implied that you want to make money. The cash can come from direct income from the property or from capital gains from a sale after an increase in value. Either way, the investment must be managed, considered, and watched at all times. If the owner and manager are taking care of business, there may be ways to increase the income, and the value. There is always the possibility to make a sale for the right price and terms. Keeping aware of the market might bring an opportunity to make a tax-deferred exchange into a property with more benefits for the owner…….(more)

    • Alternative Rental Plans

    When there are vacancies in commercial buildings, tenants may feel that they are in a good position to seek concessions from landlords on new leases or in exchange for extending or renewing existing leases. Landlords are apt to make deals for two reasons: (1.) The landlord may be facing high vacancy rates, and (2.) The landlord also recognizes that tenants may also be suffering from declining business and are less able to pay the high rentals of a few years ago….(more)

    • Office Building Comparisons/li>

    Newer office buildings may fill up at the expense of older office buildings. Since new buildings cost more to build than the older ones, rents may be higher. The actual dollars-per-square-foot costs must be compared, along with other benefits that the tenant may receive, before a final decision is made by the tenant on staying or moving.
    In many areas, there are a number of vacancies reported in office buildings. Most of this available space is in the newer properties. One of the most important jobs of a leasing agent for a building with this available space is to analyze other buildings to see if any tenant could be induced to move. Here are some of the items for comparison:…(more)

How To Finance A New Land Development

Written April 1, 2023 by
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In this issue

    • How To Finance A New Land Development

    When an investor purchases land to build on, the next step is land development and financing. “Land development” cannot be precisely defined; generally, it refers to the physical, legal, and engineering processes needed to convert raw land to land (or lots) on which buildings can be placed….(more)

    • The Self-Storage Facility Investment

    One in ten U.S. households now rent a self-storage unit. The growing demand for self-storage in the U.S. is created by people moving (some 40 million people move each year according to U.S. Census data), and by various lifestyle transitions, such as marriage, divorce, retirement, a death in the family, etc. Recent surveys of self-storage companies indicate a positive trend in market demand and occupancy rate. The increased demand for storage space outside the home include the larger number of apartment dwellers who do not have any storage space for their increasing amount of possessions–usually household goods, and outdoor recreational equipment……(more)

    • The Marketing Of A Commercial Building Or Apartment

    A new tenant and an investor share the same first impression of a commercial building or an apartment property. That first impression is crucial. Before marketing the property, think about the outside appearance. The “look” affects both tenants and buyers. The following is a checklist of first-impression items that a good property manager must use: …(more)

    • Owner Requirements For Effective Management/li>

    Real estate investments can be set up to generate one or more types of returns:
    Cash flow to owners (yield or return on investment).
    Appreciation of owner’s capital (capital appreciation).
    Shelter of cash flow and/or other income from taxation (tax benefits).
    Preservation of capital (safety)….(more)

Should You Lease Or Own Commercial Property

Written March 1, 2023 by
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In this issue

    • Should You Lease Or Own Commercial Property

    Whatever the kind of property used, the user has the option of purchasing or leasing. Should you buy the house you live in, or lease it from someone else? With few exceptions, there would be an overwhelming response to “own it”. The benefits weigh heavily toward ownership. With business property, the answer sometimes may be a lease instead…(more)

    • Acquiring Land For Development

    Acquiring land for development is necessary no matter what kind of market we are in. Professional real estate assemblers are always looking at and acquiring under-utilized sites within cities or in suburbs. Here are some ideas on how those professionals do it…..(more)

    • The Office Building – Suburban vs Downtown

    Suburban office buildings remain many investors primary acquisition target.
    These investors reason that a suburban office building will almost always be a good buy. Careful choices must be made, as there must be a demand for office space in the area and a gradual increase can be made in rents. The long-term demand for office space looks good…(more)

    • Commercial Real Estate Representation/li>

    There are a number of ways to buy, sell or exchange investment or commercial real estate. Having the knowledge of what you can do in some tax situations can be the difference between an annual profit or loss in a property that you intend to acquire or one that you already have in inventory….(more)

The Cancellation Clause In A Commercial Lease

Written February 1, 2023 by
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In this issue

    • The Cancellation Clause In A Commercial Lease

    Whether a rental market is weak or strong, lease negotiations can be difficult when the landlord wants concessions that are different from the norm. One situation that happens is when the owner of an office building or other commercial property intends to sell when market conditions improve, whether that occurs next year or five years from now. Another is the holder of vacant or underimproved property who plans to develop it whenever market conditions justify. In the meantime, these properties must be leased to generate sufficient cash flow to pay operating costs and debt service. Such an owner will be amenable to giving significant concessions, including a low rental, provided the landlord can cancel the lease during the term…(more)

    • Building On Leased Land

    Building on leased land results in a separate ownership of that building and the land. The two owners, one of the land, and one the improvement, come together in one investment parcel. In this situation, the landowner wants someone to develop the land, but still wants to continue in ownership. The developer prefers to lease rather than buy the property. One owner wants the security of owning the land with a good lease to the owner of the improvement. The owner of the building puts up less money since the ownership of land is not part of the expenses in the development….(more)

    • How Adding Value Means Increased Cash Flow

    Since the value of a rental property is based directly on the cash return, adding value means increasing cash flow. When small investors set out to increase real estate values, the steps are in upgrading houses, duplexes, triplexes, etc., enhancing the cash flow and therefore increasing equity when the property is sold…(more)

    • Pre-Leasing For Construction Loans

    Whether it’s a new office building, industrial warehouse, retail shopping center, or high-rise residential apartment building, investors and lenders increasingly demand to see a substantial portion pre-leased before they are willing to put up construction money. Purely speculative construction projects are rare in today’s real estate market….(more)

    • How Property Management Increases Value

    Management of a building is not just handling problems as they arise and renting units, it is making the asset more valuable to the owner by concentrating on every aspect of the property. Some owners of very large income properties still do not take professional property management seriously and fall behind in values…(more)

The Versatile Real Estate Option

Written January 1, 2023 by
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In this issue

    • The Versatile Real Estate Option

    ​An option on real estate is an extremely versatile investment tool that comes in a variety of forms that can be used for a variety of purposes. The primary use of the option is that it gives the optionee (the party holding the option) control over property (in the sense of the right to buy it) for very little cash. It gives the most leverage and conserves cash, both very desirable for investors. An option gives the holder the right to buy a specific parcel of real estate at a specified price, on specified terms within a specified period…(more)

    • Percentage Lease And The Seasonal Business

    The choice of the type of lease for commercial space leased by a retail business is usually a percentage lease, meaning that the rental amount is determined as a percentage of the gross receipts of the business. The investor-landlord, in effect, takes a stake in the success of the tenant’s business and shares its ups and downs…(more)

    • Condos – Developments And Conversions

    Most anything that can be subdivided to be sold or rented can be developed or converted to condominiums. When we say “condo” maybe the apartment might come to mind first. Then, you may think of the commercial office building that was converted to condominium offices…(more)

    • Changes In Shopping Centers

    Shopping centers have been changing. Increased spending power in the population is supporting new mall construction and the renovation of existing centers.
    Now the newer and renovated centers are becoming more mixed use, with hotels and office buildings being incorporated into the plans. Larger malls are providing more than just shopping. We are seeing more cultural attractions, medical clinics, health clubs, spas, and other facilities locating there….(more)

    • Owners And Tenants Must Have Insurance

    Insurance coverage must be addressed by both landlords and commercial tenants. For the run-of-the-mill daily problems, a landlord must have the maximum coverage for the building and the tenant’s leases. The tenant must cover the business with coverage that will protect his business…..(more)

The Professional Approach To A Lease Renewal

Written December 1, 2022 by
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In this issue

    • The Professional Approach To A Lease Renewal

    ​No matter what the current vacancy factors are in any area, tenants feel they can negotiate with the landlord, whether in an apartment building, an office building, or commercial center…(more)

    • UBuild-To-Suit And Flex Buildings

    With cheaper land costs and a greater amount of labor sources there has been a move on the part of industry to relocate from the cities to the suburbs during the past few decades. The result of this has been the establishment of industrial and office parks in those suburbs…(more)

    • Office Building For Attorneys Only

    ​​​​​​​​​​​​​​​Property managers must show some imagination to keep a property fully rented. One way to keep an office building occupied is to consider specializing–renting to members of one professional field….(more)

    • Major Reasons For The Asset Manager

    The institutional investor has found that income property must be placed under the supervision of professional, experienced and innovative managers. With more property moving into the ownership of institutions and real estate investment trusts, the need for asset managers increases….(more)

    • Help With Investment Real Estate

    When you have searched for new real estate investment opportunities, with values that have been changing, you know that finding and evaluating them is becoming more sophisticated and complex. More investors are turning to real estate consultants as a means of providing a sounding board for their ideas as well as expertise in the planning and construction stages for their projects…..(more)

The Strategic Plan For Land Acquisition

Written November 1, 2022 by
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In this issue

    • The Strategic Plan For Land Acquisition

    ​The acquisition and improvement of land is a large-scale operation and requires large amounts of capital. This has created methods of land acquisition that gives the developer access to and control over a large enough tract to make development economical without requiring an initial outlay of all of the capital necessary to acquire such a tract….(more)

    • Understanding A Leased Property Investment

    There are real estate investors who specialize in making profits, sometimes big profits from properties that they lease and do not own. This cash flow from a lease can be extremely interesting. Often the lessee making a huge profit has a relatively small cash investment in the property…(more)

    • How High Leverage Is A Benefit With Options

    ​​​​​​​​​​​​​​​Leverage is the use of borrowed money to control something of value. Real estate investments for many years have afforded the investor some extreme leverage situations. Let’s examine leverage. If double-digit inflation returns, controlling the maximum amount of real estate may be extremely desirable. One way to do that is with an option…..(more)

    • The Future Of Investments

    Which way is the right way in real estate investments in 2023t? What is the future in these investments? An answer to these questions can be an interview with an interested professional real estate broker who can act as a real estate investment counselor. Each prospective investor can be interviewed in depth to find out specific needs in an income property. At the same time their needs are being evaluated, the broker will also communicate what benefits are available in various properties and how to identify them….(more)

    • Investment Real Estate Experts

    Come to our office when you need professional advice and help in commercial real estate. We are experts in values and knowledge of the entire market in this area. If you have been looking for a certain type of property we probably have the full information on several like it already…..(more)

Understanding The Different Kinds Of Commercial Leases

Written October 1, 2022 by
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In this issue

    • Understanding The Different Kinds Of Commercial Leases

    ​A lease is an integral part of many real estate investments. It should outline all the obligations of the tenant and of the landlord. This sounds simple, but many questions arise. If, for example, property taxes increase, does the tenant pay all of the increase or only part of it? If the property must be modernized, who pays for the improvement? Can the tenant be moved out during the renovation? If the costs of servicing the property rise, should the tenant pay none, all, or part of the increased costs? How should inflation be handled—with automatic rental increases? With increases tied to some index, perhaps the Consumer Price Index?….(more)

    • What Is A Service Joint Venture?

    Whether times are good or bad, lenders always have foreclosed properties in inventory. During a recession the inventory may be high. One of the problems that banks and insurance companies have is disposing of this real estate owned (REO). They are faced with the decision of whether they wish to dispose of the property immediately or hold it for a period of time to hope for an increase in value. They would like to see the value of the REO increase to equal the loan amount. These lenders are not professional real estate investors but money managers. Therefore, they are reluctant to invest any additional money in the properties. This problem is compounded because a troubled property needs more attention than does a healthy one. It would not have been in foreclosure if it didn’t need help….(more)

    • How To Select Tenants For Commercial Centers

    Owners must think about vacancies when checking a prospective tenant. Will the tenant’s business survive? When you have a prospective tenant for a commercial center, you must consider whether that prospect would be a good tenant. There are two key standards to apply; (1) the prospective tenant’s financial stability; and (2) the prospective tenant’s potential for success….(more)

    • Providing Rentals For Seniors

    Not all retired people want to own their own home. Many prefer to be tenants. Many feel that the proceeds from the sale of their old home can be used to supplement their pension and social security, rather than reinvested in another home. The money can be used for travel, visits to children and grandchildren or for medical expenses.
    For living quarters, these seniors prefer to be rent payers, not owners. A modest-sized apartment suits their needs and, as tenants, they are relieved of any worries about maintenance and repairs…..(more)

    • Investment Real Estate Experts

    Come to our office when you need professional advice and help in commercial real estate. We are experts in values and knowledge of the entire market in this area. If you have been looking for a certain type of property we probably have the full information on several like it already…..(more)

Where Appraisal Value Will Help Your Investing

Written September 1, 2022 by
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In this issue

    • Knowing The Value With Appraisal

    ​The purpose of any real estate appraisal is to determine the market value of the property being appraised. The handbook of the Appraisal Institute defines market value as….(more)

    • Climate-Controlled Self Storage

    A feature that developers and owners of self-storage properties are adding to increase the appeal to more users is climate-controlled space for storage of microfilm, computer records, antiques and other sensitive materials….(more)

    • Creative Management and Other Ideas

    With the revolution in communications, building owners must keep up with the changing needs of the corporate tenant. Often the larger, well-organized businesses do not need the space that was necessary just a few years ago…..(more)

    • Handling Office Building Vacancies

    Office buildings are excellent commercial properties to own. One of the most important jobs of a leasing agent for a building with available space is to analyze other buildings to see if any tenant could be induced to move….(more)

    • Investment Real Estate Experts

    Come to our office when you need professional advice and help in commercial real estate. We are experts in values and knowledge of the entire market in this area. If you have been looking for a certain type of property we probably have the full information on several like it already…..(more)