Charlotte NC Commercial - Blog , NewsletterCharlotte NC Commercial - Blog , Newsletterhttps://www.charlottenccommercial.com/blogs/NewsletterSat, 06 Jun 2026 04:02:33 -0700http://zoho.com/sites/<![CDATA[Investing In Land For Long-Term Profit]]>https://www.charlottenccommercial.com/blogs/post/investing-in-land-for-long-term-profit1

Investing In Land For Long-Term Profit

Land is always a good investment for the long term. In past years when investors made real estate investments, one consideration was the tax shelter of certain investments. Now, with fewer shelters, real estate investments must make sense as a dollars and cents return on capital, and must stand alone as a good business move. Land has never been a tax advantaged investment and should be worth considering as a way to increase wealth. The trend has always been up.

In most cases, the land investor spends money each year with virtually no income from the investment. There are expenses of property taxes, clean-up and maintenance costs, expenditures for travel to check on the property.

The Payoff
When an investor puts money into land it is for the potential payoff when the land is sold. It is a very worthwhile investment when the land’s price skyrockets and the “cheap” land becomes highly treasured property.

Types Of Land
Land investments come in three major categories. The ultimate payoff for each of these categories can vary.

Raw Land.  Unzoned rural land in its natural condition. This is usually in a remote area. It would typically take many years to appreciate significantly in value. The price to purchase is quite modest, and the costs to own it are small. The investor in this land will usually purchase hundreds of acres and then wait 20, 30 or more years to see a chance to sell at a profit. However, when that time comes, the profits can be incredible. The Florida land boom of the 1920s is an outstanding example.

Pre-development Land.  This is land located closer to built-up sections and is located where there is a realistic expectation of development in the near future. It may already have basic zoning and could have utility service. The prices are higher than for raw land, and the costs to hold it are higher. But unlike raw land, the payoff can be much sooner. The smart investor picks an area that has been identified as a “path of growth” and where commercial, industrial, and residential development will soon happen.

Infill Land.  This land is between raw land and pre-development land in the sense that it offers a different kind of investment expectation. It may have been passed over for “easier” parcels during the first phase of an area’s development. It could be located in a different direction than the main path of growth of the area.

When a community was originally developed, the suburbs may have extended to a commuting range of 30 to 40 miles. Later, after better highways were developed, commuters were more willing to travel 10 to 20 miles further. These improved highways created new uses for thousands of acres of land. This is land that can be used for homes, shopping centers, industrial or other commercial uses.

Look in Your Own Area
The investor who takes the time to study and can recognize what others don’t yet see, will be the one who makes these profits.

]]>Thu, 04 Jun 2026 11:29:17 -0400<![CDATA[Changing The Use Of Investment Properties]]>https://www.charlottenccommercial.com/blogs/post/changing-the-use-of-investment-properties

Changing The Use Of Investment Properties

There is a big difference between investing in the rejuvenation of real estate projects and investing in stocks, bonds and other securities. When you invest in securities, you have no control of any factors that can enhance the value. In real estate, you have control of the investment yourself.

In an investment in converting use of buildings in real estate, the investor can use creative imagination to change a property into something that has a much greater value, and even better than before.

But, real estate investments that involve changing the use of property are not for the faint of heart. They are riskier than other investments such as buying an established office building, a hotel or a strip shopping center. There are always unknown factors, more things that can go wrong, and fewer things that you can count on. Success is based more on the future than on the present, and the future must be predicted, partly with respect to the income that the property will be able to earn once the use is changed.  Remember, the highest returns go to those who take the highest risks.

A More Profitable Use
Most buildings can be changed so that they can be used for a different purpose other than the one for which they were originally intended. Therefore, the large supply of existing properties, many of them very solidly built, may be converted to a better and more profitable use. Older buildings were demolished in the past, but now more thought is given to recycling and preserving them.

The most common examples are the conversion of farmland to commercial or residential property. In most areas, large houses have been changed into multifamily apartments or condominiums. Investors have converted many former manufacturing spaces and warehouses into shopping and office complexes.

Maybe A Change In Zoning
Expect cooperation from city government. Property that has been declining in condition has also declined in value but can be recycled back to productive use. Immediately the building will be upgraded on the tax rolls to a higher value than before. The city or county now will receive larger tax revenue from the property. A change in zoning is often required for a use-change, but it is regularly granted with little difficulty if the investor has a well thought-out plan, that has the community’s needs in mind.

If the conversion is changing apartments to condominiums there may be no zoning change required. Anytime you can avoid asking the city or county for changes in zoning, time can be saved. Another example of continuing with the same zoning is the upgrading of a shopping strip center or mall through physical remodeling and securing different tenants.

Unusual Use-Changes
Manufacturing or warehouse space has been particularly popular for conversion to residential use in many cities. They have big, open spaces that can be partitioned easily into smaller units; the high ceilings provide an atmosphere that appeals to many people; and the locations are often perfect.

This type of building can often be less expensive and easier to rehabilitate and convert than to fix-up a very run-down apartment building. They are usually just empty shells so it is easy to design the interior according to what your research shows the market wants. Little, if anything, has to be removed.

Apartment occupants or condominium owners respond favorably to the idea of living in former warehouses, shoe-manufacturing buildings, and even in abandoned schools.

An example of a truly unusual conversion was in a western city. Garage facilities that formerly housed and serviced the city’s fleet of trolley cars were converted to a highly successful shopping and entertainment center, which was named Trolley Square. The owners later added new buildings nearby, adding to the economy of the entire area.

In Chicago, the Century movie theater was one of the most ornate structures of the era of elaborate movie houses. The surrounding neighborhood began to decline. The transformation of the neighborhood began when investors bought and refurbished aging apartments nearby attracting a more affluent residential population. The theater was then purchased and transformed into a seven-level shopping center with 100 retail shops. The complex terra-cotta exterior of the theater was preserved, but the interior was completely gutted and rebuilt.

By cautiously evaluating, then changing the use and remodeling the underutilized property, you can share in the sizable profits of property-use-change investments.

]]>Thu, 04 Jun 2026 11:29:07 -0400<![CDATA[How To Turn-Around Negative Cash Flow]]>https://www.charlottenccommercial.com/blogs/post/how-to-turn-around-negative-cash-flow

How To Turn-Around Negative Cash Flow

In investment properties, when cash expenses are more than cash receipts, there is negative cash flow. Most investors avoid properties where this is the situation, unless there are strong underlying economic factors that indicate the cash flow can become positive.

One six-tenant office building was leased out several years ago. After a few years operating expenses rose sharply and exceeded the gross rental income. However, the leases on all the units will soon expire and there are no renewal provisions. That means that there will be new leases negotiated. Leases that provide for higher rentals will replace the old below-market leases. The building’s negative cash flow will soon become positive.

The underlying economic factors in this example clearly indicate that this office building can easily become a good investment. Just because it has a negative cash flow now is not a good reason to avoid considering the purchase of the property.

Another building is leased as a light manufacturing facility. However, the “best use” of the property is determined to be as a series of small research and development offices or as a conversion to condominium apartments. The negative cash flow from the present use as a manufacturing facility can be turned into positive cash flow when the property is put to its “best use”.

The sole consideration of negative cash flow would have led an investor to avoid this property. In light of further consideration of the underlying economic factors, the underutilized property might well be an attractive investment opportunity.

A vacant lot in the center of town generates only a small amount of income when it is used to sell Christmas trees. But the lot costs money to hold (property taxes and clean-up expenses). There is a significant negative cash flow. But it may be one of the best real estate investments. The unrealized appreciation of market value may far exceed the tax and maintenance expenses so that the investor will profit when he sells the lot, even though he has experienced “negative cash flow” all the time it was held.

Always look at the reasons why there is negative cash flow from income property before you invest. The turn-around possibilities may be readily apparent. Don’t miss out on an otherwise good investment simply because it currently isn’t making money.

]]>Thu, 04 Jun 2026 11:28:45 -0400<![CDATA[Contact Your Property Manager In Advance]]>https://www.charlottenccommercial.com/blogs/post/contact-your-property-manager-in-advance

Contact Your Property Manager In Advance

The usual way that a property management company comes upon the scene is when the owner of a building makes a contact. Often the owner has just acquired the property through a purchase or exchange, then looks for a manager.

If you are about to acquire an income property, consider contacting the management company in advance. The ability to estimate income and expenses and a keen knowledge of the market makes the professional manager a valuable asset during the preacquisition process. The property manager has the background necessary to provide significant assistance in determining both the location, desirability and economic feasibility of a property.

Inspection And Evaluation
When evaluating a property, the property manager should perform a comprehensive inspection of the physical property, thoroughly review current leases and past maintenance records, and, when appropriate, talk with the on-site staff, and current tenants and neighbors.

Preliminary market analyses and pro formas should be completed during the preacquisition stage to determine the property’s operating costs and to project possible investment return. These analyses will help establish whether the property will perform according to the owner’s investment objectives, or whether the property is too risky for acquisition.

The Rent Structure
When the property is acquired, the management staff will know in advance what can be done with the rent structure. The goal will be to increase the rents to market levels and/or the legal maximum. Tenants with leases can not be given rent increases if their leases prohibit them, but the rent for vacant space or for property with expiring leases may be increased.

The abilities of a professional property manager, as part of our team, will usually more than make up for the cost of their services. Let us help in determining the value of your investment.

]]>Thu, 04 Jun 2026 11:28:31 -0400<![CDATA[Benefits In Workplace Changes]]>https://www.charlottenccommercial.com/blogs/post/commercial-real-estate-workplace-changes

Benefits In Workplace Changes

Working from home is now becoming a trend. It is remaking how we work, the tools we use for that work, how we communicate at work, the hours we work and even how we dress for work.

A major benefit to the employer is being able to downsize on square footage of space for the company. A major benefit to the worker is that they can buy a home outside of the business area in a suburb or at an ocean resort with the great locations that they desire and not have to think about what the daily commute will be.

Employees who work from home have changed some sectors of commercial real estate, both in terms of how spaces are designed, how many square feet the company needs for workers and where the company is located.

Many companies have downsized their office space to save money by allowing or even encouraging employees to work from home. What was born from necessity during the last recession has turned out to have greater benefits than lower rent on the commercial office.

It has been reported that employees that work from home are more productive, with less distractions, and seem more satisfied in general.

If the same employees were in the office, there are coffee breaks, socializing and interruptions through out the day, that is not happening at the home office. The employee can work in any kind of clothes that they desire, no longer have to spend money on lunches, gasoline, parking and the day to day expenses that occur when commuting to an office.

This type of work has also been a boon for parents who need more flexibility in their schedule to accommodate child care, school events and sick kids. Sometimes it can be a problem to work at home with small children. But these are small problems that can be solved by balancing work and personal live

Recruiting the best talent, employers find that the work at home concept is a major perk.
Remote work does have its share of problems. Some people dislike working in the same place where they live and relax, and it can be difficult to create and maintain a company environment without co-workers being in the same room. But the concept of not commuting on a crowed bus or slow and go traffic is a major benefits.

Above all, buying a home in a more desirable location is a great plus for the employee and being able to downsize on square footage is a major plus for the company.

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]]>Thu, 07 May 2026 10:45:32 -0400<![CDATA[How Good Management Enhances Value]]>https://www.charlottenccommercial.com/blogs/post/how-good-management-enhances-value

How Good Management Enhances Value

Property managers who concentrate on tenant satisfaction, energy efficiency, cash management and investment analysis will increase the value of the owner’s investment.

Being a skillful manager also requires intelligent handling of the functions of buying and selling properties, rent collections, maintenance, leasing, controlling expenses, refurbishing, management accounting and more. All of this requires long “hands-on” experience in the field.

Here are some of the ways the property manager now must focus on asset management and efficiency that will enhance value:

  • Watch where money is going. Begin a mandatory competitive bidding process from all vendors. This will control spending and increase profits.
  • Energy prices are rising. Constant lighting is not necessary in many common areas. Review all areas and install more efficient fluorescent lighting and motion detectors in restrooms, freight elevator lobbies, etc.
  • Check lease provisions to be sure that tenants are adhering to the lease. For example, a lease may call for the building use from 7 a.m. to 6 p.m., Monday through Friday. Checking may reveal that some tenant’s employees are working until 9 p.m. and on Saturdays. A surcharge for the additional energy consumed might be added to tenant’s rent.
  • Some simple rewiring and plumbing can add income. Split the utility systems to install electric and gas meters billed directly to each tenant. Tenants who pay their own electricity and heating bills are always more careful with energy usage.
  • Tenant satisfaction must be the highest priority. Set up a tenants’ questionnaire to find out any specific tenant problems. These then can be addressed and problems solved. Showing concern for tenants and any problems helps to avoid lease cancellations and promotes lease renewals.

One role of a top real estate Company is to maximize the value of the investment. The watchwords today are tenant satisfaction and cost efficiency.

We can handle property management for any properties you might own. Let us help in determining the value of your investment, anytime you need to know. 

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]]>Thu, 07 May 2026 10:44:57 -0400<![CDATA[Relocating An Existing Tenant]]>https://www.charlottenccommercial.com/blogs/post/Relocating-An-Existing-Tenant

Relocating An Existing Tenant

A landlord’s standard lease usually contains a clause requiring a tenant to move to another space in a commercial building or shopping center. A new tenant that is negotiating for space in the building might be surprised to see the clause before signing the lease, wondering about the reasons for it.


The owner or manager will seldom require any tenant to move to another space because it can be expensive for both the owner and the tenant. The clause must be in the lease, however, as the owner has to be able to manage space efficiently.


This clause can require the tenant to move to other space in a building (or even to another adjacent one) on appropriate notice from the landlord at any time during the lease term. The usual reason to relocate a tenant is to consolidate scattered vacant space in a building to provide a large block of space for an existing or single incoming tenant.


If the commercial building is a shopping center, a first class tenant (in the sense of its ability to generate shopping traffic) might choose a certain location. The landlord might relocate existing tenants because that relocation will benefit every tenant in the center.


Objection To Relocation
The objections by a tenant can be obvious. The proposed new space is not as desirable. Goodwill might be lost by the tenant. The move will cause confusion within the business. A retail business can lose sales during the move. However, only the largest and strongest tenants will be able to eliminate the clause in the lease. These are the tenants least likely to be relocated anyway.


For the smaller tenant, the goal should be to ensure that the clause, if exercised, can not be done arbitrarily or at any cost to the tenant.

Conditions In The Lease

Here are some conditions that would normally be in the relocation provision:

Advance notice. A tenant should get notice of the relocation with a right to access the new space in plenty of time before the moving date to get the new location ready for his occupancy.

  • Reason for the move. The relocation should be for a definite cause and only in cases specified in the lease. Example: The incoming tenant that will be using the tenant’s old space will occupy a certain percentage of the property or a certain square footage. In this negotiation, the landlord may object to specific statements as this could limit his options.
  • The new location. The proposed new location should be specified, when possible.          Example: Same building or another specified building, specific floors. The square footage should be the same with minor variation and the space should be comparable in location, improvements and amenities.
  • Rent adjustment. The landlord will want the tenant to pay the same rent per square foot. The tenant may argue that the rent should be based on square footage only with lesser rent for a smaller space.
  • Moving costs. The landlord should agree to pay for all costs of the move, including moving expenses, painting and remodeling, so the space is comparable to the original space.
  • Frequency of relocation. Only one relocation should be allowed in one lease term. In a long lease, no more than once in a specified number of years. If the relocation occurs in a specified number of months before the expiration of the lease, either or both of the parties can have the option to terminate the lease. If the landlord terminates, he may agree to pay the tenant a specified cash payment.

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]]>Thu, 07 May 2026 10:44:06 -0400<![CDATA[How To Deal With Security On Your Commercial Property]]>https://www.charlottenccommercial.com/blogs/post/how-to-deal-with-security-on-your-commercial-property

How To Deal With Security On Your Commercial Property

Commercial security involves systems and strategies designed to protect businesses and properties from threats like theft, vandalism and unauthorized access. It not only safeguards physical assets but enhances tenant satisfaction and business continuity. Effective security measures include advanced surveillance cameras, access control systems and alarm systems to insure the safety of assets, employees, and visitors.

The problem of security is a major concern of owners and managers of office buildings or other commercial properties. There are many things to check both inside and outside of a property. Particular attention must be given to the perimeter of the property, as this is where an intruder will make the first contact.

For example, an office building should be inspected thoroughly all around the exterior to search for danger spots. No area should be overlooked because entry is possible from almost any point. The age, design, and location of a building will affect perimeter security.

Older buildings can have more security problems because of the style in which they were built. Often there are street-level windows, exterior fire escapes, and operable windows. Each can increase the number of entry points that must be protected.

Every building will be different, of course. Each will have to be checked, starting at a point and going around the property to return to that point.

Here are some things that will always need to be checked carefully: 
  • Fencing. If there is a fence around the building, is it just ornamental or will it actually protect the property? Are there any vulnerable spots? If there is no fence, is it feasible to install one?
  • Loading dock. How is the dock controlled during regular operating hours? After hours? What personnel are involved? Are there procedures to control deliveries and removal of materials? Is the dock left untended at any time.
  • Windows, fire escapes, & roofs. Do any of these areas pose potential access problems? If any do, should new grates or locking devices be installed? Check on your local codes.
  • Entrances and exits. (Pedestrian and vehicular). How many entrances and exits are there? Where are they located? What kinds of locks are used? Are the locks effective and who has the keys?  What are the hours of operation of each entrance and exit? Is there any kind of alarm system to signal when a door is open? Who responds to these alarms? Would closed-circuit television (CCTV) cameras be of value in any of these locations? If CCTV is used, are the monitors always watched? If there is a parking lot or garage, are the access routes safe?
  • Guardservice. If there is a guard service, what are the guards’ assignments in regard to controlling daytime and after-hours traffic and patrolling the building’s perimeter?
  • Exterior lighting. Is there adequate lighting that can serve as a deterrent to crime? Do time clocks or light sensors control the lights?
  • Landscaping. Are there possible hiding places along routes to and from the building?
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]]>Mon, 02 Mar 2026 09:21:19 -0500<![CDATA[Four Important Factors To Check With Any Ground Lease]]>https://www.charlottenccommercial.com/blogs/post/four-important-factors-to-check-with-any-ground-lease

Four Important Factors To Check With Any Ground Lease

Landowners may choose the ground lease as a way to benefit an easy and risk-free investment vehicle and as a way to secure the long-term appreciation of the property. Sometimes a ground lease can put the lessor at risk. That is because the deal centers on the concept of sharing economic returns. The lessor becomes a partner of the lessee because the total rent is usually determined by the lessee’s net operating income or net cash flow. If the lessee does well, the lessor does too. However, if the lessee’s business is a loser, so is the lessor.

Therefore, the lessor must consider the financial feasibility of the project. Independent analysis should show that the project represents the correct improvement of the site and that the projected payments will actually be received by the lessor.

There are at least four things that a prospective land lessor should remember before entering into a transaction:
  • In most land lease transactions, the economic return to the lessor ultimately reflects the underlying performance of the real estate operated by the lessee.
  • The lessor’s evaluation of the deal must focus on the quantity of income projected pro forma but also must include a clear assessment of the likelihood of actual receipt of projected rent.
  • Because the conditions and complexities of a land lease can mask the risk associated with achieving the projected rent levels, accurate assessments of the strengths and weaknesses of the real estate is essential.
  • Land lease provisions must be tested against the current fee value of the land.
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]]>Mon, 02 Mar 2026 09:21:00 -0500<![CDATA[Subleasing For Commercial Tenants]]>https://www.charlottenccommercial.com/blogs/post/subleasing-for-commercial-tenants

Subleasing For Commercial Tenants

In some office building markets throughout the country, some existing tenants have sought to sublease some or all of their rented space as they shrink operations or eliminate locations. The problem for landlords is whether it is a better strategy to enforce lease restrictions against subleasing or to work with tenants on the theory that the sooner cheap sublease space is filled, the better for all. (In addition, another problem could be whether landlords should insist on sublease restrictions in new leases being negotiated now.)

The Restrictions
If there is no provision against the sublease in the original lease, the tenant has the right to assign or sublease without the owner’s consent or approval. However, most leases do contain this provision. In previous decades, when rents were at high levels, tenants could obtain the landlord’s consent only if no other space was available in the building, and even then, the landlord might have insisted on sharing in any profit realized on the sublease. (In those days, subrent was often higher than the prime rent.)

Tenants are interested in cutting costs of unused space and are often willing to accept current market rents, something landlords are reluctant to do for prime space.

Negotiation
Although the building owner may take the position that no consent will be given to a sublease as long as prime space is available in the building, the tenant may make some good arguments for cooperation.

  • First, when there is much space available all around, a tenant looking for space can find it easily. A landlord is better off having a tenant in possession, even with a sublease, because the tenant may stay when the sublease expires.
  • Second, the landlord takes the risk that a prime tenant with much excess space may default under the lease either by being forced out of business or because the tenant is willing to risk a lawsuit to collect unpaid rent. By being cooperative in finding a subtenant, the landlord reduces the risk of a default by the prime tenant and has the additional security of the subtenant’s rent payments (even though the amount may be less than the prime rent).
  • Perhaps most important, the landlord may gain the reputation for good tenant relationships that can help in the competitive years ahead. Helping the tenant to shed excess space can pay off when the tenant considers renewal of the present lease. Landlords who are known for taking a reasonable approach to tenant problems, both during and after lease negotiations, are bound to have an edge when a tenant must make a choice between very similar rental space in different buildings.
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]]>Mon, 02 Mar 2026 09:20:47 -0500