Q: I have a building for lease. I want to make the property attractive for tenant but have a limited budget. Where do I start?
A: When marketing commercial real estate, there are three major concerns that you should address with respect to property maintenance. These are; the overall appearance of the property (“curb-appeal”), Secondary Industry Definition perception of past maintenance, and of course, any safety issues. All three of these items will impact a prospective tenant. That impact can be either positive or negative.
I was recently contacted by a property owner who was having difficulty leasing his building. I agreed to inspect the property with him and make suggestions. Before we got into the building, we had to walk on what was left of a lawn to avoid a bush that had completely overgrown the front walk. Next, there was a dead bird in front of the building entrance door. Believe it or not, the inside was worse; dank smells, peeling paint, debris, inoperative light fixtures, and a lavatory in shambles. What a picture! No wonder prospective tenants ran screaming from the building.
Appearance is critically important. As they say, you’ll never get another chance to make a first impression. However, while your property must be clean and presentable, you want to avoid, wherever possible, costly renovations such as new office space or even new carpeting which are very specific to the needs of your buyer or tenant. This is the art of a great presentation on a limited budget.
We recently renovated an industrial building in Ronkonkoma for precisely this reason. The building was vacant and not leasing. On the exterior we removed accumulated debris and cut the lawn. What Is A Qualified Electrician Dead bushes were removed and replaced. The landscaping beds were weeded and mulched. The parking lot was seal-coated and the stripes repainted. Exterior personnel doors were painted.
Moving indoors, we made sure there were no glaring problems which indicate a history of neglect. For example, stained ceiling tiles often indicate a leaky roof or plumbing issue. Doors that drag, plumbing that doesn’t work, heating and air-conditioning equipment that makes noises or is inoperative indicate a property which has been neglected. In this case, we re-lit or replaced light fixtures, replaced missing or stained ceiling tiles, checked all the other mechanicals, and in general, made sure everything worked. And hopefully, it goes without saying, this is the time to address safety issues. Items such as potholes, dangling electric lines, and greasy floors all should be cured.…
Tag: budget
Value Castors Beat the Budget
If you walk into any supermarket on the high street or into your local out of town supermarkets you will no doubt notice the huge range of product offerings varying from budget value products right up to high end high quality ranges. Any one product, for example lets say chicken, will be sold in value cheap and cheerful packs, medium range priced chicken and then at the top end of the pricing scale are the high quality, often organic chickens, priced accordingly at a premium. This method of selling such a wide range of products at prices to suit a wide range of budgets ensures these retailers can meet everyone’s needs.
This method of product and price marketing can be replicated across into other industries. Within the materials handling and castors supply industries similar trends of price value marketing can be seen. Castors can range from value castors, which bought in quantity, offer the end consumer the best value for money. Budget castors offer such value for money in this price sensisitive market in which we operate. At the other end of the scale, are industrial castors, that are able to withstand greater weight loads and usage, these are wroth their premium price. It’s the old adage that you get what you pay for. In the middle of the scale are medium duty castors that are competitively priced for today’s market.
One of the first commentators was a gentleman named Adam Smith who in 1776 described the Industrialisation of Nations, and how the division of labour would produce increases in productivity. The British Industrial revolution saw the mass manufacturing of castors and wheels in the United Kingdom. Traditionally British manufacturers of castors and wheels, such as Flexello and Revvo Castors dominated the home market. However just as Adam Smith predicted, as the markets grew, and the process of division labour developed, How To Become An Electrician In Alabama cheaper castors and wheels were imported from countries with economical manufacturing, material and labour costs. Castors manufacturing developed in Europe, in Italy and Germany for example. Over the last ten to twenty years China has become one of the leading castors manufacturers. With cheap material costs and labour costs the Chinese market has grown considerably. The only draw back with such value castors is the length of time they take to get to our shores! It is indeed a slow boat from China!
So any modern castors distributor must take these market changes into account. Castors and wheels, like in supermarkets, must meet all customers’ requirements from cheap value castors up to heavy duty industrial castors. Adam Smith in 1776 may have been one of the first to write about the Industrialisation of Nations, however in today’s Pricing Problems Of Industry market this simplistic view has been overtaken by a price and value castors marketing strategy. Casting the net far and wide enables castors manufacturers to catch all the castors requirements from customers. Whether its value budget castors, sensitively priced or whether …
Leasing Office Space – Budget and Expectations
Define Budget and Expectations
Define the building quality, price per square foot and total monthly budget for office space. The office space broker will advise you if your expectations are on realistic. Visit with the tenant rep broker to make sure the amount of office space you are seeking is consistent with your current and projected number of employees. The density for most American offices is between three and six employees per 1000 ft. of net rentable space. (The difference between net rentable space and actual space is discussed shortly.)
Layout
The conceptual layout is important unless you’re planning to completely demolish and rebuild the office space. This is very expensive. (Demolishing and rebuilding office space will likely cost at least $25-$40 per square foot depending on your location.) Determine whether you are looking for space which is mostly open concept, or which has a large number of smaller or larger offices. This will allow you to cull options that do not fit.
How important are ingress and egress during peak traffic periods? The layout of the site will determine the ease or difficulty of peak traffic access.
Signage
Is signage important? You may need to consider restrictions imposed by the landlord, local government and subdivision deed restrictions. If signage is important, obtain a written copy of all signage restrictions soon after becoming seriously interested in office space. Obtain candid insights from your tenant rep broker regarding signage for the office building.
Parking
Do you require a high amount of parking? (4 or more spaces per 1,000 square feet of space is a relatively high amount.)
Rental Rate Options
Rental rate options include: gross, gross plus expense escalation, modified gross, and triple net. A gross lease simply has a rental rate and no allowance or adjustments for expenses. Gross plus escalations includes a base level of rent and expenses in excess of a defined level. The defined level is often the expenses for the year the lease is signed. In a modified gross lease, the tenant pays rent and some of the expenses directly related to his space. These often include utilities and janitorial. This type of lease can also provide for expense escalations. In a triple net lease (NNN), the tenant pays rent and all operating expenses. Operating expenses include insurance, taxes, maintenance, repairs, utilities, janitorial, etc. In general, a gross lease favors the tenant by providing a fixed level of total payments.
Amenities
Following is a list of amenities available at many office buildings:
Open parking
Covered parking
Garage parking
A/C access
Atrium Types Of Manufacturing Process
Banking / ATM
Cardkey access
Computer Brand Analysis Template facility
Conference room
FedEx drop
Food Service
Handicap Facility
Health club
Office supply
Postal service
Print shop
Secretarial service
Security
Sprinkler
Sundry shop
Travel agency
Tunnel access
Evaluate Amenities Important to You
Initially, determine which amenities are essential. Adding a large number of amenities to your criteria may eliminate too many office space options. It might be nice to have a print …