Make sure you have allocated the time to do all of the
necessary research when it comes to considering a business location move.
Many business operators do not leave enough time to do just that. As a
result, they make snap decisions that end up costing themselves
both time and money.
I often see cases where quick
decisions were made with the end result being the perfect storm for future
failure. In other words, the business operator did not know what he
did not know. Many times they missed important options that could have
easily been obtained so that their future would have been more secure.
Knowing these options, asking for them and incorporating them into
your next transaction will give you the piece of mind needed to navigate
these turbulent economic conditions. I hope you enjoy this
edition!
Best regards,
Rob Cassam
Carolina
Realty Advisors
704-442-1774 Ext. 100
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Are You Wasting Your Time? |
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Take a moment to calculate your total annual salary.
Take that number and divide it by 50 working weeks in a year, next
divide that number by 40 hours per work week. This figure is what you are
worth per working hour.
Time- $_______ (your yearly salary
here) / 50 working weeks/ 40 working hours per week = $ _______ THE VALUE OF
YOUR TIME
Don’t you think that your time is better spent
running your business and not doing something that can easily be out-sourced
???
Don’t forget that in most cases real estate brokers who represent
tenants are paid out of commission splits with the property owners leasing
agents, that means it costs you nothing! That is the portion of commission
you let the listing broker keep if you do your own transaction without
professional representation.
On the tenant-buy side of the commercial
property equation, it makes sense to find someone, who can help you with
respect to making these important business decisions. My advise is to
find someone!
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Common Tenant Buyer Questions and Answers |
Q. How much time should I allow to analyze
renewing my lease or relocation decision?
A. As in most areas of business, the more time you leave
yourself, the better decision you stand to make. If the tenant is relocating,
this decision will result in the tenant needing more time to get the transaction
and the desired result. Depending on the size of facility and the inventory of
space in your market place, starting 8-12 mos. before is not uncommon. Renewal
decisions should also begin well before the lease term end. In many cases, there
is a huge benefit for the property owner to have written commitment for
financial purposes. 4-6 mos. early can certainly be wise.
Q How can a broker save me
money if I am going to simply renew my lease?
A. The broker should provide the comparable market
conditions which result from a complete market study, this will give you the
ammunition you need to make sure that your renewal lease is not abusive on the
rate. Knowing what other concessions are being offered in the market place helps
you get all that you are entitled in the renewal.
Q. What other areas of cost
savings exist, other than the lease rate per square foot?
A. Tenant improvement allowances, escalation methods and
abatements are key areas available for dollar savings.
Large companies with multiple leases can benefit from real
estate consulting services like Workplace Consulting, Information Management,
and Program Management. These services can be use to trend occupancy costs
downward substantially. Your broker should be able to help you negotiate these
items during the relocation or renewal process.
Q. Should I lease or buy?
A. The answer to this question should be answered only
after careful consideration of your firms long term goals. In areas where real
estate is appreciating (like Charlotte, NC) purchasing can be a very profitable
approach. Consultation from a real estate broker, financial planners (CPA’s) and
bankers can shed light on all of the key areas to consider before making this
decision. The level of active involvement you desire with the investment should
be carefully considered.
Q. What if I am short on the down payment needed to make a purchase?
A. There are several great loan programs available today.
These programs coupled with SBA loans, can get small business operators into
properties from 0-10% down! Many developers and investors will partner with
businesses who are able to commit to lease-purchase option or land trust
conveyance. Clearly, the nature of your real estate needs will dictate exactly
how the deal could be structured. See your broker for details. |
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How Much Paint Do You Need?
Getting ready for a little renovation work, maybe a fresh coat of paint for
that property turn? Want to make sure you do not over or under order your
paint supply for the job?
Here is a no-download quick and easy
calculator that will help you estimate the amount of paint you'll need to do
the job -- including all the trim. Just enter the room dimensions plus the
ceiling height along with the number of windows and doors. Then simply click
"Calculate" and you are done. Brings a little confidence into the job!
Click Here For This Tool
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Contact Information |
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What I do... |
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I
provide
real estate brokerage services for small and medium sized businesses, investors,
and individuals who are fed up with loosing money, paying too much, spending too
much time not getting the right piece of property for their particular
situation.
I act as the quarterback in the real estate transaction for my clients who coach
me in managing all of their different needs.
My clients love not needing to worry about making bad decisions or bad
investments and love winning negotiations.
Ask yourself these questions:
What types of growing pains is your company facing with your location?
Are rising occupancy costs a challenge your company is facing?
Is having too much space or not enough space a challenge your company is
facing?
How much of a problem is dead equity in your property for you?
How long are you prepared to go on doing nothing about situations in
your business that are not quite right?
Give me a call, I may be able to help with your lease or purchase!
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How To
Lease Commercial Property |
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