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Leasing « CGC Commercial
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Archive for the ‘Leasing’ Category

Lease Renewal Tips

by Chris Garcia, 8:59 PM on March 22nd, 2012, No Comments

Renewing your lease can be tricky, make sure you have done your homework and allowed yourself enough time to negotiate the best possible deal. Check out this article with some great tips:

http://www.nuwireinvestor.com/articles/negotiating-lower-rent-for-your-business-53207.aspx

Commercial Real Estate Seminar- Finding Distressed Property

by Chris Garcia, 6:26 PM on February 15th, 2012, No Comments

The market is still very weak and lenders, corporations, and distressed sellers are looking to unload property!!  Call us today to put together a search to find these assets that will fit your companies’ needs.  952-955-4400

If this is something you are considering in the next 3-24 months you will not want to miss our seminar on purchasing distressed property!!  Please see below:

Market Seminar on Distressed Assets

This seminar will put you in the best position to find distressed assets but also identify items to look out for.  The last thing any investor needs is a money pit that distracts them from their primary business.  If you own a business and  are renting you NEED to be looking at some of the amazing deals in the marketplace.  Here are some additional details on our seminar:

  • Finding Distressed Property
  • Evaluating the potential upside of the asset
  • Financing Options for Purchasing including SBA programs
  • Buying Commercial Notes
  • The event will be held on April 18 at Crowne Plaza in Plymouth from 8:15-9:30am.  If you would like to attend, please contact Chris Garcia.  Space is limited so act quickly!
  • Chris Garcia
  • 952-955-4400
  • chris@cgccommercial.com
  •  

    CGC Commercial is an Advisory Services company that focuses on helping businesses with their commercial real estate.  Our Advisors have over 40 years of industry experience and have been top performers at some of the largest real estate companies in Minnesota.  Collectively our Advisors have sold over $200M of real estate.

     

     

    February 2012 Market Update

    by Chris Garcia, 5:16 PM on February 1st, 2012, No Comments

    The overall market is improving steadily, and will continue to do so.  Absorption is expected to be over 800,000 SF for 2012.  United Health Group continues to acquire property while St Jude and Target are gearing up for large expansions with Target building 700,000 SF in Brooklyn Park.

    Here is a brief overview of the Twin Cities office and
    industrial market:

    Office

    • 484,000 square feet of positive absorption for 2011
    • Vacancy rate fell to 19.2%
    • Vacancy rate fell for the first time since 2006
    • Vacancy among class A properties is at 14.9%
    • 656,000 sf of positive absorption recorded for class A
      properties
    • Minneapolis CBD showed 116,000 sf of positive absorption showing
      positive absorption for the second consecutive year
    • Minneapolis CBD fell to 18%

    Market rates were flat in 2011 and 2012 should see an increase.  Market-wide rates are $23 per square foot gross, versus $22.50 psf at year-end 2010.  There have been no new office buildings since 2009.

    Industrial

    The industrial market is showing a 17% vacancy rate at this point.  Leasing activity was decent for
    2011 with 600,000 square feet of positive absorption. Rental rates are also flat and average net rates are currently at $4.25 and $8.00.

    There are no new multi-tenant projects under way in the Twin Cities however there are some build to suits. The BTS include a 300,000 SF building for Medline, 580,000 SF building
    for Sanmar, and a 100,000 SF building for Tri-Star.

    4 LEASE RENEWAL STRATEGIES MADE SIMPLE

    by JeffMinea, 7:06 PM on January 18th, 2012, No Comments

    We all want to feel empowered in our decision making process no matter what the subject is, and when it comes to your property lease, here are 4 simple things to consider before you begin the process:

    1.  ALLOW 12-18 MONTHS TO BEGIN THE PROCESS

    This time allows you to maintain leverage in discussions with your Landlord. Staying tight lipped could backfire if a neighboring Tenant needs more space, or the Landlord is allowed time to talk to a new Tenant. Result: your space could be leased out from underneath you- not good! Negotiating late usually sends a message that you are a “captive prospect” and you will get less and pay more.

    2. KNOW THE MARKET FOR YOUR BUILDING

    Go to the listing agent’s website or www.mncar.org, or www.loopnet.com, to find out what the asking rents are currently for your building. In a soft market as we have had, the
    asking rent may be less than what you are currently paying. This is a valuable piece of information as you frame your strategy for a lease negotiation.

    3. KNOW THY NEIGHBOR

    There’s a good chance you are in a multi-tenant building, so getting to know another business owner/executive, who ideally moved in recently (or renewed), and getting their observations about likely concessions and rental rates will help you gain additional valuable knowledge.

    4. UNDERSTAND YOUR WORTH AS A TENANT

    Landlords want to know how your business is doing and without sharing financial statements (yet), you should be prepared to tell your story of longevity as a business, good payment history, industry competitive rank, and growth and other outlook items of interest. The more confidence they have in you, the better the concession package will be in the end. The other item of value is whether or not you are able to sign a 5 year lease or longer. This sets up the value proposition more than any of the others in a negotiation as it gives the Landlord the most value with their lender to name one example.

    SUMMARY:

    The above points will provide the litmus test for what strategy is best for you. For more suggestions on how to create your best lease strategy, please feel free to contact me at:
    jeff@cgccommercial.com. 952-955-6196

     

    Sublease Deals- Many Still Available

    by Chris Garcia, 11:17 AM on June 29th, 2011, No Comments

    There are some amazing sublease deals available in the market still.  We are currently working with a client and found a sublease in Plymouth that will save them 40% off their current rate (tax, cam, and base rate).  In addition, they would add 1,000 SF of additional office space and take possesison of the furniture and phones that are in the space.  The suite is in a single level office building that is probably classified as a B property.  Some great deals are out there still!  Stay tuned for the case study once the deal is completed.

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