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Commercial Thermography Inspections: An Underutilized Cost-Saving Strategy

January 18, 2023

Homeowners know very well how much their energy bills can hurt the wallet throughout the year. For commercial property owners, those energy bills are considerably more punishing. While homeowners can search for ways to cut down on spending, such as adding insulation to their attics, or resealing their windows, commercial property owners too often see energy as a standard cost of operation without much room for adjustment. Of course, with a much larger space to examine, commercial properties can be much more intimidating to survey and that much more difficult to identify areas for improvement. According to Constellation, a leading commercial power supplier in the United States, 40% of the total energy consumption for office buildings comes from heating and cooling alone. Depending on the industry and size of the building, this percentage can be even higher. Commercial property owners are, unfortunately, mostly missing out on these savings that are more accessible for homeowners due to sheer size. To combat this issue, the best answer for property owners is to get a thermographic inspection. What is Thermography? Thermography is a type of scan conducted by property inspectors to find thermal anomalies and air leaks within a building. “Thermographers” use one

Save On Taxes With Cost Segregation

January 11, 2023

In the world of commercial real estate, any opportunity to save money can be retooled back into properties to improve amenities, elevate tenant experience, or even invest in new ventures. Cost segregation is a tax-saving method that is not taken advantage of as often as it should. In partnership with Scarpello Consulting, National Property Inspections is now offering cost segregation services to preferred commercial property clients. Cost segregation can seem like a complex topic to those unfamiliar with the concept, but it is more straightforward than the name might suggest. To discover whether you may qualify for cost segregation, let’s take the time to discuss what it is and how it works. What Is Cost Segregation? Cost segregation is a tax savings tool used to reduce the income tax liabilities of property owners by accelerating depreciation deductions. A cost segregation study is conducted to evaluate a qualifying property and track its components on a shortened scale, usually after 5, 7, or 15 years rather than the traditional 27.5 or 39 year period. This allows owners to write-off components much earlier than usual, saving considerably on property taxes. While there is an initial cost with a cost segregation study, the tax

Underestimated Investments in Commercial Real Estate

January 4, 2023

Anyone who has spent some time in the commercial real estate sphere will know that the key to sustained longevity comes from one simple word: diversification. While specializing in a niche can help investors and property owners develop unique knowledge, an unfriendly season in their selected industry can prove disastrous. In turbulent economic times, the importance of diversification becomes all the more important. However, overly risky investments and haphazard experimentation might not sound the most enticing at the moment. For some comparatively lower risk investments, consider these underestimated investments to increase your ROI. Use The Space You Already Have If you haven’t invested in ATMs or vending machines already, now might be a good time to look into it. With such a small space demand and the convenience potential for your tenants, these amenities sound like a positive addition to properties before even considering the modest monetary returns. With leasing or purchasing options available, property owners can take the most advantage out of these investments in areas with considerable foot traffic. For vending machines, while cash-only receivers are cheaper, models with card readers are much more accessible today. Again, while the returns are minimal, these additions have the opportunity to

Short-Term Leasing Opportunities With Airbnb

December 28, 2022

For property owners of multi-family real estate, a new option to drive down vacancy might have been introduced by short-term subletting service Airbnb. Referring to the new service as “Airbnb-friendly apartments,” Airbnb is advertising the service as a potential perk for tenants looking to make extra money while anticipating a tough economic season. This service is only offered at properties partnered with Airbnb, likely with liability and legal hurdles in mind. Still, depending on the negotiated rates, property owners have the potential to receive up to a 20% portion of booking revenue from any tenant activity on Airbnb. For investors and property owners interested in the potential behind this service, here is a brief overview of the publicly released details. Why Become A Partner Property? From a property owner’s perspective, there seem to be a few potential benefits in partnering with Airbnb. According to their advertising, a partnership with Airbnb is the best way to maximize value for each unit, believing that the opportunity should be a draw for potential tenants. Additionally, the association with a brand like Airbnb may provide an extra level of recognition and credibility for the property as a whole. With increased resident satisfaction and the

What Do Office Spaces Look Like In 2023?

December 21, 2022

Over the past few years, commercial real estate has been through the ringer. Relying on data-driven, easily predictable trends has been much more difficult for investors and property owners. Although plenty of uncertainty remains as a hindering force for office spaces, workers are making their voices heard. In the future, property owners will need to adjust their strategies in order to capitalize on the best tenants. While many investors are opting to diversify their holdings through multifamily conversions, the key to succeeding with office spaces in 2023 could be more about specialization and adaptation. Identify The Purpose Of The Office SpaceAfter work-from-home mandates transformed the way employers and workers viewed the workplace, the standing of office properties within the market has been less stable. While the realities surrounding office spaces vary depending on location, the truth is that most property owners still see their tenants using their offices in the traditional manner. For the most part, the old-school 9-to-5, 5-day workweek is still the standard. However, as reported by JLL Technologies (a leading voice in PropTech), 84 percent of property management teams see a portion of their tenants using a hybrid work model. Class-B and C office properties are projected

Why Brick-And-Mortar Retail Isn’t Going Anywhere

December 14, 2022

Pointing out that the COVID-19 pandemic had far-reaching effects on the economy is not a new revelation, but it begs repeating as we encounter and adapt to our evolving industries. In the retail sphere, the public had to drastically change their routines to meet their basic needs, and in turn, vendors had to learn new ways to meet the altered demand. In many ways, this forced adaptation has been a good thing for consumers. More options are available today than ever before when it comes to the retail shopping experience, whether it’s the expanded role of e-commerce, curbside pickup, or increased online integration from brick-and-mortars. According to the International Trade Administration, while e-commerce was already seeing a steady increase in retail market share, 2020 marked nearly a 5% growth (from 13.6% to 18% total market share. Rather than dropping to pre-pandemic levels, e-commerce has continued where it left off, moving back to its more consistent growth levels, and it’s predicted to continue at a similar rate. While acknowledging these trends, retail property owners may worry what this could mean to their brick-and-mortar investments. Although it is true that the retail sphere is rapidly shifting, current trends seem to show that

What To Expect During A Hotel Property Inspection

December 7, 2022

As we are heading into a new year, now may be a good time to start looking forward. New investments could be on the horizon, or perhaps new resolutions to improve on past ventures. In the hospitality industry, a commitment to excellence should always come with a property inspection. Whether through an annual property maintenance inspection or through an insurance underwriting experience, hotel property inspections are the best way to demonstrate responsibility and proactively work for your guests’ best interests. Insurance underwriting inspections don’t need to be a nerve-wracking experience. Just as with any home maintenance or property inspection, underwriting inspections are meant to provide a clearer picture on the condition of a property so that realistic expectations can be outlined. For commercial property owners unfamiliar with the process, however, it may be useful to break down some of the items and processes that go into a standard hotel property inspection. When Hotel Property Inspections Are Common In order to operate a successful and safe hotel business with confidence, a good insurance plan is key. Insurance underwriting inspections are an important step to setting up new coverage, so this should be expected after any new property acquisition, after considerable upgrades

Christmas Decorating Tips for Commercial Properties

November 30, 2022

With seasonal changes coming quick, it is not too late to start transforming your commercial property to reflect the festivities. Whether you have a multi-family property, an office building, or another type of commercial property, there are many benefits that come with investing in seasonal decorations. For this season, here are some quick tips on how to make your commercial properties the talk of the town! Establish a BudgetNot every holiday decor project needs to be overly elaborate, but even plans that are intended to start small can grow quicker than expected. Start by setting a reasonable boundary for your decoration budget, and consider cost-saving opportunities like partnering with companies that offer business-specific discounts. In addition, remember to consider both your indoor target spaces, as well as your outdoor and exterior spaces. When building a cohesive plan, it can be easy to plan a budget for just one of these spaces while leaving the other forgotten. To ensure that you have a reasonable budget carved out, employing a professional decorating company is, of course, the best way to reduce budget surprises. While partnering with a professional company, you can usually set a specific budget limit at the beginning of the

What is ESG? (And Why Does It Matter?)

November 23, 2022

Commercial Real Estate is a varied field where people of many different backgrounds converge. New ideas and strategies are actively traded as everyone is looking for the best way to get a strong return on investment. While looking to accomplish these lofty goals, you may have run into an unfamiliar term: ESG. Many CRE investors have prioritized ESG while developing their portfolio and are starting conversations on blogs and on podcasts citing its importance. To get you caught up to speed, here is an overview of ESG, why it has become a topic of discussion, and how it might change how you operate within CRE. What is ESG?To keep it short: ESG is an acronym that stands for Environment, Social, and Governance. It is a type of unstandardized philosophy by which commercial real estate investors (and investors, in general) filter their investment pursuits, with special care for these three “pillars.” One might also consider it a moral standard that an investor chooses to adhere to. The term “ESG” was first referenced in 2004, through the United Nations’ “Who Cares Wins” report. Here, the term is used much as it is used today, as a recommendation on how to build sustainable

How to Use Public Art to Increase Your Curb Appeal

November 16, 2022

Art is subjective. Some people love country music, while others can’t stand it. Some people love abstract paintings, and others prefer realistic landscapes or portraits. Preferences and opinions on art can be incredibly diverse, but almost universally, art has a unique power to inspire people. In a national survey conducted by the Americans for the Arts council, 90% of respondents said that they believed arts institutions are important to a community’s quality of life, and 86% said that they are important to a community’s businesses and economy. Property investors know this well, but strategizing how to best incorporate art into commercial properties can be difficult. In order to increase your curb appeal, here are a few considerations when investing in public art. Community Connection Incorporating art into your commercial property can be transformative, but it is important to act strategically. Consider the local culture and character of the community selecting artists and content. Any public art associated with your property will create a touchstone for that property, and for your tenants. In competitive markets, this can be the differentiator needed to secure high quality tenants and reduce vacancies. When considering the type of art that you want to invest in,