A focus on deal timelines are a necessary evil in our
commercial real estate world.
They are the thread that binds conditional lease and sale
But what happens when issues arise beyond your control that
negate those agreed upon timelines?
We were recently called in to value and market a single
tenant property with an existing lease in place. The tenant had been granted an
option to renew during their last renewal negotiation.
I informed the owner that we would have been able to achieve
a higher price if we were able to go to the market as a vacant property.
Oh sure, everyone has ideas about how to get a space leased
But when is the last time someone made a list about how not
to get a space filled?
Wait no more, landlords, I have a list as such for you.
There are important elements to consider when reviewing a business with the intent to purchase.
Taking the time complete a thorough investigation is critical to discover the hidden facts.
As I looked into the eyes of a classroom of entrepreneurs
last week I wondered what wisdom I could impart.
My first thought was, good on you. You’ve found a passion
and you want to share it with the world!
My secondary thought was, awesome, here comes a commercial
real estate agent ready to deflate all your hopes and dreams.
But I have heard this comment before, so let’s get it out in
the open and have a chat about it.
It’s easy to see the bad news stories about brick and mortar
stores shuttering from the overwhelming move of consumers to e-commerce.
But I don’t think retail will ever die completely.
Rather, there is a disruption to the way we’ve known it to
be and commercial real estate landlords will have to navigate their way through
this new landscape.
While both the industrial and office sectors have displayed somewhat volatile vacancy rates over the past five years, the retail sector has consistently performed well.
Aside from Regina straying slightly over 4 per cent in 2017, both cities have otherwise achieved a number below 4 per cent since 2013.
Let’s take a closer look at each city.
There are times when it is not wise to invest in commercial
Alternatively, many potential investors don’t take the plunge out of fear of the unknown and years later regret it.
Let’s look at some examples of when you’d be advised not to
Last week, Saskatchewan’s
Minister of Finance Donna Harpauer released her second budget, which projects a
$34.4-million surplus for 2019.
Thinking selfishly, I wondered:
how does this budget impact commercial real estate sale investment in our
I purchased my second single family home in 1979. It was located at the end of a quiet cul-de-sac in a good neighborhood.
The downside was it backed onto a retail strip mall. That wasn’t a concern for me however because everything within that retail corridor was one storey.
Within a year of owning the home, it was announced that a five-storey office building would be constructed overlooking my rear yard.
I immediately sold the property.
Even though the project was public knowledge, I believed it would be easier to sell before it could be seen that the windows in that towering structure would have a full view of my yard.
From that early, first hand experience I can relate to
homeowners that are suddenly faced with a project that significantly impacts
the value of their home.