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Coldwell Banker Commercial Services Chicagoland

Randolph Taylor

Multifamily Investment Sales Broker at Marcus & Millichap
Chicago-Oak Brook
O (630) 570-2246
M (630) 344-9355
Randolph Taylor

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Coldwell Banker Commercial Services Chicagoland

Coldwell Banker Commercial Services Chicagoland

Coldwell Banker Commercial® NRT is made up of nearly 80 professionals working in the Chicago Metro Area, which includes Southeast Wisconsin and Northwest Indiana. Our commitment is to determine our client’s commercial real estate objectives and help define solutions. We achieve leading-edge results because we provide local expertise coupled with the resources of a comprehensive national network.

Client Satisfaction
Drawing upon Coldwell Banker Commercial’s over 100 years of excellence in commercial real estate, our professionals offer experience, in-depth knowledge and superior customer service. Our dedication to service is exemplified by our client relationship, which includes providing market research, acquisition and disposition services, leasing, asset and property management, investment property, sales and corporate consulting. Committed to client satisfaction, our professionals ensure that all details are planned and managed in a proficient and timely manner.

Market Knowledge
By understanding current market conditions and anticipating trends, we successfully achieve your relocation, expansion, consolidation and innovative space requirements. With access to up-to-date technological tools including contact management software, tenant and owner databases, online communication systems and social media, we not only provide you with current information, but can also list and service your property on a worldwide network. We effectively represent your property as an informed professional.

Unparalleled Services
A full-service commercial organization, our professionals stand ready to help clients discover untapped commercial real estate market opportunities and to deliver a range of services designed to add value to their businesses.

The Coldwell Banker Commercial organization is committed to providing exceptional commercial real estate services across all commercial property types and service lines. We provide guidance in every aspect of the commercial real estate transaction:

SERVICES: Acquisition and Disposition Services • Capital Services & Investment Analysis • Construction Management • Corporate Services • Distressed Assets • Landlord Representation • Market Research & Analysis • Property and Facilities Management • Relocation Services • Startups & Small Business • Tenant Representation

PROPERTY LINES: Office • Industrial • Retail • Multi-Family • Land • Hospitality • Medical

Today, the company has an extensive inventory of property listings and a track record of success. This success has been built on long-term relationships with tenants, brokers, lenders and investors with an understanding of the importance of an impeccable reputation.

CBC® Chicagoland Professionals completed over 800 sale and
lease transactions in the last two years, totaling $450 Million


Contact Us Today to see how Coldwell Banker Commercial can service your Commercial Real Estate Sales, Leasing and Investment needs.

 

Leasing Commercial Space

Randolph Taylor

Multifamily Investment Sales Broker at Marcus & Millichap
Chicago-Oak Brook
O (630) 570-2246
M (630) 344-9355
Randolph Taylor

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Leasing Commercial Space

Leasing Commercial Space

Leasing commercial office space is one of the largest expenses incurred by new and expanding businesses, so it is important to do your due diligence. Here are some tips for negotiating a commercial lease for your small business.

Lease Agreement

Lease term and rent are your first negotiation points. You will want to factor in rent increases over the term and renewal options so you are not charged with an unexpected rent increase without warning.

As well as working with a qualified Coldwell Banker Commercial Real Estate Broker, it is also important to consult a knowledgeable real estate lawyer; they can often recommend the right choice for you and protect your interests as you negotiate your lease.

Expenses

In addition to your monthly lease payment, find out what expenses you may incur beyond rent.

Commercial real estate landlords often incorporate extra expenses into the lease such as maintenance fees, upkeep for shared facilities (Common Area Maintenance or CAM), etc. Other expenses to consider are utilities. These charges are usually the responsibility of the tenant, so find out how these are measured. Are they individually metered or apportioned by square footage? Ask to see these “hidden fees” and policies as well as examples of costs that are typically incurred by tenants.

Maintenance and Repair

While residential leasing often places the burden of maintenance and upkeep on the shoulders of the landlord, commercial leases are different. Commercial leases vary regarding maintenance and repair – some stipulate that the tenant is responsible for all property upkeep and repairs while others specify that the tenant is responsible for systems like air conditioning, plumbing, etc.

Read the Lease

Be sure to read over your lease in detail and hire an attorney who specializes in commercial real estate to walk you through the clauses and fine print.

Protect Your Business

To protect your investment and long-term business interests, it is worth investigating and negotiating some potential add-on clauses to your lease. These might include:

  • Sublease – This builds in some flexibility, allowing you to sublet your space to another business.
  • Exclusivity clause – Prevents the landlord from leasing other spaces on the property to a direct competitor of yours.
  • Co-tenancy – If the property’s anchor tenant closes business, a co-tenancy agreement can protect you from a potential loss of customers, allowing you to break the lease if the landlord does not replace the anchor tenant in a specified time period.

What if You Default?

Should you default on your lease payments, there are steps you can take during the lease negotiation process to protect yourself. Find out what the lease agreement states. Will you be locked out immediately? Will the landlord initiate eviction proceedings? Can you negotiate more time? Could you pay only the current month’s rent instead of the remaining amount owed on the lease?

Source: US Small Business Administration


 

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Tenant Representation

Coldwell Banker Commercial® (CBC®) professionals specialize in tenant representation and will develop customized real estate solutions for tenants. CBC professionals clearly understand today’s corporate business climate and work to trim expenses and drive value to your bottom line.  Whether you need to lease or sublease office, industrial or retail space, a CBC professional can develop a customized solution that meets your real estate needs and expertly provide innovative solutions to multi-market or local requirements.  With access to colleagues in over 200 CBC companies across the globe, and completing over 11,000 tenant representation transactions in the past two years, CBC professionals have a proven track record in reducing occupancy cost and increasing profitability for tenants. CBC professionals come to their clients as trusted advisors and all transactions are completed with the client’s needs first.CBC professionals can assist you with any of these services:

  • Strategic Planning
  • Relocation Services
  • Transaction Management & Reporting
  • Lease/Own/Sale Leaseback Analysis
  • Negotiations
  • Lease Analysis
  • Market Surveys and Analysis
  • Demographic / Drive-time Studies
  • Space Planning
Visit our Commercial Real Estate Questionnaire today to help us help you with your
Commercial Real Estate Leasing needs be they Office, Retail or Industrial Properties
Prepare Your Commercial Property For Sale Or Lease

Randolph Taylor

Multifamily Investment Sales Broker at Marcus & Millichap
Chicago-Oak Brook
O (630) 570-2246
M (630) 344-9355
Randolph Taylor

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Prepare Your Commercial Property For Sale Or Lease

The smell of warm baked cookies may help you sell your house, but not your commercial property.

If you’ve ever sold a house before, you know the importance of preparing the house in the form of staging. Staging can take the focus off of negative aspects. The same principals used in staging a residential property can also be applied to commercial properties; they just have to be thought of in a different manner.

I know what you’re thinking, I’m not selling a house, and I don’t need the next Design Star from HGTV to help me sell or lease my property.

Let’s be honest, unlike buying a home, where there is sentimental emotion when purchasing, chances are, what the building looks like has less effect on the actual purchase/lease decision. However, it can’t hurt to make the property appear in top shape. You don’t want garbage on the property or a poorly kept lawn act as a factor in the final decision.

Just like buying a home, a potential buyer/tenant for commercial real estate doesn’t want to have to worry about minor things such as landscaping or cleaning. They want to the property to be “move-in” or purchase ready.

Here are some low cost suggestions from the Coldwell Banker Commercial® organization to help prepare your property for sale/lease. Many of the suggestions will seem like common sense, but you would be surprised at how many of these are often overlooked:

Initial View
How does the building look to potential buyers/ tenants? Stand back and view your property as if you were seeing it for the first time. What stands out to you? Those same items will stand out to potential purchasers/tenants.
Landscaping

Make sure the bushes are neatly trimmed, the grass is mowed and the lawn looks healthy. You may want to put a couple thousand dollars into new landscaping if needed.

Parking Area/Driveway
If your parking area or loading dock surface condition is stained or otherwise worn-looking, consider resealing it. If the parking lines appear faded, have them repainted. Remove any obstructions.

Building Exterior
Have a cleaning service power wash the building exterior for a fresh look. Don’t forget the windows. Make sure you paint over any graffiti that can be an eyesore.

Windows
Replace any cracked or broken glass and as previously mentioned, clean the windows.

Roof
The roof may be the single most important aspect of your property. A well-maintained roof will say a lot about the overall condition of the property. Replace any broken or missing shingles or tiles. Repair flashing where needed. If the roof is old and needs to be replaced, consider having the work done before selling the property.

Here is Part II of the low cost suggestions from the Coldwell Banker Commercial organization to help prepare your property for sale/lease. Many of the suggestions will seem like common sense, but you would be surprised at how many of these are often overlooked:

The Building Interior

Common Areas
Keep the common areas neat, clean and free of clutter. Make sure everything is in good working order; check the elevators, restrooms, etc.
Construction

If the space is currently under construction, keep these areas clean. Sweep any dust or debris. Have the workers take a break when you are showing a space to a potential tenant/purchaser.

The Tenant’s Space
Remove any remnants of the previous tenant If the previous tenant had a company sign on the wall, make sure it is removed. If the previous tenant had specialty fixtures, have them removed. If they had unusual color choices for paint, have the walls repainted. New tenants moving in want to picture how the space will work for them.

Depersonalize
If you are looking to sublease or if the current tenants are still in the space, have them temporarily take down personal items. We know employees love their family photos, awards, diplomas, religious items and other personal treasures, but explain to them that this action is only temporary until the building is sold/leased.

After following a few of these suggestions, you will realize there are simple and effective solutions for virtually any commercial space to get it sold/leased.

Contact Coldwell Banker Commercial to ensure the maximum exposure and marketing of your property.

Randolph Taylor

Multifamily Investment Sales Broker at Marcus & Millichap
Chicago-Oak Brook
O (630) 570-2246
M (630) 344-9355
Randolph Taylor

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Demand for big-box space is up

Landlords are finding it easier to fill vacant big boxes these days, due to an uptick in expanding retailers and other unconventional tenants.“The stock of vacant boxes has come back to pre-recession levels, and vacancy rates are now pretty consistent with overall vacancies,” said Todd Caruso, the senior managing director who heads CBRE’s retail owner/agency practice in the Americas. “We no longer have this massive disparity; the segment is growing with the strengthening economy, and new concepts are emerging and even breeding other concepts.”

Expanding retailers are filling many boxes, and other sites are leasing out to nonretail uses: medical offices, day-care centers and various types of entertainment concepts, such as trampoline centers, and even interior skydiving facilities that use wind tunnels to simulate the experience.

Some box spaces are split between retail and office tenants, such as in Royal Oak, Mich. where a former two-story Barnes & Noble downtown was divided into a second-floor headquarters for software firm Vectorform and a ground-floor space for Buffalo Wild Wings.

In New Jersey nearly all the quality vacant box spaces have become reoccupied, says Chuck Lanyard, president of the Paramus, N.J.–based Goldstein Group, “It’s a big difference from just a year and a half ago,” he said. Such retailers as HomeGoods, Marshalls and T.J.Maxx and exercise chains like Crunch and LA Fitness are filling many midsize boxes, while the likes of Floor & Decor, Hobby Lobby, Price Rite, Wegmans and Whole Foods are filling larger ones, Lanyard says. “We’re also seeing myriad entertainment uses, like gymnastics and indoor swimming and trampoline centers, but not as many churches,” Caruso said. “That surge was three to five years ago.”

One of the best illustrations of the sector’s improved vitals is the Phoenix market. One of the three hardest-hit regions in the recession, the Phoenix area suffered 12 consecutive quarters of both negative absorption and rising vacancy rates, with such big-box sellers as Circuit City, Linens ‘n Things and Mervyns all cratering, observes Dave Cheatham, managing principal of Phoenix-based Velocity Retail Group. “At one point there were 250 available boxes.” The number continues to fall, from 168 in mid-2011 to 113 in mid-2014, with fewer than 100 being projected for this year, according to CBRE. Many buildings have been taken over by some of the aforementioned unconventional users, which have discovered how much cheaper it is to retrofit an existing space than it is to build a new one, Cheatham says.

Cities and counties are pushing the re-leasing of big-boxes by attending ICSC’s RECon, in Las Vegas, and other meetings. “It used to be that cities would attend ICSC events to promote and market new developments only, but in recent years they’ve been actively promoting redevelopments,” Birdie said. “They recognize the opportunities to improve economic conditions and their tax base.”

And industry data portend further big-box absorption. An estimated net retail absorption of nearly 85 million square feet last year marks an 87 percent increase over 2013. Strengthening fundamentals reduced the national vacancy rate by an estimated 70 basis points to 6.5 percent, resulting in 2.5 percent rent growth, the firm says. About 51 million square feet of new retail space came online last year, mostly in grocery store space. But those numbers do not include any midsize retail big boxes that are showing up on the ground floors of mixed-use developments, says Caruso, who predicts little if any speculative big-box construction in the offing.

Source: ICSC January 13th, 2015

15 Tenant Retention Tips1

Randolph Taylor

Multifamily Investment Sales Broker at Marcus & Millichap
Chicago-Oak Brook
O (630) 570-2246
M (630) 344-9355
Randolph Taylor

Latest posts by Randolph Taylor (see all)

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15 Tenant Retention Tips

Obtaining new tenants can be a costly affair for landlords. If tenants are dissatisfied, given today’s market, they can easily seek new space. It is always the preferred option to retain good tenants – those who pay their rent on time and cause little or no problems.

The Coldwell Banker Commercial® organization offers these tips to assist in retaining tenants:

1.  Meet Your Tenant

Even though the property was bought as an investment, you are still in the people business and going out of your way to meet up with lessees can lead to longer, more meaningful dealings between yourself and your tenant. Also, understand their business and business model. They may have unique requirements.

2.  Don’t Get Complacent

A long-term tenant is a valuable asset in a saturated rental market, so make sure you keep on top of all those little jobs that will make it easier for the tenant to feel like it is a good working environment.

  • Maintain the property in the best possible condition; make sure equipment is up to date
  • When the tenant reports maintenance problems, sort them out immediately
  • Issues involving water, electricity, heating and air conditioning or safety should be resolved inside of 4 hours with a follow up to the tenants

3.  Have the Right Attitude

Show that you’re fair-minded and understanding. Don’t act like the tenant is ‘bothering’ you when they call. Be pleasant and show concern for their needs. Don’t ignore their questions or distresses.

4.  Replace a Minor Item at Least Once Every Year

Have a plan to maintain the property on an annual and rotating basis so you are constantly generating a fresh appearance. Keeping up with some of the competing buildings will make a tenant see you care about the property and they will be less inclined to look around for unnecessary reasons. Amortized over time, the minor expenses don’t cost that much. Plus, they will be attractive to new tenants, and they increase the value of the space.

5. Tenant Improvements

Requests for improvements should always be considered. Be open-minded and flexible with the tenant’s space. The tenant can always restore the space to its prior condition if agreed.

6. Respect Their Space

When landlords meet tenants in their property, be respectful, friendly and informal. Avoid disparaging comments causing them to be unsettled by voicing possible future plans that are adverse to the current tenancy.

7. Pro-active Problem Search

Perform regularly scheduled “preventative maintenance checks.” Make sure the tenants are aware of when such things are scheduled. Performing these checks demonstrates a proactive approach as opposed to a “wait and see” and allows you to find issues before they escalate to a stage where they hand in their notice. Always ask if everything is acceptable or if the tenant has any problems.

8. Communication is Key

Be sure to communicate with your tenants on a regular, consistent basis throughout their tenancy. Let them know about scheduled maintenance. Tenants generally won’t mind being inconvenienced so long as they are aware ahead of time and can make the necessary arrangements.

9. Ask What Would Make the Building Better

A great way to improve your relationship with tenants is to inquire about what would improve their work environment. Tenants may have ideas but could be shy about openly presenting them. More often than not, it’s something small that makes a world of difference. For bigger ideas, it may be possible to amortize the cost of general operating expenses if all of the building tenants benefit.

10. Send Your Tenants Anniversary/Holiday Cards

Send your tenants a card with a hand-written note inside or a small gift, like a DVD player, when they first move in. It is small, but they will realize you are not an ordinary landlord.

11.  Improve Property Energy Efficiency

In today’s market, efficiency and sustainability are issues that tenants are acutely aware of. An inefficient property can result in a loss of tenants and even higher operating costs. As an alternative, look into federal programs and tax advantages to retrofits of properties that result in better efficiency and reduced operating costs. This could go a long way in retaining tenants.

12.  Improve Property Grounds

It’s all about the little things. Maintain the front door of your property and the common areas where you see the most foot traffic. Plant flowers in the front of the property, keep the grass neat, the bushes trimmed, and the parking lot clean. An inviting property can go a long way in keeping tenants happy.

13.  Offer a Re-Signing Bonus for a Lease Extension

The simplest, most effective way to retain your tenants is to incentivize them with discounts for resigning a new, long-term lease. Offer free rent, a larger tenant improvement, allowance, reduction of security deposits, an offer to refresh paint or carpet, etc. Think about being proactive with an incentive program by offering the discounts two years before the expiration of their lease.

14.  Rent Reductions

If a tenant gives notice because they can’t afford to continue renting the property, consider revising and extending their term to help get the rent down or draw a new lease up for a longer period of time. Repositioning the lease is better than having them move, potentially losing rent revenue or the required new and likely larger capital dollars to make the space ready for a new tenant.

15.  Why Are They Looking to Leave?

When a tenant gives notice to leave, it’s vital to find out why. Perhaps it’s an issue that you can’t solve such as a lack of space, but more than likely it’s something that can be easily resolved. It never hurts to ask.


 

A LITTLE ABOUT
COLDWELL BANKER COMMERCIAL:

Nearly 200 affiliated franchise companies with over 3,000 real estate professionals

Global coverage with local market knowledge

Proven track record servicing all property sectors

Highly educated professionals to assist you in making informed decisions

Services include:

  • Acquisition, Disposition and Leasing
  • Asset & Property Management
  • Market Research and Analysis
  • Corporate Services

 

Randolph Taylor

Multifamily Investment Sales Broker at Marcus & Millichap
Chicago-Oak Brook
O (630) 570-2246
M (630) 344-9355
Randolph Taylor

Latest posts by Randolph Taylor (see all)

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High Turnover in Office Ownership Confirms Growing Strength of Secondary Markets

High Turnover in Office Ownership Confirms Growing Strength of Secondary Markets

Office Investors Increasingly Active Across More Secondary Markets Even as Core Gateways Maintain Their Luster.

Last year saw the return of a thriving office investment market, so much so in fact, that several local markets saw significant chunks of their overall stock of buildings change hands in 2013.

Analyzing such office inventory turnover can provide a good barometer of where office investment dollars are flowing, and also reveal markets that offer opportunities for further investment.

"While overall CRE investment volume rose 14% in 2013 from 2012 levels, office sector activity increased 17% to over $104 billion, the highest annual volume recorded for the four major property types,” said Nancy Muscatello, senior real estate economist with CoStar Group.

"Although last year’s haul was still shy of the peak office investment levels we saw in 2007, it does demonstrate the return of strong investor interest in office property, although that wasn’t necessarily the case everywhere.”

Looking at office inventory turnover trends across the top 54 U.S. office markets, five Southern and Western markets saw more 10% or more of their total office market inventory change hands last year: Austin, Dallas/Fort Worth, Atlanta, Houston and Denver. Austin was especially popular with office investors as 13% of its office space was acquired by new owners in 2013.

Six office markets saw just 3% or less of their stock change hands: Long Island, Sacramento, Baltimore, Pittsburgh, Honolulu and Richmond, which posted the lowest turnover of 2%.

The surge in transaction volume in many of these markets was predictable, Muscatello said.

"Houston is a shiny object that investors cannot seem to get enough of, offering a bulletproof demand story and fairly decent yields," as a result trading volume has soared in some key submarkets, she said.

“Austin has also been on the radar of investors for quite some time. The metro had a huge inventory turnover in 2013 (13.1% of inventory,) although a sizable portion of that (40%) was due to portfolio sales," Muscatello noted. The biggest portfolio to trade hands last year in Austin was the sale of the Thomas Properties Group portfolio of five trophy CBD towers as part of the firm’s acquisition by Parkway Properties.

"With a large chunk of the CBD inventory having already traded in this market, I would expect sales to remain strong, but turnover rates to moderate in the near term," Muscatello added.

Chris Hightower, an investment broker with Marcus & Millichap in Austin, said the ownership changes demonstrate the evolution of the Austin market. Historically, big institutional buyers have eschewed the ‘Live Music Capital of the World’ due to its relatively small size compared to major markets.

“However Austin has become real estate darling due to the hard charging Austin economy,” Hightower said.

Meanwhile, some of the nation’s core coastal markets saw relatively lower inventory turnover, including Washington, DC, San Francisco and New York, where just 5% of inventory traded hands. As a way of comparison, the average across the top 54 U.S. office markets was 6.33% turnover.

"Of course, that’s due in part to the size of those markets,” Muscatello noted. “Not only were they at the forefront of investment activity early in the recovery, but markets like New York and Washington DC have office inventories that are much larger than the average market. Investment volume in New York for example, still accounted for 23% of all office sales in 2013, even though New York’s share of the office inventory is only 10%. San Francisco also pulled in an outsized share of sales volume in 2013.”

Andrea Cross, national office research manager for Colliers International, also noted the turnover trend in the gateway markets.

"New York, San Francisco and Boston experienced the strongest demand from investors coming out of the recession, so many office assets in those markets have already traded. Lower inventory turnover in 2013 is attributable to a shortage of available assets and strong price increases in recent years rather than a lack of interest in those markets,” Cross said.

It's not so much that investor interest has waned in those markets, but rather it has expanded to include others.

“Office turnover in markets outside of the core gateway markets has picked up with broader economic growth and higher investor confidence in the office market’s recovery,” Cross said. “We are seeing higher turnover in many markets that were out of favor earlier in the recovery.”

Markets such as Nashville, Jacksonville, New Orleans and Las Vegas all saw 8% turnover in office inventory last year, according to CoStar data.

“Office sales volume is certainly on the rise in secondary markets as the recovery spreads to more markets and investors move out on the risk spectrum in search of higher yields,” Muscatello said.

Source: CoStar Mark Heschmeyer February 26, 2014