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The Basics of Commercial Plumbing Matinenance

March 29, 2023

For every commercial property to operate with success, owners need to be serious about consistently checking in on their building’s key systems. Phenomenal property maintenance is paramount if the goal is to keep tenants safe and satisfied. When it comes to monitoring and maintaining plumbing of a commercial property, here are a few things to consider. Small Issues Can GrowOne important thing to remember when it comes to maintaining a larger commercial property that needs its systems to run constantly (or draw the ire of tenants and their customers) is that small maintenance problems left untreated can lead to much larger issues down the road. When looking at a property’s plumbing, that means keeping a hawkish eye out for leaks. Leaks can occur due to many different reasons. Normal wear and tear can result in ineffective rubber gaskets and tree roots can grow directly into underground systems. Major leaks, sometimes referred to as “Silent Leaks,” can even grow without any exterior indication within walls or surrounding a building’s foundation. Many of these leaks can be unpredictable without regular supervision and professional inspection. To get ahead of leaks that can grow into major damages and unplanned system failures, coordinate with property

Competitive Socializing: A Passing Trend, Or A Commercial Real Estate Boon?

March 22, 2023

What’s popular in the world of commercial real estate is dependent on both cultural needs and capitalizing on trends that effectively draw in an audience. One trend making waves is “competitive socializing,” but are these venues a passing fad, or a sign of a rapid transformation in the entertainment sector? Let’s take a look at what exactly this broad concept is, and why it’s making such a splash in commercial real estate. The History of Competitive SocializingCompetitive socializing is a term that commercial real estate investors and property owners have likely come across in association with many of the new “experience-based” businesses growing in popularity. Commonly considered a fusion of hospitality and entertainment, competitive socializing venues look to combine high-quality or niche food and beverages with a unique game or experience. The bones of this concept have been around for some time in the states through restaurants like Chuck E. Cheese or Dave & Buster’s, where customers can enjoy a meal along with classic arcade-style games. Prior to then, though, the term was first used in the U.K. where pubs have long been central gathering points for games and drink. Today, unique concepts that try to fill the need of

Use Energy Audits to Benefit Your Business

March 15, 2023

Property and business owners are constantly searching for ways to improve their ROI and cut costs when possible. Despite this, the Environmental Protection Agency (EPA) has found that commercial buildings waste 30% of their energy budget on average. In an industry that sees constant innovations, property owners can look to minimize deterioration and update their primary energy-consuming systems by performing a commercial energy audit with a trained professional. What is a Commercial Energy Audit?A commercial energy audit is a comprehensive inspection performed by a professional energy auditor of a building or campus. While every energy audit is customized to fit the needs of the building, each auditor follows the best standards of practice as outlined by bodies like the American Society of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE). In an effort to standardize energy audits, ASHRAE has divided these consultations into three separate levels, with the analysis increasing in detail with each step. Residential energy audits tend to stick to the first level, consisting mostly of a basic walkthrough, while commercial energy audits may be more comprehensive. Regardless of the level of audit, the property owner will receive a detailed report with action items to increase energy efficiency. What is

Is Automated Marketing Worthwhile in Commercial Real Estate?

March 8, 2023

The world of marketing is only growing, and the demands of these jobs are rapidly expanding by all measurable perspectives. According to the United States Bureau of Labor, advertising, promotions, and marketing manager positions are projected to grow by 10 percent within the next decade. Despite this the majority of marketers in Commercial Real Estate are still either working solo or with only one other marketer. The industry is shifting rapidly, and to keep up with new demands, many marketers are looking to automation in order to compete. With new technology and tactics, it’s natural to ask whether marketing automation is worth it. To understand why commercial real estate is taking a hard look at marketing automation, let’s see how these new technologies might be the next big game-changer for CRE. Providing Versatility and AdaptationIt may seem to some that “Automated Marketing” is an ambiguous buzzword – something intimidating and confusing to approach. This is understandable, as the term is broad and refers to a wide array of potential techniques that can be used to bolster your CRE marketing strategy. Automated marketing can be used to build websites, submit repetitive data for listings, manage social media profiles, and that’s just

How to Use Landscaping To Increase Your Curb Appeal

March 1, 2023

Everyone is familiar with the old adage, “Don’t judge a book by its cover.” While this is a valuable principle in life, clients and customers generally don’t apply this sentiment when deciding where they spend their money. Very often, businesses are selected solely based on their location and look of their exterior. Especially in highly-trafficked areas, property owners that have taken good care of their buildings and developed eye-catching landscapes see much more attention than property owners that have been neglectful. A building’s landscape is often one of the first opportunities to make an inviting impression with potential clients. Well-maintained grass and carefully-selected greenery reflect businesses and property owners who care about their work. Clients and customers will expect this attention to detail to cross over into all facets of their business. So, to set your commercial businesses up for success (and to attract quality tenants or clients), here are a few ways that you can upgrade your property’s landscaping. Landscape To Stand OutMore than just keeping your property looking clean and looked after, strategic landscaping can be used to attract clients. Whether you take advantage of a professional landscaping company or plan out your designs yourself, landscaping is a

The Pros and Cons of Triple-Net Leases for Tenants and Property Owners

February 22, 2023

For anyone new to the world of commercial real estate, triple-net leases are a concept worth exploring. Also referred to as “NNN” leases, triple-net leases have become very popular for property owners and tenants alike. To determine which type of lease is right for your needs, let’s take a minute to discuss what a triple-net lease is—and why they’re growing in popularity! What is a Triple-Net Lease?Triple-Net leases are a type of rental agreement where the tenant is responsible for paying property taxes, insurance, and all maintenance fees associated with the rental property. These differ from standard commercial lease agreements where these costs are usually covered by the property owner or manager. To compensate for these additional incurred costs and responsibilities, the tenants’ rental fees are oftentimes lower than standard rental agreements. As you might have guessed, the triple-net lease is more demanding for tenants than single-net or double-net leases. In either of these cases, the tenant would instead be responsible for one or two costs respectively (between property taxes, insurance, and maintenance items). The Benefits of Triple-Net LeasesProperty owners seem particularly interested in this type agreement because of the hands-off approach that they can have with the property. Property

CRE Projections 2023: An Industry Outlook

February 15, 2023

The Commercial Real Estate market saw plenty of ups and downs in 2022. Industrial-class properties performed well and office spaces saw a modest comeback. Still, pandemic recovery has been an ongoing process and 2023 will be more of the same on that front. For the latest updates on the variable nature of CRE, let’s break down the projections for each class. Are We Heading For A Recession? It has been called the million dollar question for some time, but there has been wide disagreement about whether a recession is imminent in 2023. Analysts have been using the distinctions of “deep” or “shallow” to define the severity of a potential recession, but others have predicted avoiding the possibility altogether. Consensus is pointing towards a better atmosphere than 08’s recession, but there is still plenty of debate about what 2023 holds. For a start, market surveyors at Forbes have compiled a comprehensive overview of positive and negative indicators. With a rapidly improving labor market and signs pointing towards increased public spending, tempered expectations for the overall economy would be advisable. The Future of Office Spaces Perhaps the most interesting evolution within Commercial Real Estate has been the office space. After a massive

How To Capitalize On Migration Trends

February 8, 2023

In recent years, population shifts in the United States have led to surprising repercussions within commercial real estate. While some trends were simply accelerated due to the coronavirus pandemic, some regions have seen higher growth than anyone could have expected. Between office spaces, retail properties, and restaurants, here are a few strategies that investors should consider to capitalize on the great migration. The Pandemic’s Effect on Population Shifts According to Placer.ai, an industry leader in commercial real estate and demographic analytics, migration patterns within the United States may not have been altered as much as they seem to be based on recent news stories. The recent exodus from California to Texas and the major lull in the Northeast in favor of sunny Florida actually tracks well with what was seen prior to the pandemic. The jarring change has been the pace at which populations have been shifting. Placer reported that of new residents moving to Texas, 11.1% were from California, with a large portion moving directly to the Dallas-Fort Worth area. Overall, Texas and Florida both saw a sizable growth from the West and Northeast, with a growth of over 1.6 million new residents. Projections show that spillover from these

The White House Rental Plan: What Does It Mean For CRE?

February 1, 2023

On January 25, the Biden-Harris administration released a statement outlining their new plan to promote a more “renter-friendly” multifamily environment. Echoing notions from the “Blueprint for a Renters Bill of Rights,” this statement outlines different action strategies that combat recent “egregious rent increases” which they say have been more common within the industry. The pandemic has left its impact on many industries, and the rental sphere is no different. With new federal influence entering into the multifamily real estate industry, some investors may worry that this interference could destabilize a normally steady sector of CRE. To begin demystifying the results of these recent initiatives, let’s discuss the details of the White House’s new plan. The New Federal Oversight The primary and immediate result of this announcement is the new tasks assigned to the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB). Both agencies will begin to collect information, tracking things like methods used for tenant background checks, influence of a tenant’s source of income, and results of algorithmic tenant screenings. These efforts are intended, in part, to cut down on unfair and unequal treatment, viewed to have grown in recent years. Many are criticizing these moves as

China’s Re-Opening and Its Effect On Commercial Real Estate

January 25, 2023

In early January, China officially announced that they were lifting many long-standing restrictions connected to the coronavirus pandemic. For many in the commercial real estate industry, this news was received with much enthusiasm, as it meant the world’s second largest economy might finally be re-entering international trade en masse. From a tourist perspective alone, China has long been the world’s premier spender in international travel. As journalists at Quartz report, prior to the pandemic, Chinese tourists spent an eye-popping 36 billion dollars in the United States alone. Investment in commercial real estate has always seen considerable activity both ways, as investors from the world’s two largest economies continually search for opportunities in either nation. When China closed its borders in response to the pandemic, the impact stretched across industries. The Wall Street Journal reports the staggering drop from 170 million trips inbound and outbound from China in 2019 to only 8.8 million in 2021. Investors in both China and the US have been limited in their foreign investment opportunities since then, being unable to physically visit survey opportunities in regions where they were previously active. With this news, hotel owners and commercial property investors are wondering how their assets might