No business can operate alone; we all need a large group of other individuals and businesses to help us succeed.  At Garan Commercial Properties, when one of our clients needs someone to help their business grow, we look into our list of contacts to see if we can find someone with the requisite skills to further aid our client or their business.

Let’s meet Sharon Hairston-King, one of the people we know:

1. Please provide a brief history or your current business or expertise.

I am the owner of Hairston & Associates, a small, growing insurance agency; we have been in business for almost 20 years and during that time we have sought to have a positive influence on the           Houston community.

We offer commercial coverage for businesses large and small as well as personal line(s) insurance coverage for home, life, auto, and medical.

2. What are your specialty or target markets?

Although we service all markets in the greater Houston area, our focus for 2010 is women owned businesses. This is not to say we we will avoid other markets, but we recognize the growing strength of this business community and we would like to participate in helping it expand.

3. What are the greatest challenges facing your clients presently?

The greatest challenge facing our clients today are primarily financial; meeting budgets, maintaining payroll, paying overhead costs and other monthly expenditures. Our clients are no different than much of America today; they are trying to maintain a sense of balance in an unbalanced economic environment.

4. What advice do you give clients or potential clients to overcome these challenges?

At Hairston & Associates we tell clients that it is key to keep a positive outlook in the face of adversity. I like to say “as long as we can turn the key in the door to open up, there is hope.”  America is no stranger to difficult economic times; we have survived them before and we will continue to persevere.

5. What positive aspects do you see in your market given the current economic climate?

Our market has the unique ability to get better as times get more difficult. The tendency for most people under economic duress is to try and protect their possessions. Insurance not only serves to give them peace of mind during such periods, but it also protects them from the possibility of loss.

6. What is your outlook for the remainder of the year? Next Year?

The outlook at Hairston & Associates for the remainder of the year is positive. From all indications, we are making small strides towards turning around the problems we’ve faced over the last couple of years.  There is still much work ahead but we remain confident in the turn around.

For next year we see more need for hard work and continued hope. However, with the grace of God and a continued focus on our clients, I have no reason to believe 2011 will be anything less then great for our business and the economy in general

7. What separates you from your competition?

I think what separates us from the competition is the continued commitment to provide the type of customer service that our clients would find hard to replace.  We seek to make out clients feel they are a valuable part of our agency and not just a policy number.  Are we successful all the time? No, but when you’ve failed and honestly try to make amends your clients appreciate the efforts.

8. What is the greatest satisfaction you get from operating your business?

My greatest satisfaction comes from retaining satisfied clients and being able to place the business with a carrier that is affordable for the insured during any market condition.

9. What are some points you hope clients take away from their initial meeting with you?After conducting and completing business with you and your firm?

I hope my clients feel my sincerity in trying to provide them a valuable and protective service. I hope they feel the joy I have in knowing our agency has a variety of insurance products available for their various needs at competitive prices. I hope they walk out of our offices with the feeling that our business matters to us, because it does.

10. How may people contact you?

Sharon Hairston-King can be contacted at Hairston & Associates, 281.257.0252.  Feel free to call or stop by their office at 8701 Spring Cypress, Ste B, Spring, Texas. You can find them in the Yellow Pages under Insurance Providers or on the web at, www.hairstonassociates.com.

Check back often to meet more of the people we know who can help you and your business.

No business can operate alone; we all need a large group of other individuals and businesses to help us succeed.  At Garan Commercial Properties, when one of our clients needs someone to help their business grow, we look into our list of contacts to see if we can find someone with the requisite skills to further aid our client or their business.

Let’s meet Mark Narro, one of the people we know:

1.Please provide a brief history of your current business or area of expertise.
I am a broker associate with RE/Max Westside Realtors offering buyer and seller brokerage services since 1984.

2. What is your specialty or target market? My core market is new or upgrading home buyers or sellers specializing in Memorial, Katy, Alief, and master planned communities.

3. What are the greatest challenges facing your clients presently? As with most business sectors, the greatest challenge today is financing.  Lending requirements have tightened up significantly making it harder to be approved for home financing.

4. What advice do you give clients or potential clients to overcome these challenges? I recommend buyers get pre-approved before beginning your home search to determine the amount of purchase you can qualify for and if there are any personal issues that need to be addressed prior approved.

5. What positive aspects do you see in the current market? Though difficult to maneuver in without an experienced realtor, the current markets provide ample buying opportunities and low interest rates.

6. What is your outlook for the remainder of the year? Next year? I see a continued improvement in the market as deals get done which should improve market confidence and strengthen value.

7. What separates you from your competition? I feel that my expertise, knowledge and common sense approach along with my ability to to properly price, stage, and market your home allow me to stand apart from other residential realtors.  In addition, I continually strive for excellence, am a supporter of the Children’s Miracle Network, and am an inductee of the 1999 RE/MAX Hall of Fame.

8. What is the greatest satisfaction that you get from operating your business? I take great pleasure in being able to assist homeowners obtain their largest asset with ease, confidence, and joy.

9.What are some points you hope clients take away from their initial meeting with you? After conducting and completing business with you? When meeting with potential clients, I hope they take away knowledge of the current housing market, how to get the best price for their home, and what their needs are for their next home purchase.  After the purchase, I hope my clients take away clear concise advice on how to maintain their asset as well as the calm of a stress free transaction which will allow them to enjoy their new home.

10. How may people contact you? Mark can be reached at www.marknarro.com where you can sign up for his quarterly newsletter, by email at marknarro@remax.net,  or by phone at 281.798.2676.
Check back often to meet more of the people we know who can help you and your business.

The overall strength of the Texas markets in relation to other major metropolitan cities throughout the United States is clearly evident in the market cycle representations below. These charts were included in the recently published annual report of IRR, Integra Realty Resources, Viewpoint 2010.

The Office Cycle:

The vacancy rates of major Texas cities, Houston(10%), Austin(14.4%), and San Antonio(22.3%) clearly define them as within the hyper-supply stage of the business cycle with projected increasing rates and and little to no rental rate growth. Dallas(21.2%) remains the only CBD to have entered the recessionary phase and will see continued depressed numbers for 2010.

Save Dallas and San Antonio, Texas MSAs remain below the national vacancy rate of 15.37%.

The Retail Cycle:

Retail will continue to see a tough year in 2010. Only Austin(9.2%) will experience a competitive retail market in the upcoming year with San Antonio(11.7%), Houston(15.82), and Dallas(10.01%) all entering the downward phases of the cycle. Only Austin is seeing competitive overall vacancy numbers in line with the simple national average of 9.7%

The Multi-Family Cycle:

Again the Texas markets are in stronger position then most other metropolitan cities and is lagging behind their recessionary markets. As in most commercial real estate sectors, multifamily construction is down for a second year with a decrease of 18.6%. Multifamily vacancy rates on a national scale are 7.6% with varied numbers throughout local markets and regions providing both good and bad investment opportunity.

The Industrial Market CycleAccording to Viewpoint, the industrial markets, though depressed, were not as greatly

Assignment: A transfer of interest from one person to another.

Example: Most commercial leases will allow the assignment of the lease; one tenant may assign their leasehold interest to the property without further obligation.

Base Year: A 12 month period which is the basis for determining expenses; most often the initial 12 month period, the base year can be negotiated to other 12 month periods to secure expense relief.

Example: Often in a multi-year lease a base expense level is determined by calculating the expenses incurred during the base year.

Build-Out: The process of finishing out the raw space of a building.

Example: New commercial tenants often do not realize the costs associated with the build-out of their leased space.  This often affects their ability to get fair TI concessions.

CAM/Common Area Maintenance: The additional rent charged as an expense to the tenant, commonly pro-rated to maintain the common areas of the building.

Example: Our building CAM charges include security, janitorial, and landscaping services.

Expense Stop: A fixed dollar amount agreed upon by the landlord and the tenant above which the tenant is responsible for all building expenses.

Example: The expense stop, best understood as the landlord expense stop, is a set dollar amount where the landlord stops paying expenses.

Holdover: A tenant that remains in possession of the property after their lease has expired.

Example: Anytime a tenant remains in leased space without an extension or renewal they are considered a holdover and are subject to the terms of the lease’s last period.

Option to Renew: An option found in most leases which allows the tenant to extend the lease once the primary term has expired.

Example: A fast growing firm taking a conservative leasing approach might opt to take a shorter lease with an option to renew. This allows the tenant flexibility if the business expands too fast or takes an unfortunate downward turn.

Sublet: When a sub-lessor transfers a portion of their leasehold interest to another person or entity.

Example: The subletting of the property will not eliminate the financial responsibility of the sub-lessor (original lessee) but may significantly reduce their financial burden.

Subordination Clause: A clause in a lease by which the entity with an interest in real estate or real estate consents to a reduction in priority with regard to another person or entity holding an interest in the same real estate.

Example: Most tenants of new construction will be required to sign a lease with a subordination clause that will prioritize the liens of the developer’s lenders ahead of any interest of the tenant.

Turn-Key: A term used to describe a property that is ready for business.

Example: Because the space was already built out for a restaurant, the cafe owner was able to find turn-key space for his new venture.

Tenant Improvements / TI : A dual use term meaning a) The design and construction of any leased space and b) The allowance or credit given by landlords to complete the design and construction of the space.

Example: In an effort to entice new tenants to their properties, landlords are offering high TI’s for build-out.

Class A: The highest quality of building or available space on the market. These buildings are often newly constructed or have had a long term top tier maintenance program, and contain various state of the art building systems which are sought after by investors and users. They most often command high or above-market rental rates.

Example: Our investor was looking for Class A buildings only- newly constructed, green utility systems, fully wired high speed networks, and efficient, elegant architecture.

Class B: This describes the average quality of existing buildings or available space on the market. This property type has common but dated systems, a general maintenance program, and commands average market rental rates.

Example: The Class B building had been in the neighborhood for 10 years, had several updates and renovations, and had a steady stream of local business tenants.

Class C: A commercial real estate term that describes the lowest grade of building or available space on the market. These buildings are usually in need of major renovations throughout and bring in lower market rental rates.

Example: Cracks in the walls, damages and/or dated systems, and a high tenant turnover often are signs of a Class C building.

HVAC: A commonly used acronym for Heating, Ventilation, and Air Conditioning systems.

Example: When purchasing a new investment property, ensure that all systems are properly functioning. A faulty HVAC system alone can run into a six figure repair quite easily.

Net Absorption: The difference between space newly occupied and space newly vacated. If more space is vacated there is a negative absorption; if more space is occupied a positive absorption.

Example: Negative absorption in office markets is indicative of a depressed or slowing economy.

Usable Area: The area or unit that is available to be occupied in a building or floor plan.

Example: The 10,000sf office building space has 9,547sf of usable space that can be leased.

Common Area: The area of a multiuser building that is used by and benefits more than one tenant in the building. These spaces include areas such as bathrooms, the main lobby, and elevators.

Example: In addition to your base rent, tenants may pay their prorated portion of maintaining the building’s common areas.

Gross Rentable Area: A measurement term which is most often used to determine a tenant’s rent, and is determined by measuring from the inside of the exterior walls to the center of the partition walls.

Example: The commercial real estate broker carefully examined our rental rates by comparing the building’s usable area with its gross rentable area and discovered that our original rent calculation was incorrect.

Rental Rate: The rate detailing the annual costs of occupancy for a lease space based on a square foot basis.

Example: James, the owner’s leasing agent, quoted us $17 dollars per square foot to lease out the 3,000sf office space on North Main; our monthly rent will be $4,250.

Tenant Representative: In a lease transaction, the broker that represents the interest of the tenant is referred to as a tenant representative. A tenant rep will locate and evaluate a space for the tenant as well and negotiate the lease; they are paid by the landlord.

Example: For no cost to the tenant, the hiring of a tenant representative can often yield better lease terms and rates then if they negotiated the lease themselves.

Vacancy Rate: The measurement of the available vacant space in a given market or building; it is determined by dividing the total amount of vacant space by the total amount of available inventory.

Example: The office building that John plans on purchasing has a total of one million square feet; the building is only half full and thus has a 50% vacancy rate.

I believe that 2010 will continue to be a difficult period for the commercial real estate sector; unemployment will remain around 10%, new construction starts will be limited, the total value of closed transactions will be low, and various other industries, including heavy commercial real estate users will continue to struggle.

However, all of this negativity will provide opportunity for investors, owner/users, and tenants as property owners deal with increasing vacancies, looming note payments, and a sector that will have continued difficult times for an additional 12-18 months. There may be panic and concern , but this can also be perceived as opportunity. Across commercial real estate sectors, there will be opportunity throughout 2010 to improve your lease terms or lease space, increase your real estate investment portfolio, or simply put your business into a better facility for future growth.

The only significant downside to our new year is that this abundance of opportunity will be difficult to leverage without cash. The strict lending climate of financial institutions will limit lending to those with optimum credit and an ideal project. Banks are still trying to figure out whom to blame for their self-serving lending spree, implosion, and government sponsored bailout so the return of lending normalcy is still several years away for the majority of borrowers.

So where does that leave the rest of us growing private business owners struggling to keep the doors open, inventory stocked, and valuable employees while orders and sales decline? Luckily, there are options that can be utilized to fund the buying opportunities of 2010.

Family: I think it is fair to say that a majority of private business owners, at one time or another, have gone to the dinner table of family members,hat in hand, to ask for some financial assistance with their business. If one or several family members have the means, then a careful explanation of the upside potential of 2010 could yield the business owner the necessary capital to leverage the available opportunity.

Friends: You go to parties, on trips, and games together- you watched them get married, start families, and even stayed up late more than once to listen to a problem; why not make money together? Friends can be another great source of capital in tight credit times. Keep it simple, professional, and don’t hesitate to explain the potential downside.

Syndication: This is a term that has again recently gained popularity in real estate circles. It sounds much more important than it is, but in general, syndication is the collection of two or more investors into a recognized legal group in order to pool resources and make a larger purchase then any one person could do alone. In short, you make a pitch to your softball team, 8 guys come on board with funds, you form a holding company of some kind with the assistance of tax and legal professionals, and you have formed a syndicate.

Private Lenders: These are high net worth individuals operating alone or under a legal construct that lend out funds to groups and businesses that meet their investing criteria. Often specialized in one area or another, they are more familiar with the business of their intended borrowers then most other lending institutions and can better assess the risk and potential reward.

Hard Money Lenders: These are individuals or groups who fund loans that are unable to be funded elsewhere. Most of these loans are short-term with higher than normal rates and terms, but if it is the only way to get the deal done they can be a valuable resource. Keep a short list of these guys and use them if necessary in the 11th hour to close the deal and make a profit.

Small Local or Private Banks: I have always been a fan of small local or private banks. The difference is that you are more than a faceless account number, you are not the generic Mr So & So who is in manufacturing. You are Tony, Roberts younger brother who makes parts for jet engines over on the old Simmons’ property. The point is; they know you, they know your business, they know your property, and they will give your loan a little more latitude because you are a participating member of the community.

Find your local private bank, open an account, take the president to lunch or a round of golf, and they will help your business grow one day.

These are just a few of the funding avenues available to the private business owner during difficult lending climates. For 2010 you should look into all of them.

Direct Lease: A lease agreement between the building owner, typically an investor and not a user of the property, and the tenant; this is the most common type of lease.

Example: Dr. Molar purchased a retail strip as an investment and leased the spaces to several businesses under direct leases.

Indirect Lease: A lease between a tenant and a previous user of the property, such as a sublease.

Example: Having used the building for 10 years, the tenant subleased the property for  the remaining 5 years under an indirect lease.

Term: The period of time that the agreement covers.

Example:  A commercial lease effective between 2009-2014 has a 5-year term.

Primary Term:  The initial time period of an agreement before any extensions or renewals.

Example:  In a commercial lease effective between 2009-2014 with a 3 year renewal, the primary term is the first 5 years of the agreement before the renewal.  The renewal years are called the renewal period or secondary term.

Lessor:  The legal term for the Landlord in a lease.

Example: “Comes now ABC Corporation( hereinafter “Lessor”) and Jane’s Ice Cream Shop (hereinafter “Lessee) to enter into this binding lease agreement…..”

Lessee: The legal term for the Tenant in a lease.

Example: “Comes now ABC Corporation( hereinafter “Lessor”) and Dr. Jane Molar DDS P.C.(hereinafter “Lessee”) to enter into this binding lease agreement…..”

Sublease: an indirect lease of a property; leasing property under an agreement that is subordinate to the original lease and or original tenant.

Example: Dr. Molar subleased 3 offices on the west side of town in Dr Green’s leased office suite so that she could test the area for a new office location.

Sublessor: In an indirect lease, or sublease, the legal term for the individual or entity with the original lease of the property, i.e. the landlord of the sublease

Example: Comes now Dr. Jane Molar, DDS, P.C (original Lessee and hereinafter “Sublessor”) and Dr. Ted Incisor, DDS, L.L.C. (hereinafter “Sublessee”)to enter into this binding lease agreement….)

Sublessee: In an indirect lease, or sublease, the legal term for the individual or entity who is the new or partial tenant of the of the property; i.e. the tenant of the sublease.

Example: Comes now Dr. Jane Molar, DDS, P.C (original Lessee and hereinafter “Sublessor”) and Dr. Ted Incisor, DDS, L.L.C. (hereinafter “Sublessee”)to enter into this binding lease agreement…..”

Gross Lease: Presently a rare animal, this is a lease in which the Tenant pays only a flat rental rate and the Landlord pays for everything else; i.e. insurance, taxes, utilities, etc.

Example:  My grandfather once told me of his full floor gross lease downtown for $1000/mo; that barely covers the utilities clause in the lease for our small 600sf office.

NNN, Triple Net, or Net lease:  The gold standard of commercial leases, this is a lease in which the tenant pays base rent as well as their pro rata share of all expenses of the property, i.e., property taxes, insurance, and maintenance.

Example:  The 10 year NNN lease will include base rent plus the tenant’s portion of property taxes, insurance, and maintenance.

{Note: Some will break it down further into modified net lease (agreed division of expenses), single net lease(base plus property taxes) or double net lease (base rent property taxes and insurance) although NNN is the most common}

Base Rent: The minimum amount required to lease the property before the addition of expenses.

Example: The base rent is $12/sf/ann with an additional $2/sf in net charges.

Additional Rent: The general term used to designate the various expenses passed through the lease to the tenant. Most additional rent items are open to negotiation as some Landlords attempt to use additional rent as a profit center.

Example: I did not have a problem paying my share of net charges but I would not allow the property manager’s “filing system charge” to be included as an operational expense and included in our additional rent.

This is the first of several posts that will introduce business owners to the various terms that they are likely to encounter in their commercial real estate dealings.  Check back often to expand your understanding of CRE.

Before starting most business ventures many successful investors will take an assessment of the involved factors, weigh the risks and rewards, and then develop a plan of action. The formulation of a solid business plan provides a clear picture of your goals, the obstacles you will need to overcome to achieve those goals, and the means to achieve those goals. In short, a business plan will help you stayed focused on your way to profitability and success.

As a portion of, or as companion to your business plan, I suggest employing a real estate plan for the same purposes. The significant impact that the use of commercial real estate will have on your business requires that a thorough and well thought out plan be devised to acquire, use, and employ the real property asset to the greatest advantage of the organization.

Regardless of what type of user you are; tenant, owner/user, investor, or a combination of all three, the real estate plan will allow you to have a detailed map to guide your commercial real estate investments and use your real estate dollars in the most economical way.

How do we start?

Each user will have a slightly different set of criteria to examine when formulating a real estate plan for their business, but generally we can begin with the following items.

1. What type of real estate will assist the business achieve its goals?

2. How will the real estate be used?

3. Does the current market provide any benefits? The projected future market?

4. What type of budget does the business plan allow us for the physical plant?

5. What special requirement (if any) will the business require of the real estate?

6. What benefits can the real estate provide the business?

7. How will the asset be held?

8. How long will we need the location?

9. Should we buy or rent?

10. How can we maximize our final decision?

These are just a few items you should consider when formulating a real estate plan for your business. A well thought out plan will allow you to see your commercial real estate as an asset that will assist the growth and success of your business. Try to stop looking at your real estate needs as just a single transaction and look at how the transaction fits into your long term goals for the business.

Do you need a real estate plan? Many people operate effectively without one, but I contend that they are leaving money on the table. In our current business climate, or any business climate for that matter, inefficient operations at any level of your organization are a waste of valuable resources. It may be a few dollars here and a few dollars there, but they will add up - and such waste cannot be ignored by the private business owner.

Given the size of the private business owners’ real estate commitments, to ignore this manageable portion of your business is tantamount to not replenishing your inventory after you have sold your current stock of goods; this is contrary to your goal of continued sales to earn additional profits. Similarly, the goal of your real estate plan should be for your real estate to continue to add value to your business and not just stop after a single successful transaction.

In our future posts, we will walk through the steps necessary to develop a solid real estate plan for your business and show how a real estate plan is critical to the effective use of your available real estate dollars and the financial health of your business.

Real property, like any other business asset, should be used to improve the fiscal condition of the business; you buy a larger location to build more products, you lease a warehouse next to a major thoroughfare to improve distribution, you purchase the lot next door to have more parking for your employees and customers.  As such, we cannot forget that the property is a dynamic valuable asset that can and should be manipulated to meet the needs of the business. A neglected lease that could be renegotiated for a lower rate, preventative maintenance needs that could save dollars and downtime in the future, or even the opportunity to sell the property during an active market are just several ways that the physical plant could be beneficial.  Therefore, it is imperative that the private business owner perform regular and thorough evaluations of all real property interests to insure maximum utilization.

The Plant:

The easiest place to start is with the physical structure itself; major problems will be evident almost immediately and minor problems will leave small signs of warning.  First inspect the shell of the building, look at the foundation, walls, windows and doors, and roof; look for damage of any kind, water pooling, cracks in the walls or foundation, sagging overhangs, and the like.  Once you are comfortable with the shell, move into the interior and inspect floors, walls, doors, windows, and all rooms to check for any excessive wear, cracking, shifting, tilt or other indications of instability in the structure.  If you are uncomfortable at any point with what you see, it is best to call in a professional building engineer to thoroughly inspect the structure; a trained eye is very beneficial in these matters and can save a lot of time and money.

Confident that the structure is sound, look to the any cosmetic needs or upgrades that could be beneficial to the value of the property or the experience of your customers or employees.  Is a new coat of paint in order? Is the carpet worn or are there cracked tiles in storeroom?  Should we switch to double pane or tinted windows on the west side of the building? These are smaller things that will add value and improve your work place.

The Systems:

With a sound and clean plant, we move into the innards of the building and the various systems that work behind the scenes to keep the plant producing.  You will need to engage a professional to check the HVAC, electric, plumbing, and fire systems to make sure everything is operating properly.  Of course location and degree of use may vary on this but generally, the HVAC system should be checked at least twice a year and the plumbing, electric, and fire at least once a year.  These contractors will insure that these vital systems are working efficiently, are property sized for your facility, are within current codes and properly certified, and are operating without defects.  An overburdened AC, improper electrical wiring, dead batteries in a fire alarm, or small leak in a pipe can cause a preventable increase in utility bills or the damage or loss of the structure.  The small cost attributed to hiring these professional once or twice a year will easily be recovered through lower utility bills and the avoidance of any downtime due to an unplanned incident.

Other systems which should also be reviewed regularly are security systems, proprietary systems in your business, and emergency and safety protocols.

The Liabilities:

Once you have an interest in real estate the local taxing authorities will start sending you (or your landlord) ad valorem tax notices informing you of a) the value of your building and the personal property therein (machines, computers, decorations, etc) and b) the amount you are intended to pay based on these values.  Always make sure these are correct and that you are not overpaying.  Several things to remember here is that appraisals are done on January 1 of each year and that you should contest them if the taxing authority is too high. We cannot avoid taxes but we can and should minimize them.

Another concern directly affecting your real property interest is insurance.  Lenders and landlords will require that general liability and casualty insurance be maintained. As an owner/ user you will want to have some security that you will have a chance to get operations up and running should the worst occur.  Review and verify these rates with an insurance professional; you should have a full policy review every year (or renewal) to insure best rates and the appropriate policy for your needs is in place.

The Market:

You secured your real estate interest due to a business need in line with your real estate plan with the goal of benefiting your fiscal condition.  What happens when the market changes?  What if you lose several major clients and need to downsize?  It is important to realize that your interest has value and can be tapped if necessary.  If the market is fluid and cash is needed, perhaps a sale and leaseback; you retain the location under a lease, but sell the title.  If you signed a lease several years ago and now find yourself in a tenants market, approach your landlord about reducing the rental rates.  Perhaps prices are good enough that you can sell the property and get enough cash to build the facility you always wanted.  Do not neglect the value of your real estate interest and employ it as necessary for the benefit of your business’ fiscal health.  

The regular evaluation of your real estate interest will allow the business owner to maximize the efficiency, operations, and costs in order to improve their bottom line.  A thorough evaluation in tandem with a properly formulated real estate plan for your business will insure that the property is an asset that will benefit and improve your business.

 A business relationship with an experienced, professional, commercial real estate broker is an asset that is often underused by the small to midsized private business owner despite the fact that they can make substantial contributions to the financial condition of your business.  Below you will find several reasons why the private business owner should contact a commercial real estate broker

1.       Commercial real estate brokers save you time.

As a private business owner time is your most valuable asset.   You do not have the time to research, locate, evaluate, negotiate, contract, and purchase or lease the real estate your business needs.  These are the core functions of commercial real estate brokers. The hiring of a CRE broker will free up your time and allow you to get more things done in your core business.

2.       Commercial real estate brokers have access to information.

In our web based world a business owner can find any number of free commercial property listing sites to aid them in their property search.  These sites, though helpful to a degree, are limited in the amount of information provided.  CRE brokers have access to a myriad selection of local, state, and national databases that are geared toward the brokerage community.   With a few key strokes and the various software and database subscriptions available the experienced broker can narrow in on a property in a matter of days, if not hours and begin a proper evaluation of the asset.

3.       Commercial real estate brokers are dedicated professionals.

CRE brokers are licensed professionals with years of dedicated commercial experience.  Many are specialized in one or  more of the commercial real estate sectors(retail, office, investment, industrial,  multifamily, land)  and are often affiliated with the relevant professional  associations aimed at those sectors such as Certified Commercial Investment Member, Society of Industrial and Office Realtors, Building and Office Managers Association(these are but a few of the many)

4.         Commercial real estate brokers will save/make you money.

 Whether it be a rent or cost savings in a lease, the proper purchase price for an investment property, assistance in site selection for a new branch, or just a referral for a more economical vendor for your buildings landscaping needs we will find another dollar(and usually many dollars) for your business.  These dollars can then go back into the business or can be put to work in other investment properties.

5.       Commercial real estate brokers have a wide network of contacts.

Successful CRE brokers have a wide network of colleagues, associates, and friends in different  commercial real estate sectors and various industries that are willing to provide unbiased insight and information regarding their specialties and how it will affect your transaction.  This will allow you not only to have the experience of the one broker but the various bankers, insurers, contractors, vendors, architects, builders and others that he or she may know.  

6.       Commercial real estate broker services are FREE (most of the time).

The most common services provided by CRE brokers are usually commission based and payable upon the completion of the transaction. Usually, the purchaser or tenant will not pay any extra money to have a broker represent them; the earned fee is based on the executed transaction and is paid by the landlord or seller at closing.

There are other ways that commercial real estate brokers get paid for the various services they provide, but the commission based structure is by far the most prevalent.

6.5   Commercial real estate brokers are nice people.

Most CRE brokers are genuinely nice people who have a good beat on current economic conditions. Their business is about relationships in the business community and one of their goals is to help your business succeed through the use of proper real estate strategies.

Call a commercial real estate broker and develop a business relationship today, not only will it save you time and money but it will help your business succeed.