In a market with uncertainty in stocks, cash and other alternatives, real estate may be the safer investment. Interest rates have rapidly increased over the last few months and investors are carefully watching as they are a critical factor in leveraging returns. At the start of this year, rates for real estate investment were between 3.5% and 4%. As we move toward the end of the year, we are seeing...
Commercial Property Management
Leases exist to form a legal agreement between a landlord and a tenant regarding who will pay various expenses and the rules related to renting that property. Because commercial properties are used differently than residences, commercial leases tend to have more components that are specific to each tenant. While there is no standard format for a commercial lease, most cover basic elements in order to...
Owners and property managers must watch their operating budgets and the dollars 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...
Lease Negotiations With A Negotiation Team In the past, corporate managers and business owners frequently were able to make major real estate decisions on behalf of the business on their own. Now, a negotiating team will often be used in negotiating leases. This team may consist of legal counsel, finance department representatives, outside specialists such as real estate brokers or tenant...
The pandemic has triggered plenty of speculation about the future of office space, including the possibility that a long-term shift to remote work for some employees, for at least part of the time, could shrink the need for office space increasing vacancies and pulling down rents. Even as increasingly optimistic news about vaccines improves the possibility that many office workers could resume their...
The Professional Approach to Lease Renewals No matter what current vacancy factors are in any area, tenants feel they can and should negotiate with the landlord whether they occupy an apartment building, office building or commercial center. With vacancies high in many rental markets, the tenant will certainly be aware of all the possible terms for a lease renewal. If the owner or manager of the...
One of the looming questions real estate investors are facing during the Covid-19 pandemic is what the effect will be on the demand for office space. How long will the remote working trend continue after the pandemic ends? What effect will this trend have on the demand for office space? There are many financial and psychological considerations to the question of if lower density requirements and employees...
Around 25% to 35% of the value of commercial properties are single-tenant properties (STPs). This large percentage means that large investors such as pension funds, as well as smaller investment groups must consider this type of investment. There are many uses ranging from office to industrial to retail. They can include office buildings, warehouses, department stores, supermarkets and other retail use....
As the COVID-19 pandemic continues, landlords are receiving requests from distressed tenants for rent relief and, in some cases, lease termination. With government restrictions on industries such as restaurants, retail and salons, tenants that have temporarily shut down operations could be seeking rent relief from their landlords. While a lease workout may be beneficial for both landlords and tenants,...
A significant indicator of a property manager’s success is their effectiveness in controlling overdue rents. A well-run property should not have routinely delinquent tenants. However, when delinquency does occur, immediate action must be taken. A list of all delinquent rents should be prepared showing all tenants who have not paid or have partially paid rents and other monies due. In addition, a...