Monthly Archives: June 2017

Tips For Success Commercial Real Estate Agency

1. Don’t cover too much at once

As an author, your space on the blogosphere is pretty much unlimited. However, this does not mean that you should try to cram all you know about one topic into one single blog post. If you think that the topic can be broken down into smaller sub units, you should also make blog posts covering only those sub units. It will be easier for your readers to process, it will be easier for you to write, and it will give you more content and more traffic.

2. One topic = one blog post

Related to our previous point, your blog posts should revolve around one single topic. The reason is simple – both you and your readers will be able to stay more focused. If you’re already brewing with ideas, write them down and expand them in future blog posts.

3. Answer the right questions

Writing helpful content is one of the best ways to get your visitors engaged and keep them returning to your site. However, you need to make sure that you’re answering those questions which they need help with. Put yourself in the prospects’ shoes and see what kind of concerns and problems they might have.

4. Cover common problems

In your average working day, you come across dozens of clients and they all have similar questions and doubts. Why not use this knowledge to your advantage? Your blog can be a platform where you address frequently asked questions, problems and concerns your clients might have.

5. Look at the bigger picture

You might think that having your own blog implies that you should use it to write about yourself, your agency and your work experience. However, your potential clients will not be looking for information specific to your agency. Instead, they will be looking for more general information pertaining to the commercial real estate industry. This is why your blog posts should rarely touch upon your own agency, unless it’s something really worth noting – such as an important deal you closed, company anniversary, charity event you hosted or similar.

Renovation & Remodeling Trends for Commercial Properties

The rental market can be a highly competitive one. And, as a property manager or owner of an apartment or office property, you know just how important a few essential updates can be. There are a number of remodeling projects potential and current renters hope for and knowing what they are can really help you get a leg up on the competition. Here is a brief rundown of what the most commonly requested tenant improvements are and why potential tenants seek them out in a place to lease.

  • Windows – First, when considering any large scale tenant improvements before renting your property, new and improved windows should be at the top of your list. Older properties in particular will benefit from updated windows. Newer, insulated windows are one of the very first features a potential tenant looks for, especially if they will be responsible for paying heating and cooling bills. New windows will regulate the inside temperature, therefore increasing energy efficiency.
  • Storage – How are the closets? In this day and age, ample storage is an absolute essential for any home or office. Potential renters want to ensure there will be enough room to store clothing, toiletries, files, and more. While you cannot increase the size of your property, there are several ways to increase the size of your storage. You can create storage space where it didn’t exist before, as well as make the most out of the storage areas you already have.
  • Clean Walls, New Paint – This is an essential one. Whether or not you have the time and budget for large scale tenant improvements, you should never turn over a rental property without giving the entire place a fresh coat of paint. Freshly painted walls lend an overall cleaner look and shows renters you put the time and effort into getting it ready for future residents.
  • Kitchen & Bathroom Renovations – Small but impactful details, such as new faucets, light fixtures, backsplashes, and energy efficient appliances will update the look of the unit and make it more appealing to potential tenants. If you can only focus on one or two areas during your next round of tenant improvements, make it the kitchen or the bathroom.
  • Amenities – Add tenant-attracting amenities to other areas of the building. Put in a new fitness center, common area or laundry room to increase your building’s renting potential. With today’s emphasis on healthy living, having an on-site fitness center is an attractive feature for your building to have; whether you rent apartments, offices or otherwise.

The Latest Trends in Commercial Real Estate

Interest Rates
Historically interest rates have been a sound signifier of the state of the economy, so in December of 2015, when the Federal Reserve raised interest rates for the first time since 2006, the change definitely made headlines. Although the hike was only by a quarter of a percentage point (0.25%), which raised the target range to 0.25%-0.5%, this past December the Fed once again raised rates by a quarter of a point to a range of 0.50%-0.75%. And subsequent hikes are on the horizon. Fed officials predict they will raise rates at least three more times over the course of 2017. These changes can impact the CRE market in many different ways. The rate hike itself signifies lower unemployment rates and an increasingly stronger economy. A strong economy tends to indicate a strong real estate market, so in that respect the outlook is positive. As far as immediate tangible changes to commercial real estate go, even small rate hikes mean that borrowers will pay more in interest. They also contribute toward the cost of capital; higher rates mean the price to borrow money is also higher. The promise of continued hikes may motivate some to invest sooner rather than later, while for others this could make investments less affordable or attainable and could cause both borrowers and lenders to be more cautious when approaching loans.

Foreign Investment
Global economic and political uncertainty leave a big question mark for the year ahead and something for investors to keep an eye on. Recent reports have indicated that China is planning to slow foreign investments, and at the beginning of this year, state regulations have already started tightening for Chinese citizens and institutions investing in overseas real estate. It will be interesting to see if these new restrictions will have a long-term effect on the U.S. CRE market, or if determined foreign investors will find loopholes. As the fallout continues from Great Britain’s vote to “Brexit” the European Union, the strength of both the euro and the pound is uncertain. Volatility in foreign currency could mean investors turn to the U.S. commercial real estate market as a sound and stable investment choice. In the face of all this uncertainty, the World Bank predicts global economic growth of 2.7% which is slightly higher than last year. Global growth is more likely to mean inflows into the U.S. market, but it is still too early to tell how all this uncertainty will affect CRE.

Supply Growth
Commercial real estate supply growth has been slow over the past few years and there’s no way to tell if or when it will pick up (see above uncertainties). We do know that continued slow growth with only pockets of supply available continues to drive up rent prices as the demand skyrockets.

Commercial Real Estate Myths

There are a number of misconceptions floating around in the market when it comes to commercial real estate and it becomes important to identify them. These misconceptions can deter investment and risk-taking behavior that is required in this market to be a successful investor.

  1. You need considerable funds to start
    This is one of the most common misconceptions in the real estate industry, you don’t need to be swimming in funds to invest in your first property. Banks don’t only look at your balance to approve your funding, they look at the potential profits of your deal as well. The more appealing the deal is the more likely you will be to get your funding, however, you don’t need to rely on just your banks there are always private money lenders who’d be willing to help out if you check out.
  2. The numbers are too hard
    These days there are plenty of software options in the market to do the legwork for you, you just need to know your figures and the software will compute the rest for you. The rest just boils down to you being able to interpret the figures to make informed decisions when it comes to your real estate needs.
  3. Most commercial properties are advertised
    Contrary to popular belief most of the available commercial properties aren’t listed in newspapers nor will you find any bandit signs advertising the properties of your desire. You will need to consult a real estate broker who has considerable contacts among investors and property owners alike to get a comprehensive list of all the available properties in the area of your interest.
  4. Managing commercial property is much more of a hassle than residential property
    Managing a property is no joke, but the hitch is that the proceeds with commercial properties is much more than that of residential properties. So one can afford to hire a management service that operates in your stead and takes care of all the management aspects of your property, including using their comprehensive list of vendors.
  5. Good deals are difficult to find
    No matter the market situation it will always be possible to find a good deal in the real estate market, there are always certain types of properties and other factors that make this reality a possibility. All this is dependent on you making a reasonable effort to make the deal happen though.
  6. A single agent can fairly represent both sides
    An agent will invariably have the interests of the landlord at heart and not the investor or the buyer, the agent will always have vested interests and therefore act as a dual agent in a way. So it’s always better to hire your own agent to represent your interests.
    These are some of the common myths surrounding the commercial real estate industry