Posts Tagged ‘business’

Commercial real estate owners have asked for suggestions on how to get commercial vacancies leased out faster these past few years. This is an important question that must be answered, because the less commercial vacancies in a city the better for all citizens. The effects are great when a business leases space, hires people, and makes a profit, because it ultimately creates a win-win for all parties involved. When business is profitable employees receive pay; employers make a profit; and last, the landlords receive rent on time.

Sometimes owners make three costly mistakes when marketing commercial space for lease that seems right up front, but cost more in the long run. The first mistake is turned off utilities. I consistently hear feedback from potential lessees when I tour suites. There is nothing more frustrating for a lessee than to tour a vacant space with no visibility, due to no electricity. No lights in the suite, lessee cannot create a good mental picture of what could be their future business layout. Based on experience, most spaces that get leased are because the lights are on.

The second mistake is to allow dirty suites to be shown. This doesn’t mean that an owner has to completely refurbish the vacant suite and spend thousands. In some cases, it takes vacuuming, a bathroom clean, and removal of all debris. A suite’s condition speaks volumes on behalf of the owner (or property management). Remember, prospective business owners are looking to lease the best possible suite that will help increase business revenue, image is a factor. I have had some business owners knowingly pay $0.15 per square foot higher for a suite based on the image of the suite and building maintenance.

The third mistake is to price a suite higher than every other similar suite in the area. The good old negotiating strategy of pricing high in order to settle at a lower price is over. Potential lessees have access to information right from their smartphone, and usually know what the current lease rate is for a commercial building before they call a broker or property manager. When an owner prices high, lessees sometimes formulate the idea that the owner is unrealistic, or may be difficult to deal with through the term of a lease agreement, and move on to the next deal.

Commercial real estate leasing isn’t summed up in these three items, but it will hopefully help an owner make any applicable corrections, and increase the chances of leasing their vacant space as soon as possible. Business owners are making moves right now; make sure your suite gives them a strong enough reason to bring their business to your current empty suite.

If you have any questions about your specific vacancies or building please call us at 760.596.9856 or email us at info@NissiAgents.com. As always, your are more than welcome to personally connect with me through social media here: http://www.JoinDNA.com.

Advertisements

We all have been at fault about this home depreciation effect, whether done intentionally or unintentionally. “So how is a silent neighbor currently depreciating my home,” you may be wondering? Let’s take a closer look at the foreclosure effect.

Silent neighbors depreciate your home value because every home that goes into foreclosure and is resold by the bank,  further drops your home value and neighborhood value. From the moment a homeowner misses their first mortgage payment, is foreclosed on, and all the way to a sheriff’s eviction, on average, that distressed homeowner shared their hardship with at least one neighbor. What is the response of most neighbors to their distressed neighbor’s problem? “When they foreclose on you, if you need help on moving day, just let me know.” That is a sincere help, but sincerely the wrong kind of help. While that distressed homeowner’s neighbor meant well in his approach to help, it still didn’t help stop the foreclosure, and from depreciating your current home value.

As a rule of thumb, any home that forecloses within a half to one mile radius from your home, and has similar features, square footage, and so forth, it will have an impact on your current home value. When foreclosed homes go on the market, they sell anywhere between 70%-90% below market value, while some short sales actually sell at current market value, or close. In most cases, it is obvious that a foreclosure sale damages your home value more than a short-sale. Asset Plan USA recognized that bank foreclosures cost the bank more in time and money, and is not a win-win for neither the bank or the foreclosed homeowner.

So what are solutions to a distressed real estate market still in recovery? Out of about ten solutions that exist, here are the two most commonly exercised, and will help not devastate your current home value; a loan modification (About 20% applicants are approved.) or a short sale. The third solution is you. You are also another solution to this recovering real estate market. How? By not being a silent neighbor yourself, and proactively finding out who in your neighborhood is going through a hardship where foreclosure is eminent. As a proactive neighbor, you can immediately introduce them to a real estate agent with the appropriate certifications and market knowledge to help your neighbor avoid the pain of foreclosure, and not devastate your current home value.

The faster we help each homeowner in hardship, the faster we can begin experiencing a healthier real estate market. Instead of judging our neighbor’s situation, lets get into curiosity, and be of help in a time of need. Feel free to obtain a FREE report about “Loan Modification Secrets” at: http://www.beatbankrepo.com/Loan-Mod-Secrets.aspx or just call us at 760.596.9856, and we will forward it to you. One last thing, go see your neighbor, and share this article with them, because you are helping them avoid foreclosure and uphold your home value.