Bellevue, WA – June 7, 2010 – CommercialCondos Inc. (CCI), a website dedicated to connecting buyers and sellers of commercial condominiums, today announced that it has entered into an agreement with OfficeFinder.com, one of the largest networks of highly qualified experts in office tenant representation working locally in over 550 markets, to supply OfficeFinder agents with integrated access to CommercialCondo.com’s premier listing service and CCI website visitors with even more local experts to assist them in meeting their needs.

As part of its agreement, OfficeFinder's network of agents can now post properties and receive leads on those properties directly through www.CommercialCondos.com. CCI currently features over 400 current property listings, but expects that number to grow as it adds quality network agents, like OfficeFinder, and brokerages to its portfolio of clients.

"OfficeFinder's networks of agents are all specialists in tenant representation," said CCI President and Co?founder, Derek Doke. "It will be great to have their local expertise available to our visitors and accessible through our 'Find A Broker' tool. This agreement is a win-win for both sides as it expands our available local expertise and the potential for adding additional commercial condo listings available for sale or lease."

OfficeFinder President and Founder, James Osgood, said: "We feel our network will benefit greatly in working with Commercialcondos.com and utilizing their listing service which is hyper-focused in the markets our agents specialize in. We feel this agreement will extend the reach of our agents and increase the flow of qualified leads for both entities."

As part of the agreement, Osgood has accepted an advisory board position with CommercialCondos Inc.

"OfficeFinder has been in business since 1995 and has done an incredible job of gaining market share in the tenant representation niche vertical market," said Doke. "We believe Mr. Osgood is a great addition to our advisory board, and believe there is a great benefit to both of our organizations in working together at this level moving forward. Our goals are very much aligned with no direct competitive aspects in conflict."

CCI's service model is focused on an untapped and growing trend in the field of commercial condominiums where subdividing commercial real estate allows current property owners to reposition their properties into more marketable and financeable sizes, allowing more business owners and investors the opportunity to buy versus lease.

CCI offers annual memberships to both individuals and real estate firms, allowing unlimited postings, management tools and bulk uploading of properties for individuals with single locations and brokerages with geographically displaced agents.

"While at our core CCI is a listing service for commercial condominiums, our model goes far beyond by focusing on marketing and education programs that pull targeted buyers through to brokers and places brokers in front of buyers," said Doke. "CCI provides tools and resources that empower buyers, agents and owners interested in conducting commercial condominium transactions."

In addition, CCI will be launching an accredited continuing education program designed around commercial property ownership directed to key professional service verticals, such as dentists, physicians, chiropractors, accountants, attorneys, financial professionals and other core professional service groups.

The opportunity for tenants to renegotiate their office space leases at favorable rates may be ending as the recession comes to a close. In most markets landlords of office space for lease have seen their office renal rates decline by 20 – 30%. With a light at the end of the tunnel, many landlords would rather see office space sit vacant than get tied up in long term leases at reduced rates. The current general belief is that the commercial real estate market will start to see an upswing by early 2011. For tenants in the position to either renegotiate or relocate, the window may be closing on deep discounted rental rates.

Achieving the best possible lease terms is not a simple task.  Landlords are sophisticated and know how to mitigate demands.  The best bet for a tenant looking for office space for lease or rent is to engage the services of an office tenant representative to level the playing field.  For landlords, this is their business and they are very good at it. An office space tenant only negotiates a new lease every few years. If you go it alone, it is not a level playing field. To top it off, a tenant representative service is typically free. Most landlords have a listing agent who is required to share their fees with tenant reps.  The fee is already built in. If the tenant does not have an office tenant representative, the listing agent keeps the entire fee.  It only makes sense that tenants looking to lease office space take advantage of getting a professional on their side.

We are very proud of our network of local office space tenant representatives. We cover over 550 markets with high quality representatives. The average time in the business of our reps is 12 years and many have achieved advanced designations that demonstrate their outstanding level of achievement and knowledge. If you are looking to renew or relocate your office space, let us help. Just fill out a short form letting us know what you need and we will put you in contact with one of our local licensed office space experts. We have been doing this online successfully since 1995. Give us a try. There is no obligation.

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In our office space Blog we have discussed a great deal in the past about how troubling of a time it is for the Commercial Real Estate market thanks to overly abundant unemployment and the recession.  With every challenge there is usually an opportunity.  In this case, a down markets is a great time to buy commercial real estate.  The old adage of buy low and sell high can be applied to this time period. Of course, it is always scary to get into an investment in a down market, but if you can do it now, you will undoubtable be near the bottom of the market with no where to go but up.

One of the best ways to get into commercial real estate is to buy property that your company can use. One of those ways is to buy a commercial condo. The SBA may even be able to help too with a loan guarantee that would allow you to only put 10% down. A great use of leverage.

Here is a primer from CommercialCondos.com to get you started in understanding the  concept.

"Many people understand what a residential condominium is because the concept has been around for generations. In order to understand commercial  condos (also called "non-residential" condos), we can apply many of the residential guidelines, but with the added benefit of potentially increasing profits for your business.

Following is a simple list of frequently-asked questions that will give you a quick and thorough education about commercial condos.

As a business owner who currently leases my workspace, how would I benefit from buying that space?

The most obvious benefit is that you'll own the property rather than rent it, so over time it will gain equity and become a valuable long-term asset. If you leased your 1000 square-foot work space for $30 per square foot for 10 years, you would spend $300,000 (excluding any annual increases) during that time, but all that equity would go to your landlord instead of you. If you'd purchased the space, each year you would be paying yourself and increasing your equity in the property. You could also have multiple tax benefits that you'd not be able to take as a tenant, such as mortgage interest, property tax deductions and deductions for repairs and depreciation. As an owner rather than a tenant, you'll have complete autonomy and freedom to create the exact space you need for your work. You can redesign and remodel to your heart's content.

What are some of the less obvious benefits?

If you're moving into a new location, a lease option (leasing now with an option to buy later) can lock in the purchase at today's price. And if you purchase more space than you need, you can rent out the remainder. Those rental units will pay for themselves while building equity for you.

How do I purchase a commercial condo?

Many business owners don't realize that while commercial banks are hesitant to make loans, the Small Business Administration (SBA) is actively offering up to 90% financing to established businesses for the purchase of office, industrial and retail space. There are many financing options available, but the financing can be complicated because the lender won't necessarily understand what type of property it's dealing with. Is it residential? Commercial? Retail? What kind of loan is it? That's why we suggest that you work with a trusted banker or broker who can bring in a team of experts (accountants, lawyers, architects, as needed) to help you find the best loan and the best property.

Will I have to pay property taxes?

Yes, because you are the owner of a piece of property. But like a home loan, the property taxes can be rolled into your monthly loan payment.

Some residential condo complexes have homeowners associations and dues to pay. Is this true with commercial condos?

Yes, there will be an HOA (homeowners association), and there will be monthly dues. But these dues pay for property maintenance, landscaping, insurance, professional management, and more. If you owned a house, you would also be paying for these things. One advantage of an HOA is that it guarantees that these maintenance issues will be addressed and that the property will be well cared for.

How are the common areas like parking lots, lobbies and walkways maintained?

Property maintenance will operate the same way it did when you were a renter. The developer, or owner of the property, will turn the management responsibilities over to the HOA and the board of directors (which is usually made up of individual owners like yourself). Usually a property management firm will be hired and paid from the HOA funds.

What does the board of directors do, and how involved will I need to be?

The board makes day-to-day decisions about caring for the property. For example, the parking lot may need to be re-paved, or the sprinkler system may need to be upgraded. The board prioritizes these various needs, seeks bids from vendors and makes sure the work is completed. As an owner, you may choose to serve on the board or not. It's not required."

If you are interested in finding out more, request assistance finding commercial real estate for sale from our top local buyer representatives.

Also check out our lease vs buy and financing alternatives articles.

It's crucial to understand from the get-go that, practically and legally speaking, there are oceans of differences between commercial leases and residential leases. Commercial leases are not subject to most consumer protection laws that govern residential leases - for example, there are no caps on deposits or rules protecting a tenant's privacy. Keep in mind that besides the amount of the rent, other less conspicuous items spelled out in the lease may be just as crucial to your business's success. For instance, if you expect your shoe repair business to depend largely on walk-in customers, be sure that your lease establishes your right to put up a sign that's visible from the street. And if you are counting on being the only sandwich shop inside a new commercial complex, make sure your lease prevents the landlord from leasing to a competitor.

The following checklist includes many items that are often addressed in commercial leases. Pay special attention to a few of the terms, including:

• rent, including allowable increases and method of computation
• security deposit and conditions for return
• length of lease - also called the lease term
• whether the rent you pay covers utilities, taxes and maintenance - called a gross lease; or whether you will be charged for these items separately - called a net or, if the tenant must cover three additional costs, a triple net lease
• whether there's an option to renew the lease
• if and how the lease may be terminated, including notice requirements
• what space is being rented, including common areas such as hallways, rest rooms and elevators
• specifications for signs, including where they may be placed
• whether there will be improvements, modifications or fixtures - often called buildouts - added to the space, who will pay for them and who will own them after the lease ends
• who will maintain the premises
• whether the lease may be assigned or sublet to another party
• whether disputes must be mediated or arbitrated as an alternative to court

Source: Inc Magazine

Note:
Although this article is a few years old, it still stands the test of time. While this is good information, there is no substitute to assistance from a good tenant representative. That's what we do every day. To top it off, there is no cost to you for the services of your own representative. Landlords invariably have a listing agent under contract. The tenant representative represents you, but shares in the listing agents fee. It's win-win for you.

Find a Tenant Representative to find the right space ant the right price without the hassle.  Avoid costly mistakes and get the best deal possible.

According to a recent article in the North Bay Business Journal, now is the time to act to take advantage of the bottom of the market:

"The title of the recent Sonoma State University economic outlook conference “The Time is Now” couldn't have more meaning than it does with the current office real estate market. We are at the bottom of the market, and now is the time to take advantage of the current opportunities before it’s too late."

I wish it were true, but as far as I can tell we have a ways to go before the actual bottom is reached in the North Bay or anywhere else. Now, that does not mean that now is not a good time to negotiate a great office deal.  Landlords are hungry and hurting and some fabulous lease of purchase deals are available to those willing to dive in. Until the unemploymet rate starts to drop, the bottom is still in the future, probably within a year or maybe even two.

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