January 23, 2020
We often find ourselves complacent with “working” results and apply the why fix it, if its not too broken attitude. This applies to the landscaper, email services, car insurance, and even the barber who gives us bad hair cuts, yet we continue to go to him out of habit. But a capital partner? Having the right commercial real estate capital partner(s) can not only deliver more returns into your pocket, it can grow your business significantly.
We recently caught up with the a number of funds we work with to talk through their 2020 lending/investment strike zones. A handful of funds are offering 100% construction financing for net lease developments. If you are looking for STNL construction financing, or Net Lease construction financing and want to take the leverage to 100%, there are well priced financing options tailor made for STNL and Net Lease developments.
Continue reading 100% Construction Financing for Net Lease? Yes, Really!
July 09, 2019
Contributing Author: Mark Rogina, CPCU
There are multiple factors to consider when purchasing a commercial property. Price, location, functionality, and taxes are certainly a few of the factors a prospective building owner will consider when purchasing a property, but another factor that should be considered will be the cost to insure the building itself. In this article, we’ll focus only on factors as it relates to the property insurance itself for a new building, ignoring the needs for other important coverages for the building such as general liability.
When reviewing a building for commercial insurance, insurance companies tend to focus on the acronym C.O.P.E. The letters in C.O.P.E. reference Construction, Occupancy, Protection, & Exposures:
Continue reading Insurance Factors to Consider when Purchasing a Building
June 17, 2019
Contributing Author: Anthony “Tony” Catalano
So, you passed the real estate exam and you were able to find a spot on the team of a local commercial real estate (CRE) firm.
What’s next? How do you really get started in the business?
Just 18 months ago this was my challenge. And while it’s not science there are some things that you can do to make your transition as effective and efficient as possible. Most of these pointers will seem like common sense, but actually practicing them can be a bit harder, so here goes…
Continue reading Advice for New Agents in Commercial Real Estate
June 01, 2019
Contributing Author: Sean Lyons
An in-depth analysis of the private student housing market at University of Wisconsin conducted by Triad Real Estate Partners. Triad Real Estate Partners concentrates in private student housing and multi-family real estate brokerage. Triad Real Estate Partners’ research team compiles in-depth student housing market research reports on leading Universities in the United States.
Total Enrollment: UP 1.35%
Total enrollment at the University of Wisconsin’s flagship campus in Madison for the fall of 2018 clocked in at 44,411 – breaking the previous school-record set last fall by 591 students. In general, enrollment growth at UW-Madison has been slow but steady, increasing a total of 741 students between 2010 and 2016. By contrast, over the past two academic years (AY) enrollment has grown by 1,075 total students.
Continue reading University of Wisconsin: Student Housing Report 2018-19
May 08, 2019
Contributing Author: James “Jay” Verro, CCIM
The longer that you’re in the commercial real estate (CRE) industry, the probability increases that you’ll have clients or will be contacted by prospective clients who will want / need your expertise on their CRE exit strategy. To best advise your clients, you’ll need extensive knowledge on the options available while managing to “Staying in your Lane” with regards to your licensing. Simply put, refer your clients to their attorney for legal advice, their CPA for tax implications, and so on.
You’ve been asked to sell an income producing property by a property owner or client. Aside from determining market value, gathering the necessary due diligence information, and other commercial real estate related tasks, an experienced CRE professional will have a discussion with the seller about their post-sale plans.
Continue reading Counseling Clients on a Commercial Real Estate Exit Strategy
April 23, 2019
Contributing Author: Mark Rogina, CPCU
One of the most misunderstood topics I frequently field questions for is the insurance premium audit. Most business owners tend to not understand the reason for their premium audits and the process often appears to be convoluted at best. Premium audit issues can be costly to businesses and certainly are unexpected surprises detrimental to cash flow.
There are two major insurance coverages that most business owners will have purchased that are usually auditable: general liability insurance and worker’s compensation insurance.
Each of the respective policies are priced based on class codes, or descriptions of what it is the business does or what their employees do for the business. Multiple class codes can be used on one policy. Each class code comes with a rate, and what is known as an “exposure basis”. Depending on the type of business, an exposure basis is either payroll, revenue, building SQFT, number of units, etc. In its simplest terms, the exposures basis is divided by 100 for a worker’s compensation policy or 1,000 for a general liability policy and then multiplied by the predetermined rate to develop an insurance premium.
Continue reading I Owe More Insurance Premium?!
April 16, 2019
Contributing Author: Sean O’Shea
Certainly for the last decade or longer, the drugstore sector has been viewed by many single tenant investors, as a bond-like investment, in the sense that they had investment grade ratings (this has changed over the last decade, in part, due to the additional debt that has been incurred for various mergers in the sector); and predictable, stable income streams that were afforded due to absolute NNN lease structure of most drugstore tenants’ leases.
There has been some concern, over the years, regarding whether these assets afford an inflation hedge, since in the case of Walgreens-Boot Alliance, that the rental income was stabilized or ‘flat’ for almost 75 years. The CVS Health and Rite Aid lease structure can vary; but do afford some scheduled increases.
Continue reading Drug Store Sector Update
Contributing Author: Cory Tyksinski
Most people have heard or even used the expression “Stay in Your Lane,” and almost everyone would apply it to when they are behind the wheel of an automobile. But it can have significant meaning in the world of Commercial Real Estate (CRE). We live in an age of technology where the internet and social media have increased the amount of information available and the speed at which someone can obtain information about almost anything, including commercial properties.
This access has certainly benefitted the general public as would-be buyers and tenants can peruse the various websites anonymously to search for the right property that meets their needs, and only after identifying such property, will they engage the assistance of an owner or listing broker. However, this accessibility to information has also “allowed” or even encouraged real estate brokers to venture into areas where they may not have comprehensive and thorough knowledge.
Continue reading Staying in your Lane
April 07, 2019
Contributing Author: Jay Verro, CCIM
As most of the country is finally digging out from a long and snowy winter, it’s a great time for commercial real estate (CRE) professionals to add value to their existing client base. What is the one thing that we hear so often from our colleagues and clients? Answer – “there’s not enough hours in a day,” especially with continual interruptions thanks to the growth of mobile technology.
As their trusted advisor, you can lessen their load while making you more valuable to them by doing one easy, yet often over-looked task. Each spring, I make the time to visit each of my landlord and seller client properties for the sole purpose of looking at them with a fresh set of eyes, just as a prospective tenant or buyer would do on their first time into the property. CRE professionals, landlords and sellers often get tunnel vision after pulling into their property day after day, making it too easy to overlook deferred maintenance items.
Continue reading Spring Value Added Service to Clients
March 19, 2019
Contributing Author: Jay Verro, CCIM
Commercial Real Estate (CRE) transactions range from the fairly simple to immensely complex! The degree of transaction complexity can be mitigated by an educated and understanding commercial real estate broker who has expertise in your type of transaction and the resume to prove it.
A broker’s education and experience on specific sides of the transaction make he/she more understanding and knowledgeable of the other side’s needs. If you’re a commercial real estate landlord, you should seek out the expertise of a broker / agent with a significant amount of Landlord Rep. experience as the needs for a landlord typically differ from those of a tenant. It would also be beneficial to you if that broker/agent also has tenant representation experience, so they understand what typical expectations are from small business tenants to corporate tenants, etc.
Continue reading Creating Value by Understanding / Experience