Recently, we received a call from a longtime client. When we constructed his lease seven years ago, the owner was unwilling to grant our client any extension rights.
When we viewed the deal in its totality, the lack of extension rights was outmanned by the other good things the deal had to offer: rate, term, tenant improvements, abated rent, etc. So, we proceeded.
Then, WHAM! The owner decided to sell the building to a company that gave our clients the heave ho, and we were looking for another location.
An extension occurs at the expiration of your commercial real estate lease but
As you wheel into your business, you notice all of the parking spaces are consumed, forcing you to park in the adjacent lot.
At the front door you’re greeted by several employees who cohabitate because the office space is insufficient for the staff.
A quick foray into the warehouse convinces you the new shipment of raw materials must wait. You simply have no place to store them.
All of these examples are consequences of occupying a space that is too small for your operation. Next step: You’ve decided to relocate. So, let’s discuss some of the unintended consequences of a commercial real estate
Today, I decided it would be fun to recall a few random thoughts as they pertain to leasing commercial real estate.
Unlike our residential counterparts, leasing is a big part of our daily activity. We, as commercial real estate professionals, help occupants find space to lease or buy.
Typically, leases account for 70-75 percent of our deal volume, with sales taking the balance.
We differ from our residential counterparts. Our fees are based on a percentage of the deal’s total consideration: purchase price or the amount of rent paid over the term of the lease. Generally, commercial leases run 3-10 years, so the
Orange County, which has long positioned itself as an international shopping mecca, finds itself scrambling to cope with a dramatic upheaval in consumer spending habits.
“Retail is not dead or dying,” economist Wallace Walrod told the Orange County Business Council’s 2017 Economic Development forum last week. “But it is changing rapidly and dynamically before our eyes. Orange County has to adjust.”
I’ve reasoned for months that Southern California is immersed in a seller’s market — there are many more buyers in the market than sellers — advantage sellers!
Today, I want to discuss why commercial real estate might not sell.
After all, with more buyers around than sellers, an owner should be flush with offers, folks clamoring to buy — but nothing — just crickets. So what’s up?
Below, I offer some reasons why a building might not be in the sold category.
Your building is overpriced: As we’ve discussed in previous columns, asking prices can be tricky. Hopefully, you’ve looked at recently closed sales,
HESPERIA — A man was arrested after reportedly assaulting his girlfriend before leading officials on a high-speed chase to Corona early Tuesday.San Bernardino County Sheriff’s Department officials said in a Tuesday news release that David Bailon, 21, of Hesperia, was arrested on suspicion of assault with a deadly weapon, carjacking and felony evading with disregard to public safety. Bailon reportedly struck his girlfriend with a baseball bat and then led deputies on a […]
ADELANTO — A teenage girl was arrested Monday after cutting a classmate’s arm with a razor blade, authorities said.San Bernardino County Sheriff’s Department officials said in a Tuesday news release the altercation occurred on a school bus after another student accused the victim of making fun of the 13-year-old suspect. She cut the victim’s arm with a razor blade when the accusations were denied, authorities said.The incident occurred shortly after […]