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The Red Flags of an Unfavorable Commercial Real Estate Lease

Posted on September 9, 2019 by Mike Kushner in Blog, Commercial Real Estate, Tenant Representative/Buyer Agent No Comments

As a tenant needing commercial real estate space to run your business, it can be challenging to navigate the many twists and turns of finding the right space and entering into a favorable lease agreement. Your lease with your landlord can have a large impact on the success of your business, or it could cause many headaches. To ensure you’re entering into a fair and favorable agreement, let’s look at some of the most common red flags that can pop up in a commercial real estate lease.

Term of Lease – One of the most important pieces in a commercial real estate lease, short of the price, is the duration of the lease and how it’s structured. You want to be sure you fully understand when your lease begins and when it ends, especially when the landlord is making improvements to the space. A landlord may provide more favorable pricing or terms when entering into a lease that has a longer duration. While this is helpful from a budget perspective, be sure you feel confident that you will want to stay in this space for that amount of time.

Lease Renewal – Another possible red flag in a commercial real estate lease is when and how the lease will renew. When your current lease comes to an end, a landlord may desire the lease to auto-renew. As a tenant, you will want to be aware of this well in advance so that if you do not want to renew your lease you have options to exit the lease. Additionally, look to see if the lease specifies a change in price upon renewal. Sometimes there will be an increase that could hit you unexpectedly.

Lease Termination – Next, be sure you know the terms and penalties for breaking a lease. While it may not be your intentions to break the lease early, various factors impacting your need for the space could make it necessary. If the Lease imposes a steep monetary penalty for breaking the lease early, you may wish to negotiate that down to more favorable (and reasonable) terms.

Environmental Considerations – Some commercial real estate leases may specify that a tenant may not store any hazardous materials on the premises. This is not typically an issue; however, you will want to be sure that included in the lease is a warranty from the landlord that the premises are free of such hazardous materials. In a situation where you plan to use the commercial space (such as a warehouse) for storage of consumables (i.e., food and drinks), you may want assurance that your inventory is not likely to be contaminated.

Insurance – Be sure to check the required minimum coverages for a tenant’s liability insurance. Typical coverage minimums are $1 million per occurrence and $3 million in the aggregate. If the lease specifies higher minimums at a price that is concerning, you will want to make this part of your negotiations before signing the lease.

Maintenance – A commercial real estate lease should outline who is responsible for the repairs and maintenance of all building systems, including HVAC, electrical and plumbing. Should the lease place the responsibility on the tenant, you may wish to renegotiate this. In a situation where the tenant is only leasing a small percentage of the overall building space, it’s unusual for the tenant to assume the costs of repair and maintenance for things that impact more than their rented space.

Defaulting – Closely review the language in the lease regarding missed or delayed rent payments. It is reasonable to request at least one written notice during any 12-month period (to account for a reasonable mistake), as well as a 5-day grace period for rent payments.

Relocation – Some commercial real estate leases may include a section about relocation. Does this grant the landlord the right to relocate the tenant? Under what terms? Pay attention to this piece as it could greatly inconvenience you, if it ever takes place.

While this is by no means an exhaustive list of red flags of which you must be aware when entering a commercial real estate lease, this should provide a great starting point. What’s most important is to review every document closely, ask for clarification, and seek professional tenant representation early in the process. Having an exclusive tenant representative on your side will provide an added layer of knowledge, experience, and protection that will put you in the best position to negotiate a fair and favorable lease.

Do you have a question related to your commercial real estate lease? Reach out to Omni Realty today so we can help you find an answer!

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Does Your Commercial Real Estate Property Qualify for Section 110 Construction Allowances?

Posted on June 11, 2018 by Mike Kushner in Blog, Commercial Real Estate No Comments

Section 110 of the current Internal Revenue Code (IRC) provides an interesting opportunity for commercial tenants and landlords alike. Essentially Section 110, in certain instances, allows commercial tenants to make improvements to their leased workspace with the benefit of not having to recognize income for any cash payments or rent reductions that are expressly identified in the lease as qualified Section 110 allowances. Additionally, under a qualified Section 110 provision, the landlord will be treated as the owner of the constructed improvements and entitled to depreciation deductions as nonresidential real estate.

The purpose of this tax provision is to provide a set of rules for certain construction allowances, in which the tax reporting and treatment will be consistent between the lessor and lessee. It’s important to understand the nuances of Section 110 that determine whether such improvements qualify. Qualified property is nonresidential real estate which is part of, or present at, “retail space,” which property reverts to the lessor at the termination of the lease. The term of the lease must be 15 years or less, applying certain rules.

For most commercial landlords and their tenants, it can be overwhelming to understand how and when it’s appropriate to take advantage of Section 110. If you find that you’re uncertain as to whether your situation qualifies, don’t let this be the reason you forfeit this potential tax break altogether. When used properly, Section 110 can offer a huge benefit to both parties, allowing tenants to enjoy an upgraded, functional workspace, and allowing landlords the ability to improve their commercial property.

Take a moment to answer these questions to determine if your property might qualify under Section 110. To help us answer, we’ve enlisted the expertise of Jim Holland, Certified Public Accountant (CPA) to offer insight into qualifying for this tax deduction. *It’s important to keep in mind that these are simplified questions and answers. More details may be necessary to fully assess your situation.

Is my space considered “retail?”

If you leased, occupied or use space in your trade of selling tangible personal property (i.e. products or goods) or services to the general public, this is considered retail space. You qualify!

Am I in a short-term lease?

If your lease, with extensions, is not greater than 15 years in length this is considered a short-term lease. You qualify!

Am I constructing qualified long-term real property for use in my trade or business?

If you construct nonresidential improvements (sec 1250 property vs. sec 1245 property) which revert to the lessor (i.e. landlord or person leasing you the space) at termination of the lease, the answer to this question is yes. You qualify! A note of caution: if the lessor chooses to use a cost-segregation study to reallocate the costs, a different language must be used in the lease agreement.

Who will ultimately own the improvements to the property?

To adhere to the requirements under Section 110, your lease must specifically indicate that the lessor retains ownership of all improvements to the property. In this case…you qualify!

Do I have an official agreement between the tenant and landlord?

If you have obtained a signed agreement, before payment or before the reduction in rent begins, from the lessor to lessee…you qualify!

Will the allowance be expended in the tax year it is received?

If the full amount of your construction allowance is expended within 8 and 1/2 months after the close of the tax year…you qualify!

Will both the landlord and the tenant disclose this information with their tax returns?

In order to fulfill this requirement, you must disclose both the landlord and tenants names, addresses, employer IDs, location, and amount reported on both lessee and lessor tax returns. In doing so…you qualify!

Does the Safe-Harbor Exclusion apply?

If you have met all of the above requirements, the safe-harbor exclusion applies to your situation. You qualify!

As you can see, Section 110 provides a valuable opportunity for commercial tenants and landlords to improve their spaces while each receiving a benefit for doing so. If you meet the requirements, and it makes sense for your situation, taking advantage of the Section 110 tax breaks could open up new possibilities to create the commercial space you’ve dream about having! The most important thing to keep in mind is that you must be aware of the requirements to qualify under Section 110 in order to receive the maximum benefit. Speak to a professional advisor before entering any contract or commitment.

*General Disclaimer: These are simplified answers and your situation may be more complicated. This document is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.

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Who Really Represents You in a Commercial Lease Negotiation?

Posted on January 24, 2018 by Mike Kushner in Blog, Tenant Representative/Buyer Agent No Comments

Who Really Represents You in a Commercial Lease Negotiation?

When it comes to leasing commercial workspace, too many tenants mistakenly believe that the landlord’s leasing agent/broker will somehow represent them in negotiations. Unfortunately, this is never the case.

The important question that this article answers is, “Who really represents who in a commercial lease negotiation?”

As a tenant, your wants and interests are usually different than the landlord’s, at times even diametrically opposed. It’s impossible for one broker to represent both sides of your deal faithfully and fairly. There will always be conflicts of interest and the broker most often favors your landlord, not you as the tenant.

Too often, a commercial tenant begins the process of leasing office space without hiring a tenant representative to 100% exclusively represent them. Usually they do not realize that a tenant rep is not at the cost of the tenant, since the tenant rep will normally co-broke a commission with the listing agent.

At some point, tenants then find themselves too far down the road to fully benefit from the expertise, advocacy and unbiased representation of a true tenant rep. This can result in a number of troubling issues and frustrations for the tenant. These include losing the upper hand in negotiations, being subject to unfair pricing and unsatisfactory terms and too late realizing that things could have gone far better if they had a professional dedicated solely to representing their best interests.

It’s important for every commercial tenant to understand the vast difference between a tenant representative and a traditional commercial real estate broker.

Helping us answer this critical question and more is William Gary, Principal at MacLaurin Williams, LLC and founder of The Tenant Rep Channel. Gary’s firm is committed to exclusively representing commercial tenants and owner-occupants and creating valuable resources that help to educate the public on the value of exclusive, 100% tenant representation.

Differences Between Tenant Representatives and Traditional Real Estate Brokers

A real 100% tenant rep should be able to meet all the criteria needed to take the exclusive tenant rep pledge. A landlord’s agent or traditional broker simply cannot make this pledge to tenants and owner-occupants. A real tenant rep never puts him or herself in position to double-end an occupier’s transaction and double-dip on fees/commissions. That’s what traditional CRE brokers frequently attempt to do. It’s their highest goal.

Furthermore, a 100% tenant rep acts as a true fiduciary, advocate and loyal, obedient agent for an occupier. On the other side of the table, the opposing landlord’s agent does this for the landlord. A true 100% tenant rep also conscientiously avoids and turns away from conflicts of interest. Traditional brokers create and run towards them to try and double their fees in your transaction.

Vision and Mission of the Tenant Rep Channel

After resigning from the ITRA Global Organization, MacLaurin Williams, LLC still wanted to have a 100% tenant rep network to serve multi-market clients. Gary explains, “We wanted to compete harder and more effectively against large tenant rep chains and traditional brokerage houses that all perform tenant representation.”

Initially, The Tenant Rep Channel was intended to be an informal 100% tenant rep network just for MacLaurin Williams’ own use. But it escalated when Gary asked two other 100% tenant reps, Chris Carmen (Indianapolis) and Craig Melby (West Palm Beach/Asheville) if they might find a use for it, too. They were immediately interested – and so it grew from there!

Unlike traditional CRE broker networks, The Tenant Rep Channel is an informal, virtual model that doesn’t have any initiation fees, dues, required conferences, travel expenses for airfares and hotels, by-laws or contracts. The mission: Just keep it simple and base it around a shared Google map + list of major markets that every participating 100% tenant rep firm must prominently display on its own website.

Amazingly, the bigger independent, 100% tenant rep firms were just as interested in The Tenant Rep Channel’s marketing tool as the smaller firms. They still felt like they needed a big coverage footprint to compete head-to-head more successfully against the big brokerage houses, such as CBRE, JLL, C&W, Colliers, Newmark, etc., as well as Savills Studley and Cresa as tenant rep chains.

The Tenant Rep Channel’s growing success comes from its ability to provide a big coverage footprint for independent, 100% tenant rep firms. It’s an instant and very real 100% tenant rep network, with most TRC principals having 20 and 30 years of CRE experience. It’s a super heavyweight group in terms of experience, talent and skills.

Omni Realty Group is proud to be a part of The Tenant Rep Channel’s growing network.

How Awareness of the Traditional Broker Conflict Will Reshape Commercial Real Estate

With more education and awareness of the inherent conflicts of interest in the traditional CRE broker model, combined with new resources like The Tenant Rep Channel, you might anticipate that a major shift would take place in the Commercial Real Estate Industry where tenants and buyers would flock to and favor 100% tenant reps over traditional brokers.

However, Gary notes, “Too many occupiers still believe that CRE brokers are pretty much all the same, other than some work for big firms and some for smaller shops.” He goes on to add, “Occupiers often know some CRE brokers as friends or family and they’re comfortable hiring them without understanding the complexity of local agency laws.”

As 100% Tenant Reps, we’ve not done a good enough job of making it clear that the CRE Industry is terribly plagued by conflicts of interest and that these conflicts of interest frequently do serious damage to the best interests of occupiers. Most people can grasp that their attorneys should not have any conflicts of interest in their legal matters; it’s more of a Win vs. Lose situation. But occupiers don’t make the same leap when it comes to hiring CRE Brokers to handle their CRE transactions.

The bottom line is that in order to reshape the Commercial Real Estate Industry, it’s incumbent upon 100% tenant reps to better explain “why” conflicts of interest are so damaging for occupiers. We need to educate tenants and buyers on what can go wrong. Simply saying, “We don’t have conflicts of interest,“ doesn’t resonate with occupiers. It’s not nearly enough.

Occupiers need to learn why conflicts are harmful for them; how they can waste tons of valuable time and spend significantly more money; money that is their valuable net profits.

Gary concludes with these final thoughts, “One thing that we initially hoped would occur on The Tenant Rep Channel is happening. By being connected through this network, creative ideas are getting shared worldwide and some really innovative things are blossoming organically.

The 42Floors Elite Site Widget, which is a full market, commercial property search module for our own websites, is one example. I urge every 100% tenant rep to check it out and really assess the value it could have for your business. We all need to get serious about educating occupiers on the stark differences between 100% tenant representatives and traditional CRE brokers!”

Do you have another question related to the differences between tenant representatives and real estate agents? We welcome you to join in the discussion by leaving a comment below!

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Central Pennsylvania Industrial Market Ends 2013 with Lowest Vacancy Rate All Year

Posted on February 26, 2014 by mike.kushner in Blog, Commercial Real Estate, Local Market, Trends No Comments

Vacancy rates for the total industrial market in Central Pennsylvania are the lowest they have been since third quarter 2012 at 7.7 percent. This is a 0.6 percent drop from last quarter’s vacancy rate of 8.3 percent. The Central Pennsylvania flex market finished the year with a 9.7 percent vacancy rate and the warehouse market at 7.6 percent.

This decline in vacancy rates reflects a combination of expected continued economic growth and positive fundamentals driving the U.S. industrial sector. Lower gas and electric costs in the U.S. compared to developing economies is leading to manufacturing being “on-shored.” Also, an uptick in e-commerce is increasing the amount of goods stored in warehouses as opposed to bricks-and-mortar retail stores.

As a result, these declining vacancy rates have stirred up a lot of real estate action in the fourth quarter. Currently, 424,000 square feet of industrial property are under construction. YTD Net Absorption for Central Pennsylvania is 1,852,412 square feet with YTD Deliveries at 720,000 square feet.

First Logistics Center @ I-83 was listed number one of the top eight YTD Deliveries in the Philadelphia Industrial Market. This site is a 708,000 square-foot state-of-the art distribution/warehouse facility located in York, Pennsylvania that delivered in fourth quarter 2013.

This quarter’s list of Top Under Construction Properties included a site at 600 Independence Avenue, Mechanicsburg, PA. This project is set to be completed in second quarter 2014 and will have an RBA of 24,000 square feet.

Just down the road, at 500 Independence Avenue, is the location of one of this quarter’s Select Top Sales. This 342,498 square foot industrial space sold to Duke Realty Corporation for $22,567,200 in August of 2013. But the largest sale to take place in the Central Pennsylvania market was Ollie’s Bargain Outlet Distribution in York which sold for $31,671,000 in March 2013.

In total, 4 of the 9 Select Top Sales between October 2012 and December 2013 took place in the Harrisburg submarket, specifically York and Mechanicsburg, totaling $101,246,771 in property. Additionally, 7 of the top 10 Industrial Leases, based on leased square footage for deals signed in 2013, also took place in the Harrisburg East or Harrisburg West submarkets.

After having reached their lowest rate since 2011 during second quarter 2013, Quoted Rental Rates continue to rise slightly to $3.89 per square foot per year.

Fourth quarter 2013 closed on an active real estate market for the industrial sector with decreasing vacancy rates and increasing construction. One possible catalyst for this trend is the devastating Japanese tsunami and Thai floods that highlighted the dangers of thinly stretched supply chains. Entire plants had to be shut down because of inadequate inventory. As a result, companies are moving away from the “just in time” supply chain management, where companies keep only enough inventory on hand to meet immediate needs and are instead actively expanding their industrial and warehouse spaces.

The information in this report is based on CoStar’s Fourth Quarter 2013 Market Report.

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Tax Benefits: Another Central Pennsylvania Specialty

Posted on September 5, 2013 by admin in Feature, Featured Opportunities No Comments

Central Pennsylvania is taking strides to become more accommodating to new businesses and just one example is the Keystone Opportunity Zone (KOZ). Taxes can stifle many new business ventures, but KOZ is providing a once-in-a-lifetime opportunity to develop land with greatly reduced state and local taxes and has been called “the number one economic development strategy in the nation.”

Designed to boost development and purchases in underdeveloped areas, KOZ’s reduce or eliminate specific taxes to investors. Those who purchase or lease within the Keystone Opportunity Zones are eligible to participate in these beneficial programs simply with the completion of an application. This program encourages both expansion and economic growth within the Central Pennsylvania region.

The first KOZ was developed in 1999 by Pennsylvania Governor Tom Ridge. In 2001, another round of Keystone Opportunity Zones was approved, extending the areas available for benefits. A third round was authorized in 2003. The program has been quite successful in the Central Pennsylvania area, providing jobs and increasing real estate investments.

In order to qualify for the tax benefits, the property must be purchased within the designated zones. The zones chosen by the city are often vacant industrial land and vacant outdated industrial buildings throughout the region. No existing businesses have been chosen by the Commonwealth for participation in the KOZ program.

An example of a local property in the Central Pennsylvania area is 815 Market Street in Harrisburg, Pennsylvania. Weighing in at 250,000 square feet and seated on 11 acres, this particular building was previously owned by the U.S. Postal Service where it was used as a sorting facility. The property is considered to be ideal for a manufacturing or distribution operation, given the proximity to major markets in the Northeast region.

Tax breaks are an invaluable resource for both new and established businesses. In addition to the tax reductions or eliminations, KOZ’s are breathing new life into under-utilized areas. Keystone Opportunity Zones are emerging as a breakthrough idea, and being met with great success and further expansion. New properties and subzones are also being added as the success of the program continues.

Don’t miss out on this opportunity! Keystone Opportunity Zone properties are another one of the reasons I am proud to make central Pennsylvania my home base. For questions regarding office space in Central Pennsylvania, please contact me by email: mkushner@omnirealtygroup.com or by phone at 717-657-5833. As a practiced commercial real estate broker, I can help you find the property that suits your needs.

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Central Pennsylvania Featured Property: The Murata Business Center

Posted on September 5, 2013 by admin in Feature, Featured Opportunities No Comments

Dedicated to growing an Entrepreneurial Ecosystem in Central PA, the Murata Business Center provides startups with the office space and essential programs needed to help them flourish. This property is owned and operated by the Capital Region Economic Development Corporation (CREDC) and acts as an incubator for aspiring businesses in the area.

Operating as a subset of the Murata Center, the Ben Franklin TechCelerator Program offers startup programs designed to help a small business launch successfully. Program features include shared workplace, marketing research tools and use of standard office equipment to enhance productivity.

The Murata Center also offers mentoring programs with one-on-one guidance from experienced professionals that were once in a start-up phase themselves. This program will assist you in avoiding some of the pitfalls commonly associated with small businesses. Their weekly group sessions specialize in writing business plans and understanding core marketing principles. Past tenants also offer informative presentations to allow members to learn from their experience.

Another distinguishing feature of the Center is the Incubator Program. Inside this program, a team of professionals determine what a company needs to succeed and will offer two-way communication to support those needs.

The Murata Center is seated in beautiful Carlisle, PA. With Amtrak services and Harrisburg International Airport within a short distance, the office space is close enough to get you wherever you need to go.

All businesses within the Murata Center are provided with reasonably priced office space, business support services, and resources tailored to emerging small businesses. Tenants also have access to an Advisory Board consisting of leaders in business, education, economic development, finance and entrepreneurship. The function of the board is to offer guidance, counsel and mentorship to all businesses within the Center.

This commercial real estate property is just one of the many features that make me proud to call Central Pennsylvania home. For information about office space in Central PA, please contact me by email: mkushner@omnirealtygroup.com or by phone: 717-657-5833. As an experienced commercial real estate broker, I can assist you in finding the property to fit your needs.

Another Central Pennsylvania Hot Spot: The Hershey Center for Applied Research

Posted on September 5, 2013 by admin in Feature, Featured Opportunities No Comments

The Hershey Center for Applied Research (HCAR) provides Central Pennsylvania with a state of the art facility for medical research and technology. This booming industry is a valuable part of our community. HCAR helps to give both local and global tenants access to advanced technology and other research resources, immersing them in a climate of innovation.

The facilities at HCAR contain the only fully-prepared wet and dry lab space in the Mid-Atlantic region. Tenants of the facility are given access to the tools required for success and advancement in the research industry. The strategic partnership with Pennsylvania State University and the Penn State Milton S. Hershey Medical Center provides HCAR with competitive access to advanced technology and research resources.

HCAR is a Wexford Science and Technology property, a company committed to supporting growth and strengthening the surrounding community. HCAR is part of a large network of thriving research based businesses dedicated to advancement in their respective fields. Tenants at HCAR are working on some of the world’s most cutting-edge scientific projects, making them part of a burgeoning community for life science and technology based business in Central Pennsylvania.

Located in Hershey, Pennsylvania, HCAR is conveniently located near many major cities including Philadelphia, Washington D.C., Pittsburgh and Baltimore. HCAR is just over 10 miles from Harrisburg, Pennsylvania’s state capital that was recently named 12 of the 50 smartest places to live by Kiplinger’s Personal Finance Magazine. Hershey’s local high school was named in the top five percent of public schools in the country by Newsweek Magazine. Hershey is an emerging hot spot in the Central Pennsylvania area as it’s home to ample entertainment options and valued real estate.

HCAR consists of a three-story, 80,000 square foot and multi-tenant facility with plans for future growth. The buildings were designed and built to adhere to environmentally-friendly construction standards. There are shared resources for tenants including conference rooms and building security. HCAR facilities are also fully customizable to suit each individual tenant. The building houses businesses already specializing in medical science, nanotechnology and life sciences.

HCAR is ready to provide services for businesses in the science and technology sector from emergence to maturity. It also allows for the creation of new businesses through the transfer of technology among many different types of businesses, including nonprofit organizations. The staff at HCAR will work with businesses to provide the services necessary for competition in their specific field.

The Hershey Center for Applied Research is another reason why I’m a proud Central Pennsylvanian. For more information on commercial real estate in the area, please contact me by email: mkushner@omnirealtygroup.com or by phone at 717-657-5833. As an experienced commercial real estate broker, I can assist you in finding the property you need.

Harrisburg East Retail Vacancy Rates Decline, Sales Remain Stagnant in the Third Quarter 2012

Posted on November 7, 2012 by mike.kushner in Blog, Commercial Real Estate, Local Market, Trends No Comments

The Harrisburg East retail market experienced a lower vacancy rate during the third quarter of 2012.The rate ended at 5.9% compared to the previous quarter when vacancy was 6.4%. The third quarter represented the first time in 2012 where the retail vacancy rate was below 6%.

So far in 2012, the largest retail lease signing in the Harrisburg East submarket was the 31,436-square-foot lease signed by Ross Dress for Less at the Cedar Shopping Centers, Inc. followed by the 18,120-sqare-foot lease signed by Variety Store by NAI/CIR. Both occurred in the first quarter 2012.

The average dollar amount per square foot continues to slightly fluctuate. The average lease rate for retail space in the Harrisburg East submarket is now at $11.94 per square foot, compared to $12.20 per square foot and $12.00 per square feet in the second and first quarters, respectively.

For the second consecutive quarter, there were no new sales for the Harrisburg East retail market. During the first quarter 2012, there were two sales totaling $102.1 million. The largest retail sale occurred at the Outlets at Hershey. The 237,618 square foot outlet center was sold from its previous owner, the LMS Commercial Real Estate to the Tanger Factory Outlet Centers for $56 million. The second largest retail sale occurred at Colonial Commons in Harrisburg. The 419,978 square foot shopping center was sold from its previous owner, The Blackstone Group to the CSC Colonial Commons Partnership L.P. for 46.1 million.

Top 5 CRE Professionals to Follow on Social Media

Posted on June 27, 2012 by mike.kushner in Blog, Commercial Real Estate No Comments

As we continue to develop our social media communications, we also have the opportunity to learn from others. We’ve followed conversations across platforms to devise a list of some of the folks we keep our eye on. Here’s our list of the top five Commercial Real Estate (CRE) professionals in social media and why we love to follow them!

#5. Barbi Reuter – Principal at PICOR Commercial Real Estate Services

Barbi is active and accessible on Twitter. She’s often publishing #CREDaily or sharing information about PICOR’s operations, marketing or new media as well as theresearch and finance activities from within the organization.

#4. Angela Brown – PR, Social Media and Content Strategy Manager at the CoStar Group

Angela has the inside scoop on CRE trends. She shares this content as well as other relevant news or information pertinent real estate professionals, business owners, and the public audience alike.

#3. Chris Clark – Owner of crclarkconsulting

Chris is best-known for her blog the CRE Outsider, which provides technical information, data and support for commercial real estate professionals. Her motto is that agents think they’re selling real estate, but they’re actually selling themselves. While technology can help, she says CRE professionals need, “communication skills, self-discipline, a certain amount of organizational skills, and of course, knowledge of their markets and the process.”

#2. Lisa Prats – Vice President, Communications, Marketing and Meetings at Building Owners and Managers Association International (BOMA International)

Lisa keeps CRE professionals up-to-date on the latest education, advocacy, and event information from within the organization. We enjoy following her tweets as events unfold.

#1. Duke Long – Owner/Broker at The Duke Long Agency

Duke is to the CRE world as good content is to social media success – a must! Duke has his eye on global, national, and regional industry news. We enjoy reading his blog on a variety of topics related to the industry, following his tweets, and participating in discussions on LinkedIn groups.

Which CRE professionals to do you follow? Any you can add to this list?

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Real Estate Financing Programs Available Through CREDC

Posted on June 20, 2012 by mike.kushner in Blog, Commercial Real Estate, Community No Comments

The Capital Region Economic Development Corporation (CREDC) has a variety of programs available to help area businesses purchase real estate.These programs can be used by businesses to purchase property or equipment for their operations. CREDC’s Business Finance staff works directly with the applicant to guide him/her through the application process, while working hand-in-hand with the applicant’s financial institution. CREDC also works with businesses to help them find the best option for their situation. Overall, CREDC can help you close the deal.

A typical loan is structured in the following manner:

50% Financial Institution Loan
40% CREDC loan (subordinate to Financial Institution’s 1^st lien loan)
10% Client Equity Injection

CREDC’s involvement helps to close the deal by reducing the Financial Institutions risk through lower exposure and improved collateral position. CREDC’s loan also benefits the client through lower interest rates, long-term fixed interest rates that stabilize a portion of the debt payments, and keeping cash in the client’s pocket to finance working capital and/or growth needs.

To qualify for real estate projects, the property must be owner-occupied. For more information about the programs or to discuss options, contact Shaun Donovan at (717) 213-5033 or go to credcpa.org.

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