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The Tower at Scottsdale Landing

THE CHALLENGE Sagicor Life Insurance Company is a full-service life insurance company that operates in 22 countries Their Scottsdale location at the Galleria was nestled in the heart of old town Scottsdale where they occupied nearly 25,000 SF on the 3rd floor. The Landlord had acquired City approval to build a five story class A…Read More→


2130-2160 E Brown Road – Office & Medical Space

THE CHALLENGE This 12,000 square foot multi-tenant office/medical building had quite a bit of deferred maintenance. The building was 40% occupied at the time with most tenants on a month to month lease and below market rents with average lease rates of $9.00 PSF and not well positioned at all in the market to lease…Read More→


Understanding Estoppel Certificates and Why They Matter

Estoppel Certificates

You may see a clause in the landlord’s lease entitled  Estoppel Certificates or “estoppel Letters”. You could read it over and not understand what this clause means, and depending on what happens during your lease, you might never encounter this clause. Essentially, it usually comes up only if your landlord sells or intends to refinance…Read More→


Buying Commercial Real Estate: Due Diligence Checklist

Buying Commercial Real Estate Due Diligence Checklist

Are you buying commercial real estate? Here is a due diligence checklist. Due Diligence, if performed properly and thoroughly, will prevent you from experiencing major setbacks and expenses when buying commercial real estate. It should never be taken lightly or for granted. Every item should be reviewed in detail. Assume there will be problems, stay…Read More→


Understanding Your Commercial Lease Agreement

Commercial Lease Agreement

You will come across many clauses in your commercial lease agreement that have been prepared by the Landlord. There is more to consider than just price, rent abatement and tenant improvement allowance (TIA) including security deposit requirements restrictions on how you use the property, and who will pay for maintenance of the property and capital…Read More→


Subletting and Assignment of Lease: What is the Difference?

Subletting and Assignment of Lease

Have you considered subletting your space? There are several ways to get rid of some or all of your space you lease that you don’t need. You can have language is your lease that simply ask to give up some space. You may elect to turn part of the space back to the landlord if…Read More→


Using the Starker Exchange Technique

the Starker Exchange Technique

What is a Starker exchange and how can commercial real estate investors utilize it? Many of you that are reading are familiar with a 1031 exchange, if not you can read one of my many articles on the topic 10 Things to know about a 1031 Exchange That I previously published. Moving into the advanced…Read More→


Advantages and Disadvantages of Selling a Commercial Property

Selling a Commercial Property

When selling a commercial property there are advantages and disadvantages. Let’s explore the financial consequences (good and bad) of selling a commercial property. Advantages of Selling a Commercial Property You may Create a Taxable Gain. If your adjusted basis is lower than the contract price of the property then you may have a tax to…Read More→


1031 Exchange Benefits – What to Know

1031 Exchange Benefits

The IRS Code 1031 says that if you make a like-for-like exchange, you don’t have to pay the gains tax at the time of the exchange. This is true as long as you have done everything properly, have not received any boot, nor had net mortgage relief. Let me explain. “Like for like,” in this…Read More→


How to Increase Cash Flow on Your Investment Property

Increase Cash Flow on Your Investment Property

How do you increase cash flow on an investment property? The value of every income-producing property is greatly affected by small changes in certain aspects of the property. The cash flow of any property, either before or after taxes , is one of the important criteria to your investment. Your specific goal may not depend…Read More→


How to Use the Sale-Leaseback When Other Forms of Financing are More Costly

Sale-Leaseback

How can you use the sale-leaseback method when other forms of financing are more costly? If the money market will support your financial needs at reasonable rates through more conventional forms of mortgaging, there may be no need to look elsewhere. However, due to any number of circumstances, a reasonable or sufficient loan may not…Read More→


How to Reduce Building Operating Expenses

How to Reduce Building Operating Expenses

There are few things you can do to increase the value of your property, you can either raise rents or reduce operating expenses. I’d like to briefly touch on a few steps you can do to reduce your building’s operating expenses, investor can focus on what we call controllable expenses, or otherwise known as common…Read More→


Economic Challenges of COVID-19 on Commercial Real Estate

Economic Challenges of COVID-19 on Commercial Real Estate

Many are comparing the economic challenges of COVID-19 on commercial real estate to that of the last recession. But CRE was in a much stronger position before the 2020 pandemic than it was in 2008. And although CRE—and the entire world—will operate differently moving forward, experts say CRE will bounce back. Brokers recently reported they…Read More→


What are 1031 Exchange Fees?

1031 Exchange Fees  or Accommodator fees

1031 Exchange Fees? Yes, there are costs associated with 1031 exchanges. When you are selling an investment property and decide to do an IRC 1031 tax deferred exchange there are some closing costs that are considered allowable and unallowable expenses. Under §1031 in any sale where the exchanger pays closing costs that are necessary for…Read More→


The More Important Parts of a Commercial Lease

The More Important Parts of a Commercial Lease

There are a few parts of a commercial lease that you should pay close attention to. Commercial leases are lengthy documents that can be seriously daunting to peruse, but it’s important that you take the time to read all of the terms carefully before signing on the dotted line. While every part of the lease…Read More→


10 Things to Know About 1031 Exchanges

10 Things to Know About 1031 Exchanges

(1) A §1031 tax deferred exchange is for investment property only. Land, commercial, or residential property that has been rented out, all qualify. (2) A seller must use a Qualified Intermediary (QI) to act as the safe harbor of their funds (3) You must spend equal to what you sell for minus customary closing costs…Read More→


When to Start Looking for a New Commercial Office Space

When to Start Looking for a New Commercial Office Space

When should you start looking for a new commercial office space? Typically, companies start looking for  a new commercial office space as little as nine months before their existing lease ends. Unfortunately, they’re doing it wrong. To successfully find and negotiate space. The savviest tenants can spend two to three years planning for a move….Read More→


Terms to Look For in Your Commercial Lease Agreement

commercial lease agreement

A commercial lease agreement can be an intimidating document, especially for those who don’t work with real estate on a regular basis. Reading your entire lease carefully is vital to ensuring that you’re getting the best deal when you’re renting commercial office space; however, some terms and clauses are of particular importance and should be…Read More→


Tenant Improvement Projects – Things to Remember

Tenant Improvement Projects - Things to Remember

Planning tenant improvement projects used to be simple — design rows of private offices with cubicles in front and don’t forget a storage room and reception area. Modern offices are much more variable. While the key to a successful project is to customize it extensively to your needs, there are still a few rules of…Read More→


Understanding Cap Rate in Commercial Real Estate

Understanding Cap Rate in Commercial Real Estate

Let’s examine what a cap rate is and how it allows investors to evaluate their rate of return. There are many ways to value real estate. It consists of appraising the land and building, comparing comparable properties, or calculating the value based on the rents being generated. The later method is where the capitalization rate…Read More→