- Hire a commercial real estate broker to assist you – Having one point of contact will save you time and money.
- Get started early- 9-12 months is suggested to allow for tenant improvements before move in. If you require a developer to build a facility to suit your needs, you should start the process a minimum of 18 months ahead of the desired move in date.
- Real estate is generally the second largest expense for businesses, behind human resources. The way you handle facilities acquisition will have a direct and perhaps dramatic impact on the bottom-line of your business.
- Find out more here.
The tenant pays a set sum or “gross” amount for rent. The landlord provides and pays for all maintenance and repairs, janitorial services, waste removal, utilities, insurance, taxes, and other operating expenses for the property. This type of lease in our market is most common for small executive office suites. Tenants are responsible for contacting the service providers directly to set up accounts. This type of lease can be found with all property types, but is most common in office or industrial buildings, where tenants have differing utility needs. The tenant assumes all expenses of operating a property, including both fixed and variable expenses and any CAM (Common Area Maintenance) charges, such as utilities, that might apply. The landlord is responsible for structural repairs and typically includes taxes, insurance and maintenance. When a broker represents both sides to the deal, the seller agency and the buyer agency. This is called a Disclosed Limited Agency and is perfectly legal under Oregon law. An appraisal is completed by an individual or company that is duly licensed in the state to perform. It is typically longer than a BOV and will cost more. A BOV outlines the income approach to value and the comparative sales approach to value. Typically, you will see comparative sales and lease rates going back no more than one year. The most lucrative incentive in the OZ program is the exclusion of gain on new investments. Qualified Opportunity Funds (QOFs) must hold the new investment for at least 10 years to take advantage of the exclusion. QOFs must be either a partnership or corporation. Single member LLCs are not eligible entities for the program. Contact a broker for more information on Opportunity Zones. Professionals in the Qualified Opportunity Fund (QOF) world overwhelmingly answer, “no.” Investing in a QOF will not turn a bad deal into a good deal. There are significant costs involved, most notably the “substantial improvement” requirement which stipulates that the QOF must improve a property or business by an amount “equal to or greater than the adjusted basis” — essentially, the QOF must make improvements equal to the value of the investment, net of land cost. Contact a broker for more information on Opportunity Zones. A Qualified Opportunity Fund (QOF) is eligible for two steps-up in basis, equating to 10% if held for 5 years, and another 5% if held for 7 years. The QOF election period ends on 12/31/2026. In order to hold a property for 7 years and take advantage of the full 15% basis steps-up, a QOF would need to make its investment by the end of 2019. Contact a broker for more information on Opportunity Zones. Yes! Our staff, including property managers and our maintenance team, are on call 24/7. Our state-of-the-art management platform, Yardi Voyager, allows tenants to pay their rent online, renew their lease, enter work orders and more. This software improves communication and efficiency, plus it is secure and user-friendly. Yardi Voyager lets owners see how their asset is performing. Using real-time data, budget preparation and valuations are automated helping you comply with market-to-market account standards. Are you ready to get started?
Knowledge is power. It also makes for good small talk.
You deserve to feel confident with your understanding of commercial real estate leasing and sales terms. Find frequently asked questions, lease negotiation advice, and more.
Frequently Asked Questions
What is the commercial leasing process?
What is a Full Service Gross lease?
What is a Modified Gross lease?
What is a triple net (NNN) lease?
I want to buy a commercial property but don’t know where to start.
How do I sell my business?
What is dual representation?
What is the difference between an appraisal and a broker’s opinion of value (BOV)?
What is the benefit of Opportunity Zones?
Will Opportunity Zones cause inflated prices?
How can I become eligible for a Qualified Opportunity Fund?
Do you have staff on hand for after hours and weekend emergencies?
How do I pay my rent, make a maintenance request, etc.?
How can I check in on my investment?
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