Is Now a Good Time to Buy Commercial Property?

Did you know that RIGHT NOW is one of the best times to purchase Commercial Real Estate in decades!

"But the economy..." you say. Well, yes, EXACTLY! Because of the bad economic conditions and the very unfortunate real estate situation, it is a "buyers market" for both residential and commercial property. Now is the time to pick up a great deal if you are willing and able. But this means that you have to have really good credit and probably cash on hand.

There are a many things to consider if a commercial real estate purchase is in your future, including the best type of property, the location and how to finance it. The option for a" Financing Purchase Transaction" should be looked at especially. Financing purchase transactions for owner occupant (meaning for your business) type loan requests may be a possibility for you, and may be a better option than other types of commercial mortgages since they are hard to qualify for currently. You may want to consider this option over other commercial mortgage programs, such a conventional and investor.

Need more convincing? We are currently at historic lows with property values, having dropped 30 -40% in the last 3 years. Historically, after a down cycle, property values came back up rapidly after the banking industry stabilizes and we are almost at that point. Do not miss out on a great opportunity.

Many business owners will be remiss in a few years that they did not take advantage of one this moment in time -- one of the best to purchase commercial real estate since the Great Depression.

If you are interested in purchasing commercial investment property in the Carolinas, check out our website at www.kuester.com.

Happy Holidays from Kuester Property Management

Every week or so we post something on this blog, give you tips on commercial property management, investing, and HOAs. Hopefully, you find the information useful!

In our real lives we are property managers at Kuester in Charlotte. We have locations across the Carolinas, in Boone, Myrtle Beach, Concord, Wilmington, and Fort Mill. We help people find residential and commercial properties to buy, sell, or lease and manage home owners associations. This is a very rewarding job and our company has grown to the point where we now have large team of specialized and very highly trained professionals covering all aspects of property management.

We are quite lucky to be able to say that we are currently celebrating a very successful year. We moved into a new building, we redesigned our website and we have a lot of great relationships with our customers and vendors.

At this time of year, we would like to thank YOU... thank you for reading our blog, thank you for your interest in property management. Thank you for being our partners and our customers. It is because of you that we are able to provide you the high quality of property services that have been our business mission and our family's dream for over 30 years.

Kuester Property Management is here for you. Thank you for being a part of our growth and success and we wish you the happiest of holiday seasons.

Looking to Lease?

Are you looking to lease a commercial space for your business? There are several factors to condisider when trying to find the right place... that is, afterall, why they say: Location. Location. Location!

The first thing to do is to find the right part of town to locate your business. Is Uptown Charlotte your best bet, or is suburb Fort Mill, SC more your speed? Do you need a stand-alone office, or a high-traffic retail spot. Identifying who your clientele is, and where they are will help you choose the right types of locations.

Once you have narrowed it down to a genre of locales, you can start looking at specifics and what is available. Check out thet Kuester site for available properties in your area. Here are some other factors to consider:

1) Are there other businesses in the immediate area that would compete with you?
2) Are there businesses in the immediate area that complement your business? (i.e. a restaurant and an ice cream shop).
3) Is there enough parking for your customers/clients?
4) Does the area have foot traffic?
5) Is the location near a major roadway?
6) What is the rent price?
7) Is there area growing or established?
8) What kind of upfits will you need to have done?
9) When will the space be available
10) What are the contract terms?

If you are interested in learning more about the available properties that Kuester has to offer, just check out our website at www.kuester.com.

Commercial Property as a Retirement Investment

What is your long term plan for income after retirement? Many people, especially those who have been in business the majority of their adult lives, have chosen commercial property as a way to provide themselves with long-term monthly income through their retirement.


A good choice in commercial real estate can not only earn you the money to live off of, but be a significant asset in your estate, even after your death.


Investing in commercial real estate, as much as it has great potential, is not a decision that should be entered into lightly. As with any investment, there is risk involved, but there are several things that you can do to reduce that risk:



1) Do Your Research: Take your time and research the property before making a purchase decision. What is the land zoned for? Has there ever been any problems on the property, are their current tenants? Are the buildings (if any) sound and ready to be leased, or will work need to be done first?



2) Make sure you have enough money: The purchase price may be in your budget, but is the cost of needed repairs, fees, taxes, maintenance, management, etc.



3) Consult your attorney: As with any real estate transaction, having an attorney to advise you and go through the contract is a must to be able to project yourself.

Investing in commercial property can be a very wise decision--one that could see you comfortably through your retirement. However, it is a choice that should come only after long and careful consideration!

If you would like to know more about investing in commercial real estate in the Charlotte area, just give us a call at 888.600.5044!

Kuester Property Management

Multi-Unit Investment Property Buildings, Charlotte

Dear Property Manager:

My wife and I bought a multi-unit commercial investment property in Charlotte several years ago. I have been doing the property management of these properties myself (I am semi-retired), but my wife and I would like to move out of Charlotte and retire to Florida in the next year. The property gives us a good amount of income, so we would like to keep it, but hire a property management company to manage it for us.

Can this be done cost-effectively, so that we still derive a decent income, but we can also move to Florida?

Bill & Margaret – Charlotte

Dear Bill and Margaret,

A professional property management company would definitely be a good choice for you, since the purpose of the company is to save money and handle the day-to-day operations. Depending on what you have been doing, a property management company may be able to help increase the tenant occupancy and help the property generate more income—off setting the expense.

Additionally, a property management company will be able to look at other potential investments that may be a good fit for you in the same area.

You are smart to look at hiring a property manager for your investment property—and with the right choice, you will be able to enjoy your retirement in Florida, while generating a nice monthly income to support yourself and your wife.

Thanks for writing into us! If you would like to interview Kuester Property Management in Charlotte, please give us a call at 704.973.9019.

Property Manager

Investing in Your Business in a Down Economy

Now is the time to invest! If you currently own a business and would like to move that business into a bigger space, or expand the space you have now is the time!

Property management companies and building owners are hungry to have their multi-unit commercial properties filled and you can get an amazing deal on space now if you qualify. So many people are on the fence about whether of not to take that leap given the economic conditions, yet we are here to tell you NOW is the time... and here is why:

1) If you can keep a business going in a down economy, you will thrive when the clouds lift.


2) You can spend this time perfecting your business process, so that when you are busy, you have all the "kinks" worked out.


3) All signs, and most experts agree that we are starting what will be a slow, but steady upswing--now is the time to invest!


4) You will get a great deal! Investors with good credit will be able to qualify for some of the best rates ever! Property owners and managers are eager to get their properties filled with great businesses - so if you are able to make the move, you will be rewarded with great deals, great rates and accommodating vendors.

So, for all of you who have wished for the extra space, thought about the move to another building or wished to start their own business and not had the motivation to do it... NOW is the time.

Property Manager
Kuester Property Management
Charlotte, NC

CC&R’s: Covenants, Codes and Restrictions.

You shop around, look at several properties (old and new) and you finally decide on a brand new home in Charlotte. You decide to buy a home in a great new subdivision, and you discover that you to do so, you are now part of a homeowners' association. Homeowner’s associations (HOA) have great pluses, and some small drawbacks. One of the drawbacks, is that homeowners' associations exercise a lot of control over how you use your property, (which is also a positive for HOAs!) The transfer deeds to houses in new developments almost always include limitations on how the property can be used. Usually these limitations -- called covenants, conditions, and restrictions (CC&Rs) – place a majority of the power in the HOA.

With every homeowner's association, you have a different method of operations. Some HOAs will prove to be more iron-fisted others will be more relaxed. Much depends on the officers, (and so if you have issues with any of the CCRs, your best course of action is to participate in the HOA). There is a big range, and you will find one that works for you. Regardless of how strict the association is, you will find that most HOAs are operating only to increase and protect the home values of their members.

Before you buy that home – check out those CC&Rs. Read the CC&Rs very, very VERY carefully before plunking down any cash. If you have questions or concerns, ask questions and get legal advice. It might sound a bit scary, but you are protecting yourself. And remember, you should be confident that the CC&Rs enhance and not neuter your lifestyle. CC&Rs traditionally can (but not limited too) restrict :

1) Color you paint your house.

2) The color of the curtains or blinds visible from the street

3) Front yard landscaping

4) Where you can hang laundry, or if you can hang it.

5) Prohibit certain vehicles being parked in the driveway or street

6) Garages facing the street need to be kept neat

While to some, that may sound controlling, generally HOAs work hard to keep their membership happy.

If during your residence you discover that you need to make a change in your property, - and it is one that is restricted by the HOA – you do have a final recourse.Waivers to HOA rules are tough to obtain, but they are not impossible. The process is different from association to association, so do some checking before you buy your property. If you want to make a structural change, like building a fence or swimming pool, or adding an addition, you'll probably need formal permission from the association. But, here is a general and speculative idea of what you might have to do:

1) Submit an application for a variance. A written application.

2) Get your neighbors' permission – both/ all your neighbors. The more people on your street behind you, the better.

3) Be prepared for a formal hearing. You may also need to go up in front of you zoning board too.

We have written at length before about HOAs. WE cannot stress enough how important they are to some communities. They are not designed to be bad guys, they are there to be of assistance to home owners. Find one that you fit into, and it might be one of the best relationships of your life!

Property Manager

www.kuester.com

The Kuester Companies, a leader in all forms of HOA management in North Carolina and South Carolina was established to be involved in the management of Homeowner’s Association properties, to include mixed-use developments, town homes, and residential communities. This branch of the company fills a unique niche in the Real Estate market because we have established a proud history of providing management services in Charlotte and surrounding markets. Those throughout the North Carolina homeowners association management community know and recognize Kuester as a leader in the Charlotte HOA, Columbia HOA and Charleston HOA management arenas.

Property Management: Being a Good Tenant

If you are a commercial renter, and you deal with a property management agency or property manager – you have a unique relationship that needs to be nurtured and respected. A good relationship with your property manager will ensure you have a wonderful stay at this property. A bad relationship, will leave you both unhappy and unproductive.

When moving into the property, be sure to politely reach out to your property manager with a friendly “Hello!” and provide the best contact information for your business. You want to make sure the lines of communication are open. If your property manager can contact you easily, it might mean they take your calls quicker later down the road. You don’t need to be your property manager’s best friend. But, you should immediately demonstrate your ability to work with them. Let them know about any special circumstances concerns you may have. Will children be in the space? Do you have employees with special needs? An odd work schedule? Let them know.

When a problem or situation arises in your commercial rental unit, contact the property manager immediately. Depending on your rental agreement, you might be able to handle the crisis yourself. Still, you want to make the property manager aware of it ASAP. Once they are aware of the situation, give them a professional amount of time to handle the problem. Don’t keep calling, avoid pestering or annoying your property manager or agency. Some property managers have several properties, or this is a side-job or part-time situation for them. Contact them with issues that they are obligated to address in the lease agreement. Be polite, professional, and businesslike when you do contact them.

You should understand this is a business relationship and you need to maintain some boundaries. If your property manager is not responding to your needs, you should discuss it with him/her before going to the landlord or outside assistance. If you are supposed to have your sidewalks shoveled within 12 hours of snow-fall, then that is what should be done. Don’t bend too often, or you might find yourself bending always.

A property manager, like landlord, is there to ensure your commercial space arrangement is exactly what you are paying for…with your help! If the two of you work in tandem, you will ensure a safe, secure, and stress-free business relationship.

If you are looking for commercial, retail or office space in the Charlotte, Fort Mill, Boone, Myrtle Beach, or Concord area, please give Kuester a call!

Kuester Companies
Corporate Office
1300 Altura Road
Fort Mill, SC 29708
tel: 704.973.9019
toll free: 888.600.5044
fax: 803.802.0005

Kuester Companies
Coastal Office
1200 48th Avenue North; Suite 102
Myrtle Beach, SC 29578
tel: 843.839.9704
toll free: 888.600.5044
fax: 843.839.9706

Kuester Companies
South Park Office
6600 Central Pacific Avenue
Charlotte, NC 28210
tel: 704.973.9016
toll free: 888.600.5044
fax: 704.552.1008

Kuester Companies
Boone, NC Office
178 Highway #105 Extension Suite 201
Boone, NC 28607
tel: 803.578.7725
toll free: 888.600.5044

Kuester Companies
Concord Office
9505 Moss Plantation Avenue
Concord, NC 28027
tel: 704.973.9017
toll free: 888.600.5044

Choosing an Office Space

Charlotte and the surrounding area offers an amazing variety of office space. Big, small, Uptown, or up by the lake... your choices are nearly limitless. Yet, as you think about your business, and how you want to work, you can begin to narrow down the possibilities.

You certainly need to have a good, clean environment for your office. But beyond that, you should ask yourself the following questions:

1.) If there is only "office work" being done, (and no manufacturing or retail)?
2.) Do you need a "reception" area where clients would enter and wait for you?
3.) How much space will you need? (Remember, you may want to grow before the lease term is up).
4.) Will you need bathrooms, or can you share bathrooms with other offices in the same building?
5.) How much parking will you need?
6.) How far will you need/do you want to travel? (And how about your employees?)
7.) Do you need a room for computer servers, a conference room, kitchen, or other space?
8.) Do you want an open floor-plan, cubicles, or offices with doors?
9.) Will you frequently have clients in the space?
10.) What technology needs do you have, (i.e. Internet connections, phone service)
11.) What if any build-out will the property owner/management company do to make the space work for you.
12.) How far is the space from main roads, town, the airport, restaurants and other points of interest?
13.) What are the terms of the lease?
14.) Who are the other tenants? (Are they competitors, or partner-businesses?)
15.) How is the common area, landscaping, and parking lot managed?

Choosing the best space for your new office is important for your ability to do your work and succeed as a business. If you would like assistance finding the best office space in Charlotte, Boone, Concord, Myrtle Beach, or Fort Mill, SC, please contact Kuester Companies at 704.973.9019.

Property Manager
Kuester Companies, North and South Carolina

News: Kuester Names Among the 10 Largest Real Estate Firms in Charlotte

We are pleased to announce that Kuester was named among the top 10 largest real estate firms in the Charlotte-Metro area.


The Charlotte Business Journal ranked the Kuester Companies #8 in terms of local employees and #25 in terms of commission-only brokers.

Besides our strong presence in Charlotte, we also have offices in Boone, Fort Mill, Myrtle Beach, and Concord.

If you would like any information about Kuester, property management, HOA's, or available property in our service areas, please contact us at: 888.600.5044.

So You Want to Be a Property Manager

Dear Property Manager:

I am considering a second career in Property Management. I have been an account manager and assistant sales person for 10 years, but my degree is in business. I would like to transition out of my current position and take on a new challenge and I think that property management might be a good fit.

Can you tell me a little about property management as a career, and what your company looks for in property managers?

Best personal regards,

Carrie G - Charlotte, NC

Dear Carrie:

If you’ve been thinking about becoming a property manager, now is a good time to move in that direction. It’s not an easy job, but it’s a great field to be in!

The top attributes you’ll need are that you love people and have excellent communication skills. People who manage properties are in contact with all types of people from various walks of life, and you must be able to relate to all of them. Often, you’ll also be in a position where you must negotiate between parties or guide decisions, so it’s important to feel comfortable in a leadership role.

Other important attributes you’ll need are exceptional organizational, time management and customer relations skills. The day-to-day operations of multiple properties requires the juggling of many priorities and if you’re not organized and don’t manage time well, the job can feel overwhelming.

For example, here at Kuester, all of our property managers, in addition to being knowledgeable about building maintenance, have experience with budget preparation as it relates to the operating and capital expenditures, to operating expenses and to managing projects. Their financial experience typically includes financial reporting, costs, budgets, executing contracts, service contracts and arrears.

We look for employees who are self-motivated, know how to control maintenance costs and follow the direction of our clients. Naturally, we always seek to ensure the highest level of accuracy, confidentiality and professionalism.

Does this sound like you? If so, then property management may be the field for you! Best of luck!

The Importance of Property Maintenance

Recently, we have been seeing an increase in the number of property owners looking to sell or rent their properties. In a down economy, as more companies go out of business, more commercial space becomes available. Although in this type of market there is often an increase in the number of entrepreneurial businesses, they are often smaller in scale and have no need for the larger spaces that have been vacated. Although the Charlotte, NC market has not been hit as hard as many, there is no question that the commercial real estate market here has been impacted.

As we talk to those seeking renters or buyers for their commercial property, it always amazes us to see that the maintenance of many of these properties has been severely neglected, often over the long term. Sometimes, the neglect stems from financial difficulties, sometimes from a philosophy of frugality, but just as often, it stems from ignorance about how to maintain a property so that it will retain its value and attract prospective buyers or renters.

With so many choices on the market now here, regular professional property maintenance in Charlotte is one of the key ingredients in having a competitive property. If prospects see one building that has been well-maintained and one that has been neglected – which is easily noticed on a tour of the property – even if the pricing on the first is a little higher, guess which will win the prospect’s business.

Another reason to focus on property maintenance is, if a prospect visits a neglected property, the assumption is that the condition of disrepair will continue or even worsen. This can be a red flag.

Regular property maintenance also lowers costs in the long term. In most cases, its more expensive to fix something that is broken than to maintain it in working condition.

At Kuester, we offer professional property maintenance services by skilled experts. Because we handle this across many properties, the property owner benefits not only from our expertise and knowledgeable contractors, but also from economies of scale.

If you would like to have a professional on your team to assist you with property maintenance, call Kuester -  the Carolina property management experts - today for an estimate at 704.973.9016.

Expanding Business, In Charlotte

Dear Property Manager,

We see a significant opportunity to expand our business in the coming year. Despite the slow economy, our business is strong and we would like to take advantage of the availability and low prices. We are looking for a development / management company with which to partner so that we can make it through this process as effectively and efficiently as possible.

Can you send me some recent examples of how you have worked with similar companies to expand?

Petra K., N. Carolina

Dear Petra,

Thank you for contacting Kuester and congratulation on your success. It certainly is a great time to expand for many businesses, as properties can be purchased at a great price if you know where to look and if they are a good fit.

Kuester Development Corporation and Kuester Real Estate Services work in tandem to acquire, develop, lease, manage and sell assets and others for third party owners throughout the Carolinas.

Kuester Real Estate Services is a prominent commercial brokerage firm in the Charlotte area. Recently Kuester made the addition of the Shops at Stonecrest, (a 26,000 square foot development in front of the new Tega-Cay, SC Wal-Mart). KRES is engaged as well to manage the Promenade at North Market, a new 26,000 sf retail-office development in Wilmington, NC. We have extensive experience in all areas of commercial property development, acquisition and management and look forward to the opportunity to work with your company on its effort to expand.

If you would like more information, references or examples of properties that we have developed or worked with, please call Kuester at 704.973.9019.

Property Manager
Kuester Property Management

Selecting a Property Management Company

Dear Property Manager,

I currently own a 20,000 square foot office/retail space (can sub by 1000) in Charlotte which will become available in May of this year. I would like to know how to select the right type of property management company. I am planning on handling the advertising/listing portion myself, but would need someone to handle the leasing arrangements, maintenance and rent collection. Thank you.

Charlie J.

Dear Charlie,

First, look around in the neighborhoods or near your building and look who handles the management for those buildings. A lot of the times the property management company will post a sign. Also, you can ask other building owners who they use. Hopefully Kuester will be on your list! Then I recommend you make appointments with the top three that catch your eye. Meet in person with each company, ask them about their experience with property similar to yours, and if they think you are a good fit for them—and then get references.

Then… definitely check those references.

After you have gone through this process, you should be able to choose the best property management company for you—and I do hope you chose us!

Please give contact us today to set up our “interview”. I look forward to hearing from you.


Property Manager
Kuester Property Management

NEWS RELEASE: Kuester Now Offers Home Maintenance Services

January 1, 2009: Charlotte, NC

Kuester is proud to announce our new service: Professional Home Maintenance.

Our skilled team of home service professionals now provides a unique in-home maintenance program offering a comprehensive preventive maintenance, and general services program to preserve and improve the value, life, and beauty of your home. Kuester has a long history of success in commercial and residential real estate services. Our success is due to our dedication to quality and service. We have taken this devotion and expanded our offering to provide you with not only the best service, but a trusted partner who will maintain and service your home.
Our goal is to provide you with the highest quality home maintenance services. We want you to have the comfort and peace of mind in knowing that your home is being well cared for by professionals dedicated to making your property the best it can be.

Recommended Service Schedule:
HVAC: Quarterly Inspections
Gutter Cleaning: Seasonal Inspections
Roof: Annual Inspections
Electrical: Quarterly Inspections

Kuester Maintenance Services is here to provide you with a great resource for many projects that you either don’t want to do, or may not have the time to get done yourself. We also know importance of preventative maintenance, and will work with you to set up a schedule so that these critical home maintenance items are never forgotten.

Kuester Maintenance Services:
(*Prices subject to change, please call us at 803.802.0004 for up-to-date prices or to schedule your quote)

· HVAC: $75/hr
· Gutter Cleaning: $50/hr
· Roofing: $105/hr
· Electrical: $79/hr
· General Home Maintenance: $45/hr
· Plumbing: (priced per job)
· Painting/Drywall: $45/hr
· Light Carpentry: $60/hr
· Appliances: (priced per job)
· Pressure Washing: $50/hr
· Locksmith: $62/hr
· 24 Hour On Call Emergency Maintenance Service

If you are interested in any of the listed general or preventative services, please contact Kuester Maintenance Services at 803.802.0004. We look forward to working with you soon.

Looking for Retail Property in Matthews

Dear Property Manager,

I read a recent Forbes.com article highlighting Matthews, NC and this is amongst the reasons I am looking at opening up my retail store in Matthews in 2009.

Is there a list of available commercial properties in Matthews online like they have for residential properties?

Cam L.

Dear Cam,

Happy holidays.

We have several properties available in the Charlotte area, including Matthews for rent or sale that may suit your needs. Check out some options on the properties page of our website, or give us a call at 803.802.0004.

Today we are featuring a "for lease" property at 343 W. John St. in Matthews , NC in the CrownPoint/Matthews Submarket at the intersection of S. Ames St.

This plaza has great traffic and visibility for restaurants, retail, office & professional users. The previous tenant was a billiards hall, so the existing space is set-up for a bar & billiards, with an easy upfit for a bar or restaurant space--but the potential to be much more, depending on your needs.

We look forward to hearing from you soon, so that we can find you the perfect retail space in Matthews, or another great location in the Charlotte area.

Property Manager

www.kuester.com

Pros and Cons of an HOA

Dear Property Manager,

My wife and I are moving and considering a couple different neighborhoods in the Charlotte area. We have never lived in a community with a Home Owner's Association and a few of the options have them. There is a cost of course, and I am wondering if it is worth it.

Can you tell me a couple of the pros and cons of an HOA?

Bill M - Charlotte, NC

Dear Bill,

Simply, a HOA regulates neighborhood and the Home Owner's Association organization is run by members of the community who are charged with enforcing the neighborhood's rules. Many use a management company to help collect the dues and deal with the administrative details of enforcing the regulations.

HOAs watch out for the community and your property. But just as there are pros there are some cons as well, and HOA communities aren't for everyone.

Pros to HOAs:

1) HOAs provide you with the peace of mind that someone else is looking out for your property and the value of the property.
2) The value of your neighbor's property is also looked out for, as they are held to the same regulations as you are.
3) Many HOAs restrict changing the outside appearance of a home or property dramatically and outside the approved "look" of the community.
4) Some HOA communities come with amenities such as pools, ponds, walking paths, parks, club houses, fitness centers, etc.
5) HOAs can provide a sense of community, and give you the opportunity to participate in the organization with your neighbors.

Cons to HOAs:

1) Many HOAs restrict what you can keep outside at night, such as recreational equipment and vehicles.
2) You are required to take in your trash and recycle bins within a day and may not be able to store them outside at all.
3) Your landscaping and lawn care will need to be maintained per HOA guidelines, and this may include the types of trees and grass you can plant.
4) Some HOAs have very restrictive policies, so you will want to review the rules before moving in.
5) Some HOA restrict the amount and type of animals community members can own.
6) You may be restricted by an HOA if you want to rent your property.
7) You will have to get approval to do any major changes or upgrades to the property including patios, porches, pools, or additions.

HOA rules differ in each community and if you are considering one with a HOA, we recommend you get a copy of the HOA rules, and information on the management company before you make your final decision.

...Property Manager, Kuester.com