In this issue

• Owners & Tenants Must Have Insurance

Insurance coverage must be addressed by both landlords and commercial tenants. For the everyday problems, a landlord must have the maximum coverage for the building and the tenant’s leases. The tenant must carry insurance with coverage that will protect his business. What if you have a small disaster that is easily repaired, but you lose a tenant because he was not covered for the damage inside the business?......(more)

• 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 can be compared to (1) a contract of sale with a liquidated damage clause, (2) a sale with a nonrecourse purchase money mortgage, and (3) a lease containing an option to purchase.....(more)

• Shopping Centers - The New Town Center

New mall construction and the renovation of existing 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. With the success of the huge mall/amusement centers throughout the country, the idea of combining amusement centers with shopping facilities is still very popular. Shopping centers are increasingly becoming “town centers”, which is what the original planners had in mind for these facilities in the beginning....(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. Whether it is a hardware store, a furniture store, an ice cream and confections store, a supermarket, or a variety store, the percentage rental will depend on the turnover of merchandise, the margin of profit, and the cost of operating the business. The method of calculating the amount of the percentage rent must be simple and as foolproof as possible. This will reduce the chance for arguments and disputes. Accordingly, rather than using net profit (a term replete with potential for disagreement) as the yardstick, the figure used is gross sales, gross receipts, or gross revenue. The term “gross sales” should be clearly defined as, for example; all sales made at or from the leased premises, whether for cash or credit, whether by the tenants or subtenants, minus refunds for returned merchandise and minus sales taxes. The tenant usually must calculate the gross sales figure and the landlord is allowed the right to examine the books and records which pertain to the gross sales figure.....(more) Click Here For This Months Newsletter

In this issue

• Choosing The Right Investment Property

No single property can fit all of the investment goals and rules an investor has set. Even if the investor tried to build a property to specifications, he would find some things “not quite right”. The investor is, therefore, wise to anticipate problems and have some basic strategies for dealing with them. Here are some suggestions to help the investor devise other approaches to meet special needs.....(more)

• Lease Negotiations With A Corporate Team

A few years ago, senior corporate managers were able to make major real estate decisions by themselves. Now, a negotiating team will negotiate leases. This team may consist of legal counsel, finance department representatives, outside specialists such as real estate brokers or tenant representatives, design and engineering consultants, and others. In today’s market, corporate tenants with high credit ratings, who are willing to make long-term lease commitments negotiate from a strong position. Therefore, corporations that formerly treated real estate transactions in a casual way have now developed detailed real estate negotiating strategies. The corporate tenant sees these negotiations as a way to cut costs within the company (whether upsizing or downsizing). Landlords, developers, and brokers must be aware of this new style of negotiation. While the real estate executive plays a key role in developing the strategy, the other parties must be ready to respond quickly to requests for information and be prepared to discuss issues that rarely if ever arose in the past.......(more)

• Drafting The Shopping Center Lease

When leases for shopping centers are being drafted, they can be more difficult than most other commercial leases. In a shopping center, the owner wants the leases to be as uniform as possible, but knows that each lease must have variations to meet the individual tenant’s particular problems in business and in certain size or shaped spaces. Here are some suggestions of items that should be covered in your shopping center leases. There could be many more depending on each property......(more)

• Who Buys Commercial Property

When we represent a seller of a commercial property, we try to determine, as soon as possible in the marketing process, what type of buyer is most likely to be interested in this particular property. We then focus the main appeal on those elements that are most important to that type of buyer.......(more)

• Your Real Estate Investment

Knowing what you can do in some investment situations can be the difference between an annual profit or loss in your currently owned commercial property or the one you intend to acquire. How you acquire it can be important......(more)

• Your Commercial Real Estate Broker

How can I be of service to you? When you are buying or selling a commercial property, of course. At other times, we can handle property management for any properties you might own. Let me help in determining the value of your investment, anytime you need to know. Call my office when you need services of an expert in this community’s real estate. I have the records of all properties for sale at all times. Today’s interest rates, availability of loans, and any other financial information that can affect your property is as close as your phone. Keep our newsletter as a file of useful real estate information and to remind you to call me whenever you need “Professional Service”. (more)

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In this issue

• Opportunities In Commercial Properties

There are a wide range of opportunities out there in commercial properties. Commercial properties provide space for businesses, and the kinds of properties are as diverse as the businesses. Following are the major categories of commercial properties:....(more)

• Closing The Commercial Lease

When all of the negotiations have been completed, the broker and tenant have agreed to the terms of the lease. Now all that is left is the lease closing. Often there are so many back-up papers that must be produced, examined and approved, the closing can be held up because of a forgotten document. Following is a list that provides basic information on typical documents that may be required at a closing.........(more)

• The Small Shopping Center–A Good Investment

When you are looking at shopping centers, bigger is not necessarily better. While a well-run regional or super-regional shopping center can produce a good financial return, so can a successful small-market shopping center. In many cases, the small town center can turn out a better return.....(more)

• Legal Definition Of A Shopping Center

There are all kinds of shopping centers from the smallest strip center up to the super centers. In a case in a federal bankruptcy court, the court was required to distinguish between a “shopping center” and other types of retail properties. The federal bankruptcy code did not define the term. The Third Circuit provided the following 14 elements to be used in determining whether a property is a shopping center......(more)

• The Type Of Buyer For Commercial Property

When we represent a seller of a commercial property, we try to determine, as soon as possible in the marketing process, what type of buyer is most likely to be interested in this particular property. We then focus the main appeal on those elements that are most important to that type of buyer. Normally there are three types of buyers for commercial property:.....(more)

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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)

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In this issue

• Acquiring Investment Land

​Land is one of the top investments by real estate professionals. Before any building project can be planned, the land must be available. At all times, real estate assemblers are looking at and acquiring under-utilized sites within cities or in suburbs. Here are some ideas on how those professionals do it.....(more)

• The Shopping Center Of Today

The multi-screen theater in shopping centers has been around for a long time but they have not been thought of as a key tenant until recently. The shopping center has gone way beyond a place where you can buy appeal and shoes. The shopping center of today is more of an entertainment center than just a shopping center. The key tenant in a shopping center was often a store from a nationwide chain that carried a wide variety of quality, brand-name items. Instead of signing just a department store as the anchor tenant, some large shopping center owners and operators are now choosing to sign a multi-screen movie theater as the key tenant.....(more)

The Purchase–Option Contract

A purchase-option contract lets the buyer-optionee purchase a property at a specific price within a certain period of time. If the option is exercised, a closing is held and the property is purchased at the price previously agreed upon. There is no legal obligation to buy the property. But, if the optionee does not exercise the option, the deposit paid to the seller-optionor is forfeited......(more)

• The Upkeep On Your Rental Property

Keeping your property in top condition is not difficult if it is a continuing effort. There will be a plan in place for making ongoing improvements by investing a portion of each year’s income. Failure to do this will result in a neglected property....(more)

• The Management / Investor Conference

​Property owners own investment real estate for profit. With proper management, they can earn a good return monthly from one property or a portfolio of properties. However, a certain property may have been acquired for an upgrade, to bring in income later or sell for a capital gain. Either way, the investment must be managed, considered, and watched at all times. If the owner and property manager are taking care of business, there may be ways to increase the income, or the value.....(more)

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In this issue

• Choosing The Right Investment Property

​No single property can fit all of the investment goals and rules an investor has set. Even if the investor tried to build a property to specifications, he would find some things “not quite right”. The investor is, therefore, wise to anticipate problems and have some basic strategies for dealing with them. Here are some suggestions to help the investor devise other approaches to meet special needs:....(more)

• Lease Negotiations With A Corporate Team

A few years ago, senior corporate managers were able to make major real estate decisions by themselves. Now, a negotiating team will negotiate leases. This team may consist of legal counsel, finance department representatives, outside specialists such as real estate brokers or tenant representatives, design and engineering consultants, and others.....(more)

Drafting The Shopping Center Lease

When leases for shopping centers are being drafted, they can be more difficult than most other commercial leases. In a shopping center, the owner wants the leases to be as uniform as possible, but knows that each lease must have variations to meet the individual tenant’s particular problems in business and in certain size or shaped spaces. Here are some suggestions of items that should be covered in your shopping center leases.....(more)

• Updated Information For The New Property Manager Improvements

There may be lengthy negotiations between the owner of a property and the management company before a management contract is signed. When the management plan has been worked out between them, the management company is hired and the manager takes charge of the property. At this time the manager must collect great amounts of information necessary to manage and control the property. Some should have been available from the owner, but all files must be updated and appropriate information collected, such as:...(more)

• Your Real Estate Investment

​Knowing what you can do in some investment situations can be the difference between an annual profit or loss in your currently owned commercial property or the one you intend to acquire. How you acquire it can be important....(more)

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This month's newsletter has just been released! Check out the latest tips for tenants and users of commercial real estate space. In this issue

• A​ Checklist For Closing A Commercial Lease

When all of the negotiations have been completed, the broker and tenant have agreed to the terms of the lease. Now all that is left is the lease closing. Often there are so many back-up papers that must be produced, examined and approved, the closing can be held up because of a forgotten document. Following is a checklist that provides basic information on typical documents that may be required at a closing. It is a starter list, and may be expanded so that it is complete for your particular property....(more)

• How A Small Shopping Center Can Be A Good Investment

When you are looking at shopping centers, bigger is not necessarily better. While a well-run regional or super-regional shopping center can produce a good financial return, so can a successful small-market shopping center. In many cases, the small town center can turn out a better return. One of the benefits is the control that the owners can have by being “the only game in town”. This can help generate high returns......(more)

• ​​​​​Definition Of A Shopping Center

​​​​We have all kinds of shopping centers from the smallest strip center up to the super centers. In a case in a federal bankruptcy court, the court was required to distinguish between a “shopping center” and other types of retail properties. The federal bankruptcy code did not define the term. The Third Circuit provided the following 14 elements to be used in determining whether a property is a shopping center........(more)

• Investment Opportunities In Commercial Real Estate

There are a wide range of opportunities out there in commercial properties. Commercial properties provide space for businesses, and the kinds of properties are as diverse as the businesses. Following are the major categories of commercial properties:......(more)

Click Here For This Months Newsletter

This month's newsletter has just been released! Check out the latest tips for tenants and users of commercial real estate space. In this issue

• Is Now The Time For A Condo Conversion

In a recent issue of our newsletter we wrote about the different types of commercial investments that have been converted to condominium projects. The Condo 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)

• How To Establish 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....(more)

• ​​​​​Landscaping For Profits and Image

​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. A well-planned landscape has a recovery value of 100% to 200% in increased rentals at the typical suburban office building. In addition, the owner gets back more than just dollars spent; the landscaping dramatically influences an owner’s positive image in the community.....(more)

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