Category Archives: Office Leasing

6 Differences Between Selling Commercial Real Estate And A Home

5 Differences Between Selling Commercial Real Estate And A HomeThe main difference between selling commercial real estate and residential real estate is the type and purpose of the property. This impacts the differences in selling styles.

Residential properties include single-family homes, apartments and townhouses. The owner of the property can live in the property or can rent it out space to enjoy rental income. There is typically an emotional element involved in residential real estate since it involves renting to individuals or families as their primary place of residence.

Commercial real estate refers to properties that are used for office, retail, industrial, and special purposes. There are also commercial properties used for residential purposes known as multi-family properties. The typical tenant of commercial real estate, other than multi-family, is a business or a corporation resulting in less of an emotional element.

Selling Differences

However, there are numerous differences between selling commercial real estate and residential real estate. The following comparisons provide a better idea of these differences.

1. Time to Sell

Recently, with the dirge in inventory for residential real estate, homes are selling within days of being listed, unlike selling commercial real estate which can take months to find the right investor.  There has also been a surge of residential property owners selling their homes to home buying companies such as Element Homebuyers and similar companies that offer fast home sale and immediate cash, are commission-free and eliminate the need to upgrade the home before listing.

2. Returns-On-Investment (ROIs)

The return on investment is what helps investors determine a property’s profitability. With that said, what’s the average ROI in the US real estate market? The S&P 500 Index can answer this.

According to the Index in 2019 before the pandemic has hit the world, The US has an average return on investment of 8.6%. Of course, it depends on the type of rental property. For instance, commercial real estate’s average return is 9.5%. On the other hand, residential rental properties have an average ROI of 10.6%.

Based on the data above, investing in residential real estate properties can be more  lucrative than buying and leasing commercial properties. However, it’s essential to note that those figures don’t apply to all properties. That’s because vacancy rate, property management costs, and location are factors that also influence ROI. 

Investors trying to compare residential and commercial properties should also look at other metrics, such as cap rate and cash on cash return.

3.  Commercial Tenants Have More Money

Recently, retailers have faced increasing competition from e-commerce stores. Online stores offer products at a more affordable price and in a more convenient manner for consumers. Think about Walmart and Amazon. It’s no wonder why the retail sector hasn’t been performing at its best worldwide. Since many retail stores have shut down, the prices of commercial rentals have dropped drastically. In addition, due to the pandemic, finding qualified tenants for a commercial space can take five to six months nowadays.

However, what’s good about commercial spaces is that despite the higher vacancy rate these days, the typical tenants are businesses and corporations. When dealing with companies and large corporations, they would tend to have more financial leeway to afford higher or commercial rates of the lease. They also tend to be better tenants of the property because they maintain the property and respect its rules.

4. Triple Net Leases

The third difference is that when selling commercial real estate to potential investors is  value of triple net leases that many commercial leases include. Under a triple net lease, the tenant directly handles and pays for all property expenses. These include real estate taxes, building insurance, and maintenance expenses. These payments are on top of paying for the rental fees. In these situations, the property owner’s only concern would be mortgages payments on the property, if there are any. 

While triple net leases favor the landlord, some tenants (companies or businesses) may prefer them because they’ll have more control over maintaining the building. Not to mention that triple net leases also bring more transparency than other lease types.

5. Longer Term Lease

Commercial property leases tend to be longer term as compared to residential property leasing. Home rentals typically have a term between six to 12 months. By contrast, it’s a common practice to lease commercial properties between five to 10 years.

This is an advantage and benefit that you can point out when selling commercial properties to real estate investors. Long-term leases would mean they don’t have frequent turnover costs. They don’t have to make those repainting and repair works too frequently each time a tenant leaves and a new one comes in. It also means lower vacancy rates, which means that there wouldn’t be too many months that their property isn’t earning money for them.

An added advantage and benefit of longer-term leases is that it goes into the cash flow performance of the property. Having long-term leases means there’s money coming in more regularly from month to month. 

Take note that the fair market value of commercial properties doesn’t depend on the next-door neighbor or adjacent property pricing followed in residential properties. The value of commercial real estate is determined by the amount of money that it generates. This is discussed next.

6. How Property Values Increase

The fifth difference that you can point out when selling commercial real estate is that the value of commercial properties isn’t primarily influenced by comparable neighboring properties. The fair market value of commercial real estate is primarily determined by its revenue generation. 

The cash flow earnings of commercial property have a direct impact and tend to increase the fair market value of the property. If a commercial property is leased out to a high income-generating business, then the property will increase in value much faster than a home.

By contrast, the fair market value of a home is largely dependent on the selling price of the neighboring home that was most recently sold in the vicinity. This gives the commercial real estate investor a more active role in increasing the value of the property by choosing a tenant with higher cash flow and returns, rather than just waiting for how much the neighbor’s property would be sold.

Selling Money Makers

In selling commercial real estate, you’re really selling to the prospective investor is a future flow of income, hopefully a potential money maker. More likely than not, it’s also the primary reason why they are looking into buying such property. So, paint a clear picture about income flow in the past and how much more money it can make in the future. In short, show them the money.

If you are interested in either buying or selling commercial real estate, we can help. Contact us to find out more.

You’ve Signed the Lease, Now What?

signed the lease, now what?Every good business is bound to expand at some point when things start falling into place. At this stage, you might need to relocate to a new office space that can accommodate all the employees. You’ve signed the lease, now what? Making this move can be very intimidating, especially if it’s your first time and you’re going away from your current locality. For one, having to stop the normal operations to cater to the move and letting all your clients know can be a demanding process.

However, with the right strategy, your first step towards a new life in business shouldn’t be intimidating. Once you have everything sorted out, you can contact one of the companies specialized in this field to come and take care of all the packing and transportation. But before you start moving, our friends at Colorado Springs Movers, LLC suggests that you should sort out these tasks:

Assign a Move Leader

The first, and most important step, is to assign someone the responsibility of being in charge of oranizing and completing the move. This will entail a great deal of time and whoever is doing it should have there regular work load reduced to ensure they have the time to do a thorough job coordianting the move.

Insure Your Things

The very first thing you should look to sort out is the insurance cover of all your things, from furniture to computers to other machines used by the business. Make sure to have both moving  insurance and business insurance. It will go a long way in giving you peace of mind as you try settling into the new environment.

Take an Inventory

It is important to take the time to take a complete inventory of your furniture and equipment. This will allow you to plan the locations of the items in your new space and determine if you need to buy anything else.

Schedule Movers

Now that you’ve sorted out the factors above, you can then schedule the movers. Of course, you’ll interrupt the normal operations within your business in one way or another. You will end up having some of your employees working at the office for only for a few hours within the move week. You need tobe awayre of this and make appropriate arrangements.

The objective is to cause as little inconveniences as possible. One way of meeting this goal is by planning the relocation process during low seasons, if possible. For instance, some companies experience a reduction in business during the festive months. If yours falls under this category, then that would be the ideal time to make the move. It’s also wise to make your customers aware as early as possible so they can make plans as well.

Telecommunications & Internet

In this day and age telecommunications and Internet are critical factors to the functioning of most businesses. Check out your options. If you are going to make a change, this is a good time to do it. Make sure and check with your provider of choice how much lead time they need to ensure you are up and running on day one. The last thing you want to happen is to move and not have the connections you need to get to work.

Janitorial Service

The janitorial trash collection service is dependent on the lease agreement. Some buildings have this covered in the monthly rent while others require that every business owner takes care of their waste. It is, therefore, important that you check your lease beforehand.

Change Your Address

Your mail address is another crucial factor, and most people end up forgetting about it. As such, some of your parcels might be delivered to the wrong address for the first few days or weeks, and that’s something you’d want to avoid. Make sure you edit all your documents, social media details, and other online platforms immediately. Also, you can go the extra mile and inform your clients through your social media pages or through email and text messages.

Conclusion

Whether it’s your first time moving offices or not, there are several factors that you should always keep in mind to make this process smooth. For instance, it’s recommended that you choose a day that will cause very little inconveniences to your customers. Also, sorting out the necessary insurance covers and trash collection services will give you an easy time to settle into the new environment. Once you’ve moved everything to the new location, changing your address should be the priority.

Certified OfficeFinder SpecialistAnd if you have not found that perfect office yet and are looking for office space, coworking or traditional, we can help. Contact us today to find out about our no cost service.

4 Ways To Make Sure Your Business Has Plenty Of Working Space While Coworking

A new workstation setup can affect a employees’s performance and mood. That is why when choosing workspaces for your employees, you need to ensure that they feel comfortable in the area. The working environment needs to create a positive ambience, influencing the work performed by the employees in a good way. Having plenty of working space in the office to move freely and comfortably can also help boost the productivity of employees.  

Many businesses choose to build or rent small offices for their employees. Some companies also take advantage of using coworking space to optimize the cost of operating their businesses. Jeremy Ellis from Launchpad says that the prices of coworking space is around $600 per month since the start of 2020 despite the rise of many companies adapting to new normal and remote working practices.

Individual’s and team space within a coworking space tend to be small, so how can you ensure that the small space is maximized for your employees? Here are four ways you can increase the working space of your business: 

1. Choose The Right Furniture 

Some coworking spaces aren’t fully furnished, and you need to buy furniture for your workforce. This is an excellent opportunity for you to choose furniture pieces that are compact yet functional. It’s important that you know the total office area before buying any furniture to maximize the space.  

Aside from that, it would be best if you considered the needs of your employees when buying furniture. Do they need a desk with drawers? How much storage space does each employee need? Are you planning to have a common area for meetings? Choosing the right furniture will not only complete the working spaces for you and your employees, but these will also be critical in making the room look more significant, professional, and functional.  

2. Go Paperless 

Documents and other different papers fill up storage spaces in any office quickly. If you want to clear up significant space to store other items or convert it to an additional workspace, you should consider going paperless.  

By going paperless for business, you won’t have any more problems with consuming resources and money on documents. Not only will you be able to cut down on paper costs, but you will also eliminate the clutter in your office. That means no more filing folders and files everywhere! There will also be no need for mailing the papers or hardcopy files. The time you save by going paperless for business can give you more time to do more important things like running your business, improving your marketing strategies through an online system, and cultivating a desirable work culture. 

Aside from that, uploading to the cloud is also one of the effective ways to store private information. This is also essential to protect the confidentiality of these materials. Make sure that the passwords are given to people who are allowed to access the documents.

3. Choose The Right Layout 

The first factor that you need to consider when thinking about maximizing office space is the layout. You need to think about your office design and make sure that all of the furniture pieces that you will be using will fit into the allotted area.  

One of the best tips to use when arranging your office layout to maximize the space is to place furniture on the edges of the walls. It would be best if you aim to have an open space concentrated in one area to make the small office space look less confining. You can add an area rug in the middle area to avoid a cluttered view. 

4. Provide Enough Storage Space 

Having enough storage space is one of the best ways to keep everything in the office organized and to avoid clutter. When choosing an office storage space, you should consider the needs of your business and your employees. You must provide your employees with lockers so they can place their personal items on these cabinets. It’s also a good idea to give locks so they can keep private things safe.  

You should also choose the appropriate storage space for every item that needs to be kept. There are file cabinets for documents, and there are also cabinets or boxes to store some office supplies. To keep everything organized and reduce the clutter, it would be helpful to use labels to keep everything in the right place.  

Summary 

There are plenty of ways to maximize office space without breaking the bank. By staying organized and providing the right furniture and storage space, you create a lot of working space for your employees even when you have a small office. Aside from that, it would be best if you consider going paperless so you won’t have to stack and store paperwork that uses a large amount of space in the office. Maintaining a small office space and maximizing the area will help you reduce business costs while increasing your employees’ productivity

And if you are looking for office space, coworking or traditional, we can help. Contact us today to find out about our no cost service.

 

 

6 Things To Qualify You to Lease Office Space

6 Things To Qualify You For Renting Out Office SpaceFor some, it would seem that property owners lease office space to just anyone. Not so.  Even if the office space has been vacant for more than a year, most landlords follow a qualification system.  

Ordinarily, this process involves assessing credit statements, background verifications, tax returns, or examining references. Even so, your financial reports aren’t the only valuable documents property owners go over before deciding to lease your office space. How landlords perceive you is also critical. 

In case a property owner feels you’re an unstable tenant, you’ll most likely lose the contract. So, to gear you up on your next meeting with a landlord, here are six things that a 2020 case study by Uxbridge business park found that you may need to do to qualify for renting an office space. 

1. Furnish a Solid Business Plan

Do you have a brand-new company? Furnishing a solid business plan to the property owner is fundamental to demonstrating your business knowledge to the landlord. You can also give a background on the company budget, expected sales, competition, etc.  

It is better to include details such as when you forecast your company to be productive and break even. As a future tenant, your target is for the property owner to believe in your company the same way they will trust your tenancy.   

2. Submit Thoroughly Completed Form

In case the landlord provides you the lease application form, submit it after filling out all the data completely. It may sound straightforward, but often some company owners neglect to complete it. If you want to avoid leaving a wrong impression, submit a thoroughly completed  form to guarantee your application is on top of the file.  

3. Enlist a Credible Tenant Advisor

Enlisting the services of a reputable tenant representative (like the ones we have at OfficeFinder) and/or a lawyer can prove to property owners you’re serious about renting an office space. Having professional representatives to help you deal with landlords will ensure you’ll be able to talk about every crucial detail in your contract and avoid costly mistakes.

What’s more, they can help you shorten the negotiations with the property owner and avoid lengthy proceedings. Also, tenant advisors are familiar with the real estate market since they do this day in and day out.

4. Provide Statements of Assets & Liabilities

For property owners to see your company as a qualified tenant, provide your bank statement showing your assets and liabilities. This statement will show the landlord if your company has adequate assets or cash to pay off your lease after factoring in your debts. 

Furthermore, property owners want to see if your assets and cash can cover your entire lease in case of a business failure. Handing over an impressive statement of assets and liabilities will ensure your deal will end positively.  

5. Display Stable Credit History

It’s common for companies to experience late payments on loans or credit card statements. In case this happens to you, this is the time to change and clean your habits. For property owners see you as a steady tenant, you need to demonstrate you’re financially stable. And as proof, this will require exhibiting strong credit and financials.  

If you’re planning to apply for any loans, begin with the application already so you can show sufficient cash flow to cover your lease. You can also provide these other standard requirements: balance sheets, tax returns, cash flow documents, and other notices from your bank indicating your financials.

6. Be Ready to Relocate Soon

Finally, if the space you’re eyeing is in a popular and hot office location, see to it you can relocate immediately. Most often, landlords lease prominent locations fast. In case you chance upon an area you feel is right for you, focus on securing the place to prevent another company from renting it.    

When there are one or more groups wanting to secure a specific office space, landlords typically favour the able, ready, and eager to move party quickly. Remember, property owners avoid wasting time on clients who are not aware of their requirements.  It’s best to know your office space needs, electrical requirements, and zoning needs so you’ll have an idea if the location is a good fit for your company.  

Final Thoughts

As an entrepreneur, one of the significant decisions you have to make is whether to purchase a property or rent an office space for your business. If you’re starting your firm and working on a limited budget, it might be in your best financial interest to lease office space.  

Please note that it’s essential for potential clients to know you have an office they can physically visit. Showing customers you possess an office space is a huge step in establishing your company. Moreover, demonstrating to property owners, you’re ready to rent will help you get that office space faster.  

If you need help finding office space to lease, whether conventional or flexible space, we can help. Contact us today for a no-obligation discussion on how one of our tenant representatives can help.

5 Tips For When Negotiating for an Office Space Rental

5 Tips For When Negotiating an office space rentalOffice Space Rental is one of the significant expenditures of a rising company. It makes sense then that negotiating for an acceptable lease is a challenging yet necessary process one has to take. Take note that there are several approaches you can adopt to obtain the best deal without undermining your finances or slowing down your business.  

Regardless if you hired a tenant broker, do your research on the space you want to rent. Are there other companies eyeing the property? How long has the place been empty? These are aspects that can significantly impact your negotiation process. 

And since there’s no such thing as a standard lease, you will find below five tips when negotiating the office space rental you want.  

1. Settle Length of Lease Period (Term)

Property owners or landlords are usually amenable to grant long-term leases. In a way, this condition can be beneficial; however, it’s normal for the company to adjust. When this change happens, you’ll find yourself stuck in a lease with either a sizeable or small space for your business.  

As a tenant, aim to negotiate a short-term contract with extension options. For instance, seek a two-year deal with a two-year extension option instead of a four-year agreement.  

2. Manage Rent Hikes

When it comes to office spaces, it’s unusual to find fixed rent with long-term contracts. Typically, property owners expect yearly increases based on rate hikes found in the Consumer Price Index (CPI). 

If the landlord requires rent hikes, see if you can arrange for a fixed CPI rent increase. For example, your monthly rent is $7,000 a month. Your second year will increase to $7,200 per month, then $7,400 a month on your third year.  

3. Explore Hiring a Tenant Broker

Yes, it’s common to come across stubborn landlords with unreasonable requests. If you’re in this tight situation, you may want to look for alternative office space to rent.  

A credible tenant broker, aka tenant representative, can help your company search for available spaces or industrial developments like the Gloucester business park. These professionals can give you a background and help you understand the dynamics of the market. Moreover, they can help you discover office spaces that satisfy your standards, set up viewings, and go with you to see these properties.  

Tenant brokers likewise help their clients draft offer letters and deal with property owners so you can obtain a sensible lease for your company. 

4. Discuss Office Space Improvements and Repairs

Meanwhile, please note that some contracts will include clauses that state tenants must reinstate premises to their primary condition. 

See if you can modify the provision to say that you will return the office space in the same state at the start of your contract as a tenant. This condition excludes devastation by fire that isn’t the responsibility of the tenant and usual wear and tear.  

Furthermore, if the property requires upgrading or enhancements, who is responsible for these repairs? Suppose you want fresh carpets, new paint colours, or re-arrange the layout of the office area. Take note that many leases state that tenants can only modify the property with the property owner’s consent.  

Request for a provision that allows you to render alterations with the landlord’s permission and that consent will not be unduly conditioned, hampered, or delayed.   

5. Be on the Lookout with These Provisions

Lastly, be on the lookout for these one-sided clauses that strongly favours property owners:

  • The property owner restricts potential assignment or subletting 
  • The property owner expects the tenant to settle tax escalations stemming from the property sale 
  • The property owner has the right to rescind the contract at the landlord’s convenience 
  • The property owner rents the space ‘as is’ to waive compliance with the Americans with Disabilities Act or any environmental laws.   
  • The property owner demands a personal guarantee of the principal shareholders of the business 
  • The property owner transfers to the tenant additional operating expenses such as repairs, insurance fees, and building taxes.

Final Thoughts

Keep in mind when negotiating an office space rental, it’s best you carry a definite understanding of what you’re willing to consider and what you can propose. It is also best to have a tenant representative working on your behalf. Always document everything in writing when clarifying lease details that you don’t understand. While this will make the process longer, it will provide you legal protection in cases some of your negotiated terms get excluded in your contract. 

It’s essential to study your lease carefully. The contract can possibly contain numerous details you’ll not understand. When faced with this kind of scenario, highlight each unclear point, and discuss it with your tenant broker or the property owner.  

Certified OfficeFinder SpecialistOur tenant representatives at OfficeFinder do this day in and day out for their clients. Contact us so we can connect you with one in your area. There is no cost for their services and no obligation to request info.

 

What To Know When Renting Office Space Following The Pandemic

What To Know When Renting Office Space Following The PandemicMaking decisions about renting office space is more challenging because of the impact of coronavirus or COVID-19 pandemic. Many people are asking how the current health situation affects office leasing and businesses at large. Is work-from-home the latest trend? Or will the new normal open more opportunities for commercial property owners? 

In this article, you’ll learn the essential things about renting office space following the pandemic.  

Health And Safety Protocols Compliance 

In the ‘new normal,’ property owners are mandated by governments to comply with all health and safety protocols set in place to protect the public. Future tenants are also advised to do the same.  

In order to find tenants, office operators are taking this seriously. As an example, our friends who have Offices in Manbre Wharf, have fully implemented health and safety protocols to ensure that tenants are safeguarded from the threats of COVID-19. Everywhere else in the world is having to do the same. 

So, what are the general health and safety protocols when it comes to renting offices? 

Here are the details of the scope of health and safety protocols involving renting office space and other commercial establishments that you should know before renting office space: 

  • Risk Assessment: Assessment of environmental, health, and safety risks, which tackles the responsibility of landlords and property owners when creating rental policies and agreements. 
  • Management And Reporting Of Cases: It tackles the responsibility of landlords and property owners to report any case of COVID-19 during the period of lease to concerning health and government authorities. 
  • Implementation Of Guidelines: Once health and safety guidelines are fully explained to tenants, landlords and property owners should do all means to monitor full compliance. On the other hand, tenants, particularly office or business owners, must make their employees aware of the policy.  

Social Distancing In Offices 

Before the strike of COVID-19, many office layouts and designs have open plans, which aimed to promote good collaboration, better communication, teamwork, and cost-savings. However, the current pandemic forces everyone to maintain physical distancing or what is called “social distancing” to keep people safe from one another. 

The US Centers for Disease Control and Prevention (CDC) suggests that people practice social distancing by maintaining at least a six feet distance between individuals. Because coronavirus is highly contagious, employee desks must be spaced wide apart, and possibly each employee should have an individual cubicle to avoid getting infected.  

Renting Additional Office Spaces 

It is now impossible to fit employees in offices as pre-COVID-19 having the same number of people in the same square footage. Business owners either need to set alternating work schedules for their employees by creating an Agile Workplace or lease additional office space, which means additional overhead cost. 

Here are some benefits of renting additional office spaces following the pandemic: 

  • Be able to resume peak business operations to attain higher productivity and revenue as compared to last year. 
  • Help businesses recover from low production and sales because of temporary closure or sluggish business operations during the peak of COVID-19.  
  • During the new normal, renting extra office spaces is a better option than compromising the health of your employees and facing legal consequences due to negligence. 

Corporate Culture Adjustments 

Workplace culture greatly transcends in your office. Corporate culture is highly reflected by the office layout and structure because collaboration, open communication, and promoting productivity are readily seen through open plans. However, there must be some adjustments following the pandemic, which means less worker density, fewer meetings, and less social get-togethers.  

When renting a new office space, you may need to also make some adjustments to your previously planned corporate culture. Here are the challenges you might face when adjusting to corporate culture when renting office space following the pandemic crisis: 

  • Recruitment: It will be a challenge to attract new talents, but the virtual world can decrease the burden of hiring new employees. Final face-to-face interviews are still possible in office buildings following the health protocols, such as installing hard, transparent plastic dividers between the interviewers and the job applicants. 
  • Office Design: Designing and modifying existing workspaces can be difficult. Supporting the established culture and following the new health and safety protocols poses a challenge to everyone. For this reason, your architect and interior designer should work together to come up with the best solution designed for your business needs. 
  • Co-Working: While co-working has been a trend and major contributory factor to the office market recovery, the new health protocols that accompany COVID-19 may have an adverse effect on co-working businesses. Co-working companies may diminish following the pandemic, so venturing into this work setting is not advised. 

Conclusion 

Renting office spaces nowadays can be more challenging than ever. All future tenants must comply with existing health protocols, like ensuring social distancing and wearing of personal protective equipment, like face masks. Business owners would likely need to rent additional office spaces and make the necessary corporate culture adjustments to be productive and realize business goals. Let us know if we can help you find new office space. Contact us today!

How To Find Offices To Rent In Your Area

How To Find Offices To Rent In Your AreaDeciding on offices to rent is an important part of running a business because the legitimacy and professionalism of the brand can depend on the appearance and functionality of the office. It’ll be challenging for businesses to haul in clients and employees if their offices look unkempt or don’t have any amenities.

If you’re having a hard time finding offices to rent and can’t get the help of a tenant rep in out of the way locations like office space Oxford and need to do it yourself, this article can help. As long as you know what factors to consider, you should be able to find offices to rent that suit your budget and helps your business succeed.

Here’s how you can find offices to rent in your area:

1. Know How Much Space You Need

Contrary to popular belief, appearance shouldn’t be one of your first considerations when finding an office. For you to be fruitful in your search, you need to start by determining how much space you need.

One good rule of thumb to follow is to ensure that you have about 150 square feet for every employee. This space is sufficient for your employees to move around and utilize several pieces of equipment at work. Use our office space calculator to help determine how much space you need.

2. Determine Your Budget

Finding the perfect office for your business doesn’t mean you’ll need to spend your entire business budget on it. If you want your business to thrive for years, it’s essential that you determine and stick to a budget when finding an office to rent. 

Make sure to consider the following when determining your budget:

  • Determine the average price per square foot
  • Add common area maintenance fees
  • Don’t forget to include utilities
  • Any NNN charges such as taxes, inusrance and maintenance

3. Consider The Location Of Your Employees

Your employees play a vital role in the success of your business. Without them, it’ll be challenging for you to oversee different areas of your business and ensure that your business continues to thrive in the long run. 

When finding offices to rent in your area, don’t forget to consider the location of your employees. Ideally, you should rent an office that is convenient for your employees to travel to or is located near their residences. Doing so allows your business to retain and maximize the best talents. 

4. Ask Recommendations From Trusted Sources About Agents

You can always work with agents, aka tenant reps, to help you find offices to rent in your area. There are many agents offering their services today. Do you know whom to choose? Fortunately, asking for recommendations from friends who have done this and relying on trusted resources, like OfficeFinder, can help. 

Hiring agents will make it easier for you to find offices to rent in your area as these individuals have years of experience in the local real estate market, which means that they can suggest properties you never knew existed. They can also recommend the best locations convenient for your employees and customers. 

5. Pay Attention To The Landlord

The landlord you choose to work with can significantly affect your life as an entrepreneur and the productivity of your employees in the long run. You’ll likely experience stress when your landlord requires you to pay hundreds of dollars just to fix one broken light bulb in your office. 

The attitude of the landlord can influence the value you can get from your rent, which is why you should exert time and effort to know more about the landlord you’re eyeing to work with. You can do this by talking to some tenants of the building. The information you can get from these individuals will help you assess whether the landlord is professional and fair to their tenants or not. 

6. Do Your Best To Negotiate

Money is important in every business, especially when you’re still starting. It’ll be challenging for the business to thrive and succeed if you eventually ran out of finances after a few years of operating. 

For you to find offices to rent in your area, make sure to consider the price and do your best to negotiate. If you’ve seen an ad about an office lease that costs $4,000 a month, don’t immediately sign the contract. Set an appointment with the landlord and negotiate the rent down at least 5% below the listed price. You’ll be surprised how many landlords are willing to negotiate and accept lesser fees for their spaces. Especially now with the pandemic slowing business down.

Start Now 

There are countless offices available worldwide. Regardless of the nature of your business and the audience you want to engage in, you’ll be able to choose from several options. Find out more about the leasing process.

But for you to find the best office for your business, it’s best if you start your search early and use the services of a tenant rep, like the ones at OfficeFinder, if you can. Contact us today if you would like some assistance. There is no cost to our service or the services of our tenant reps.

Even Though Much of The World is Working Remotely, Here’s Why You Should Still Consider An Office

Remote Work PlaceIt is estimated that approximately 56% of the jobs in the US are compatible with remote work. Global Workplace Analytics project that 25-30% of the workforce will be working remotely, most of the week, by the end of 2021. The pandemic has created some new norms for working that are expected to last. The question is, will working remotely work for you and your company even after the panedmic subsides? There are a number of considerations that need to be taken into account in making the decsion on whether or not to maintain an office. What things should you consider?

Is your home environment suitable for working remotely?

While it’s great to save that extra travel time to and from work, is your home working environment conducive to productivity? Who is at home during the day? Where in your home do you work? We all love spending time with our family (well, maybe not all the time) but how much are you going to be interrupted at home?  As we know, it’s impossible to plan for all interruptions from Wi-Fi to plumbing issues to your elderly neighbor needing to borrow an egg for the cake they are baking. What you need to consider is, are you going to be more productive in an office, even if it is more convenient working from home. The pandemic has put an extra burden on working parents, especially those with more than one child. Many schools have reopened and yet most children have continued their learning online or virtually. This means that many parents have now had to balance their workload with playing teacher (creating a renewed respect for teachers that they rightfully deserve). Being physically in an office means that there are fewer opportunities for you to be interrupted, and, if you can increase your productivity, then you may be able to clock off early and better manage your responsibilities at home.

Are you starting a business?

The majority of businesses have been adversely affected by Covid-19, many closing down, but some new businesses have been innovative and thrived. If you are hoping to be one of those, then working from home may not be the best option. Are you going to be happy with people coming into your home, is it even going to be possible? Renting a new space is going to be less expensive than usual, given the oversupply of space. Most new businesses involve a lot of meetings, hiring staff, receiving goods from suppliers, and pitching to investors or clients. Consider a co-working space or renting office space monthly to cater to some of the dynamics that may come with starting a new business.

It can be quick and painless to register your new gig with many companies now providing this service. The pros at Fatstacksblog have screened the best companies for this, check out their review. Most new businesses involve a lot of meetings, hiring staff, receiving goods from suppliers, and pitching to investors or clients. Consider a co-working space or renting office space monthly to cater to some of the dynamics that may come with starting a new business.

Being social is important for physical and mental health

Much higher rates of anxiety and depression have been reported this year and many clinical psychologists have attributed this to isolation and the lack of human-to-human interaction not just in working remotely, but in our lives in general. Other negative effects of isolation have been lethargy and the so-called “zoom- fatigue” from too many online meetings. When you are considering working from home, it’s important to think about how much less you are going to socialize with others because of this. It is amazing what comes from water cooler conversations. Then think about all the meetings, coffee breaks, and small talk you have when you are in the office. All of these tiny interactions and adverse health effects add up. Taking this into consideration, healthier and happier workers are going to be more effective, confident, and creative in their job. It may be worth working in an office and being a better working version of yourself.

How Much Office Space?

If you decide to return to the office, working remotely is still an option. There is nothing that says this is an all or nothing decision. The big question is how much office space will you need and where do you need it? There are a number of options. Understanting the Agile Workplace concept is important. The concept is activity-based working space and making the work space flexible. It is an office hoteling reservation technique or set up in a workplace. It is a way of utilizing a work area more efficiently, utilizing non-assigned seating arrangement and desk-sharing to maximize and creating collaborative spaces. There are many companies that have taken this to heart even before the pandemic.

Many companies are now choosing to take advantage of using executive suites or coworking space as a means of providing flexible workspace for their employees. They do not all have to be located in the same place, but can be spread around for the conveniece of employees.

The whole world has had to embrace working remotely. It was a no-brainer, no-choice decision. Technology allows us to work from wherever we are. Once the pandemic subsides, it may not always the best option for everyone. For many, it may be their personal circumstances, such as being a parent, the number of children they may have, and if they are starting a new business. there are many considerations in deciding the level of working remotely that you choose. As we mentioned, there can be some negative mental health consequences from working remotely, too, For people considering working from home or thinking about going back to the office, assess your home environment to conclude if it is condusive to productivity and if it is going to allow you to be the healthiest and most productive version of yourself.

If you need help finding office space,, whether conventional or flexible space, we can help. Contact us today for a no-obligation discussion on how we can help.

 

Buying, Renting, or Leasing Office Space?

deciding to buy, rent, or lease office space?Setting up an office is quite a task. From deciding the location to furnishing the office, it is time-consuming and requires a lot of effort. In addition to this, moving your office to a new area is labor-intensive.

This task is best left to the experts. If you are moving to a new office, consider this office moving checklist pdf to prepare you for the move.

When setting up an office, you have the option to buy, rent, or lease office space. If you are considering these options, it is always best to get a professional on your team to make sure you avoid any costly mistakes. Each of these choices has advantages as well as disadvantages.

Buying Office Space

Buying a property requires capital. Most small to medium sized businesses lack the resources to purchase office space or they choose to use their capital to grow thier businesses. However, for larger companies and corporations, buying an office space is an investment many choose to make.

Pros

  • Mortgage payments that will not increase.
  • Mortgage payments add to equity.
  • Appreciation over the long term.
  • You can rent it out excess office space and benefit from an additional source of income.

Cons

  • Buying requires a large amount of capital investment.
  • Opportunity cost of that capital investment.
  • Difficult to scale up in case of an expanding business.
  • You are responsible for repairs and maintenance, taxes and insurance.

Renting Office Space

In renting office space, it is usually a shorter-term period. You have the option to rent the space on a month-to-month basis or for a year or two. As with any contract for space, make sure to review the agreement thoroughly.

Pros

  • Allows for more flexibility in length of term.
  • Businesses have the option to relocate according to their needs.
  • Renting does not require a large investment.
  • The money is not tied up in the real estate and can be invested in the business in another way.

Cons

  • Monthly payments will increase over time with renewals.
  • Landlord may choose not to renew forcing you to move.

Leasing Office Space

Leasing office space is for a longer term period. Usually 2 – 10 years.

According to Statista.com, tech companies prefer leasing instead of buying a commercial property. Despite COVID-19 hampering business growth, tech companies were able to lease about 1.2 million square feet in the United States alone.

Pros

  • Monthly rental payments will be consistant for a longer period than renting office space.
  • Less capital is needed to lease office space than if you were to buy it.
  • The landlord is typically responsible for repair and maintenance of your office.
  • Leasing a property offers tax deductions.
  • At the end of the leasing period, you have the option to leave or renew the contract. So it offers some growth flexibility.

Cons

  • If you renew a lease, the terms of the contract may change, and rent may increase.
  • You have to comply with the requirements of the landlord.

Conclusion

Deciding on buying, renting, or leasing a property, is a big decision. A company’s business goals and growth prospects should be cinsidereed in making a suitable choice. In addition to this, the location of the office, the terms of a contract, the duration of renting/leasing, requirements of your employee, facilities, and other factors must be considered. Hence, you should take your time in deciding.

it is always best to get a commercial real estate professional on your team when making the buy, rent, or lease office space decsion to make sure you avoid any costly mistakes. This is the type of work they do day in and day out. They know what they are doing and represent you. The biggest mistake you can make is not having a professional on your team! Find one here.

 

16 Tips to Finding Your Next Rental Property

looking for rental property

Finding a quality rental property, whether commercial or residential, can be tedious and time-consuming. This might be caused by the broad range of choices available, the prices, or the quality of these rental properties being different. So, what should you do to find the perfect rental property? 

If this is your concern, we’ve got you covered. Here are some tips that you should consider when searching for your next rental property:

  1. Work with an Experienced Buyer Broker

There is no reason not to. It won’t cost you anything. In fact, it will save you from making costly mistakes. They do this day in and day out. They do not get paid until you get what you want. They are on your side. Listing agents are solely responsible to the seller, not matter what they tell you. You’ll find an experienced buyer broker by working with top agencies, such as Kuba’s company.

Check the following advantages of hiring a buyer broker:

  • Buyer Representation: While many property buyers are working directly with listing agents to find their next rental property, they’re only middle players. Listing agents connect buyers with rental properties, but are far more invested in safeguarding the seller’s interest because they receive a commission based on the property’s sale price. Hiring a buyer broker is a good idea to protect your best interest and close the best deal for you.
  • Powerful Negotiators: Place the financial future of your investment on the hands of a qualified buyer broker once you have found the perfect rental property. Buyer brokers understand price negotiations as they provide advice on how to make the best offer and what factors to consider when buying a rental property.
  • Know What to Look For: A buyer broker can help you find the right property and give honest advice about your property prospects. It will avoid impulsive buying, so you can get the best terms for your prospective rental property. 
  • Prepared for the Challenges: Make your rental property buying experience smoother, as a buyer broker can manage the minute details, from inspections to appraisals. Overcome all hurdles of the process to close the deal faster.
  1. Closely Examine The Local Rental Regulations  

Before you even buy a rental property, you need to familiarize yourself with the local rental regulations. But to do this, it’s best to have help from reliable and licensed professionals, such as those you can find at Rooftop Real Estate Management. This is especially important if this is your first time purchasing a rental property. Doing this entails going through the tenant security deposits, laws and regulations for property registration, rent control, evictions, tenant security deposits, and a lot more.  

After understanding the local rental regulations, you’ll be more than capable of running a successful rental property venture while simultaneously avoiding any legal disagreements.  

  1. Make Sure to Separate Your Business and Personal Finances  

One common error many new rental property owners make is investing personal funds into the business venture. However, this isn’t advisable as it opens you up to the possibility of your personal money being used to settle your business liabilities. 

Moreover, mixing up your business and personal finances might also result in tax complications, further complicating your investment into the business.  

  1. Place the Down Payment 

When investing in a rental property, you need to determine how much down payment you’ll be required to pay. This value is typically between 20% to 30% of the property’s value, and you can get its financing either through a personal loan or bank financing. 

When saving for the down payment, here are some useful tips that’ll enable you to have the money in the required timeline:  

  • Getting a second job.  
  • Reducing your rent.  
  • Opening an automatic savings deposit.  
  • Cutting off unnecessary living expenses.  
  • Settling all present debts. 
  1. Have a Long-Term Investing Strategy  

Real estate is a long-term investment. Therefore, to guarantee its success, you need to approach this venture with a long-term strategy. The best way you can attain this is by having a particular goal and devoting a lot more time to fully understanding the real estate market. As you do this, it’s essential always to be realistic and to base your expectations on your financial capabilities.  

Here are a couple of useful questions that can help you develop a long-term investment strategy:

  • Should you buy multiple rental properties?  
  • How much should you pay for the rental property?  
  • What property types and investment strategies should you consider?  
  • Does the real estate investment tie-up with your retirement plan?  

Once you answer all these questions, you’ll be in a great position to put in place a great plan to purchase the rental property.  

  1. Be Wary of High-Interest Rates  

If you take out a loan to buy your first real estate property, it’s wise to be cautious of the high-interest rate charged by lenders. Usually, this rate lies between 5% to 7.5%, which is much higher than the mortgage rate. 

Lenders usually do this since you’re far more likely to default on this payment, unlike with your home. Therefore, the higher the interest rate compensates for, the greater risk they’re taking.  

  1. Ask Other Landlords for Advice 

In any business venture, you choose to partake in, seeking advice from those already experienced in the industry is essential. This means that as you look for a real estate property, make sure to consult other landlords to get useful insights from their past experiences. As you do this, also take into account their investment bias, that is, the landlord’s purchasing strategy, experiences, and ultimate objective.  

By talking to other landlords, you also get useful advice on how to identify hood tenants, which is a crucial skill for your peace of mind as a property owner. Another alternative to get these useful insights is to become a member of a local landlord association. With guidance from other experienced landlords, you’ll be able to avoid mistakes. For example, you get to understand why hiring a property management company is recommended.  

  1. Budget for Vacancies  

A rental property won’t always have tenants. This means there are months when one or several units are vacant, which will cost you money. Therefore, as you search for the ideal rental property, make sure not to overlook this factor.  

The vacancy rates differ from one market to another. Low-demand rental properties have a greater vacancy rate of more than 20%, while that of the highly demanded areas is less than 2%. With that said, it’s always advisable to consult with other landlords in the area to get a rough estimate of the vacancy rate. By doing this, you’ll be able to determine whether the investment in a specific rental property is worthwhile.  

  1. Identify Your Property Expenses

One thing that’s standard across all rental property investments is that they accrue expenses over time. These expenses can either be monthly or annually, but you should also be well prepared for an unexpected expense that might occur. 

The possible expenses you might need to settle are:

  • Unforeseen and anticipated maintenance and repair expenses.  
  • Property taxes that are owed to the state, which depends on the county, town, or state the rental property is found.  
  1. Calculate The Margin 

Setting the margin rate of return is vital since it determines whether you’ll generate the desired profit. You need to set the margin rate at 10% and set the maintenance cost at around 1% of the property’s value. This means for a property valued at $500,000, the maintenance cost should be $5,000. 

In addition, you need to consider other expenses such as possible property taxes, monthly expenses, including janitorial, landscaping and pest control, as well as homeowner’s association fees.  

  1. Examine If There Are Short-Term Rental Restrictions  

The increased popularity of short-term property rentals for residential properties has seen some neighborhoods putting in place short-term rental restrictions. For example, some homeowner’s associations put in restrictions that forbid the rental of houses for less than 30 days. Therefore, you should confirm whether there are such restrictions on a property you’re planning to buy.  

  1. Get an Inspection

You must never overlook the significance of an inspection. Making sure the property is inspected is essential as it saves you money and time since you get to identify if there are any issues with the property. If you already purchased the property without getting it inspected, this leaves you with a huge loss that can amount to thousands of dollars.  

Therefore, make sure the rental property is inspected before you make the purchase. If any issues are detected, this improves your bargaining power since you’ll need to do the repairs independently. Alternatively, you can ask the current owners to do the repairs before making the purchase.  

  1. Get Pre-Qualified  

If you want to get a better picture of the property that you want to invest in, pre-qualification is more than necessary. But for you to get pre-qualified, you need to know several aspects, including the following:

  • Ensure a low debt-to-income ratio.  
  • Have liquid cash to pay the down payment.  
  • Have a credit score that’s at least 680, but a score of 740 or higher is better.  
  • Access to cash that can settle at least six months’ expenses.   
  1. Look into the Neighborhood  

Even after finding the perfect rental property, you need to make sure to confirm that it’s located in an ideal neighborhood. This means considering essential factors such as the rental property’s access to public transportation, crime rates, and available amenities.  

You should buy the rental property once you’re satisfied that it’s in excellent condition and also the neighborhood it’s located in. 

  1. Make Sure Your Credit Is in Check  

When searching for your next rental property, your credit rating is crucial. If you’ve got a great credit score, you enjoy a better negotiating power and higher chances of getting access to credit needed to finance buying the rental property.  

In contrast, if you don’t have a great credit rating, you’ll find it a lot harder to find a great rental property since the lenders won’t be willing to offer you the needed finance. Therefore, you’ll need to finance the property’s purchase either by using your savings or having to pay high-interest rates if one lender is willing to take the risk with you.  

  1. Calculate the Property’s Operating Expenses  

Knowing the operating expenses is crucial as this will also guide you to determine how much rent should be paid for each unit. In most cases, the operating expenses range between 35% to 80% of the total operating income. This means that if the total rental income paid by your tenants is $5,000, your monthly operating expenses should be approximately $2,000. 

Takeaway  

The search for an appropriate rental property is never easy. However, after reading this article, you now know some useful tips to consider that’ll help you find the perfect rental property to generate additional income.