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Posts tagged "tips"

Home» Posts tagged "tips"

What Does ‘Back to Business’ Look Like Post-COVID? – Part II

Posted on July 13, 2020 by Mike Kushner in Blog, Commercial Real Estate, Local Market, Retail No Comments

This is Part II in a two-part series where we look at how commercial spaces must adapt and implement new policies to adhere to social distancing guidelines. We interviewed Matt Luttrell, Partner at ThYNK Design LLC for his input on this timely and important topic. In Part I we focused on the issue of square-feet per person requirements in buildings and how this will limit capacity. We also discussed how HVAC systems might be used to create fresh air and healthier work environments. Now, we’re going to shift our focus to other tools and tactics commercial spaces can use to keep the spread of COVID-19 down. Keep reading to find out what these are.

Omni: Aside from greatly adjusting the layout according to social distancing guidelines of commercial spaces, what other changes or precautions could be taken to adhere to revised distancing guidelines in a more efficient and effective manner?

ML: When possible, the ability to predict and schedule activities and users can be a great tool for optimizing the use of space. In K-12 educational environments, the circulation of students and faculty is highly planned and will become even more necessary to ensure that occupant use and density do not overwhelm resources and create unhealthy situations. Likewise, it appears that restaurants will need to enhance and promote reservation systems to manage seating and staff while using delivering and curb-side services for extended patron options. More movie theaters will use on-line reservations and pre-selection of seats. These commonplace practices can have long-term as well as short term benefits and will most likely become more prevalent in our daily experiences.

Omni: You talk about the importance of scheduling as a way for schools and businesses to manage capacity and social distancing. But what about when this is not an option?

ML: When scheduling or reservations are not an option, such as in retail or grocery store settings, human or automated occupancy counters are being used to limit the number of users at any given time. Employing staff to do this can be quite costly, and if we’re honest, not a desirable job. For automated options, there are many venders, such as Sensource, that provide hardware and software that can easily be set up and adapted to an organization or business’s specific needs.

Omni: Beyond limiting capacity in a space, what other precautions can businesses take?

ML: Thermal scanning of customers or guests determines if individuals have an elevated body temperature so that buildings can prevent a person showing symptoms from entering. This is another effective mechanism for controlling the spread of virus. There are readily available systems for small businesses that range from a $100 handheld scanner for checking individual temperatures to group and line screening systems for approximately $5,000. TEquipment.net provides an array of options for consideration.

Additionally, masks seem to be one of the more accessible and more effective tools for moving forward. While they are not 100% effective, it appears that they may significantly reduce transmission via air, which seems to be the primary source. No one seems to want to quantify how effective masks are, but based on common sense, the practice appears warranted. Given the ease, minimal costs, and purported effectiveness, masks seem to be the most readily available option for reopening our society without inundating our current resources.

No system is fail-proof, but simplicity and redundancy are always good principles when evaluating options.

Omni: In your opinion, can common areas like waiting rooms, break rooms, or lobbies realistically adhere to new CDC social distancing guidelines?

ML: These spaces are pinch points within every building. While they are designed to accommodate the building’s occupancy load, they are not intended to minimize interactions; they are generally shared spaces designed for efficiency and ease of use. Accordingly, each type of space has its challenges and should be evaluated for options, but these spaces are inherent barriers without actively implementing changes to a buildings configuration and/or user actions.

Reconfiguration can be a costly endeavor, especially if it is a short-term solution. Repurposing spaces may be a solution that allows for relief. Several areas traditionally found in a building, such as conference rooms and breakrooms, can be repurposed to address immediate needs. Breakrooms may be better utilized as an office or workspace for a limited number of employees, while employees are required to eat at their desks. Conference rooms could also become workspaces, or often, these rooms are located close to or adjoin lobbies/ waiting rooms and can become an extension of the room. These are potential short-term solutions and should involve an evaluation of HVAC, lighting, power, egress, and other potential code implications.

Omni Realty Group thanks Matt Luttrell for sharing this valuable insight to help us to better understand the challenges many business owners face when it comes to renovating and recreating commercial real estate space to accommodate social distancing and sanitization both now, and for what many feel will be long into the future. If you missed Part I of this two-part series, be sure to check it out here.

Do you own or work in a commercial space – office, retail, or industrial? What do you see being the biggest challenge related to COVID-19 required changes? Join in the conversation by leaving a comment below.

[Online Resources] Real Estate, advice, cdc guidelines, changes, Commercial Real Estate, coronavirus, COVID, COVID-19, HVAC, industrial, mike lattrell, office, Office Space, Omni Realty Group, pennsylvania, renovations, retail, social distancing, thynk design, tips

What Does ‘Back to Business’ Look Like Post-COVID? – Part I

Posted on July 8, 2020 by Mike Kushner in Blog, Commercial Real Estate, Local Market, Retail No Comments

Based on the continually evolving data and recommendations, the efforts to mitigate the spread of COVID-19 while pursuing a more normalized personal and professional life has focused on separation, isolation, and decontamination. As things currently stand, it appears that the only potential remedy to return to a pre-COVID-19 environment is the development of a vaccine. In the meantime, business owners and professionals are faced with living with less than ideal situations. Some wish to persist with maximum isolation and separation; however, it appears that the majority have deemed the consequences of shutting down all interactions beyond a household as untenable, and have demanded that measures be developed to support an acceptable level of social and professional interaction. What is acceptable? Well, that is a matter of individual choice.

To help provide some insight on what options exist for businesses to re-open their doors to employees and the public we asked Matt Luttrell, Partner at ThYNK Design LLC, to weigh in. ThYNK Design, LLC is a modern architectural firm pursuing a better way to develop, deliver, and celebrate the immense value of good design. Given his experience and background, Matt shares some valuable information to help frame and evaluate some of the inherent issues in the built environment that conflict with the proposed social distancing guidelines. Here’s how he responded when Omni Realty Group asked him several key questions.

Omni: What industries are likely to be most impacted by the proposed revised building code distancing guidelines?

ML: The restaurant industry may face the greatest short-term and long-term challenges. The proposed social distancing guidelines directly conflict with historic planning principles as well as the industry’s business model. However, each restaurant, business, and building should be evaluated to determine what resources are available to develop an effective mitigation plan.

Omni: How will the introduction of new social distancing constraints impact the long-term viability of most existing buildings?

ML: With the recognition that the design and development of the built environment is in response to many considerations, including; user needs, business models, and building code requirements, the introduction of new constraints that directly conflict with established practices will challenge the long-term viability of most buildings. These challenges focus on developing an environment that effectively manages occupant density, frequency, and duration of interactions, surface contaminants, and air quality. To effectively manage these challenges, an inventory and understanding of the available resources and building configuration are required. These can include: building area, sizes of rooms, type, and capacity of HVAC system, operable windows, number of entry/ exit points from a space or building, quantity, and location of shared facilities (toilet rooms, break rooms, waiting areas) and flex spaces.

Each resource can impact the effectiveness of a mitigation plan and should be carefully considered, but the most significant challenge is how to overcome the area requirements per person. Expanding a building, reconfiguring interior spaces, and adding entry and exit points are not readily done. In addition to the expense, the required time frame for approvals and construction is prohibitive.

Omni: Can you provide more information to paint a picture of the potential magnitude of the problem you’re describing?

ML: The proposed social-distancing guidelines recommend a density of 1 person per 113 SF (area of circle with a 6′ radius) whereas standard planning practices include densities that are 2x to 10x higher.

Following are the maximum area allowances, per the 2015 International Building Code, for several of the more common functions included in buildings:

Assembly spaces:

  • -with concentrated chairs (lecture halls, waiting rooms, etc.):
    • One occupant per 7 SF
  • -standing room (lobbies, areas holding events such as cocktail hours):
    • One occupant per 5 SF
  • -unconcentrated chairs and tables (restaurants, breakrooms, open office)
    • One occupant per 15 SF

Business areas: One occupant per 100 SF

Classroom: One occupant per 20 SF

Exercise rooms: One occupant per 50 SF

Retail: One occupant per 60 SF

Compared to the recommended 113 SF (area of a circle with a 6 radius) per occupant you begin to see the potential implications. As an example, a worst-case analysis would provide the following reductions:

Example 1: For a restaurant with a dining area design occupancy of 100 (15 SF per occupant) the occupancy would be potentially reduced to 13 occupants at 113 SF per occupant. This is a worst case and does not consider that you may have a family grouped so that they are separated from other family groupings.

Example 2: A classroom designed for 25 occupants could have a reduced occupancy of 5.

As indicated by these examples, if we want to remain economically viable, then social distancing cannot be the only criteria for determining the use of a space.

Omni: How do commercial HAVC systems currently play into the issue, whether standing to hurt or help air sanitization and circulation in shared commercial spaces?

ML: For most people, the quality of a HVAC system is based on the system’s ability to control the temperature of a space. Only in the relatively recent past (10-20 years) has the industry focused on delivering improved air quality, increased fresh air, controlled humidity, and energy conservation within the typical system. Each of these four items should be evaluated as a potential resource or barrier for developing a mitigation plan. In the current environment, an incorrect understanding or use could potentially have disastrous consequences and it is highly recommended that a contractor or engineer be consulted to determine the full capability of your system.

Omni: Could you give a bit deeper into the impact of air quality on comfort and health?

ML: Air quality may be one of the more challenging issues when it comes to controlling a virus. One of the more prevalent components for managing air quality is the filter. The systems air-filter is rated according to the level of filtration needed/ desired for a given environment. According to Grainger.com, “What Is MERV Rating? Air Filter Rating Chart,” most commercial and residential buildings will have filters that range from a MERV 5 to MERV 12. A MERV 5 rating filters particles down to a 10.0 micron level and a 12 filters down to 1.0 micron level. A MERV 12 or higher, which is not very common outside of critical healthcare and clean-room environments, effectively filters pollen, dust mites, mold, and even cement dust.

However, according to various publications, the coronavirus average size is 0.125 microns. While this is substantially smaller than the particles that are filtered, it does not mean that these particles freely pass. This is due to a variety of reasons, but one of them has to do with humidity. Dry air allows particles to float freely/ unattached, while humid air promotes particles binding together. The larger particles are more readily filtered or trapped. A similar concept applies to our lungs. When we breathe air that is too dry it reduces the amount of mucus within our bodies; thus, part of our human filtration system is compromised.

Omni: Is there any research to back this up?

ML: A study conducted in Sydney, Australia indicates that the reduced humidity conditions associated with winter weather can lead to an increase in COVID-19 cases. The researchers identified that a 1% decrease in humidity could lead to a 6% increase in cases. So, what is the ideal relative humidity? In this case, it appears that the industry recommended RH of 40% to 60% corresponds with the current recommendations for mitigating COVID-19. Too little humidity and the filtration system is compromised, too much humidity and mold growth is supported.

Omni: So then, how is indoor humidity controlled?

ML: A/C systems are primarily designed for thermal control. Thus, most A/C systems control humidity by circulating warm, moist air over cold coils, which leads to condensation, which is collected and drained away. The key here is ensuring that the AC cycles the proper amount of time to allow the warm air to be adequately circulated over the coils and the moisture removed. This process relies on the A/C unit being correctly sized. This involves a variety of factors, including the number of people in a facility.

In essence, if a system is sized to provide cooling for 100 people, it accounts for the amount of energy/ heat and moisture generated by 100 people. Accordingly, it will work to get the temperature where it needs to be while accounting for the amount of humidity that needs to be removed. If the occupant load is reduced to 50, then the system is effectively oversized and will get the air to the desired temperature before it has a chance to remove the humidity. This leads to RH levels that can far exceed the recommended upper level of 60%.

Omni: What connection do you see between fresh air and healthier work spaces?

ML: Fresh air, or air that is not recycled, has become an integral component in the development of an HVAC system that supports overall occupant health. Sick building syndrome (SBS) developed following efforts to close-up buildings to establish greater energy efficiency, and a quick search will indicate that the SBS symptoms are frighteningly similar to COVID-19. The introduction of fresh air into a HVAC system does two things: it dilutes the air and pollutants, and it helps to pressurize a building. Diluting air is readily understood, but proper pressurization is equally as important. If a building is not properly pressurized, then air can start to stratify and pockets of dead-air form. This can allow areas of a building or room to be filled with contaminated air that can promote the spread of a virus. Most new systems include fresh air as required by the building code, but many older systems do not. A professional should be consulted to determine if your system incorporates fresh air or if it can be modified to do so. Simply put, a properly sized HVAC system that incorporates fresh air is a critical component in supporting occupant health.

As we move forward in this new environment, we seem to come across unforeseen challenges every day. But the response to all challenges is the same: assess, move-forward, reassess, move-forward… The one certainty is that we must be persistent in creatively evaluating the situation and developing solutions based on available resources. Stay tuned for Part II where Matt presents us with even more information on your topic!

Do you own or work in a commercial space – office, retail, or industrial? How do you feel like impact of COVID-19 will require changes be made to the configuration and functionality of your space? Please offer your comments or experiences in the comment section below.

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How to Prepare For a Commercial Business Relocation

Posted on June 25, 2018 by Mike Kushner in Blog, Commercial Real Estate No Comments

For any business who has navigated the challenges of moving into new office, retail or industrial space, you likely learned some valuable lessons along the way of things you would choose to do differently if you had to do it again. A commercial business relocation has a major impact on company culture, customer service and your bottom line. For this reason, it’s critical to be strategic about how you approach your move to set yourself up for a smooth and seamless transition.

To provide valuable insight on the topic of commercial business relocation, Omni Realty interviewed Dick Michaelian. Dick is a principal of Relocation Consulting & Management, Inc (RC&M) located in Mechanicsburg, Pennsylvania. Having been in the moving and storage business for over 36 years, with 26 of those with RC&M, Dick has helped local, state and federal governments, schools, colleges, healthcare, courthouses, museums and corporate businesses successful relocate to new facilities.

We asked Dick to answer five important questions regarding commercial business relocation covering everything from the biggest challenges to planning for a successful move. Take a look at Dick’s insight and advice that can be applied to any business or organization considering a relocation.

Omni: What are the biggest factors that cause businesses to relocate?

Dick Michaelian: The number one factor is change. While that sounds quite simple, it can be very difficult for an organization to change. Growing, shrinking, change of ownership or leadership are all examples of change. Other factors include the expiration of a lease or sale of a building as well as a desire to change a location because of customers or taxing entities.

Omni: For businesses considering a relocation, what are the most important details they should think through?

Dick Michaelian: A business should begin with the end in mind. How do you want everything to look and operate when the move is completed? From there, you should work back to where you are now and then determine how much time, money and effort will be required to get to where you want to be. Businesses often under estimate the amount of resources required for a good, effective relocation.

Another consideration is how to maintain your level of productivity during the transition. The last thing that should ever happen during a move is for a customer to be told “we can’t be of service to you because of our move.” The entire relocation should be virtually invisible to customers!

Finally, a business should strongly consider what and how it wants to change as a result of the relocation. Change will happen whether it is desired and planned or spontaneous and intrusive.

Omni: How early should businesses begin to plan for their relocation? 

Dick Michaelian: The planning should begin as soon as the decision is made that the business is going to move. I’m working with a client now whose move is planned for late 2020 and they want to get a clear picture of what is required for their budget. Planning can never begin too early. The actual implementation of the plan usually begins about four to six months prior to the relocation.

Omni: Describe your recommended planning process for corporate relocation.

Dick Michaelian: The planning process begins with leadership setting the path and goal. From there, it’s getting everyone to work together using the same data. Effective communication is critical. A ‘team’ approach works best, utilizing resources from different facets that will be playing a part in the move – large or small: IT, procurement, facilities, operations, administration and leadership. It’s essential to have a “big picture” perspective of the project while assigning expectations and due-dates to the players.

Once the plan is agreed upon and set, any changes should be well considered. You never want to change a plan in the middle of the move. That rarely proves successful in the end, as often the goal changes as well.

Omni: In your experience, what factors most commonly impact the success of a business’s relocation?

Dick Michaelian: The single most important factor are people moving. The reliability of the planning team members and their dedication to the success of the project is critical. No one person can be responsible for a fantastic move – it’s a team effort. However, one person can really make it hard for everybody else if they don’t want to move or change. Management has to set the tone. Getting the different elements to buy into the change that needs to occur is difficult; but, with the right vision and passion, good leaders will help their organizations through the necessary transition. I always enjoy observing this process with successful businesses.

Moving can be very difficult. Good leaders who recognize that they are in the “people business” have the most impact on the success of a relocation.

Another factor is timing. You never want to move until the new space is ready. And yet, most relocations occur without a new, completed space. Construction delays, last minute changes and contractors not performing are the major causes of this situation.

You can create a great new working environment for your business; but, if the move goes poorly, that’s what everyone will remember. Don’t underestimate the vital importance of a well-planned, smoothly executed relocation from beginning to end!

Is your business considering a relocation to new retail, office or industrial space? What piece of advice did you find most helpful? Join in the conversation, or ask a question by leaving a comment below!

[Online Resources] Real Estate, advice, business, central pennsylvania, commercial, Commercial Real Estate, company, industrial, Mike Kushner, move, moving, office, Office Space, Omni Realty Group, organization, relocate, relocation, retail, tips

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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5 Signs You Need New Office Space

Posted on August 7, 2016 by Mike Kushner in Blog, Office Leasing, Tenant Representative/Buyer Agent No Comments

Very messy office with piles of files.It can be difficult to see the signs that you need new office space for your business. Maybe it’s the fear of change or the discomfort of moving all of your files, equipment and employees to a new office. Whatever the hesitation, the consequences of not moving to a better functioning space can be far worse than the temporary inconvenience of relocating.

Take a look at these five signs that you might need new office space and think about how they relate to your own work environment.

You’re struggling to retain/attract talent

Is your turnover rate increasing? Are potential hires turning down your job offers? While many other factors contribute to these issues, don’t underestimate how your office space may be playing into the struggle to find and retain talent. People want to work in an energizing, fun and inspiring environment. If your office space is crowded, disorganized and in desperate need of repairs, it’s time to look for an upgrade or risk having talent walk right out your door.

There’s a lack of privacy

While it may seem fun and hip to have your employees work in one big open space together, keep in mind that people need privacy, just as much as they need community, to get work done. If your office space lacks a private area for holding meetings or making phone calls – or even just a space where employees can go to work in silence for a few hours, it’s time to look for an office that provides a little more privacy.

It doesn’t reflect your brand or company culture

Are you an innovative tech startup, but you’re working in an office space that looks like it belongs to a law firm from the 1950’s? When your work environment contrasts with your brand and company culture, it can have a negative impact on your employees. It’s important to work in a space that complements the brand you’re working to create. This is a subconscious reminder to employees of the business’s core values you want them to represent in everything they do.

There’s no room for growth

If you’re a business that has plans to grow your operations and add to your number of employees, yet you don’t have room for one more desk, let alone a filing cabinet, it’s time to start looking for new office space! Don’t wait until you are desperate to move, or you may make a desperate decision that isn’t in your best interest. Start looking for more space preemptively and work with a qualified commercial real estate broker who can help you negotiate the best deal possible.

You’re paying too much

Finally, if you’re dumping too much of your profits into your office lease, it’s time to look for a more financially responsible work space. Sure, a pricy loft with views of the Harrisburg Capitol is great for your ego, but it’s terrible for the sustainability of your business. This is a red flag that it’s time to work with a tenant representative who can show you a wide variety of attractive options while staying within your budget.

Can you relate to one or more of these signs? Ask us your office space related questions and we will personally respond with our expert advice!

 

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