Charlotte NC Commercial

by Rob Cassam, CCIM

The Investors Leverage With Options

Written November 1, 2024 by
Categories: Newsletter
Tags: , ,

In this issue

    • The Investors Leverage With Options

    Leverage is the use of borrowed money to control something of value. Real estate investments for many years have afforded the investor some extreme leverage situations. Let’s examine leverage. If double-digit inflation returns, controlling the maximum amount of real estate may be extremely desirable. One way to do that is with an option. High leverage is an excellent benefit. Remember though, that with an option there is a problem. Options have an expiration date. If you haven’t gotten the desired increase in value by the time the option expires, you must make the choice – buy the property and wait longer, or let the option expire……(more)

    • How Lease Property Is An Estate For Years

    There are real estate investors who specialize in making profits, sometimes big profits from properties that they lease and do not own. This cash flow from a lease can be extremely interesting. Often the lessee making a huge profit has a relatively small cash investment in the property…..(more)

    • The Master Plan For Land Acquisition

    The acquisition and improvement of land is a large-scale operation and requires large amounts of capital. This has created methods of land acquisition that gives the developer access to and control over a large enough tract to make development economical without requiring an initial outlay of all of the capital necessary to acquire such a tract.
    From the point of view of the landowner, the disposal of a large tract at a good price may require a formula that will encourage the developer to commit improvement and development money for part of the tract that will build future value into the entire tract. This may be accomplished by the following:…..(more)

    • Real Estate Investment Advisors

    Today’s investor in real estate must be aware of market conditions and potential that is usually beyond their own available time to attain. Investors need assurance about the true condition of the market. With increased competition, the market place is becoming more complicated. As your professional commercial real estate advisors, we are in the position to represent you in real estate transactions by setting up sales, exchanges, leases, purchase and sales of options, and management of real estate….(more)

The Success Of A Prospective Tenant

Written October 1, 2024 by
Categories: Newsletter
Tags: , , ,

In this issue

    • The Success Of A Prospective Tenant

    Owners must think about vacancies when checking a prospective tenant. Will the tenant’s business survive? When you have a prospective tenant for a commercial center, you must consider whether that prospect would be a good tenant. There are two key standards to apply; (1) the prospective tenant’s financial stability; and (2) the prospective tenant’s potential for success…..(more)

    • Lenders, Property Managers – A Service Joint Venture

    Whether times are good or bad, lenders always have foreclosed properties in inventory. During a recession the inventory may be high. One of the problems that banks and insurance companies have is disposing of this real estate owned (REO). They are faced with the decision of whether they wish to dispose of the property immediately or hold it for a period of time to hope for an increase in value. They would like to see the value of the REO increase to equal the loan amount. These lenders are not professional real estate investors but money managers. Therefore, they are reluctant to invest any additional money in the properties. This problem is compounded because a troubled property needs more attention than does a healthy one. It would not have been in foreclosure if it didn’t need help. The solution might be a service joint venture. This type of contract with a real estate firm allows the lender to minimize management fees until the property is generating cash flow again…..(more)

    • Rental Market For Senior Lifestyle

    Not all retired people want to own their own home. Many prefer to be tenants. Many feel that the proceeds from the sale of their old home can be used to supplement their pension and social security, rather than reinvested in another home. The money can be used for travel, visits to children and grandchildren or for medical expenses.
    For living quarters, these seniors prefer to be rent payers, not owners. A modest-sized apartment suits their needs and, as tenants, they are relieved of any worries about maintenance and repairs……(more)

    • Variations of Commercial Leases

    A lease is an integral part of many real estate investments. It should outline all the obligations of the tenant and of the landlord. This sounds simple, but many questions arise. If, for example, property taxes increase, does the tenant pay all of the increase or only part of it? If the property must be modernized, who pays for the improvement? Can the tenant be moved out during the renovation? If the costs of servicing the property rise, should the tenant pay none, all, or part of the increased costs? How should inflation be handled—with automatic rental increases? With increases tied to some index, perhaps the Consumer Price Index?….(more)

  • Investment Planning

A prospective investor may have a problem getting started with a real estate investment because of the great variety of properties that are out there. They may be fearful that someone will “sell” them something – something that is wrong for them. An answer to these problems can be an interview with an interested professional real estate broker who can act as a real estate investment counselor. Each prospective investor can be interviewed in depth to find out specific needs in an income property. At the same time their needs are being evaluated, the broker will also communicate what benefits are available in various properties and how to identify them. (more)

The Benefits Of The Commercial Appraisal

Written September 1, 2024 by
Categories: Newsletter
Tags: , , ,

In this issue

    • The Benefits Of A Commercial Appraisal

    The value of a particular property is made up of the future benefits that the owner of the property can expect to receive from rental or other income. In determining the future benefits that an owner can receive from a property, the current use of the property is considered, and all other uses that it may be capable of in the foreseeable future. As an example, a property that is being used as farmland could be usable for a residential subdivision in a few years, but later might be usable as commercial or industrial sites…..(more)

    • Climate Controlled Self Storage

    A feature that developers and owners of self-storage properties are adding to increase the appeal to more users is climate-controlled space for storage of microfilm, computer records, antiques and other sensitive materials……(more)

    • Creative Commercial Management Tips

    Property managers must always think about the type of tenant that is most likely to reside in that particular building. For example, when apartments in a project rent for $16,000 to $24,000 per year, tenants will be concerned primarily with quality shelter. This means a safe, clean, efficient building but without a lot of frills and amenities.
    On the other hand, if the apartments will rent for $35,000 to $45,000 per year, or more, tenants typically expect and demand much more than just shelter. These tenants want a luxurious life-style, and that means the building should contain a health club, a swimming pool, a private park, and similar conveniences…..(more)

    • Office Building Vacancies

    Office buildings are excellent commercial properties to own. One of the most important jobs of a leasing agent for a building with available space is to analyze other buildings to see if any tenant could be induced to move. Newer buildings may fill up at the expense of older buildings. Since new buildings cost more to build than the older ones, rents may be higher. The actual dollars-per-square-foot costs must be compared, along with other benefits that the tenant may receive, before a final decision is made by the tenant on staying or moving. Here are some of the items for comparison….(more)

  • Your Commercial Real Estate Broker

How can I be of service to you? When you are buying or selling a commercial property, of course. At other times, we can handle property management for any properties you might own. Let me help in determining the value of your investment, anytime you need to know. Call my office when you need services of an expert in this community’s real estate. I have the records of all properties for sale at all times. Today’s interest rates, availability of loans, and any other financial information that can affect your property is as close as your phone. Keep our newsletter as a file of useful real estate information and to remind you to call me whenever you need “Professional Service”. (more)

How To Control Property With A Purchase Option

Written August 1, 2024 by
Categories: Newsletter
Tags: , ,

In this issue

    • Controlling Property With A Purchase Option

    A purchase-option contract lets the buyer-optionee purchase a property at a specific price within a certain period of time. If the option is exercised, a closing is held and the property is purchased at the price previously agreed upon. There is no legal obligation to buy the property. But, if the optionee does not exercise the option, the deposit paid to the seller-optionor is forfeited…..(more)

    • Multi-Screen Theatre As Key Tenant

    The multi-screen theater in shopping centers has been around for a long time but they have not been thought of as a key tenant. The shopping center has gone way beyond a place where you can buy appeal and shoes. The shopping center of today is more of an entertainment center than just a shopping center. The key tenant in a shopping center was often a store from a nationwide chain that carried a wide variety of quality, brand-name items. Instead of signing just a department store as the anchor tenant, some large shopping center owners and operators are now choosing to sign a multi-screen movie theater as the key tenant. The multi-screen movie theatre may attract more people, more often than any type of store because they feel a movie theatre is a better drawing card for getting people into the center……(more)

    • Acquiring Investment Land

    Land is one of the top investments by real estate professionals. Before any building project can be planned, the land must be available. At all times, real estate assemblers are looking at and acquiring under-utilized sites within cities or in suburbs. Here are some ideas on how those professionals do it…..(more)

    • The Upkeep On Your Rental Property

    Keeping your property in top condition is not difficult if it is a continuing effort. There will be a plan in place for making ongoing improvements by investing a portion of each year’s income. Failure to do this will result in a neglected property…..(more)

  • Your Commercial Real Estate Broker

How can I be of service to you? When you are buying or selling a commercial property, of course. At other times, we can handle property management for any properties you might own. Let me help in determining the value of your investment, anytime you need to know. Call my office when you need services of an expert in this community’s real estate. I have the records of all properties for sale at all times. Today’s interest rates, availability of loans, and any other financial information that can affect your property is as close as your phone. Keep our newsletter as a file of useful real estate information and to remind you to call me whenever you need “Professional Service”. (more)

Choosing The Right Investment Property

Written July 1, 2024 by
Categories: Newsletter
Tags: , , ,

In this issue

    • Choosing The Right Investment Property

    No single property can fit all of the investment goals and rules an investor has set. Even if the investor tried to build a property to specifications, he would find some things “not quite right”. The investor is, therefore, wise to anticipate problems and have some basic strategies for dealing with them. Here are some suggestions to help the investor devise other approaches to meet special needs…..(more)

    • Lease Negotiations With A Corporate Team

    A few years ago, senior corporate managers were able to make major real estate decisions by themselves. Now, a negotiating team will negotiate leases. This team may consist of legal counsel, finance department representatives, outside specialists such as real estate brokers or tenant representatives, design and engineering consultants, and others. In today’s market, corporate tenants with high credit ratings, who are willing to make long-term lease commitments negotiate from a strong position. Therefore, corporations that formerly treated real estate transactions in a casual way have now developed detailed real estate negotiating strategies. The corporate tenant sees these negotiations as a way to cut costs within the company (whether upsizing or downsizing). Landlords, developers, and brokers must be aware of this new style of negotiation. While the real estate executive plays a key role in developing the strategy, the other parties must be ready to respond quickly to requests for information and be prepared to discuss issues that rarely if ever arose in the past…….(more)

    • Drafting The Shopping Center Lease

    When leases for shopping centers are being drafted, they can be more difficult than most other commercial leases. In a shopping center, the owner wants the leases to be as uniform as possible, but knows that each lease must have variations to meet the individual tenant’s particular problems in business and in certain size or shaped spaces.
    Here are some suggestions of items that should be covered in your shopping center leases. There could be many more depending on each property……(more)

    • Who Buys Commercial Property

    When we represent a seller of a commercial property, we try to determine, as soon as possible in the marketing process, what type of buyer is most likely to be interested in this particular property. We then focus the main appeal on those elements that are most important to that type of buyer…….(more)

    • Your Real Estate Investment

    Knowing what you can do in some investment situations can be the difference between an annual profit or loss in your currently owned commercial property or the one you intend to acquire. How you acquire it can be important……(more)

    • Your Commercial Real Estate Broker

    How can I be of service to you? When you are buying or selling a commercial property, of course. At other times, we can handle property management for any properties you might own. Let me help in determining the value of your investment, anytime you need to know. Call my office when you need services of an expert in this community’s real estate. I have the records of all properties for sale at all times. Today’s interest rates, availability of loans, and any other financial information that can affect your property is as close as your phone. Keep our newsletter as a file of useful real estate information and to remind you to call me whenever you need “Professional Service”. (more)

Investing In Land For Long-Term Profit

Written June 1, 2024 by
Categories: Newsletter
Tags: , ,

In this issue

    • Investing In Land For Long-Term Profit

    Land is always a good investment for the long term. In past years when investors made real estate investments, one consideration was the tax shelter of certain investments. Now, with fewer shelters, real estate investments must make sense as a dollars and cents return on capital, and must stand alone as a good business move. Land has never been a tax advantaged investment and should be worth considering as a way to increase wealth. The trend has always been up…..(more)

    • Changing The Use Of Investment Properties

    There is a big difference between investing in the rejuvenation of real estate projects and investing in stocks, bonds and other securities. When you invest in securities, you have no control of any factors that can enhance the value. In real estate, you have control of the investment yourself. In an investment in converting use of buildings in real estate, the investor can use creative imagination to change a property into something that has a much greater value, and even better than before…….(more)

    • Turn-Around Negative Cash Flow

    In investment properties, when cash expenses are more than cash receipts, there is negative cash flow. Most investors avoid properties where this is the situation, unless there are strong underlying economic factors that indicate the cash flow can become positive…….(more)

    • Keeping Key Employees Happy

    Office amenities are the little things that transform a regular work place into an exceptional one making for happy employers and happy employees. Key executives were the ones who always had the “office with a view”. Now, however, on modern buildings built in recent years the atrium is one of the most popular (and expensive) amenities. It is popular because virtually every office can have a window view, either toward the conventional view, the outdoors, or toward the spaciousness and openness provided by the atrium. It is an example of “keeping key employees”……(more)

    • Contact Your Property Manager In Advance

    The usual way that a property management company comes upon the scene is when the owner of a building makes a contact. Often the owner has just acquired the property through a purchase or exchange, then looks for a manager…..(more)

    • Your Commercial Real Estate Broker

    How can I be of service to you? When you are buying or selling a commercial property, of course. At other times, we can handle property management for any properties you might own. Let me help in determining the value of your investment, anytime you need to know. Call my office when you need services of an expert in this community’s real estate. I have the records of all properties for sale at all times. Today’s interest rates, availability of loans, and any other financial information that can affect your property is as close as your phone. Keep our newsletter as a file of useful real estate information and to remind you to call me whenever you need “Professional Service”. (more)

Negotiating The Sublease

Written April 1, 2024 by
Categories: Newsletter
Tags: , ,

In this issue

    • Negotiating The Sublease

    With changes in business strategies, a major existing tenant wants to sublease all or some of their rented office space to eliminate some locations and shrink operations in others. In this situation, the problem for landlords is whether it is a better strategy to enforce lease restrictions against subleasing or to work with tenants on the theory that the sooner sublease space is filled, the better for all. (In addition, another problem could be whether landlords should insist on sublease restrictions in new leases being negotiated now.)….(more)

    • Individual Building Or Commercial Condo

    Which is the better investment — a separate (single) commercial building or a commercial condominium within a larger complex? Each has its own unique set of attributes, and so the answer really depends on the needs, goals and characteristics of the investor…..(more)

    • Unusual Pieces Of Real Estate

    In many metropolitan areas, commercial land for development is in very short supply. Developers are converting older warehousing to shopping areas, demolishing existing buildings to build new projects in areas in transition. However there may be many hundreds or even thousands of unusual parcels of property that have been overlooked. Many are ready for commercial development close to downtown areas, suburban commercial developments, and densely populated areas. Owners of many of these properties consider the property as “surplus” and have not considered development.
    Some of these properties are in the inventories of city, county and state ownership and are surplus parcels that were unused in street, highway and freeway development. Others are owned by railroads…….(more)

    • Extra Income From Campus Apartments

    When an owner has an apartment property near the campus of a University, there are particular problems. The competitive situation dictates that leases be offered for one semester of nine and a half months. A twelve-month lease for students is virtually unheard of. That means there are lots of vacancies as soon as final exams have ended. (This does not apply to a few University communities where there is always an apartment shortage. In those few places, the student must lease for 12 months or have no lodging.)…..(more)

    • A Step-Down Rental

    Tenants understand the need for step-ups in their leases because they recognize the inevitable upward trend of costs. There is no reason for elaborate set of definitions in the lease. The lease simply needs to spell out in a schedule the applicable period and the rent to be paid during that period…….(more)

    • Screening For New Tenants

    The property manager provides the tenant applicant with the lease application which must be filled out for the interview. A leasing agent may assist during the review process, but the final selection of tenants is ultimately the property manager and owner’s responsibility…….(more)

How Good Management Add Value

Written March 1, 2024 by
Categories: Newsletter
Tags: , , ,

In this issue

    • Is Your Commercial Property Secure?

    The problem of security is a major concern of owners or managers of office buildings or other commercial properties. There are many things to check both inside and outside of a property. Particular attention must be given to the perimeter of the property, as this is where an intruder will make the first contact….(more)

    • In A Sale/Leaseback Check Tenant Stability

    When an investor is looking for a management free investment, nothing can beat a sale/leaseback. This is the ideal investment for an absentee owner because the tenant pays all the operating expenses and the investor-owner usually has a completely management-free and trouble-free investment. Typically, the tenant–who is the former owner–will take care of the property. Therefore, a sale-leaseback can be an excellent investment. Watch out though! Make sure that the tenant is dependable and able to pay the rent regularly and promptly…..(more)

    • The High Risk Problem Property

    In any market, good or bad, there are always problem properties. Most are only troubled or problem properties because of the current ownership. Some may be neglected only because the present owner has failed to do fairly simple things that can solve the problems. Buying property and solving problems is a profit-making business…….(more)

    • Things To Check With A Ground Lease

    Landowners may choose the ground lease as a way to benefit an easy and risk-free investment vehicle and as a way to secure the long-term appreciation of the property. Sometimes a ground lease can put the lessor at risk. That is because the deal centers on the concept of sharing economic returns. The lessor becomes a partner of the lessee because the total rent is usually determined by the lessee’s net operating income or net cash flow. If the lessee does well, the lessor does too. However, if the lessee’s business is a loser, so is the lessor……(more)

    • Good Management Adds Value

    Investors purchase residential and commercial income producing real estate to make money. There are two obvious ways of making money from a property. First, the owner takes a share of the annual operating profit generated by the investment, and Second, profits from increasing the market value of the investment beyond what it would be because of inflation alone.
    Apartment properties lend themselves to the second way of making profits better than many other types of investments. Increasing the market value of rental units does require know-how, absolute understanding of the market values of this type of property and excellent management…….(more)

    • Take Action For Overdue Rents

    A critical indicator of a management company’s success is their effectiveness in controlling overdue rents. A well-run property should not have chronically delinquent tenants. However, when delinquency does occur, immediate action must be taken. A list of all delinquent rents must be prepared showing all tenants who have not paid, or for those who have partially paid rents and other monies due. In addition, a delinquency report recording the manner and date of all collection attempts should be prepared…….(more)

How To Handle Distressed Commercial Real Estate

Written February 1, 2024 by
Categories: Newsletter
Tags: , ,

In this issue

    • How To Handle Distressed Commercial Real Estate

    It is hard to believe that someone can totally neglect a valuable investment property like a multi-unit office building or an apartment complex. It happens. The run down property may have been acquired from a seller who did not understand real estate investments and failed to manage it at all. The professional investor can usually spot the low-priced and currently unprofitable income property that can be purchased, then upgraded with some reasonable expense so that it becomes a cash flow property. That property can then be added to the investor’s real estate portfolio or quickly sold for a profit. First, a professional management company must take over the property. It is faced with a problem property that the new owner has purchased for the purpose of a “turnaround” for profit….(more)

    • The Proper Balance Within A Shopping Center

    In Recent years, many stores have widened their lines and no longer specialize in only one form of merchandise. Such operations as supermarkets may sell anything from CDs and DVDs to refrigerators, and drugstores are as apt to carry pots and pans as well as pills. However, in order to insure the success of small as well as large store operations within the shopping center, management specialists must try to create a harmonious balance and limit the amount of “overlapping merchandise” that causes unnecessary competition. Big Box stores sell almost everything but are usually a “stand-alone” store……(more)

    • How To Handle Lease Provision Questions

    When a landlord and a tenant agree to a commercial lease, it may contain clauses covering things that neither party to the lease ever expects to happen. Occasionally, one of these will happen with costly and damaging consequences to the tenant. One lease clause that may seem very reasonable to a tenant is one that agrees to subordinate the lease to any future mortgages that the landlord may place on the property. After all, it is reasonable for an owner to want to refinance a property. The result of the provision is that the foreclosure of a mortgage loan will either automatically terminate the lease or entitle the lender, at its option, to terminate the lease (depending on the law of the state involved)……(more)

    • Corporate Shared Office Space

    With the new revolution in communications, building owners must keep up with the changing needs of the corporate tenant. Often the larger, well-organized businesses do not need the space that was necessary just a few years ago. Electronic communications to and from employees have substituted for leased office space. Managers are more willing to grant favorable lease terms to operators of shared space. The operator sometimes receives a monthly management fee for operating the shared space plus a portion of rent revenues over a certain amount…..(more)

    • Real Estate Investment Consultants

    When you need professional advice and help in commercial real estate please come to our office. We are experts in values and knowledge of the entire market in this area. If you have been looking for a certain type of property we probably have the full information on several like it already. Today’s investor in real estate must have a grasp of market conditions and potential that is usually beyond their own available time to attain. Investors need assurance about the true condition of the market. With increased competition, the market place is becoming more complicated. As your professional commercial real estate advisors, we are in the position to represent you in real estate transactions by setting up sales, exchanges, leases, purchase and sales of options, and management of real estate More investors are turning to real estate consultants as a means of providing a sounding board for their ideas as well as expertise in the planning and construction stages for their projects. Feasibility studies are essential for commercial office, industrial, resort and hotel investors. With this kind of information, planning is better and there is less chance for error. Real estate investing is not just the structure and the land. It is investing in the type of property that you want at the price and terms that suit you at the time you want to make the purchase. We can be your consultants. Lets talk and find out if we might be a fit……(more)