A Look At How to Buy <b>Commercial Property</b> :: FTD Tech
By Techichicky • October 5, 2011
Purchasing commercial property is one way in which you can make a profitable investment for the future. You can find commercial properties for sale in almost every major city in the U.S. as well as many countries abroad. These properties often increase in value over time enabling you to make a good profit on your investment.
Commercial properties entail a wide range of options to include retail shops office space parking lots industrial facilities such as factories and warehouses and more. Costs of this property vary greatly depending on the type of property you buy its location and size. Some properties have greater potential than others when it comes to attracting prospective renters or increasing in property value. These properties will undoubtedly sell for much more than smaller more inconsequential places. If you have the extra funds to invest you should opt for the best property you can find in order to get the most returns from your investment in the future.
A great advantage of commercial property is that it can generate income for the present by leasing the property to a business or individual over a long term period of time. Average leasing contracts for commercial purposes are generally made for two years or more. This provides steady income for your investment in the form of profits. When leasing commercial real estate you do not bear the expense of maintaining the property. The company or individual leasing your property bears the burden of property maintenance upkeep and repair. This arrangement helps to increase your rental profits.
A key to making a profit from your commercial property investment is to ensure you purchase a property in a good location. You should take time to research your options well before purchasing any type of property to ensure you are going to get good dividends in return. Properties that are located close to dependable transportation links will be easily accessible for businesses their clients and employees. This makes them good investments as companies will be more interested in leasing them. In like manner if the property is close to other businesses chances are it will be easier to rent out making it a worthwhile investment as well.
Another way to increase the value of your property is by developing. Development takes a fair investment of funds on your part so you will have to be sure this is within your financial possibilities before starting. If you have the money to develop your property you can always try to recover these funds through leasing the property afterwards. Sometimes making a few additions or improvements in commercial property enables you to rent or sell it at a much greater profit later on.
It pays to learn as much as you can about commercial real estate and how to make wise investments so you can make better informed decisions in handling these affairs. If you are unfamiliar with how to invest in commercial real estate you can seek counsel and advice from real estate professionals who have ample experience in this area. You should never feel rushed or pressured into buying commercial property as it is a very important investment. By going slow and seeking help from others you can be assured of making the right decision and getting the best deal.
What Should <b>Business</b> Owners Consider Before Investing in <b>...</b>
If you own your own business and you are searching commercial property there are several different factors you will need to consider. Investing in commercial real estate is a long-term commitment. Because of this business owners must research their purchase and budget before they invest in real estate. When you make the move from being a tenant to becoming an owner you take on responsibilities you may have never considered. You will have to pay for insurance property taxes maintenance and cleaning. Make sure you know what factors to consider when you are shopping for commercial properties and make an informed investment that will help you generate a larger customer base.
How Much Can You Afford?
Price is obviously very important. When you buy a home you would never buy a home you could not afford to pay for. The same should go for your business. You have to calculate how much money you are taking in each month how much you pay your employees your operational costs and how much you need to take home to live comfortably. After you consider all of the bases you can decide how much you are willing to pay for your property note. Make sure you qualify for a commercial property loan before you start searching for properties. You will find out how much you qualify for how much interest you will pay and how much your payments will be for properties in certain price ranges. You can then move on to choosing the right location and property type.
Location Location Location
Location is the key. When you choose a property you want to invest in a property that is located in a developing area. If there is very little traffic in the area where you invest you are not likely to profit from foot traffic. Location is a free form of advertising. When customers visit another business in a shopping mall and see your company they may stop by. This is why you need to research areas in the city where you operate. If there are large retailers nearby and there is easy access to the driveway you could generate new customers without spending thousands on marketing.
The Property Is Zoned For Your Business and Has Easy Availability to Utilities
One factor many buyers overlook is zoning. When you buy a property you can make the process much less stressful by investing in a property that is already zoned for the type of business you offer. If the property is not zoned it may end up costing you thousands to make modifications. Most properties today are easily accessible to essential utilities. Make sure you can choose quality Internet and communications providers and always consider security.
When you purchase real estate instead of renting you are earning equity. The property is an asset for your business and not a liability. Make sure you choose a great property with enough space to expand. When you consider price location and zoning you will make an informed decision before you make an offer on a commercial property.
Tags: insurance property, Business Finance, quality Internet, communications providersThe Advantages of Leasing vs. Buying <b>Commercial Property</b> <b>...</b>
If you own your own business you must consider the advantages and disadvantages associated with buying a commercial property. New business owners generally choose to lease real estate until they are comfortable enough to move on to real estate ownership. If you have been in business for a fair amount of time choosing to invest in commercial real estate is a big commitment. Before you decide to buy you should research the advantages and disadvantages of property ownership and property leasing. Once you consider the pros and cons of each you can make an informed decision.
Advantages of Purchasing a Commercial Property
When you buy a property all of the payments you make towards your mortgage note are applied to the balance of the loan. If you make a good investment you will earn equity in your property as you pay down the balance. The equity you earn acts as an asset for your business. If market values increase after you purchase the property you can reap the benefits in capital growth. Tenants do not benefit from equity or property growth. This is a consideration you will have to keep in mind when you are weighing all of your options.
Disadvantages of Purchasing Commercial Real Estate
Where there are advantages there are always disadvantages. When you buy a property you have to prove credit worthiness. Then can become an issue for owners with bad credit or no experience in their industry. You will also need a large chunk of capital to put down as a down payment. If you do not have a large sum of money you may not qualify for a loan. Property owners are responsible for their own maintenance insurance property taxes and cleaning. If you are not ready to take on these responsibilities you may want to reconsider your intention to buy.
Advantages of Leasing
Leasing does not require a large amount of capital so you can use your money to purchase inventory and pay for marketing. Another advantage of leasing is that the landlord has to maintain the property so you do not have to take on additional responsibilities. Some leases include the cost of fixtures utilities signage and cleaning. You will need to review what is included in the lease before you sign one.
Disadvantages of Leasing
One of the biggest disadvantages of leasing is the fact that you as a tenant are paying the landlord’s lease. This means that the payments you make are earning someone else equity. Leased properties are not a business asset. The landlord has the right to refuse lease renewals once your term ends.
Purchasing real estate is a commitment. During economic downturns purchasing becomes more difficult because lenders are much more strict with their lending requirements and underwriting guidelines. While this is the case when property values are down you have the opportunity to pay less and earn capital growth over time. Consider all of your options in terms of leasing and buying commercial property and make a decision that will benefit your business.
Tags: real estate, fixtures utilities signage, maintenance insurance property taxes<b>Commercial Real Estate</b> Listings - Slash Forum
Commercial Real Estate Listings – Buy Commercial Real Estate Property for Better Profit Margin
Article by Rajeesh Nair
Commercial real estate Investment could bring in best returns. This is because the present market trends indicate that price of property would certainly rise in the years to come back. However, though such investment could be a lucrative prospect for several, usually investors are left floundering on how to get around with the business.
Strategizing is the 1st on the agenda. An idea to guide one through the business is of immense help. It’s commonly said that strategy is a plan of action supposed to accomplish a particular goal. The 1st thing to seem into is the kind of cash that could be invested in the property. With this as the base, different factors like form of property, size and location must be determined. Since every commercial property is of a unique nature, it’s necessary to know that various factors influence their dealing and investors should be ready for facing them, when venturing into investing.
After the above factors have been determined, it’s necessary to ascertain all sources of commercial property sale. Once a potential dealer seems on the scene, the property should be valued based on its condition, the returns it guarantees and also the borrowing power. This enables you to get a plan regarding the property value so that you could decide if it’s extremely value your investment cash.
Finally the deal should be structured to open out irresistible offers to prospective consumers. Simultaneously, all along one must keep the tax planning and asset protection plans running steadily.
Getting started in commercial property is a task that needs diligent planning and execution. By carrying it out during a planned manner, you could get into it the correct manner and see the kind of come back you expect.
The numbers of people on the lookout for property are increasing day by day, because the profit involved within the business is nice. Many websites offer commercial real estate listings. Commercial real estate listings are ideal for each consumers and sellers.
Commercial real estate listings provide consumers a good range of selection. Through these listings they could purchase commercial real estate at a better profit margin. Location is another nice advantage with this kind of listings. You could purchase real estate from your locality or any other locality you like. Another advantage is the variety of listings offered. If you’re interested in commercial real estate, you discover them in a separate category and you do not need to search all real estate listings. Generally you can enter into a deal beyond your expectations with the help of those listings.
About the Author
Rebecca Lee is a well known Real Estate Manager who offers valuable and insightful tips on Commercial Real Estate Property Listings and Investment. Here she describes about the advantages of commercial properties for sale.
Tags: commercial, commercial real estate investment, Estate, prospective consumers, real estate investment
Carbon War Room-brokered consortium set to unlock multi- billion <b>...</b>
Ygrene Energy Fund-led PACE Commercial Consortium launches first $650 million retrofit package for commercial property in Miami-Dade County, Florida and Sacramento, California
New York, September 20 2011 – The Carbon War Room, an independent non-profit, founded by Sir Richard Branson, that harnesses the power of entrepreneurs to unlock gigaton solutions to climate change, announced today the launch of a new consortium that will unlock billions of dollars of investment in renewable energy and energy efficiency technologies for US commercial real estate.
The PACE Commercial Consortium (PCC) integrates the program management and engineering best practices of Lockheed Martin, the financial sophistication of Barclays Capital and the pioneering insurance partnership of Energi and HannoverRe in an end-to-end solution administered by the team’s leader, Ygrene Energy Fund.
Today’s announcement highlights an immediate potential market opportunity of $550 million in funding for the cities in Miami-Dade County, Florida that join the Green Corridor PACE district for investment in commercial and industrial real estate. This funding can generate up to $1.8 billion in economic activity in Miami-Dade County, experts say. The Consortium sees the additional potential for an initial $100 million market in the city of Sacramento, CA, which will stimulate an additional $530 million in economic activity. The Consortium is confident these cities’ programs could stimulate $2.3 billion and more than 17,000 jobs in the combined cities.
“The PACE Commercial Consortium is the missing piece in the jigsaw puzzle for cities looking to implement green plans,” said Carbon War Room founder Sir Richard Branson. “The Carbon War Room has been working with its partners to solve this puzzle for over 18 months as part of our Green Capital Global Challenge operation. I’m thrilled by the news of this ground-breaking mechanism, and believe it will unlock a trillion dollar market for green retrofits, creating jobs and growth around the world. There is simply no other source of economic growth with these characteristics.”
Launched in 2010 at the Winter Olympics in Vancouver, the Green Capital Global Challenge (GCGC) aims to mobilize billions of dollars of currently idle private capital into city-led energy efficiency initiatives. Green Capital Global Challenge Director, Murat Armbruster, conceived of the PACE Commercial Consortium and introduced the member companies to one another during the Carbon War Room’s Creating Climate Wealth North America Summit in May this year.
Property Assessed Clean Energy (PACE) legislation enables property owners to accept a voluntary tax assessment as a means of repaying upfront financing of energy efficiency and renewable energy
“These investments are 100% private capital. There is no government debt or cost involved. The markets |
can supply this financing because the economics are sound, engineering performance is insured, the |
security is strong, and clean energy capital assets are profitable,” said Brian McCarthy, CEO of Energi |
improvements. Twenty-six states in the United States, along with Australia, and New Zealand, have enacted legislation enabling the secure and scalable financing PACE structure.
The Green Corridor group of cities, initiated by the Town of Cutler Bay in Miami-Dade, Florida, and Sacramento, CA are the first municipalities to sign contracts with the Consortium’s California-based PACE finance administrator, Ygrene Energy.
“The PACE Commercial and Industrial Program brings the Green Corridor a privately financed jobs program that will bend the emissions curve in Miami-Dade County and make the Green Corridor an example to the rest of country of what is possible, especially at a time when our construction trades so desperately need the work,” said Steve Alexander, leader of Miami-Dade’s Green Corridor District.
The U.S. Business Council for Sustainable Development, a U.S. industry partner, has organized its building owner members to retrofit their properties and operations, as PACE financing becomes available:
“Corporate America can lead this huge jobs program with private capital, because clean energy is also profitable energy, once this financing structure is in place,” said Andy Mangan, Director of the US BCSD.
Lockheed Martin, the Consortium’s engineering partner, will employ its program management and energy services capabilities to guarantee the technologies deployed on select PACE-financed projects.
In partnering with this consortium, Lockheed Martin is delivering a solution set to commercial and industrial customers that it has long delivered to utilities and the Federal government.
“At Lockheed Martin, we believe that we have the ability and responsibility to address our Nation’s energy and climate challenges,” said Frank Armijo, Vice President for Energy Solutions, Lockheed Martin Information Systems & Global Solutions – Civil. “By implementing these clean energy projects, we will reduce the energy consumption, carbon emissions and operating costs of the existing building stock, thereby increasing commercial property values for our customers.”
Energi will provide Energy Savings Warranties (ESWs) to insure these savings guarantees, reducing the risk and lowering the cost often associated with such projects.
The Carbon War Room is now bringing this first mechanism, one of a series of corporate consortia, to the thirty cities currently participating in the Green Capital Global Challenge as a means of implementing green city plans that for the most part had been put on hold since the economic crash in October 2008. One of these member cities is Los Angeles:
“The County of Los Angeles has invested tremendous time and effort into creating a Property Assessed Clean Energy (PACE) District which forms the basis for this huge job creation potential in southern California. We are now on the verge of that effort paying off,” said Howard Choy, General Manager, Office of Sustainability at Los Angeles County.
By redirecting this existing cash flow into clean energy capital assets, the Consortium hopes to create a responsible debt instrument built upon sound economics.
“It is a myth that switching off of fossil energy onto clean energy is costly. Quite the contrary, building clean energy capital assets is both profitable and a huge boost to economic growth. Clean energy has no fuel cost; it is harvested by the use of capital assets. Properly structured investment in harvesting clean energy is the key to solving the current economic problem,” said Dennis Hunter, Chairman and CEO of Ygrene Energy Fund.
The Carbon War Room will be presenting the first consortium at BusinessClimate 2011 as part of New York Climate Week today. Further “deal days” are planned with selected groups of technology and finance providers for Copenhagen – Denmark, Vilnius – Lithuania, and Singapore in coming months.
About PACE
In place in California since 2008, PACE (Property Assessed Clean Energy) enables municipal governments to tap private capital markets to finance renewable energy and efficiency improvements for residential and commercial properties such as solar panels, insulation and HVAC, which reduce utility bills to more than offset the tax bill increase. The program sees property owners benefit from increased real estate values, occupants from lower utility bills and municipalities from local job creation. Financed on a project by project basis, the program has so far resulted in 2,800 projects worth $65 million in three states. Research indicates this has contributed to $162 million in local economic impact, creating 1,000 new jobs. The UK government recently announced plans for the 2012 launch of a program similar to PACE, which could offer new business opportunities to US firms in Europe.
About the Carbon War Room
The Carbon War Room harnesses the power of entrepreneurs to unlock gigaton-scale, market-driven solutions to climate change. Over 50% of the climate change challenge can be addressed today — and profitably —under existing policy and technology conditions. We seek to facilitate a better flow of capital to entrepreneurial solutions that make economic sense right now.
Contact: press@carbonwarroom.com
About Barclays Capital
Barclays Capital is the investment banking division of Barclays Bank PLC. With a distinctive business model, Barclays Capital provides large corporate, government and institutional clients with a full spectrum of solutions to their strategic advisory, financing and risk management needs. Barclays Capital has offices around the world, employs 25,000 people and has the global reach, advisory services and distribution power to meet the needs of issuers and investors worldwide. For further information about Barclays Capital, please visit the Company’s website www.barclayscapital.com
Contact: KristinFriel;Kristin.Friel@barclayscapital.com
About Ygrene-Energy
In the spring of 2006 Dennis Hunter and Alan Strachan established the Green Energy Loan program to bring private funding to the problem of climate change. In the summer of 2008, California’s landmark AB 811 made possible a much better model in the form of Property Assessed Clean Energy (PACE) financing. Almost immediately Palm Desert and Sonoma County took advantage of the legislation to establish local programs. Sonoma County’s government funded SCEIP program, under the direction of Treasurer Rod Dole (now a member of Ygrene’s Board of Directors), achieved singular success. Recognizing the potential for PACE and the role private capital could play in its growth, Ygrene entered into discussions with Barclays Capital to secure the sophisticated financial partner that would provide the route to the bond market.. With strategic and tactical partnerships in place around the country, Ygrene is now in a position to offer no- cost PACE program design, administration and funding to cities and counties throughout the U.S.
Contact: Alan Strachan; alan@ygrene-energy.com; 1-707-332-4456
About Lockheed Martin
Headquartered in Bethesda, MD., Lockheed Martin is a global security company that employs about 126,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The Corporation’s 2010 sales from continuing operations were $45.8 billion.
Contact: Liz Morse; Elizabeth.morse@lmco.com; 1-240-688-7835
About EnergI
Energi is an Industrial Reinsurance Company that provides specialized risk management and insurance programs to targeted sectors of the energy industry. Energi is leading development and underwriting of innovative insurance products to deliver critical protections for alternative energy and energy efficiency warranties. These covers mitigate the performance risk inherent in energy efficiency retrofits, commercial solar projects, and alternative energy product manufacturing.
Contact: Angela Ferrante; aferrante@energi.com; 1-978-531-1822
About BusinessClimate2011
To attend; www.carbonrational.com
Charities temporarily occupy vacant <b>commercial property</b> | Springwise
UK-based 3Space aims to make it easier for charities to occupy vacant properties while landlords look for commercial tenants.
Pop-up spaces have graced our virtual pages many times in the past, and now we’ve come across a service which could pave the way for even more charity-based pop-ups. UK-based 3Space is a charity that helps other charities and social organizations make temporary use of empty commercial properties.
Many charities find it difficult to secure individual properties for a short period of time, with landlords preferring to make their spaces available on long-term contracts or reluctant to make individual properties available. By acting as an intermediary 3Space hopes to change this. In the charity’s own words, “For the landlord, all the risk and the time taken to find users and negotiate deals on an individual basis is taken away.” What’s more, 3Space can offer landlords savings across their whole vacant portfolio. Once a vacant property has been secured from a landlord, 3Space then advertises it to charities through their website and through posters, by contacting the local council, and by contacting their database of charities from previous projects. Charities choosing to occupy the vacant spaces no longer have to deal with the landlord; rather they sign a simplified agreement once their application has been approved.
As 3Space co-founder Andrew Cribb explains: “We market the properties, find users and take care of all the legal and management processes. It’s completely free for the charity, and we save the landlord 50 percent on rates contributions.” Charity projects in 3Space properties have included hosting the University of Glamorgan’s The Big Empty Shop Experiment, filming a mental health TV commercial, and FoodCycle’s pop-up restaurant in an unused office space in north-east London using food that would otherwise have gone to waste.
Public interest in pop-up shops and campaigns remains high, and temporary use is perfectly suited to charities and community groups — allowing organizations to reach new audiences with minimal financial commitments. One to replicate in empty properties near you?
Website: www.3space.org
Contact: andrew@3space.org
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<b>Commercial Property</b> Values Flat Amid Economic Fears <b>...</b>
By Eliot Brown
The latest sign that the commercial real estate market has cooled with economic fears: stagnant property values.
Green Street Advisors’ Commercial Property Price Index was flat in September, the firm said today, marking the fifth straight month for which values have barely budged. That marks a big change for the index, which climbed 48% from its
May 2009 nadir over the two years that followed. Since May 2011, it has hovered around a value of 91 (100 is pegged to the August 2007 peak).
The index, which is tilted toward major cities that have seen faster-rising values than other parts of the country, shows how optimism about the real estate sector’s future has been hurt by the cloudy economic outlook. Debt has been harder to come by for months, some sellers have struggled to close deals, and buyers say they are far more cautious than in the spring.
“[M]omentum supporting further gains has ebbed as the economy has weakened and fear has crept into the markets in recent months,” Green Street said in its report.
That’s quite a change from earlier this year. Lenders began to become aggressive again, and many buyers were paying prices for buildings so high that they were assuming future hikes in rents on tenants. While the mood was still far off from the craziness of the 2007-era, particularly in major cities, it was beginning to feel similar.
See a chart of the index.