A property management company will offer services that can vary depending on the company, the type of property and your specific needs. When deciding which company with which to work, ask the property management company what services it will provide you. Once you make your decision, you should confirm that you have the an agreement on the terms in the lease. The lease agreement should be comprehensive and outline the services and what the services will cost.
Here are some of the services commercial property management firms will typically provide:
Finances & Bookkeeping. Financial record keeping and reporting are integral services provided by your property management firm.
Strategy. A commercial management company can develop a marketing strategy and analyze the current business conditions in your area, and for your property.
Budgeting & Forecasting. The property management firm develops and monitors the property's budget, including the maintenance, marketing, personnel to operations.
Maintenance. Commercial property management companies provide monthly maintenance, and preventative maintenance programs.
Marketing Programs. Firms can develop and implement marketing programs including such marketing materials as brochures, advertisements, events, property newsletters, and signs.
Market Rent Analysis. Management firms will provide an analysis of market rents and those of the competition, changes in area demographics, and anticipated absorption levels.
Rent Collection. The property management company will handle the collection of rent.
Lease Negotiation. The commercial property management company will negotiate tenant leases and renewals.
Tenant Liaison. The professional property management firm acts as a liaison to the tenants, responding to tenants' needs and addressing concerns immediately.
Upgrade and Build-Outs. Commercial property managers handle and supervise all contracted work (such as tenant build-outs).
Compliance. Commercial management companies maintain documented procedures to ensure compliance with all federal, state, county, and local governmental regulations, ordinances, and fire, health, and safety codes.
Showing posts with label build-out. Show all posts
Showing posts with label build-out. Show all posts
Sunday, June 28, 2009
Tuesday, June 2, 2009
Tips for Negotiating a Commercial Real Estate Lease
Dear Property Manager,
My husband and I are considering buying a franchise. We have both owned small businesses before, but we do not know anything about negotiating a commercial lease, what we can ask for, what is included, what are our responsibilities, etc. Can you give us a few pointers on commercial property leases?
Mary K.
Fort Mill, SC
Dear Mary K.
Depending on the type of franchise, the area director for that company may very well be able to assist you in finding a negotiating the commercial lease. Commercial tenants almost always look to their landlords to provide them more than just the right to occupy space. Landlords, (and/or the property management companies) frequently provide a number of services. The landlord may "build out" the leased space for the tenant's specific use--creating the look and feel you want and the functionality you need to run your business.
Commercial property owners will also probably provide heating and air conditioning, cleaning, utilities, and telephone and Internet services. Maintenance and repair of the leased property and the surrounding premises including the parking lots and common areas are also generally the landlord's responsibility. This includes the parking lot, pothole repair, lawn and landscape, elevators and security. These are all things that should be clearly spelled out in your lease agreement.
Now, your responsibilities is probably no more than keeping the space well maintained and paying for use of the leased space and the bundled services--and doing so on time!
To have some assurance that a tenant gets what it was told it would get and what it is paying for, every commercial lease should at least:
State in detail landlord's responsibilities to tenant. Things like when the heating and air conditioning will be on and how the property will be kept secure.
Describe what happens if the contract is broken. The lease should define what constitutes a default by the landlord and/or the tenant, as well as provide a method for a quick, inexpensive and final resolution to any disputes.
The best advice is to read the lease thoroughly and go over it with your real estate attorney. A tenant should be sure that these issues are addressed in a proposed lease to avoid any future questions or disputes.
Best of luck, and please contact Kuester if you would like to know what properties may be available in the Fort Mill area.
Property Manager
www.kuester.com
My husband and I are considering buying a franchise. We have both owned small businesses before, but we do not know anything about negotiating a commercial lease, what we can ask for, what is included, what are our responsibilities, etc. Can you give us a few pointers on commercial property leases?
Mary K.
Fort Mill, SC
Dear Mary K.
Depending on the type of franchise, the area director for that company may very well be able to assist you in finding a negotiating the commercial lease. Commercial tenants almost always look to their landlords to provide them more than just the right to occupy space. Landlords, (and/or the property management companies) frequently provide a number of services. The landlord may "build out" the leased space for the tenant's specific use--creating the look and feel you want and the functionality you need to run your business.
Commercial property owners will also probably provide heating and air conditioning, cleaning, utilities, and telephone and Internet services. Maintenance and repair of the leased property and the surrounding premises including the parking lots and common areas are also generally the landlord's responsibility. This includes the parking lot, pothole repair, lawn and landscape, elevators and security. These are all things that should be clearly spelled out in your lease agreement.
Now, your responsibilities is probably no more than keeping the space well maintained and paying for use of the leased space and the bundled services--and doing so on time!
To have some assurance that a tenant gets what it was told it would get and what it is paying for, every commercial lease should at least:
State in detail landlord's responsibilities to tenant. Things like when the heating and air conditioning will be on and how the property will be kept secure.
Describe what happens if the contract is broken. The lease should define what constitutes a default by the landlord and/or the tenant, as well as provide a method for a quick, inexpensive and final resolution to any disputes.
The best advice is to read the lease thoroughly and go over it with your real estate attorney. A tenant should be sure that these issues are addressed in a proposed lease to avoid any future questions or disputes.
Best of luck, and please contact Kuester if you would like to know what properties may be available in the Fort Mill area.
Property Manager
www.kuester.com
Saturday, March 7, 2009
Before You Sign a Commercial Property Lease
Dear Property Manager,
My partner and I are about to embark on a huge—and hopefully successful adventure as we take the “plunge” and start our own consulting business. We are looking at an office space in the Carolina area, either North or South Carolina in the Fort Mill, or Indian Land areas.
Being brand new in this process, we need to know-- what we need to know-- before we sign that commercial property lease!
Any guidelines you have you be much appreciated.
Tony L., Charlotte, NC
Dear Tony,
As I am sure you have noticed, renting office space in this area can be expensive, and quite complicated. That said there are also some great deals and wild differences in price from one place to another—and once you find the right place, then you get to start the lease negotiation process.
Since this is your first time renting a commercial space, there are a few things you should know before you sign anything. First, there are no standard lease agreements, and some include a lot of details, and others do not. No matter what property or leasing company you ultimately work with, you should have your contract reviewed.
Secondly, your lease is a legal and binding contract—one which you should not enter into unless you intend to fulfill your responsibilities. So before you sign on the dotted line, ask yourself (and your broker and landlord) these questions:
YOU:
· How long do I plan to stay? Will you be there 1 year or 5? The terms will vary depending on length.
· Can I get out of the lease? What are the penalties for breaking the lease if the business needs to close or relocate before the term is up
YOUR BROKER:
· What are your certifications? What recognized real estate associations does your broker have to distinguish them from the others in their field.
· What experience do you have in similar transactions? Commercial real estate is very specialized, and most brokers specialize on one or two property types, and certain property sizes. Choose a broker who has experience in the type of property, size and location you are looking at.
YOUR LANDLORD:
· Who are the current tenants? Are the tenants in the building compatible businesses? If you own a dry cleaning business, you may not want to be in the same building as another dry cleaner.
· What about a property manager? A manager probably won't be on site at a small building, but if a manager or maintenance person is not on the premises business hours, make sure you know who will handle emergencies and requests.
· What kind of build-outs and amenities are provided? Make sure you know if the landlord will handle and approve build-outs, and what extra amenities are available with the lease.
· Will you be allowed to sublease? If you have extra space, or need to vacate before your terms are up, some landlords will allow you to sub-let the apartment.
· What are the lease terms? The monthly rent is the most important term, however, you also need to know if rent may go up during your term, and if you're required to pay charges for maintenance, taxes or other costs.
Property Manager
Kuester Property Management
My partner and I are about to embark on a huge—and hopefully successful adventure as we take the “plunge” and start our own consulting business. We are looking at an office space in the Carolina area, either North or South Carolina in the Fort Mill, or Indian Land areas.
Being brand new in this process, we need to know-- what we need to know-- before we sign that commercial property lease!
Any guidelines you have you be much appreciated.
Tony L., Charlotte, NC
Dear Tony,
As I am sure you have noticed, renting office space in this area can be expensive, and quite complicated. That said there are also some great deals and wild differences in price from one place to another—and once you find the right place, then you get to start the lease negotiation process.
Since this is your first time renting a commercial space, there are a few things you should know before you sign anything. First, there are no standard lease agreements, and some include a lot of details, and others do not. No matter what property or leasing company you ultimately work with, you should have your contract reviewed.
Secondly, your lease is a legal and binding contract—one which you should not enter into unless you intend to fulfill your responsibilities. So before you sign on the dotted line, ask yourself (and your broker and landlord) these questions:
YOU:
· How long do I plan to stay? Will you be there 1 year or 5? The terms will vary depending on length.
· Can I get out of the lease? What are the penalties for breaking the lease if the business needs to close or relocate before the term is up
YOUR BROKER:
· What are your certifications? What recognized real estate associations does your broker have to distinguish them from the others in their field.
· What experience do you have in similar transactions? Commercial real estate is very specialized, and most brokers specialize on one or two property types, and certain property sizes. Choose a broker who has experience in the type of property, size and location you are looking at.
YOUR LANDLORD:
· Who are the current tenants? Are the tenants in the building compatible businesses? If you own a dry cleaning business, you may not want to be in the same building as another dry cleaner.
· What about a property manager? A manager probably won't be on site at a small building, but if a manager or maintenance person is not on the premises business hours, make sure you know who will handle emergencies and requests.
· What kind of build-outs and amenities are provided? Make sure you know if the landlord will handle and approve build-outs, and what extra amenities are available with the lease.
· Will you be allowed to sublease? If you have extra space, or need to vacate before your terms are up, some landlords will allow you to sub-let the apartment.
· What are the lease terms? The monthly rent is the most important term, however, you also need to know if rent may go up during your term, and if you're required to pay charges for maintenance, taxes or other costs.
Property Manager
Kuester Property Management
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