Browse Tag: NAR

How To Negotiate Better Deals: Free Report From Harvard Law

[The standard disclaimer certainly applies today: Never, ever take anything you read here at The Source as legal advice!  Always, always seek the input of qualified counsel in advance of any business decisions you undertake!  -WG]

In lease negotiations, it’s the understatement of the year to say “the devil is in the details”.  Carefully combing through commercial lease terms will expose not only the devil, but also clues as to how he got there. It’s ineffective bargaining at negotiation time that can leave parties to a lease painted into a corner when important circumstances arise. Long after the negotiations are done, the skill level brought to bear on the job of bargaining looms large. As a property manager, broker, leasing agent or landlord, are your negotiation skills up to par? Or are you leaving money on the table?

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Urban Land Institute: Six CRE Trends For Rest Of 2016

English: The official logo image of ULI.

The Urban Land Institute (ULI) wrote today about six ongoing trends that will continue to mark the national commercial real estate market in 2016 and maybe beyond. We know the basics and broad strokes of today’s national market already – very low inflation hand-in-hand with very low prime lending rates, improving employment numbers, and predictable demographic migrations as baby boomers and millennials find their new group positions for living and working.

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Key Notes: Reviewing The Nite Ize S-Biner Key Rack

Readers of The Source will recall my travails with keys from a couple of months ago, when I went to make some duplicate keys and found a robot doing a significantly worse job duplicating keys than human hardware store employees once did. Because there isn’t a commercial real estate broker, owner or property manager working today who doesn’t struggle with keys and locks, let’s take another look at cutting-edge key technology: the Nite Ize S-Biner Key Rack.

photo of the Nite Ize S-Biner Key Rack
Above: The Nite Ize S-Biner Key Rack

Nite Ize?  S-Biner?

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2016 Q2 CRE Market Survey: The Trends Are Your Friends

National Association of Realtors, Washington, ...

Who says you can’t look back? National Association of REALTORS® has released its second quarter 2016 Commercial Real Estate Market Survey, and the takeaways appear pretty good for the national commercial real estate market picture for 2Q.

In June 2016, a random sampling of over 62,000 NAR members with an interest in commercial real estate was asked for their input.  Nearly 1,000 responded with completed surveys, for a response rate of 1.6%.

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Video: Model The Internal Rate Of Return (IRR)

In the commercial real estate investment world, one of the most important values to compare potential investment properties is the internal rate of return, or IRR.  One way to think of this value is a display of the growth rate the project is expected to generate. It’s a number that, roughly speaking, describes profit after cost of capital is paid for.  Real estate investment firms put so much stock into IRR that they commonly use it as a major deciding factor to greenlight a project or not. If a project’s IRR doesn’t meet or exceed the firm’s minimum acceptable return, or required rate of return (RRR), chances are that project is a no-go for the firm.

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Fed Survey: Banks Tightened CRE Loan Standards Over Past Twelve Months

If, during the past twelve months, you’ve gone to the capital markets and suspected that banks aren’t playing ball quite as much as before, a key survey of loan officers says you’d be right.

This week, the Federal Reserve Bank released its Senior Loan Officer Opinion Survey. The project looks at changes to the terms of commercial loans, including loans for commercial real estate. 71 domestic banks and 23 branches of foreign banks were heard from in this year’s survey.

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Introducing the Waffle House Index

A Waffle House located in Hagerstown, Maryland.

Commercial real estate is everywhere. Sometimes, that means that it can serve a purpose we didn’t expect.

The Federal Emergency Management Agency (FEMA) is the federal agency charged with responding to a disaster on American soil. FEMA’s responsibilities include accurately assessing the damage left by tornado, flood, hurricane or other disaster, so that good decisions can be made in its wake — how much water or food or shelter to bring, and to exactly where, for example.

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CBRE Report: Pokémon Go and Commercial Real Estate

The latest digital craze sweeping the globe happens to have significant commercial real estate implications.

Pokémon Go is a game that creates location value out of thin air. The game leads its players to roam the landscape in pursuit of digital characters, using smart phones and a technology technique called augmented reality (AR). Think of AR as digital hallucinations a game maker creates. The hallucinations aren’t real, but they nonetheless have physical positions in the real world – on a street corner, at a retail store, in a city park, etc. The people follow the characters and extra foot traffic results.

Location Value

If you’re wondering what I mean by “location value”, refer to the classic “three rules of real estate” for the answer: location, location location. The value and performance of a commercial property is almost always deeply related to the desire of people to go to that property. AR, along with the software games or promotions it enables, is a completely new and very successful way to influence and build that desire. Because location value is core to commercial real estate, the economic implications of the game for the CRE industry could be staggering.

CBRE Market Flash is a Must-Read

The game works by luring players into locations they will not otherwise go. That’s both good news (for retailers especially) and bad news (for property managers responsible for common areas and security). CBRE’s most recent report on the phenomenon as it applies to commercial real estate is quite an eye-opener and a must-read to get a handle on the potential economic impacts behind all the fuss. From the market flash:

  1. Consumers of commercial and residential property will soon benefit from emerging capabilities to visualize real estate virtually via mixed-reality offerings in tandem with parallel advances in personal media devices and underlying graphics technology.
  2. The industrial market will have access to technology that will impact multiple elements of the supply chain.  DHL and Ricoh recently carried out a successful augmented-reality pilot in a warehouse in the Netherlands that proved successful in enhancing time efficiency and error reduction.
  3. The retail sector, already seeing an increase in foot traffic around Poké “stops” and “gyms,” is on the cutting edge of using augmented reality to engage its customer base, both online and in-store, so that customers are more informed about the products they buy.
  4. Data centers, already a booming asset class, will benefit from the need for additional infrastructure, connectivity and storage capacity demanded by this evolution.

You can read the entire CBRE Market Flash “Pokemon. So?  How will augmented technology impact commercial real estate?” at this link.

Remember: in this industry, it’s not about the Pokemon.

It’s all about the go.