Tag: CRE

How Does The Commercial Real Estate (CRE) Industry Work?

 

How does the commercial real estate (CRE) industry work?

 

Most owners of commercial real estate hire real estate agents to lease their property on their behalf. The real estate agent’s responsibility is to represent the owner in leasing the property

 

What is the difference between a leasing agent and a tenant representative?

The leasing agent has the listing of the property and represents the interest of the owner of the building. A tenant representative (rep) represents the interest of the tenant in the lease. Some agents work exclusively on listing while others take on tenant representation only. Other agents will work with both.

 

Why should I use a broker (agent) if I have an attorney?

A knowledgeable broker, who is a vital part of your team of professionals, uses comprehensive marketing expertise and valuable resources to ensure maximum results in every lease transaction. Using an experienced brokerage firm will complement the rest of the team allowing others to do what they do best in their profession.

 

I’m thinking about moving my office or leasing a new office. Where do I start?

The first thing is to decide if moving into a new space is the right choice. Ask the following questions:

  • Do we want to find space on our own or hire a tenant representative to assist us?
  • Is it a good time to move?
  • How important is location?
  • How much space do we need?
  • How much can we afford?
  • On what date do we need to move into a new space?
  • How will the new space benefit the company and its future?
  • What does it cost to move?
  • What else is involved in moving (furniture, phones, computers, copy/fax/postage machines, internet access, etc.)?
  • Can we afford to lose business or employees during the transaction?

Brokers generally work in two capacities: as a listing agent or as a tenant representative. Some, if not most, do both. This means that they have property listings and they also work as a tenant representative. If you work directly with the property listing agent, keep in mind that the listing agent is representing the property owner. If you hire a tenant representative, you should consider hiring an exclusive tenant representative that has no property listings. This will ensure you that the tenant representative is working solely for you.

 

What is a representation letter or exclusive agreement and should I sign one?

A tenant representative will present you with a representation letter to sign for your own protection. The letter protects you by stating that you are working with only one tenant representative. It also protects the tenant representative by ensuring that they will get paid if a lease is signed. If a tenant representative does not have a signed letter from you, they will most likely only perform a simple property search. If you want to get the most out of the brokerage community, we recommend that you sign an exclusive agreement instead of working with several agents on a non-exclusive basis.

 

Is finding a space without hiring a broker a good idea?

Generally speaking, the answer is no. You, as a tenant, enter into a lease every so often. A broker, however, deals with leasing negotiations daily. Think of it this way: Would you go into an IRS office without having your CPA as a representative? Again, the answer is no.

Now that I’ve hired a tenant representative, what should I expect from them?

You should expect your tenant representative to think only of your interest and to give you advice. The tenant representative helps you determine how much space you need, what is your most important selection criteria, and then find and negotiate the space that best fits your needs. When it comes to the negotiation, make sure your tenant representative knows what is important to you.

Saying “I Don’t Know” Sometime Is The Right Answer

Saying “I Don’t Know” Sometime Is The Right Answer

So – you are supposed to be an expert in your field – and should have an answer for everything right?  No matter how much you have to fake or how much you are making it up you should give an answer and hope for the best afterwards.

Not anymore – the time has come to ditch our aversion to uncertainty.  Execs who admit their knowledge gaps not only make a better leaders but may also run more successful companies.

The reason has to do with credibility… the internet age has made us more aware of what we don’t know.  If you tell your audience “I have all the answers” you’re really saying “I don’t need your help”.

But when you say “I don’t know” what you’re really saying is “I want to hear your idea”.  This create meaningful dialogue and promotes discovery and experimentation.

In the Commercial Real Estate business – saying “I don’t know” should be the norm.  A buyer may have questions about a building that we don’t have the answer to.  Better be honest and say “I don’t know” but will find out” than try to fake it.  You’ll end up looking stupid if the answer provided have to be rectified later on.

So go ahead – say it “I don’t know” you won’t look bad – others will not think less of you. You are human after all!

 

Source: Canadian Business Mag – Dec 2013

Six Terms To Watch For In A Purchase Contract

Six Terms To Watch For In A Purchase Contract

Before signing on the dotted lines….

  1. The closing date. See if the date the buyer wants to take title is reasonable for you.
  2. The deposit. Look for the largest deposit possible. A large deposit is usually a good indication of a sincere buyer.
  3. Fixtures and personal property. Check the list of items that the buyer expects to remain with the property and be sure it’s acceptable.
  4. Repairs. Determine what the requested repairs will cost and whether you’re willing to do the work or would rather lower the price by that amount.
  5. Contingencies. See what other conditions the buyer wants to have met before the contract is final e.g., inspection, sale of current residence, financing approval, review and approval of contract by their lawyer. Set time deadlines for completion of each of these contingencies, so that they don’t drag on and prevent your sale from being final and binding.
  6. The contract expiration date. See how long you have to make a decision on the contract.

As with all contracts – commercial real estate is just another area where getting the help of a professional real estate agent can be invaluable.  From start to closing.

Check out our agents’ profile or give us a call !

 

Source: http://www.albertarealestatelawyers.com/resourceinformationcommonrealestateterms.html

Searching For It Or Getting It From A Pro?

Searching For It Or Getting It From A Pro?

Do you have questions about commercial real estate? As a tenant, deciphering all the lingo in a commercial lease can be a daunting task. How to you know if you are getting the lease deal?

 

Alternatively, as a landlord do you have the time to market your industrial vacancy, review all the offer to lease being presented and ensure you get the best tenant for the space?

 

For sellers and buyers, things get even more complicated when selling or buying industrial properties or investment properties.

 

Do you think you are achieving your industrial or commercial real estate goals by going at it alone? (i.e. without the help of real estate pro)

 

Like everyone else – you could “google” and do some research. However, like finding out why you have an itch (answer: insect bite to more serious afflictions) finding real estate information online can lead to more confusion.

 

First – often the information found is general in nature. Based on our experience, each lease or purchase transactions are unique. What may work for one, may not work for another.

Secondly – does the information found is specific to the location (i.e. what’s acceptable in the US may not be applicable in Canada (or Alberta)

Thirdly – the sheer volume of information you can find online is mind boggling and confusing at best.

And lastly, the time required getting it all done while running your business.

 

What’s the solution to ensure your achieve those commercial and / or industrial real estate goals?   Get the advice of a qualified commercial real estate pro!

 

After taking the time to clearly understand your business, our real estate professionals will use their vast market know-how and experience to identify and present your best options. From leasing warehouse, storage, assembly space, to office space, to buying a commercial/industrial building as an owner/user or as an investment to industrial land. We are your one stop-shop in Calgary for industrial and commercial real estate services.

 

We will work for you – while your continue running your business!

 

What have you got to lose? Nothing….What you have got to gain?  EVERYTHING!

 

Let us search for the IDEAL space for your business!