Archive for August, 2009
Aug
27
The Best U.S. Cities For Commercial Property
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Some of the best cities for commercial property truly do belong in states that are dependent upon the shipping industry. Cities like Bellevue and Seattle, Washington are two of the best cities to do business in. This is why companies like Costco and Amazon have maintained their main headquarters in Washington state. Businessmen like Howard Schultz love all the movers and shakers in Seattle as they grab their coffee on the go. People can spend more on coffee and items that they want their because there is no personal income tax in Washington State as well.
Obviously the best places for commercial properties would be cities with a lot of population growth and the majority of that growth is coming from people with plenty of disposable income. Cities like Alexandria, Arlington and Fairfax in northern Virginia continue to expand. A lot of these folks have come down from Maryland to work for a technology, pharmaceutical or government firm around Washington D.C. and have plenty of money to spend. If someone has the resources to galvanize a venture down there, opening a deli or some quick sandwich shop where you can get a lot of these commuters as they go to work could be a very lucrative idea.
Setting up a venture such as a retirement home in a states like Texas or Florida may not be a bad move. You have a wide array of candidates to pick from in the workforces of these two states as well. Another advantage to setting up these types of businesses is that Florida and Texas do not tax retirement income. This obviously already draws a lot of seniors to cities like Boca Raton, Palm Beach or Galveston and Forth Worth respectively.
Cities like Tucson and Phoenix will continue to thrive because of their passionate sports fan base. Plenty of people love to shop or eat before they go to the game to root for their Arizona Wildcats and beloved Phoenix Suns. It all comes down to the fact that commercial property taxes have to remain in a growth minded assessor and mayor’s hands given that commercial property taxes are assessed locally.
One of the best cities in the state of Alabama to do business in is the city of Montgomery. A tax package was recently passed in the city that allowed businesses like Wal-Mart to come in to the city and create plenty of local commerce around it. If you can set up shop near a Wal-Mart and offer a service that they are sub par in, the benefits can be tremendous. The formula is simple if you keep property taxes low in cities businesses will come there and people will have money to purchase items with. Cities like Montgomery are dependent upon the sales tax and tourism like the city zoo for most of their revenue in any event.
Kids love the zoo so it wouldn’t be a bad idea to set up a toy store or some kind of food and beverage stand near by if you can get the permit. That is what is most important when it comes to commercial property. Set up shop as close to people as you can and offer an affordable product; the rest should take care of itself.
Quick House Sale
Aug
26
Business Property - A Look At The Advantages And Disadvantages Of Buying
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Nearly every type of business needs a premise from which to operate - In the case of a small business it may be possible to work from home however as most things do eventually grow and expand, it may be necessary to obtain larger working facilities.
The majority of businesses will require their own premises and are generally faced with the option of either renting or buying. The obvious choice for many would be to buy, finance allowing however there are advantages and disadvantages to both sides.
Advantages Of Buying
Retention of ownership - most businesses will need to take out a loan in order to purchase property. In the case of taking out a mortgage, the business is able to raise the capital without resorting to selling a share in the company, either to an interested party or by way of issuing shares. In this case the original owners will have retention of both ownership and control. The mortgage lender will have the right to charge interest on the loan amount outstanding however it will have no interest to a share in the business or its profits. The lender has an interest solely in the property and is only permitted to call in the loan in the event of borrower default.
Taxation - Businesses are permitted to make mortgage interest payments with pre-tax money that is deductible for tax purposes as expenses.
Cost and cash flow management - A commercial mortgage allows a business access to finance that would not usually be available. They can offer a degree of flexibility in designing a repayment scheme to suit the needs of the business, which may include fixing the repayments for a set period of time. Mortgage repayments tend to work out lower than rental payments and the borrower in this case will know what the payments will be in advance - this fixed payment can often aid the business with cash flow and managing costs. Businesses that rent a premise can be exposed to market conditions which could result in payment fluctuations on review.
Security of tenure - Businesses and individuals that rent have very few guarantees beyond the end of the current agreement.
Asset appreciation - This of course is by no means guaranteed however property has long been viewed by many as a very sound investment. The business or individual will have an asset which can potentially grow in value, just like residential property - this could subsequently increase the value of the business.
Financial flexibility - Taking out a loan by way of a mortgage to buy a business premises can free up money held in the business for other purposes. Borrowing money outside of a mortgage could prove to be more costly. It may also be possible to remortgage in order to raise finance in the future by using the available equity.
Retirement - Many people decide to hold property in a pension plan which can offer a tax-efficient way of buying the premises and boosting pension benefits.
Disadvantages Of Buying
Financial difficulty - Like any other mortgage, the mortgage lender will hold a legal charge over the property. Nearly all businesses meet financial difficulties at some stage which could potentially result in mortgage payments being missed. In the event of default the lender may take steps to repossess the property - if this happens then it would leave the business with nowhere to operate from.
Relocation - In the event a business needs to relocate, it is relatively easy to terminate a rental agreement. In the case of an owner occupier, the process is of course far more complex.
Flexibility - A business that rents has a far greater amount of flexibility that a business that is tied to a mortgage. Buying would only make sense if the business is confident over its future which encompasses two main factors - relocation & business expansion.
Drain on Capital - When it comes to getting a deposit, this can mean a huge drain on the business capital as this is usually taken from the profits or reserves.
Maintenance and upkeep - The owner of a property has management responsibilities that a tenant would not usually have - maintenance and upkeep of a property is a constant process and can prove to be very expensive.
Repossession
Aug
25
Property Investor Show
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Nowadays a popular method of buying a property is through auctions, with plenty of info found about them at property investor shows. You see, nearly 21,000 homes are being auctioned every year.
And since 1998, the buying and selling of homes in auction by is increased by 60%. Hence thousands of professional investors and bargain seekers are turning to auction to find a perfect property at a reasonable price.
One reason of buying at auction is that the properties at auctions are often significantly cheaper than in the open market. For example, it is possible to purchase an overseas property at auction at a price 50% lower than other similar properties. However, overseas investments can and do often involve complicated legal procedures. Hence, novices in this field need to be cautious and should do sufficient checks before a deal is finalized.
Other points to consider are;
1) A property investor show offers the best of the property investment world. More than 100 exhibitors cover every aspect of making money from property. They also offer the expertise from UK and overseas, for both the residential and commercial investments. Specialists help you with mortgage and financial advice for local, national and international investments.
2) A property investor show is the best source of information for people who want to earn money from property. It is also a source of inspiration. The show brings together buyers, sellers and professional services that aid you investing in property. This is profitable and straightforward.
3) The property investor show conducts seminars at nominal cost to help you. This makes your journey to the property investment goal easier and more profitable. The show is an opportunity for investors. This show is a treasure trove of information that is useful for investors. And the show can develop an insight that helps you build a successful portfolio.
4) Now is the perfect time to invest, trade up and expand your portfolio. It is the first foot on the property ladder. With advice of industry experts, do your research and see what future hold for you at property investor show.
5) If you are serious about making money through investments in property, then the property investor show NEC Birmingham is a unique opportunity. This show has gained a reputation among serious property investors. This event proposes to feature property and its related services. Nearly 130 exhibitors are supposed to appear for the first time. The exhibitors include chief house builders, estate agents, brokers, developers, lenders, the companies that provide property training, property experts and property owner associations. The show features more than 70 seminars, various debates. These will cover all the facets like how to buy, finance and manage your property.
6) The property investor show is not limited to just industry professionals. First time investors are also welcomed. This show is the perfect destination if you are searching for a property to invest in. The show is priceless resource and allows you to have most of the outstanding opportunities. You can interact with experts and use the information to decide about acquisition.
7) The property investor show also allows you to judge the opportunities in overseas markets like France, Spain and USA. It also includes the opportunities in comparatively new locations like Croatia, Hungary, Cyprus, Montenegro, and Dubai.
In conclusion, you will find that the seminars are not merely sale pitches but are truly informative. Visitors and the attendees usually book seminar tickets online to save time and ticket trouble. And the property investor show seminars are sure for gaining understanding in real property investments.
Sell House Quick
Aug
25
Popular US Stores Offering Commercial Printers
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At current, the demand for commercial high-speed digital printing systems has increased. Commercial printers allow the quick delivery of changeable data jobs or short run jobs from the user guides.
Nowadays, commercial printers need a lot of plastic, plus board and papers to print on. With the digital commercial printer sector, also known as POD or Print on Demand, people can experience great market expansion in the printing industry.
Print on Demand involves the complete transmission of the digital data on a printer. It eliminates the basic needs for the use of the printing plates in usual offset printing. Lately, the demand has increased for high-speed digital printing systems, allowing the quick delivery of changeable data jobs or short run jobs from the user guides.
Users of commercial printers think that printing is a combination of art and science.
Listed below are some stores in the United States that have Commercial Printers.
Sammons Commercial Printer - The commercial printers of Sammons can design and print everything such as business cards, envelopes, letterheads, invitations, catalogs and brochures. Printing can be done whether it is a simple two-color flyer or a full color publication. The Sammons Commercial Printer has the capability to complete your printing project with a distinctive quality. Their capability includes many peripheral needs like typesetting and layout as well as professional design. It also offers creative and innovative ideas to enhance your picture and maximize the impact of your printed materials. Sammons commercial printer is located at #664 Downtown Newport News, Virginia. You can also contact them at 757-247-1101.
Full Color Commercial Printing Service - This commercial printing service offers digital printing services such as full color printing and gives their customer a great satisfaction with the image they print. They also create logos, custom graphic designs, business cards, catalog sheets, greeting cards, posters, rack cards, brochures, banners and in-house mailing services. This commercial printer store is located at #4431 Street Lubbock, Texas and you may contact them at 1-800-794-5594.
Bayside Commercial Printing Company - This Company has been a trusted resource for commercial printing services within the Houston area. They create products such as marketing brochures, annual reports, newsletters, posters and much more. The Bayside Commercial Printing Company is located at #160 Lockhaven Drive Houston, Texas. Customers may call or fax them at (281)209-9500 and (281)209-9569 respectively.
Newman Printing Company - This printing company offers secure and climate-oriented warehousing for their customers. It also offers commercial printings, sign graphics, digital printings and many more. This company is situated at #701 South Austin Street Bernham, Texas. Their contact number is (979) 830-1177.
Bacon Printing Company - This Company provides their customer the high quality printing services within Central Maine. They offer a wide variety of print services such as envelopes, paper, forms, books and brochures. They also design and set up the images. Their friendly, fast, customer service may help you in many ways like walk-in price quotes. They open from Monday to Friday, 8:00 am to 5:00pm. It is located at #1070 Hammond St. Bangor.
Seaway Printing Company - This Company makes any picture beautiful on the paper. They also offer their customers a full color printing, direct mail, Docutech printing, newsletter rock brochure, booklet binding, drilling holes, online printing, scanning, shrink wrapping and much more. It is located at #1609 Western Avenue, Green Bay. Their contact number is 920-468-1500 for phone and 920-468-0443 for fax.
Magnum Magnetic Printing Company - This unique printing company provides superior customer service as well as high quality flexible magnetic strip and sheet. It also offers a printable magnet, standard sheeting, custom magnet, magnetic receptive and magnetizers. This Company is located at #801 Masonic Park Road Marietta, Ohio and their contact numbers are 1-740-373-7770 for telephone and for fax is 1-740-373-2880.
Reed and Witting Company - Every time a customer calls, a real live officer of the company answers the telephone. Their sales staff as well as service representative have decades of printing industries experience. They offer floor stands, easel signs, toppers, entry boxes, literature holders, channel strips and much more. It is situated at #5000 Baum Boulevard, Pittsburgh. If you want more information, call them on their hotline which is 412-682-1000 or fax them at this number 412-682-1043.
Independent Printing - This Company has a knowledgeable service and sales staff that may lead their customer through the most complex printing job. They also offer wonderful printing quality, state-of-the-art technology, and much more. It also creates booklets, business cards, full color printings, newsletters, brochures, envelopes and many more. This company is located in USA. For more information, you can contact 386-252-7351 for phone and 386-254-0657 for fax.
Sell and Rent Back
Aug
25
Introduction to Commercial Leases - Part 2
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In our last article we discussed: lease objectives, the common types of leases, what makes a lease enforceable, cash flow, expense stops, common area maintenance as well as the tax benefits of improvements.
As we move on in this article, we’ll discuss additional lease types and become familiar with lease additional clause, strategies and identify common terms used in commercial leases.
Ground Lease
A ground lease is as lease for land alone, and is typically a long-term net lease. Ground leases are where land ownership is retained by the owner of the land and improvements are owned by the tenant.
These leases can typically be found in areas with a shortage in highly desirable land, and may be traditional in other areas. Following the end of the lease term of a ground lease, title to the land and improvements reverts to the lessor/property owner.
Step Leases
Step Leases allow contracted rents on long-term leases to change by preset amounts or percentages which will occur on predetermined dates. These preset amounts or percentages are called escalations.
While the lease payments vary over time and the term of the lease, the actual payments are calculated and disclosed prior to the signing of the lease agreement.
The most common types of costs involving escalations may relate to real estate taxes, insurance, utilities, operations, and maintenance.
Real estate professionals representing the tenant can provide historical trend information regarding these types of escalation so that increases can be predicted and informed decisions can be made prior to a lease signing
Indexed Leases
Indexed leases are those where the contracted rent is tied to movements of a pre-specified financial index; such as the consumer price index (CPI). Here’s an example: If the current year’s consumer price index increases by 3 percent, then the next years lease payment will increase by 3 percent.
Additional lease clauses
Several other options and clauses are designed to protect the needs and concerns of the owner and tenants and should be negotiated carefully and with diligence.
Lease Renewal Options
Commercial leases often grant a tenant the ability to renew a lease for a pre-specified period of time following the initial lease expiration. However, the rate at which the lease may be renewed is specified in the initial lease contract. A renewal option is often of value as it eliminates the need for a tenant a new location for the business prior to the expiration of the current lease. Even though the tenant is not obligated to renew the lease, hence the term ‘option’, the tenant is not bound by the lease to remain and may decide to find another location for the business if either the business requires it or the tenant so desires.
Expansion and Relocation Options
As businesses grow, it is essential to that growth commercial leases provide a tenant the right to occupy additional space in the commercial structure.
The rental rate and specified period of this space should be negotiated prior to the initial lease signing. Often, the owner will agree to give a tenant the right of first refusal as space becomes available in the building. If additional contiguous space cannot be provided in a reasonable time frame for the tenant, an owner may agree to relocate the tenant within the building or shopping center within a specified time period. These additional lease clauses should be negotiated and worded carefully.
Financial impact of lease clauses
After a decision has been made to lease commercial space a commercial real estate specialist may be enlisted to prepare a financial report which quantifies the potential tenant’s lease costs and which compares and contrasts alternative leases.
As outlined previously, the final lease terms will be dependent on current local market conditions and the negotiation skills of all parties involved.
Before analyzing the financial implications that a lease imposes on a tenant we need to upgrade our vocabulary to include commonly used terms. These terms and definitions may vary from market to market.
Base (contract) rent: This is the specified, pre-defined contract dollar amount for periodic rent (monthly payments). Escalations are based on this amount.
Total effective rent: This is the base rent once it has been adjusted to include concessions, allowances and costs that will become the responsibility of the tenant (such as operating expense pass-through).
Total effective rate: This is simply the total effective rent divided by the square footage.
Average annual effective rent: This is the total effective rent divided by the total years of the lease term.
Average annual effective rate: This is the average annual effective rent divided by the square footage.
Cost analysis
Now that we have defined some common terms we are able to understand how to analyze the financial impact and actual cost of a lease:
From the tenants perspective
In many commercial leases, the base rent does not necessarily equal the effective rent. An in-depth analysis of this will include all costs to the tenant such as concessions, allowances and other additional costs.
Here then is a basic formula for calculating a tenant’s effective rent:
The base (contract) rent + (Additional Costs - Concessions and/or allowances) = The Total effective rent paid which will be paid by the tenant.
From the owner’s perspective
This same analysis is covered from the owner’s perspective and will also include all costs to the owner:
Here then is a basic formula for calculating effective rent from the owner’s perspective:
Base (contract) rent - (Net additional costs - Concessions and/or allowances) = The owner’s Total effective rent as income.
Alternative Strategies
We’ve seen how the negotiation of a commercial lease can not only affect a prospective tenants’ and owner’s cash flow but also how complicated the process may be. When a prospective site located and analyzed correctly, the site may or may not satisfy the financial requirements of a prospective tenant.
With that in mind, let’s look at some alternative strategies for commercial leasing:
Sublease
A sublease is a separate lease in which the tenant may lease all or part of the leasehold interest to another tenant while retaining liability for the property and primary lease to the owner.
There are however risks to subleasing which an owner may not be willing to accept. These risks include:
Re-lease risk: The length of time it will take to find a sublease is unknown. Rental rate risk: It may be necessary to sublease at below-contract rent. Tenant quality risk: It may not be possible to find a high-quality tenant. Lease-term risk: A sub-lessee may want a shorter or longer lease than that of the primary lease. Lease agreement risk: A sub-lessee may want concessions, allowances, and other features that are not provided in the primary lease. Tenant improvement risk: The sub-lessor may have to pay build out costs for the sub-lessee.
Assignment
An assignment of lease is where all of a tenant’s leasehold interests in a property are transferred to a third party. In general this will release the original tenant from any and all responsibility of the remaining terms of the lease at the time of assignment.
Build to Suit
Build-to-suit development as those in which an owner agrees to develop or finish a property built to the specifications of the prospective tenant.
The costs for the improvements may in part be assumed by the prospective tenant and may be in the form of an increased effective rent.
A build-to-suit strategy will most likely involve a prospective tenant with significant financial capacity and strong creditworthiness.
Sale-Leaseback
A sale-leaseback is a strategy in which an owner purchases land, builds a structure on the land for their own use and in turn sells the entire property to an investor, and retains a long-term net lease.
Many companies use this strategy to convert their equity in real estate to working capital where it hopefully can generate a higher return from the operation and cash flow of the business.
Summary
While this article, appropriate title Introduction to Commercial leases does not encompass every aspect of all commercial leasing implications, it hopefully has provided those with a less then working understanding of commercial leases the knowledge and information needed when dealing with a commercial lease entity.
There are many different ways to structure lease transactions, clauses and financial implications in commercial real estate leasing.
An important item to remember is that many lease clauses will be applied to a cost to either the prospective tenant or the owner.
Commercial leases should be reviewed carefully by trained professionals or others fully qualified to negotiate and analyze both the short and long term implications of the lease and the financial responsibilities of all parties concerned.
Careful and diligent lease negotiations and analysis will provide both a prospective tenant as well as an owner the ability to profit and be successful in their individual endeavors.
© Copyright 2008 Jennifer MacKay. All Rights Reserved.
Repossession
Aug
24
Save Money by Lowering Overheads and Renting Commercial Property London
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With the credit crunch in full swing it’s now the time to be cutting back on hefty overheads. Dump those long term leasehold contracts and get a short term and stable commercial property rental in London. A quick search for the area that you desire on a property website and you’re bound to find the right kind of place. Whether it’s a small office space for a few people or a whole floor in a warehouse workplace there are loads of options for location and size. You cut down on the long term fixed overheads too because who knows what the financial markets are going to do next?
I found a great place to work in the City on a year long contract, with a serviced office London. It suited my small business perfectly because of the short term contract and with everything included in one price, it enabled me to forecast my business cash flow with great ease and that’s very important in such a volatile market. One of the benefits of a serviced office is that the cleaners are thrown in to the deal.
This is perfect for me because of my messy workforce and the prices for cleaners for offices London are extortionate often reaching £20 for two hours work and they leave after a few months too. This added HR work is an unnecessary hassle and a complete waste of time. So I am so glad I now work in a serviced office London. Another plus of my newly found love for serviced offices is the included receptionist. This is an amazing addition which I previously never thought would have come with a serviced office London.
I used to have one of my staff answering all of the phone calls in our last office and once again this was a huge drain on our resources. For the point of sale side of my firm we also lease a commercial retail outlet in the heart of Covent Garden London. This is where all of our goods are sold to our customers and I never thought we could get such a good price for the outlet as we have. This was realised through a specific agent search for a commercial property London. This retail unit even has a kitchen out the back so the staff are pleased as it saves them money on expensive West End lunches. This commercial retail outlet we rent is also cleaned for us.
This saves money on man hours. At this important time to make cost cutbacks this is a great help. So overall I would never go back to trying to get mortgages for long term leasehold contracts on commercial property London. It just doesn’t make sense to do such things when there are so many benefits of getting serviced offices and commercial retail outlets on short term contracts.
Real Estate Proffessionals
Aug
21
Quick Bridging Loan Helps in Financial Ridge
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Bridging means overpass. In financial terms, it connotes to fill any unexpected monetary gap. It is a real phenomenon, when an individual avail facilities, he may have to pass by many financial hitches. After all, time does not always remain same. If a person is making an important deal, and all of a sudden, he finds that the amount he has is insufficient. He hankers after for financial support but that all goes to not. Since no one likes to provide good amount of money instantly, the person visits some commercial institutions where he comes to know about a quick bridging loan. This loan is secured in nature. For this loan, candidates have to place collateral as of the security of Quick Bridging Loan.
There are many options of pledging the borrowers may have. Following are some of them:
• Residential Properties
• Commercial & Semi-Commercial Properties
• Development Sites
• Auction Properties
• Land with planning permission
• Buy to Let Properties
• Retail Shops
On placing asset, the lenders evaluate cost of the security by comparing through current market analysis. After appraisal, the required sum of the money is sanctioned to the borrowers. However amount sanctioned by the lending authority under the quick bridging loan plan varies person to person and lender to lender. Generally this amount varies from ₤100, 000 to ₤400,000. Borrowers avail the benefits of the quick bridging loan for a period of one month, looking the repaying capacity of the borrowers, the lending authority is generous enough to extend the repayment period up to twelve months.
Quick bridging loan is commonly used for the following reasons:
• When funds are required within days rather than weeks
• Purchasing property where the surveyor recommends a retention
• To help homeowners who have been or are about to be repossessed
• Property refurbishment or conversion
• To stop bankruptcy
• To meet Inheritance Tax Bills
• Purchasing property at auction
• Chain-breaking mortgage
• Everyone can avail this loan including adverse credit score
Passive Income
Aug
20
Home Property Auction
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Prospective buyers can examine auction items before hand which can help sellers to set a minimum price below which they will not sell the property. Nowadays auction is taking place for artwork, antiques, secondhand goods, and farm houses, buildings repossessed by banks or government, and stock and commodity exchanges. There are different types of auction for each category. Jewellery auction are divided into three like 1920 jewellery auction, diamond auction and classic auction. In art there may be modern art auction, renaissance auction and alternative art auction. Likewise even house property auction are divided into commercial auctions, disused home auctions, repossessions, luxury homes auction. The oldest auction was for a bride known as Herodotus, existed in 500 B.C.,
were once in a year females of marriageable age were sold to the highest bidder. But times have changed; auction takes place through e-commerce or internet, which enables individuals to interact directly with each other electronically. Globalization and market growth is likely to further enhance this prominence in the twenty-first century.
Home auction is gaining popularity. Most real estate auction houses operate in the following way. Auction houses make a list of the upcoming live auction on their website. Prospective buyers register online to participate in the auction. Prospective buyers can have a look at the house for inspection on a particular day prior to live auction. Prospective buyers can make an offer on any home prior to the auction date. If the seller accepts, the home is excluded from the live auction. To participate in live auction, prospective buyers must bring earnest money, often a certified check that ranges from $1,000 to $5000. It is advised that buyers take a home loan upto the maximum amount they wish to bid. Buyers who fail to pay the money will lose their earnest money.
Commercial auctions
Certain developers specialize in buying commercial buildings such as pubs and shops. Commercial auctions help developers to attend only those auctions in which they are interested in.
Disused home auctions
Certain prospective buyers like to buy those type of properties which are in great need of repair. Buyers who are thinking of building a dream house may buy an old, disused home of great size in a good area for a very cheap price.
Repossessions
As mortgager is not able to pay mortgage amount due to rise in interest rates over the last couple of years homeowners are struggling to pay their mortgage amount because of which they lose their home. These properties are sold at rock bottom prices at property auctions so that potential buyers could get themselves a real bargain.
Luxury homes auction
Not only repossessed or disused properties are sold at auction. There are prospective buyers who wish to buy house at auction that are very costly. These properties go for an awful lot of money.
According to an association, gross annual revenue from home auction grew nearly 47 percent from 2003 to 2007. Home auctions, are usually web based and live bidding, which takes place when the sellers were not able to find a buyer the traditional way.
Sell and Rent Back
Aug
20
Recessed Commercial Electric Lights
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Enhanced illumination contributes to a more positive and focused work environment in the office. It helps improve employee morale, and it contributes to increased productivity which can be vital to recession proofing a business. Of course, many businesses may feel that now may not be the best time to invest in a comprehensive overhaul of their interior lighting system. For such companies, commercial recessed electric lights offer an affordable enhancement to the existing general lighting system that represents a safe-bet investment in any market place and also helps to reduce liability and improve general safety.
A certain number of foot-candles are needed for clear visibility and safe mobility within a building. Pockets of shadow and low levels of light represent areas where employees can injure themselves or suffer from eye strain caused by insufficient light. Commercial electric recessed lights are ideal for improving illumination in these areas and increasing visibility so employees can more easily perform tasks and move between stations when necessary. Reducing work related physical stress and minimizing the risk of injury helps decrease the potential liability for an organization with substandard levels of lighting. Something as simple as installing a few commercial recessed electric lights can potentially qualify a company for reduced commercial liability insurance rates, provided the contractor who installs the recessed lights provide the organization with a photometric analysis that details the improved quality of interior lighting and shows where newly installed recessed light fixtures work provide new directional lighting for important tasks in key areas of human traffic and activity.
Recessed electric light fixtures are also an ideal source of accent lighting in commercial interiors. Meeting rooms and foyers are two very important places that every company should spend the money to literally put in the best possible light. Recessed electric fixtures in these rooms can be wired to dimmers and remote control unites that allow for the light to be set to appropriate levels for different events. Speakers, sales presentations, private meetings, and even video conferencing will all benefit from the enhanced and flexible illumination produced by commercial recessed electric light fixtures.
To determine fixture specifics such as housings, trims, and lamp types, it is necessary to quantify floor and vertical cube space, and to learn as much as possible about key activities essential to the client’s operation. This information can then be passed on to us so that we may process this data using sophisticated design software that generates a comprehensive photometric analysis of the client’s interior office space. This photometric assessment details a point by point, room by room breakdown of required levels of lighting and optimal locations for fixture placement.
Once these things have been determined, it is much easier to determine exactly how many recessed electric lighting fixtures are actually needed, and which housings, trims, and lamp types will best meet the requirements of the proposed installation. For ceilings that cannot be cut due to restricted clauses in the client’s commercial lease, retrofit recessed lighting fixtures may be the best way to go. Smaller companies who feel the pain of investing even in a few new ceiling lights can be reassured with the promise of lowering power bills with low voltage fixtures. Unique interior architecture such as sloped ceilings can also be accommodated with special recessed electrical light fixtures made just for such interiors.
Sell House Quick
Aug
18
Negotiating A Commercial Property Lease In A Rising Market
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The 90’s was a golden decade for tenants & tenant representatives. Establishing leverage over your landlord was easy because office vacancies were steadily increasing and landlords were under the impression that if they didn’t do a deal today, the market would continue to erode. As a result, landlords were extremely aggressive offering large incentive packages that provided money for fitouts, & huge rent free periods. In short, getting a landlord to negotiate an existing lease was not a difficult job.
However, over the last few years the market has begun to change with steadily decreasing vacancies. Negotiations and how a tenant should approach their landlord have been forced to change also. There are two main reasons for change:
1) Because of smaller lease incentives, lease assumptions have decreased dramatically. Tenants trying to renegotiate a lease with several years left on the existing obligations lost the leverage that existed in the 90’s when they could threaten to leave for another building if the landlord didn’t restructure his lease.
2) Effective rental rates (the profit a landlord makes after netting out all costs of his concession package) are increasing. Many landlords would rather wait in what they anticipate to be a more favorable market for ownership than to restructure an existing lease today.
Although the above items have changed the face of negotiations, it is still a tenants market and there is no reason for tenants to simply accept market rates and above. As the market has changed, negotiating tactics must change also.
Here is some advice when you want to renegotiate your existing lease:
1. Know your landlord. As a tenant it is imperative that you know the goals and objectives of your landlords. Is the owner a passive holder of the premises & therefore less likely to give large incentives?
2. Be flexible. Sometimes landlords are not opposed to renegotiating a deal, they simply don’t like the structure and shape of the deal at hand. So be flexible so the deal is attractive to both parties.
3. Geographically expand your horizons. Some sub markets might be tight (i.e. Sydney A grade space) whereas the North Shore may have the capacity to deal with large space takers competitively. Smart tenants can effectively leverage various sub markets to suit their needs.
4. Seek creative solutions. Despite low incentives, one way to get a low cost alternative to your current premises, is to find space that is already fitted out, in addition try to find tenants who would be interested in your space early to avoid any make goods requirements.
5. Look to the future. Just because your lease is not up within the 12 months does not mean the owner wouldn’t be prepared to cut a deal now. In addition, you could seek an expression of interest campaign to tender your future requirements.
A tenants negotiating tactics and strategy must change with the market. Deals can be done now, more than ever, a tenant must be creative and understand the motivations of the other side when at the negotiating table.
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