Commercial Real Estate

Commercial real estate is a term to describe a property with 5 or more units. The different types include office buildings, apartment complexes, warehouses, and medical. Commercial real estate is a broad term, and this site will give you a thorough understanding of what it is.

If you own or manage a business, you are likely to rent to an owner of commercial real estate. Most businesses require space of some sort, whether in a shop, office, personal, or warehouse storage. As your business grows, you may need more space, expansion, storage, or just a better location can you find a new piece of commercial real estate.

What you may not know is that you are able to negotiate more favorable lease terms. Just because a landlord calls an agreement "standard lease" does not mean it should be unified for all. There are no laws requiring that they follow the same agreement with all tenants. The leasing of commercial real estate can accommodate changes in ownership and lease terms or other variations.

Before you start negotiating, you should know the answers to key questions. Others are competing for the same lease that you have in mind? If they are, their position is weakened, since the other company might not be as informed as you and sign the lease blindly.

Space has been vacant for a long time? If so, the owner may be more desperate to rent it more easily. We also consider how convenient space in terms of location, layout and other commercial real estate needs.

2 . Negotiation of lease issues
There are dozens of terms in any lease agreement. In addition to the monthly rent amount, there are limitations on the use of facilities, leased space, access to adjoining storage space, and more. Depending on the location and the specific configuration of the commercial real estate may be able to negotiate some or all of these terms.

 Common terms of commercial real estate leases that are negotiated are: The monthly rental amount granted by the landlord or leasing company after a series of time payments or in response to a long lease.
 Duration of the lease in months or years.
 Use of the premises, including parking spaces, access to it, and changes may be made in the interior.
 Exact site space leased (can rent half the office?)
 Costs associated with the operation of commercial real estate. Will the landlord cover water and sewer?
 Process and permissibility of tenant improvements made, can be reimbursed by the owner?
 Subletting approval process or permissibility.
 Renewal terms including reduced or increased cost of rent.
 Rights and costs involved to abandon or cancel a lease. Under what conditions can a tenant do? Insurance requirements.
 Additional space options available to the tenant if necessary.

3 . Types of Leases
In addition to the terms vary, the type of lease may vary. There are five main types of leases. The type you need depends on your business structure, budget and available space.

A gross lease is the most common type of commercial real estate. The tenant's monthly rent payments to a landlord who, in turn, is responsible for paying taxes, insurance, maintenance costs and other expenses associated with homeownership. These are often called "fixed contract," but we understand that there is nothing "standard" about them. There is no regulatory authority that establishes the terms fixed.

A net lease is the second most common in commercial real estate leases. In a net lease, the tenant pays a monthly rent to a landlord and a portion of all expenses associated with real property, including maintenance, repairs, insurance, and taxes. The network of leases often allow the tenant more flexibility in the use of commercial real estate. If you need to modify the commercial real estate leasing, this type of lease may be the best choice for you.

A triple net lease is very similar to a net lease where the tenant pays for most or all operating costs associated with commercial real estate.

In a local mall or commercial lease. The tenant will pay a rent per square foot of the facility and some of the operating costs shared by the common areas of the mall. These usually include a portion of property taxes, structure insurance, maintenance, repairs and parking areas, and delivery bays. While you may pay more for space in a mall, can be an ideal option to gain more customers, especially if the shopping center in frequented by several people.

The last and most involved type of lease is a lease of land. This is a tenant leasing a parcel of land with the intention of building a kind of ownership over the lot. Although the buildings are purchased and maintained completely by the tenant, the termination of the lease, all improvements to the building and the property reverts to the landowner. These are usually a long term lease, ranging from 5 years to 100 years or more.

4.Checklist for moving
 After you have chosen your location and signed his contract, it is time to initiate movement of labor. Temporary Relocation takes a long time of packing and moving office equipment. Do not underestimate the amount of packaging that will be needed while still running the business. Consider hiring temporary helpers to pack some non-confidential documents, while their employees continue to do their job.
 Take this opportunity for an inventory of your office.
 The location of the design and decor is easier to do before the move. Involving employees in the design and decor increases employee morale and is a process that can be embraced.
 Consider renting or buying some new parts for the new office space commercial real estate.
 Interests. Plan services that are important to their employees and do not forget the break room properly.
 Apply with care. Make sure your commercial real estate leases allow subletting before doing anything. If you must get approval from the landlord before a sublease, be sure to do it quickly.
 Contact all utilities and communications providers to ensure you have the service in both places during the transfer.
 Assign office space before the move comes, what will make the move much easier, because everyone will know where to go.
 Order keys, cards, and a security service in time to avoid lockouts.
 Any person for safety, must receive official clearance through the new security system.
 Order checks, business cards, invoices and other printed material that is used to reflect its new direction.
 Contact vendors, customers, people and delivery of your new address. Do not forget the USPS.
 Take time advisory telephone system and classes for all employees, whether a new system or not. A review never hurts.
 Organize a party and invite the institution customers and suppliers as well as friends and relatives of employees.

A corridor of commercial real estate is the person or company that is licensed by the state to represent a buyer, seller, or tenant in a commercial real estate transaction in exchange for a commission. Essentially, they are your agent and must ensure their interest.

Find the right broker for your needs. Most agents focus on two or three types of commercial real estate. Industrial, shop, office space and storage are just some of the specialty types of commercial real estate. Choose a broker with a history of the same type of space required.

Check references and licensing. Ensure that all licenses are in progress. Check the better business agency for any complaints they may have against them. Ask colleagues recommendations for choosing a broker with a good reputation for overall service quality.

You choose the space you need, and not the intermediary. Do not let an agent strong-arm commercial real estate space either choose a higher or lower than you thought necessary.

Stay away from brokers that display only the properties they represent. Remember, the broker is your agent and must do the best for the interest you have in mind, not just the desire for a commission. Not just for the fact that not a property that fits your need, we must discard.

Use the experience of your broker in the market to get you a great site. Riders may suggest areas that will be of great commercial activity away from inappropriate locations you for your business.

A good agent should be able to help you anticipate future needs, and helps you search for the property with scalability. Stay away from the "middlemen" that he just looking for a place for your business now, instead of looking at your projected growth over five years. Moving your business is a big decision, with important implications. Avoid running unnecessarily in the future for this, by planning now.

6.Some reasons for the cancellation of a lease
 After some time in commercial real estate space, you can find some reasons for cancellation. The most common reasons include: The business grew faster than expected and needs more space
 A better place due to a change in the direction of your company or client needs
 The business is declining and needs a lower payment or wish to close your business, or both.
 Dissatisfaction with the owner or administrator.

If you have to move because his company needs more space or need a better location, may be able to sublet their current space. The benefit is that it is usually a quick process requires no additional cost to you. The disadvantage is that you are still ultimately responsible for the lease of his tenant. Check the possibilities and arrangements to sublet the premises. The sublease is also a possible solution if the company goes wrong and you need cash to reduce debt.

If you are upgrading to a more expensive, or more space, you may be able to convince their owners that want to rent a larger and more expensive space to meet your needs. It will make more money, you earn more money, and may lease the other to another local business. This works best when it comes to large property management companies, as it will have more to offer.

You can leave your bid for the remainder of his contract with a single payment. The sooner you become the owner rented the space, the lower the lump sum payment. The benefit of this agreement is that it can move to its new location without a regret. The downside is that his lump sum payment is held by the leasing agent and if it works hard to rent the space, the law can intervene.

If you are unhappy in the workplace or the owner, you should reread your lease and see if your dissatisfaction is due to a violation of the lease. If you find you have enough reasons to quit the lease, you should first talk to the owner. Request to be let out of the lease and explain why. If this fails, seek legal advice.

7 . Finding the right amount of space
How much space you need to make real estate your business? Depend on a number of factors, both facts and projections. Because most commercial real estate leases are for a period of 5 years, you must base its space required figures in this number.

First, you need business partners and ask, "In what position is the business?" Does your business have a vision of expansion in 5 years? How many staff will be added in the next 5 years? While you may not be able to answer all these questions, your overall expectations will be a useful clue in the planning process for the use of commercial real estate.

What is the size of your growing organization? What are the resources required to achieve that goal?

How many employees, office furniture, space manufacturing, computers and office equipment, storage of office supplies, files, and inventory you need to achieve your goal?

Call the trade association sector. Ask about the average sales per square foot. If your annual income goal is $ 500000 and trade association estimates is $ 140 of sales per square foot, divide their goal by their current sales ($ 500000 / 140 = 3571 meters square is required to achieve the goal of income.)

If you are just starting your business, without much action, you can estimate 150 to 200 square feet per employee in addition to the traffic flows of 15% subsidy.

8.If you buy?
Are you struggling with the decision to buy, rent, or lease commercial real estate for your business? You are not alone. Each will have its own opinion, but ultimately the decision is yours. Understand that your company does not do what everyone else does, your situation is unique.

If you buy a piece of commercial real estate, you get the benefit of asset appreciation. The value goes up, which means they will be able to sell it for more than they paid for it. You also benefit from fixed overheads. Your mortgage does not go up (unless you have an ARM). Your company will have the option to sublet space to help pay their bills.

One of the disadvantages of buying is that you are entirely responsible for all repairs, maintenance, taxes and fees associated with the property. You are also locked in a larger commitment if you buy - there are often payment penalties, related to commercial real estate mortgages. If you find you do not like the area, again, is already quite grasped this. Think carefully about this decision, both in terms of their business and the area.

9.Language You Should Know about Construction
Evaluation Report - A report of an impartial professional, including an analysis of the value of commercial real estate analysis and calculations that led to that view. An evaluation report is required for any sale of property.

Broker - A licensed agent works to help the buyer, seller, tenant or landlord, or a combination of both. Help to facilitate the purchase or rental and helps clients with commercial real estate process.

Satisfaction in construction - a way of lease includes an owner improve the site to suit the needs of the tenant. The construction is usually part of the terms of the lease, but the buildings and improvements remain the property of the owners of the land to the termination of the lease. These are often long-term leases.

Commercial  - the benefits, discounts or concessions made by the seller or landlord to help the sale or lease to advance rapidly. Improvements in space, moving expenses, upgrades, and reduced or zero down payment, rent a portion of the lease are common place awards.

Escalation clause - is a section in the lease allows rent increases. The escalation clause also includes the rules to be followed in case of a rent increase. The standards include: maximum rent increase per period, the length of time between the rental price increases, cost of living increases with the governance index, and increases directly related to the operations of the property.

HVAC - Maintenance of Air Conditioning, Ventilation, including those systems. While it is usually the responsibility of an owner to maintain these systems, some leases require the tenant assistance. Sublease of Property - An agreement between the landlord and tenant that allows the tenant to sublease part or all of the commercial real estate contract to another company.