February 14, 2019
Contributing Author: Mark Rogina, CPCU
Commercial property owners who lease out their buildings to others have multiple choices when designing the lease. Even after the lease is designed, further consideration must be taken to determine the execution of the designed lease.
In the event a commercial property owner has chosen to utilize a triple net lease with their tenant, the next choice to be made is how to handle taxes, maintenance, and insurance costs. The landlord has two options: 1) purchase their own insurance and pass through the cost of the policy to the tenant or 2) to allow the tenant to purchase their insurance directly.
The advantages to allowing a tenant to purchase commercial insurance for the property directly include:
Continue reading Insurance Implications to the Triple Net Lease
February 05, 2019
Contributing Author: Jay Verro, CCIM
As we kick off a new year, we are always looking for ways to improve our brokerage services and provide the best possible experience for our clients. In 2019, we will be focusing on numerous things to continue being the best commercial real estate brokerage we can be. Setting guidelines and goals can help balance your calendar, while increasing your success and happiness throughout the year.
Continue reading TOP CRE Brokers New Year Resolutions for 2019
January 09, 2019
Contributing Author: Sean O’Shea
As many much smarter ‘guys’ than me (and smarter women, too) are reviewing the last year; and struggling with Forecasts for 2019, at this time, there has been a lot of discussion about Fed Policy on rates and their impact.
Continue reading 2019 NNN Forecast
Bloomberg had a recent interview with the legendary hedge fund and financial advisor, Stanley Druckenmiller, who was reviewing the last ten year era; and he was critical, then, (2009); and now, (2019) regarding rates and the liquidity implications of the unwinding of QE policies.
We think some useful language, is to characterize ‘asset bubbles’ or the asset inflation that these policies may have created as a real thing. Actually, many are referring to this period as the ‘Bernanke-Yellen Asset Inflation’ period.
December 23, 2018
Contributing Author: Jay Verro, CCIM
Wow, another year is coming to an end already! Time to start wrapping up year end closings, preparing for the holidays and looking ahead to 2019.
2018 proved to be the year of the Fed Rate Hikes! While rate hikes have been predicted for several years, they occurred this year. By comparison, the Fed Fund Rate was 1.0% in Q12017 and 1.5% in December 2017. In 2018, the first 3 quarters saw 0.25% increases with another 0.25% increase anticipated this month. It’s realistic that we’ll end 2018 at 2.5%. Many are forecasting another 0.5% increase in both 2019 and 2020, while others forecast a potential reversal in the continued upward rate trends.
Continue reading 2018 CRE In the Rearview Mirror
December 13, 2018
Contributing Author: Levi Steier
As a commercial real estate (CRE) broker or salesperson, you may operate as part of a group, however, you are also an independent contractor, and in many ways, operating your own business. This means you should be developing a marketing strategy of your own, in conjunction with your firm’s marketing plan, to help you grow your personal brand, get more listings, and become a leader in your market and/or area of specialization.
There are many great tools available to help business owners leverage technology, and this is equally true for marketing yourself, growing your brand, and measuring your efforts.
Here are some tools you might want to consider adding to your toolkit.
Continue reading Start Using these 5 Tools to Grow Your Brand and Be More Productive
Water can cause some of the most extensive damage to commercial buildings. Knowing this, many business owners would like coverage in the event that their building is damaged by water. However, business owners would be surprised to learn that most commercial policies do not provide coverage for water/sewer backup or for traditional flooding. Sometimes these coverages can be provided by endorsement to the commercial property policy, while other times a separate policy will need to be purchased to provide coverage.
To begin, it’s important to define the terms and understand the difference between the two causes of loss:
Continue reading Flood Insurance Vs. Water Backup Coverage
2003-2005 “Irrational exuberance” a la Greenspan, now famous quote;
2008-2010 Great Recession and aftermath: PTSD for many of us;
2016-2018 Recovery being fully realized after almost a decade;
2019-2020 And Beyond: A measure of Uncertainty???????
With the marking of George H.W. Bush’s passing, we are afforded, yet, another “Opportunity to take stock.”
For those readers and investors who were beneficiaries, in this past year of the Tax and Jobs Act of 2018, I suspect, we can readily acknowledge the positive impacts of stock market valuations, due, in part, to share buy backs; and, shortly, when we do our taxes at new rate structures. The Economy has continued… (Is it sustainable?). The introduction of Opportunity Zone Funds, as once-in-a lifetime tax incentives, if properly executed, are also very encouraging.
Continue reading End of Year 2018 Wrap up for CRE
December 04, 2018
Congratulations, you successfully signed up a new listing, now you have to perform and sell the listing. If you are looking to perform quickly, to the best of your abilities, and acting in the best interest of your client you should be open to cooperating with other brokers. This can have some drawbacks, as brokers have overlapping clients, but overall the more people working on a listing the greater the chances the deal turns into a transaction and closes. Also, half of a commission is better than no commission. In today’s market buyers are coming from all over the place, not just other states but outside the country as well. In order to reach more buyers and increase leverage as a seller’s agent you have to reach a large audience and create buyer demand.
Here are our Top 10 Suggestions for Selling Commercial Real Estate: Continue reading Top 10 Suggestions for Selling Commercial Property
November 14, 2018
Ordinance and law coverage (O&L), might be one of the single most important coverages a building owner can have in their commercial insurance portfolio, and surprisingly, most have never heard of it. O&L coverage provides for the loss caused by enforcement of city ordinances as they relate to buildings after a loss.
The coverage comes in three parts, referred to as either part A, B, or C:
- Loss to the undamaged portion of the building
- Demolition cost
- Increased cost of construction
Continue reading Ordinance and Law Coverage and its importance to commercial building owners
November 13, 2018
Marketing commercial real estate listings in the U.S. through third-party platforms first began with Black’s Guide in 1976, a catalog containing CRE listings in major metropolitan markets. LoopNet and Costar are credited for bringing CRE listings online.
Over the years a few CRE listing platforms have come and gone, but online listing platforms have remained fragmented and adverse to cooperation with each other.
The lack of cooperation between CRE listing platforms forces agents to either manually enter their listings into multiple platforms, or more likely pick one platform and hope for the best. This resulted in a tremendous amount of time wasted. Continue reading Establishing the New Norm for Marketing CRE Listings