Austin continues to be one of the leading US real estate markets, as evidenced by its Top 5 ranking in the PWC Emerging Trends in Real Estate 2018 report. New mid-rise buildings are popping up where there was just a small building, roads are under construction throughout the city and the downtown skyline is on the rise.
Today, David Morris, CCIM runs down the Top 12 Landlord Major Missteps that Can Slow or Derail Your Leasing Efforts. David is a Sales Executive with Xceligent and former president of St. Louis CCIM, SIOR, Missouri Commercial Realtors, and St. Louis Commercial Realtors chapters. Connect with David on LinkedIn: DavidMorrisCCIM
Today’s post warns you to Save the Eulogy! Retail is Not Dead! The author, Misty Belsha, is a Director of Analytics for Xceligent’s Kansas City market. Connect with Misty on LinkedIn: Misty Belsha
We’ve all read reports indicating the sky is falling for shopping centers and malls. Then, a contradictory report is released the following day stating the retail market is just fine and we need to adjust the way we’re looking at it. Well, which is it?
An empty office building doesn’t have to remain an office building — and an old supermarket doesn’t have to continue to house groceries. As the needs of communities evolve, the way people use older buildings can also evolve. Repurposing commercial real estate gives you the opportunity to revitalize an older building and breathe new life into a neighborhood or town.
Neil Golub is Sales Executive with Xceligent in the New York Tri-State area. Connect with Neil on LinkedIn: NeilGolub.
Our New York Next Generation ICSC Committee assembled a diverse group of companies to discuss “The Emergence and Impact of Disruptive Retail Concepts”. As retail faces headwinds with economic challenges and changes in consumer behavior, it was insightful to hear from these companies who have sprouted over the past few years by listening and adapting to the market.
Today’s guest post is by Dave Morris, CCIM, Sales Executive with Xceligent and former president of St. Louis CCIM, SIOR, Missouri Commercial Realtors, and St. Louis Commercial Realtors chapters. Connect with David on LinkedIn: DavidMorrisCCIM
As a listing broker, you spend a significant amount of your time prospecting for new tenants for your listings. Once you’ve identified a prospect, you want to be sure to present your listing in the best possible way. The initial property tour is the best time to highlight the properties’ benefits and address any concerns they may raise. Do not miss this opportunity by allowing cooperating brokers and/or prospects to tour a space without you. Here are some tips for conducting a successful property tour.
If you’re just plunging into the world of commercial real estate leases, you might feel a little overwhelmed by the different terms used in the field. You might even feel unsure of what you’re getting into. But those terms aren’t as intimidating as many people think.
All leases are based around two main calculation methods – gross and net. Within each method, there are a variety of types: full service lease, which is also referred to as full service gross, modified gross, and a variety of net lease, including triple net. These leases provide a base from which rent and expenses are calculated. In both cases, the tenant pays a base rent for the property and the type of lease will determine whether the tenant or landlord pays the other operating expenses.
For instance, in a gross lease, the tenant is expected to pay a monthly lump sum rent that includes utilities, taxes, maintenance fees, janitorial fees, security fees, etc. The landlord includes all these fees in the rent and then pays for these expenses on behalf of the tenant.
For a net lease, the fundamental principle is that the landlord charges only the base rent, and the tenant contracts and directly pays for any other operating expenses including property taxes, insurance, janitorial services, maintenance fees, security fees, water, trash fees and other costs.
So, without further ado, let’s discuss the three types of commercial leases in more detail.
A recent report by IHL Group entitled Debunking the Retail Apocalypse included a recent chart showing the planned expansion for major restaurants for 2017. Demand appears to remain strong for fast food and quick serve restaurants. Restaurants continue to be popular commercial real estate investments as many restaurant leases are triple net (NNN) that more passive investments allowing the owner to receive a monthly rent check, while the tenant is responsible for taxes, insurance, and maintenance.
Amazon Joins Other Fortune 15 Companies in Building New Headquarters
Amazon recently announced the start of their selection process to find the location for a second headquarters that could employ as many as fifty thousand (50,000) new full-time employees with an average compensation exceeding one hundred thousand dollars ($100,000) over the next ten to fifteen years. This opportunity has communities scrambling to identify the incentive package and real estate site that can land this amazing deal. The initial requirement is for 500,000 square feet that will be open by 2019 that could grow up to 8 million square feet by 2027. The establishment of a second headquarters by Amazon will be the fifth company within the top 15 of the Fortune 500 to begin or complete a new headquarters project in 2017.
Is the Retail Apocalypse – Fact or Fiction?
If you read the headlines, you would believe the Retail Apocalypse is imminent with announcements seemingly each week of new store closures. In fact, earlier this year, we posted a story called Retail Store Closures Pick Up Speed, Says Report based on a report by Fung Global Retail and Technology Tracker. But a new report by IHL Group entitled Debunking the Retail Apocalypse provides an alternative perspective. Their research shows that retailers and restaurants are planning to open 14,248 locations in 2017 compared to 10,168 announced closures. A net increase of more than 4,000 new stores is a very different story than what is captured in the headlines. And the projections for 2018 are even stronger with more than 5,500 openings projected.