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Friday, August 12, 2011

Why are Buildings Selling in Today's Rotten Real Estate Market?

It might be surprising to learn that industrial buildings are selling in this difficult real estate market. Some of the reasons why buildings are selling is because values are at 20-year lows. Another reason why is because the interest rates are at historic lows. Buyers are expecting huge discounts on property today and are finding them. For example, a new listing at 1016 Fuller in Santa Ana (5,201 Sq. Ft. industrial building) was just listed at $598,000 which would equal a rent payment of $0.78/ Sq. Ft. Gross! This building would have sold three years ago for over $1 million. In addition, buyers expect a discount off of the asking purchase price if there is a deficiency with the building. For instance, 1016 Fuller has very limited parking. Thus, it will likely be discounted further. For more information about this example listing, please go to:

http://www.youtube.com/watch?v=Hgw4o20Kmms



Monday, August 8, 2011

What a Week on Wall Street!

Check out this week's Financial and Economic Report, Courtesy of Wells Fargo:

http://ocindustrialgroup.com/files/WeeklyEconomicFinancialCommentary_08052011_V2.pdf

Why Hire a Broker to Negotiate Your Lease?


Today, a lease is usually 20 or more pages long! Get a qualified agent on your side. When you hire Kevin Thomas of Lee & Associates – Newport Beach, you engage the services of our researchers, data banks, and secretarial staff. Besides, it makes good business sense to use a specialist who knows the market. 

Here's why you should from a broker's point of view:

 NO COST TO YOU 

The landlord is responsible for paying the broker so you don’t need to! 

 LET ME DO THE LEG WORK 
Having representation frees your time to take care of business of your company. I’ll do the work so you only need to spend time necessary to make the appropriate, informed decisions.  

 NO CONFLICT OF INTEREST 
I have a personal commitment to you. There is only one thing on my mind, creating the best value for you.  

 PUT A PROFESSIONAL NEGOTIATOR ON YOUR TEAM  
I have the expertise to represent your interest and drive a hard bargain on your behalf. 

 AGGRESSIVE AND TIMELY LANDLORD RESPONSE  
When I present a letter of representation, the landlord knows they have a genuine prospect and will respond seriously and timely.  

Call me biased but...

LEE & ASSOCIATES gives you priority.
You are assured your requirement is getting top priority. Our focus is on your transaction. You see all opportunities whether listed or soon-to-be listed. Which is why we really are the go to guys for your commercial real estate needs.


Monday, August 1, 2011

Wednesday, July 27, 2011

Why Isn’t My Building Getting Leased or Sold?

5 Proven Tips to Make Your Industrial Building Look More  Appealing and Increase the Chances of Leasing or Selling it:

1) Repainting
A quick way to give a tired, old building some life again is to re-paint it. A fresh, new coat of paint will make the building look more polished. Perhaps paint a stripe around the top of the building, incorporating contrasting earth tones. I’ve also seen some owners modify their look by integrating corrugated metal or wood accents.  Architectural Digest is a great magazine to turn to for more inspiration. 

2) Landscaping
Old neglected trees and shrubberies around a building give off the impression that the building, too, is old and neglected. Planting drought tolerant trees will clean up your property’s look. Palm trees are a favorite in southern California because they look sleek and require little maintenance year-round. Small herb shrubs such as lavender or rosemary are also a good idea to add in order to freshen up the exterior. Not only does it give off a fragrant charm to the property but it can also help reduce water consumption.

3) Paving
If your parking lot is starting to look gray and cracked, it may be time to pave a new black top. Especially if the surface has sinkholes or potholes, the asphalt will worsen over time. Often times, the first impression of your property is based off of the pavement surrounding it. Do you really want it to be in poor condition? Not only is it unappealing to the eye but tenants and buyers will also cringe at the idea of eventually having to pay for its replacement.

4) Refurbishing
The look of the interior of a building is every bit as important as its exterior. Upon entrance, reception and office area should be displayed as open and flexible. Small, private offices are outdated. Thus, removing that plywood siding is highly recommended. When it comes to restrooms, the general rule of thumb is refurbishing them every ten years. This means installing brand new fixtures, flooring, and paint. Good first impressions are a must; which is why the receptionist area and restroom are two areas where a clean, updated look is absolutely essential. 

5) Clearing
Remove any items or distracting décor from the building when it is on display. Even old inventory or machines related to the previous owner/ tenant should not be visible if you are trying to show off the space.  The property should be completely empty for the prospect’s imagination. Doing so, allows the prospective buyer or tenant to take mental ownership of the asset, moving you further down the sales path.  

Finally, it should be obvious that the building must be clean and all systems must be operational. Without making any improvements to an unappealing building, your only other option is to deeply discount the building. While a qualified agent will be able to move your property effectively, it takes some hard work from the landlord as well. With the combination of these five tips and a knowledgeable agent, you will improve your chances of selling or leasing your property at its optimal price. 

Friday, July 8, 2011

Exactly How Is That Commercial Real Estate Market Doing?

A Brief First Quarter Review:

According to Wells Fargo Securities, Private-sector employment has increased by 1.9% while hiring among businesses and professional services have increased by a hefty 4.1%! And as you know, job growth is positively correlated with commercial real estate demand. More employees mean a higher demand for office, retail, and industrial space. Office vacancy rate falls for the first time in three years to 17.5% Retail vacancy rate is still high but peaked at 10.9% Industrial vacancy rate falls down to 11.9%

While there are surely signs of improvement in the market, it is important to be aware that the recovery is still uneven. The areas that have seen the most improvement include high-tech centers and major energy markets. Many other areas of the market are still lagging. In addition, there are still billions of dollars worth of maturing commercial real estate loans that still need to be refinanced. This will most likely last for the next five years alongside a sizable equity gap. Thus, Lenders and Developers continue to have a cautious outlook on the current market situation. However, I believe that this caution will have a positive effect on the market. Building construction and development inhibition can actually lead to quicker recovery. As a result, over supplied areas and older properties will be benefitted.