Occasionally buyers of industrial properties ask, "Why do I need to pay for a survey of the property and for title insurance?" In today’s economic climate, investment in a proper survey and title insurance coverage is a vital aspect of real estate ownership.
Triple net, net, gross, modified gross, and full service are all terms that can be used to describe a commercial real estate lease. As you enter the marketplace, it is imperative to know what kind of lease you are signing as this will explain to what level you are responsible for the operating expenses of a commercial building.
For many new businesses, negotiating a lease can be an overwhelming but very important task. Not only will your space be the first exposure to most of your customers, but will be a long-term fixed expense for your business. By following these tips your business will be set up for success for years to come.
Considering the increase in office vacancy we have witnessed since the drastic drop in oil prices and the continued increase in the market for smaller, owner user office buildings it may be time for those who own larger and older buildings to take a hard look at the product they are offering prospective tenants and buyers. All it takes is a “just look around” approach and it becomes apparent that times are changing. It is reflected in every aspect of the real estate business that there is a new attitude toward design and appearance of properties.
The Department of Housing and Urban Development (HUD) recently released new guidance telling landlords that turning down tenants based on their criminal records may violate the Fair Housing Act. People with criminal records aren’t a protected class under the Fair Housing Act, so turning down an individual tenant because of his or her record can be legally justified; however, a blank policy of refusing to rent to anybody with a criminal record could cause legal problems for you as the landlord.
As demographics, consumer spending habits and behaviors change, shopping center owners and developers must reevaluate their strategy when it comes to retail tenants. In years past developers preferred centers anchored by “big box” retailers. That strategy worked because big-box anchors had strong credit, drove traffic to the center, and added a level of clout. Often, these anchor tenants were given preferential deals given what they would bring to a development.
“The more elaborate our means of communication, the less we communicate." This quote by Joseph Priestley from the 1700’s is as true now as when it was written. In commercial real estate, clear understandable communication is key to a successful transaction. Brokers, sales agents and property managers bridge communications between a multitude of disciplines all using their own slang, anachronisms, and arcane terms never to be found in a computer word search.