History would say that West Coast commercial real estate market success should be ending very soon. Kevin Shannon, co-head of U.S. Capital Markets for Newmark Knight Frank, has a different opinion:
If there is a downturn, Shannon does not expect it to be as “dramatic” as it was a decade ago. “When the game ends, it will be a short spring training, and we’ll be back playing ball again,” Shannon added. […] “If you look at the engines of real estate on the West Coast: If you build it, they will come,” he said. As long as things continue to go well, Shannon said he thinks next June would mark the longest recovery in history. […] The West Coast commercial real estate market is faring well, and the good news does not appear to be ending very soon, according to some of Los Angeles’ top commercial real estate experts.
I wholeheartedly disagree with the view posed here. This broker from CBRE thinks that the buying and selling market for commercial real estate (CRE) is in the 7th inning, but I think it’s in the 12th inning. If you want to learn more about buying or selling CRE at the right time and why brokers like this think it’s always a good time to buy or sell CRE (why not, they make a commission whether you the buyer or seller lose money or not) contact David Massie at email@example.com for more details. I have successfully bought and sold properties ranging in size from about 1,000 sf to millions of square feet and ranging in price from about $100,000 to $100 million.
We read an article recently on what tenants should not be missing in their leases. This brought us back to one of our previous blogs, “Commercial Leasing: Hidden Tenant Costs That Tenants Shouldn’t Pay” that stresses the importance of having a good broker who understands these items and can negotiate them on the tenant’s behalf. This new article, from Retail Real Estate Law, talks about why landlords should be “elephants” in the lease drafting process.
The article is encouraging landlords to save money and headaches by creating versions of the lease provisions in a more favorable way by facing reality and starting with a complete lease form. It’s another example though of why tenants have to be careful of what they could be missing in their leases. It’s also another example of the importance of having a good broker to negotiate these lease terms for you.
From our previous blog on the topic:
“When leasing commercial real estate space of any type, there are many ways for landlords to hide extra costs from tenants that tenants are usually not aware of. […] If tenants aren’t careful to use a broker that understands the operating expense share, this cost to the tenant can be quite large during the lease term. Many times this costs starts out low and then later on in the lease gets quite high. It is best, in my opinion, to negotiate an overall annual cap and also have a list of expense exclusions that aren’t reasonable for a landlord to include as part of the tenant’s share. […]Measuring the building is another area where landlords can pad the numbers that will result in a higher rent to the tenant without a tenant even knowing it’s happening and this happens most commonly in office buildings.”
Retail Real Estate Law’s article adds to these thoughts:
“We suggest the following. These items are going to be added to any decent, important lease. Why not pay once to have them included in the lease instead of paying, each and every time a lease is negotiated? And, deny it as people may, the person whose lease form is used controls the outcome. When a provision is not in the form lease and everyone knows that it will wind up there before execution, why should the landlord (who invested) in a lease form in the first place, cede control over the “missing” provisions to the tenant. After all, if the lease is missing something that’s going to be in there at the end of the day, the tenant will supply the initial draft and thereby control the negotiation.”
If you want to learn more about your specific situation and why a good broker will be the difference for you, contact David Massie at DJM Commercial at 805-217-0791 or firstname.lastname@example.org – we can help! For more details from Retail Real Estate law, read the full article here.
We read an article recently on whether to buy or lease office space. This brought us back to one of our previous blogs, “Is it Better to Buy or Lease Commercial Real Estate?” This new article, from BisNow, highlights the factors and considerations a person should make before deciding whether leasing office space or buying office space for their company is the better option.
From our previous blog on the topic:
“Clients ask me this question quite a bit. The answer depends on many factors and it is different for each client depending upon the current market parameters and their unique circumstances.
Right now, the California commercial real estate market for retail, office and industrial properties for sale and for lease in which I specialize in is pretty hot and has been for many years. Prices for both sales and leasing have exceeded all-time highs historically in most California cities especially in Southern California where most of my transactions take place. So, when prices are high it means that it’s not a good time to buy or lease, right? Not necessarily. And what if you have a business and have to do one or the other, which one do you choose?”
BisNow’s article agrees with the consideration of the state that you’re living in:
“One factor companies should consider is the state of the office market. Conditions like vacancies and interest rates can impact the decision to buy or rent. The company’s level of flexibility in terms of timing can also be important. For example, a company that needs to move immediately would have different considerations and more pressure than a company that has time to weigh these options. Many businesses also work alongside a real estate representative who understands the company’s needs and can help make the right call. This representative works to find a location that fits the company’s needs and negotiates a reasonable deal.”
If you want to learn more about your specific situation and whether you should be leasing or buying a space, contact David Massie at DJM Commercial at 805-217-0791 or email@example.com – we can help! For more details from BisNow, read the full article here.
We recently read an article in Connect Commercial Real Estate highlighting how national office vacancy continues to climb. Rent growth, on the other hand, has headed into an incline in the last two quarters. This means that there is potential for tenants to lease office space for less than before.
From Connect Commercial Real Estate:
“The national office vacancy rate climbed 0.1% to 16.6% in the second quarter, according to research by Reis. Vacancy increased in 39 of 79 metros in the quarter, with just two metros posting a decline in effective rent, as the gap between the “better” office markets and lagging ones widens and gets more pronounced. […] Rent growth, in contrast, was healthier in the last two quarters than in the previous seven, as a number of metros had rent growth of 1% or more in the quarter and 4% for the year. The stronger metros helped buoy the national average more so than in previous quarters.”
This article is a great example of how a landlord rents are falling. If you want to learn how to lease space for less as a tenant, contact David Massie at DJM Commercial at 805-217-0791 or firstname.lastname@example.org – we can help! For more details, read the full article here.
We recently read an article in Bis Now highlighting how small retailers are finding their opening while old giants shrink. The general premise is that retail landlords are willing, more and more, to take on smaller retailers by dividing up their spaces and leasing them out where they can instead of holding off for the big fish that probably isn’t coming.
From Bis Now:
“As the country’s largest retailers struggle to adapt to 21st century consumer demands, retail landlords are increasingly willing to slice up their space, take on riskier tenant options and offer flexible lease terms — and smaller retailers are reaping the benefits. […] The market has been marred with a number of big-name store closures in the city. But brokers said the conditions are paving the way for smaller retailers to get their foot in the door, as increasingly desperate landlords stop holding out for the national operators with established track records.”
This article is a great example of how a retail tenant can save on rent right now. Even better news? We can help. Contact David Massie at 805-217-0791 or email@example.com if you are a retail tenant and you want to find a great deal on a retail space like mentioned in the article. For more details, read the full article here.
We have a fantastic property for lease currently. This existing dental office is in a prime Westlake Village location and the price was just reduced from $1.95/SF/month to $1.50/SF/month. This space is not limited to dental office use though. The office can be used for dental, medical or even office uses.
This amazing location has the best of both worlds. It sits appealingly at end of a quiet cul de sac while also being walking distance to retail, the post office and many other amenities nearby.
There are several opportunities with this location as the landlord will allow new prospective tenants to sublease all or part of the space. The landlord is also giving the option to have the lease assigned or do a direct lease, your choice.
This really is the perfect opportunity to dive in on a prime Westlake Village location with a sublease or a direct lease with low rent for dental, medical or office space. Interested in learning more? Full property details can be found by clicking here.
Contact us today for more information! Call 805-217-0791 or email firstname.lastname@example.org
If you have a retail business, including a restaurant, and would like to join existing successful tenants with a great location, this is a great opportunity for you! The Agoura Hills City Mall currently has openings for new retail spaces. Most recently, there is new restaurant space available at what is now a current Pizza Hut and a new location for a smoothie / yogurt / coffee or dessert location available!
A few of the already established and thriving businesses in this shopping center include: Agoura’s Famous Deli, Vincitori, Sushi Wasabi, Maral Cuisine, Citibank, Kanan Pharmacy, California Dance Theatre, I Love Kickboxing, Journey Martial Arts, Agoura Mexican Café and more!
The landlord has agreed to give a reasonable amount of time for you to construct your retail space, without having to pay rent! This location comes with a new common area, improvements and renovations. Some of the spaces have outdoor patios. The space is great, but the location is truly what can’t be beat.
The Agoura Hills City Mall is adjacent to two major retail centers anchored by large grocery and drug stores. The location also includes great signage that is visible from Kanan Road. It’s located on Kanan Road near Thousand Oaks Boulevard. This is a main and busy intersection that’s less than one mile north of the Ventura Freeway (101) on Kanan Road for easy access! For those that don’t know, Kanan Road is the main road in Agoura Hills linking to the Ventura (101) Freeway. The shopping mall is centered in an area with great demographics; there are over 100,000 people in a 5 mile radius. Click here for more property listing details and additional photos.
Contact us today for more information about introducing your business to this busy retail center with great traffic from local residents as well as the nearby schools! 805-217-0791 or email@example.com
The full service hair salon BLO is for sale in Newbury Park in a busy retail center. This property has great potential! It’s an upscale hair salon located in a high traffic area that’s right off the 101 freeway. This sale is a turnkey deal that will include established clientele as well as stylists ready to transition right into your new business.
- Modern décor with all fixtures custom built
- A waiting area with a beverage station
- A reception desk
- 6-7 hair stations, 1 makeup station, a color processing area with two seats, 2 shampoo bowls, and a dispensary with a full washer and dryer
- The inventory is included in the asking price
This is a great opportunity for buyers. The property is 900 sf and has a private office that can be used as additional storage. The salon includes a retail display, a camera system throughout the premises for security, lots of free parking and more. This space is conveniently located in a newly renovated shopping center with no major competition in the immediate area! This is a truly great buying opportunity in Newbury Park. Click here for more details on the property!
David Massie of DJM Commercial Real Estate has an exclusive unlisted off market income property for sale in Conejo Valley in Rock River Plaza that is an amazing opportunity. The address is: 28118 Agoura Road, Agoura Hills, CA 91301.
Property details for this sale listing:
- 100% occupied with quality long term leases and credit tenants in place
- 2018 net income projected to be about $248,000
- About 13,000 RSF
- Owner only occupies a 600 sf space and can stay and lease out or move out
- One tenant’s lease expires in Feb. 2019 of about 3,500 RSf – owner can move into this space or can move into owner’s unit mentioned above. Another option is to keep the tenant in place. All other leases expire in 2020 and 2021
- The property is about 15 years old. Very quality “A” type build
- There is enough parking at between 4-5 per 1,000 to do some medical/dental uses
- Exterior building with signage potential has good exposure
- 28118 Agoura Road, Agoura Hills, CA 91301
The current owners are asking for about a 5% cap, which is about $5 million, but they are also open to reasonable offers. This is an incredible opportunity to move quickly on as it’s currently unlisted and off-market for the time being!
If you have someone interested in buying this off market listing, or if you have any additional questions, please contact David Massie at firstname.lastname@example.org
or call him at 805-217-0791.
Whether you have an office, retail or industrial commercial lease, there is really only one good way to negotiate your lease renewal: Hire a good commercial real estate broker. If you don’t hire one and try and negotiate the renewal on your own, then you will be sorry as you will most likely miss out on your best deal.
One of the main reasons commercial tenants don’t hire a commercial broker to renew their lease is because the tenant thinks they will have to pay the broker directly. Although this might happen, I normally am able to get the landlord to pay me a commission for representing the tenant at renewal time. Why would a landlord pay me a commission when they have the tenant already leasing space at their project? Because I can find this tenant another location elsewhere. And the landlord also wants to entice me to bring them more deals to their project in the future.
What if the landlord won’t pay me, your broker, a renewal commission and the tenant doesn’t want to move to another project? Then I usually enter into a flat fee agreement with the tenant I represent. But my very reasonable fee pays for itself many times over. This is because I am able to negotiate things on behalf of my client that my client could not negotiate on his own. Landlords don’t give you, as the tenant, a credit for not using a broker and it is simply the wrong choice not to use one.
There is more to a successful lease renewal negotiation than just negotiating some of the numbers like rent. The lease itself is complicated and you need to understand what you are agreeing to and how each of the clauses in the lease might adversely affect you in the future. This is especially true in terms of hidden costs you aren’t aware of. So, having your broker review the lease and negotiate the clauses that are unfair or costly is huge reason not to do it yourself.
Think about it. You, Mr. Tenant, don’t know the commercial real estate market like your landlord does. So why, Mr. Tenant, do you think you will do your best if you negotiate against your landlord? You won’t until you hire the right broker. It’s always worth a try to hire a broker to see if the broker can do better than you can and better yet to see if the landlord will pay your broker so you don’t have to. Stop leaving money on the table and hire me now for your renewal or new commercial lease negotiation. I have negotiated over 1,000 leases successfully.
If you want to learn more about leasing, buying and/or selling any and all types of commercial spaces in California or if you have questions about any subject related to commercial real estate, please contact David Massie of DJM Commercial Real Estate at email@example.com or 805-217-0791.