Commercial Real Estate Blog

Header
Header_2
Listings Photo
$550,000.00
1221 Parklane Road

McComb, MS 39648

Beds: 0 Rooms: 0
Full Baths: 0 Sq. Ft.: 17470
Garage: 0 Built: 0
 
This is a new listing that
I thought you might be
interested in. Visit this
listing online to see more
photos of the property,
Google Earth satellite
images, and much more.
 
If you have any questions
about this property or
require more information,
please feel free to call.

Ryan Roark
KW Commercial Tri-State Team
3183880547
www.tri-stateproperties.com
 
  Visit this listing here
Posted by Ryan Roark on November 14th, 2011 3:32 PMPost a Comment (0)

Header
Header_2
Listings Photo
$1,295,000.00
100 Constitution Circle

West Monroe, LA 71292

Beds: 0 Rooms: 0
Full Baths: 0 Sq. Ft.: 0
Garage: 0 Built: 0
 
This is a new listing that
I thought you might be
interested in. Visit this
listing online to see more
photos of the property,
Google Earth satellite
images, and much more.
 
If you have any questions
about this property or
require more information,
please feel free to call.

Ryan Roark
KW Commercial Tri-State Team
3183880547
www.tri-stateproperties.com
 
  Visit this listing here
Posted by Ryan Roark on November 14th, 2011 3:12 PMPost a Comment (0)

November 2nd, 2010 9:17 PM

Class A, B, or C Office Buildings: A Guide

What does a Class A Building mean? What are the differences between Class A, B and C buildings? When looking for new office space, a tenant will quickly realize most buildings are classified as either Class A, B, or C. The factors that determine a Buildings Class varies by market so that a Class A Office Building in Chicago will be much different than a Class A Office Building in a small rural town of 30,000 people. There are no definitive formulas used to classify a building, but a general definition for each Class is given below.

  • Class A Buildings:  The newest buildings with the most amenities in the best locations. They generally are the best looking buildings made with the highest quality materials and construction methods. Additionally, these buildings usually have a professional manager, good access, and are typically located in highly visible areas on high traffic streets. Due to their exceptional quality, Class A Buildings usually contain high quality tenants and the highest rental rates in the market.

  • Class B Buildings:  These buildings are a grade below Class A. Generally, they are slightly older buildings that still posess good management and quality tenants. It is not uncommon for value-added investors to target these buildings with the intention on renovating them back into Class A Buildings. Class B Buildings are well maintained without any functional obsolescence. 

  • Class C Buildings:  This is the lowest grade for useable office buildings. These older office buildings (typically 20+ years) are located on less desirable streets in older sections of the city. Many of these buildings have higher than average vacancy rates for their market. Older, less desirable architecture, limited infrastructure, and antiquated technology define these buildings. For these reasons, Class C Buildings offer lower rental rates and are more difficult to lease. Many times these buildings are targeted for re-development.

The above descriptions are general guidelines for building classifications although no formal standard exists. Probably the most important point to remember is that buildings are classified relative other buildings within their market. A typical Commercial Real Estate Practitioner will first determine the Class A Buildings in a market by their highly desirable locations and amenitites and then classify other buildings in the market relative to the Class A Buildings.

Other factors to consider:

  1. HVAC Capacity
  2. Ceiling heights
  3. Access (freeway, public transportation)
  4. Common Area Improvements
  5. Location
  6. Parking
  7. Construction
  8. Elevator quantity and speed
  9. Security and life safety infrastructure
  10. Floor load capacity
  11. Backup Power
  12. Nearby and/or on-site amenities (dry cleaning, restaurants, ATM, etc.)

 

Ryan Roark (CCIM) Keller Williams Realty Parishwide Partners, 1390 Hudson Monroe LA 71201, USA 812-SOLD. Direct Line: 318-348-5815. Each office independenlt owned & operated.  Licensed in Louisiana.

 

Posted by Ryan Roark on November 2nd, 2010 9:17 PMPost a Comment (1)

March 17th, 2010 6:06 PM

Warehouse Design - Dock High or Grade Level? Why not both?

No matter what your intended use, warehouses can be designed to accommodate multiple uses or changes in the operations of the intended user.

A warehousing facility that features both grade level (street level) and truck dock height loading offers many advantages:

- Flexible functionality for any future occupant, owner, or tenant.

- Walk in entry level to offices for employees and visitors.

- Street level entry into an office space provides a easier access to customers.

- Enhanced flood protection over grade level alone warehouses for inventory and office equipment.

- Savings in the cost of construction over full dock height construction.

- More efficient operations where receiving requires truck or rail car unloading and shipping must be at street level.

- Higher real estate resale values and marketability to a much wider range of users for sale, lease, or sublease.


Designers of a freestanding warehouse/office building and industrial park structures can specify a floor level about 2 inches to 2 feet above grade.  If truck loading is a requirement, a shallow truck well can be incorporated into the design.  For street level access, a sloped ramp can be constructed. Both ramps and wells should be long enough for level and safe use. Sump pumps are an excellent feature for truck wells.

Street level access can be incorporated into the design of building fronts with dock high loading capabilities in the rear.  Future tenants can be accommodated by simply filling in truck wells and installing gradual ramps or digging shallow truck wells.

Warehouse/office buildings with multiple access heights can be used by a much wider range of businesses resulting in better flexibility, efficiency, and market value.

Posted by Ryan Roark on March 17th, 2010 6:06 PMPost a Comment (0)

Investors buy income producing properties for the cash flow. Whether they are Office, Retail, Industrial, or Multifamily properties, virtually all of the income is derived from leases. In commercial real estate, there is no such thing as a standard lease and all leases are unique. The clauses used in a lease can have a large impact on the value of a property. Many volumes of books have been written on lease clauses, so I will have to save that topic for a later date. 

The leases for income producing properties generally outline the contractual terms for:

  • Rents to be received
  • Term of the lease
  • Expensed to be paid, either by Landlord or Tenant
  • Other economic and non-economic terms
Upon examining the leases for an income producing property we should be able to clearly determine the total rents to be received as well as any expenses that will be paid by the landlord and tenants. A quick look at the building's income and expense statement should provide the necessary dollar figures to compute net operating income. Essentially, net operating income, or NOI, is the total income received minus the expenses the landlord is responsible for. NOI does not include any income received from the sale of a property, only the annual rental income and expenses. NOI is a very important figure in determining the value of a property, that is, what another investor may be willing to pay for the property.

Basically, rent minus landlord-paid operating expenses equals Net Operating Income. Many investors look at NOI as a return on their investment. For instance, if a building priced at $100,000 has an annual NOI of $16,000, then the annual return on investment is 16%. This percentage return on investment is referred to as the capitalization rate, or cap rate, as is a great way to compare different real estate investments. By determining a potential investment property's cap rate, an investor can compare several different properties to one another as well as other investment vehicles such as stocks and bonds.

Although cap rates are a great way to compare properties, keep in mind that they are only a one year "snapshot" of the relationship between income and value. Cap rates do not consider future income and for that we will need to calculate the "net present value" of a property, which will be covered in a later blog. 
Posted by Ryan Roark on March 17th, 2010 6:05 PMPost a Comment (0)

March 17th, 2010 6:04 PM

What is a Triple Net Lease

A triple net lease is one type of commercial leasing agreement. Under a triple net lease agreement, the lessee pays taxes, insurance, and maintenance in addition to the rent. There are pros and cons to a triple net lease for both parties. Individuals and businesses considering a triple net lease should carefully research each lease clause before making a decision. 

A triple net lease is only one type of commercial lease. Under a gross lease agreement, the lessee pays rent while the landlord is responsible for everything else. Most people who have rented an apartment or a home are familiar with the basic terms of a gross lease, as this is the most commonly used lease type for residential properties.
Under a double net lease agreement, the landlord is responsible for some property upkeep expenses. In double net leases, landlords typically cover parking, HVAC systems, and the structural integrity of the building. Another lease type is the modified gross lease. In modified gross leases, the landlord covers the majority of expenses associated with the property, but the tenant will pay a small portion. As an example, many modified gross leases require the tenant to pay for the janitorial services within their space.

The triple net lease is sometimes called a true net lease, because the landlord usually has no responsibilities related to building upkeep. This can be an advantage for the tenant in the form of reduced rent. If the landlord does not have to pay for any building expenses, he will not have to artificially raise the rent to cover potentially unknown building expenses. Many commercial landlords favor triple net leasing options. The building is able to generate a high level of income while the tenant maintains it in good condition. The tenant has some of the advantages of ownership, including control over the property, without the large capital investment that a new acquisition represents.A triple net lease can also be risky for a landlord. Occasionally, a tenant may not be able to pay necessary fees, or may overlook critical maintenance issues thus allowing the building to fall into disrepair. 

Extra attention must be given to a triple net lease to customize it to the tenant, landlord, and building. The terms of the lease agreement may contain stipulations and restrictions to protect both parties. As an example, the terms of the lease may include a cap on certain building expenses to be paid by the tenant such as property taxes or insurance. If the property taxes or insurance costs rise above a certain amount, the landlord will be responsible for paying the overage. 

When considering various lease proposals as a landlord or tenant, the full terms of the lease should always be read and understood before committing. In the case of a triple net lease, be sure that all the terms are clearly written and agreed upon by both parties. Any ambiguities in a lease can result in costly legal expenses down the road. Consulting a professional who specializes in commercial real estate leasing is an excellent idea.

Posted by Ryan Roark on March 17th, 2010 6:04 PMPost a Comment (0)

March 16th, 2010 10:31 PM
Header
Header_2
Listings Photo
$1,000,000.00
209 Walnut
Ouachita Candy Company
Monroe, LA 71201

Beds: 0 Rooms: 0
Full Baths: 0 Sq. Ft.: 0
Garage: 0 Built: 0
 
This is a new listing that
I thought you might be
interested in. Visit this
listing online to see more
photos of the property,
Google Earth satellite
images, and much more.
 
If you have any questions
about this property or
require more information,
please feel free to call.

Ryan Roark
KW Commercial Tri-State
3183880547
www.tri-stateproperties.com
 
  Visit this listing here
Posted by Ryan Roark on March 16th, 2010 10:31 PMPost a Comment (0)

September 16th, 2009 6:52 PM
Posted by Ryan Roark on September 16th, 2009 6:52 PMPost a Comment (0)

September 2nd, 2009 5:12 PM

Wednesday's bond market has opened in positive territory following early volatility in stocks and favorable economic data. The stock markets have fluctuated between positive and negative ground this morning, but the Dow and Nasdaq are both currently up a couple of points. The bond market is up 4/32, which with yesterday's late strength should improve this morning's mortgage rates by approximately .250 of a discount point compared to yesterday's morning rates.

The 2nd Quarter Productivity revision was posted early this morning, showing an annual rate of 6.6%. This was a little higher than expected, which is good news for bonds and mortgage rates because strong levels of worker output allows the economy to grow without inflation concerns. 

The second relevant report was July's Factory Orders data. It showed a smaller than expected increase in new orders. The 1.3% increase instead of the forecasted 1.5% indicates that manufacturing activity was no t as strong as expected. This is also good news for bonds and mortgage rates, but this data is not considered to be highly important to the markets. Therefore, its impact on this morning's trading has been minimal.

Later today, we will get to see the minutes from the last FOMC meeting. There is a pretty good possibility of the markets reacting to them following their 2:00 PM ET release, especially if they show some divisiveness by its members. It will be interesting to see some of the Fed member's views on the economy and inflation and if they will hint what the Fed's next move may be. But this is one of those events that can cause significant movement in rates after its release or be a non-factor. It generally causes a little movement in bond prices but not enough to significantly affect mortgage pricing.

Tomorrow does not have any important economic news scheduled for release. The Labor Department will give us last week's unemployment figures, but t hese are not considered to be of much concern to mortgage pricing. Analysts are expecting to see little change from the previous week's number of new claims for unemployment benefits.

©Mortgage Commentary 2009

Posted by Ryan Roark on September 2nd, 2009 5:12 PMPost a Comment (0)

August 27th, 2009 2:17 PM

 

 

 

Posted by Ryan Roark on August 27th, 2009 2:17 PMPost a Comment (0)

Thursday's bond market has opened flat again as investors seem to be unmoved by recent economic data. The stock markets are showing losses with the Dow down 30 points and the Nasdaq down 19 points. The bond market is currently down 5/32, but I am not expecting to see much of a change in this morning's mortgage rates.

Today's release of the 2nd Quarter Gross Domestic Product (GDP) revision revealed no change to the previous estimate of down 1.0%. Analysts were expecting to see a downward revision to a decline of 1.4%, meaning that the economy was not as weak as some had thought. While this is considered negative news for bonds since it was thought the economy had slowed at a quicker pace than it actually did, the data has not influenced mortgage rates this morning. It could be that this is relatively old news at this point. There is a final revision being released next month, but it often has little impact on bond trading or mortgage rates.

The Labor Department said that 570,000 new claims for unemployment benefits were filed last week. This was close to forecasts and has also had little impact on bond trading or mortgage rates this morning.

Yesterday's 5-year Treasury Note auction went okay. It was met with an average demand from investors and the other measurements of success were indicated the same. It was not an overly strong auction, but it also didn't qualify as a poor sale either. Today's 7-year Note sale is also of interest to mortgage shoppers. The results of it will be posted at 1:00 PM ET. If it was met with a good demand from investors, we could see bond prices rise and mortgage rates drop during afternoon trading. However, a lackluster interest in the sale could lead to bond selling and upward revisions to mortgage rates later today.

Tomorrow brings us the release of two relevant economic reports. The first is July's Personal Income and Outlays report that measures consumer ability to spend and current spending habits. It is expected to show an increase of 0.1% in income and a 0.2% increase in spending. Weaker than expected numbers would be good news for the bond market and mortgage rates. 

August's revision to the University of Michigan's Index of Consumer Sentiment is also due tomorrow morning. It gives us a measurement of consumer willingness to spend. It is expected to show a reading of 64.8. If it revises lower, consumers were less confident about their personal financial situations than previously thought. This would be good news for the bond market and mortgage rates.

©Mortgage Commentary 2009


 

 

Posted by Ryan Roark on August 27th, 2009 1:17 PMPost a Comment (0)

August 13th, 2009 11:13 AM

Monroe wins another award from the Louisiana Municipal Association. That's now 5 awards in the last 7 years.

http://www.thenewsstar.com/article/20090811/BUSINESS/908110305/-1/NEWSFRONT2/Monroe--Sterlington-honored-for-projects

 

Posted by Ryan Roark on August 13th, 2009 11:13 AMPost a Comment (0)

Header
Header_2
Listings Photo
$5,240,000.00
2500 N. 7th St.

West Monroe, LA 71291

Beds: 0 Rooms: 0
Baths: 0 Sq. Ft.: 56784.00
Garage: 0 Built: 2004
 
This is a new listing that
I thought you might be
interested in. Visit this
listing online to see more
photos of the property,
Google Earth satellite
images, and much more.
 
If you have any questions
about this property or
require more information,
please feel free to call.

Ryan Roark
KW Commercial Tri-State
3183880547
www.tri-stateproperties.com
 
  Visit this listing at Here
Posted by Ryan Roark on August 10th, 2009 1:43 PMPost a Comment (0)
Recent Posts:
Archive:
My Favorite Blogs:
Sites That Link to This Blog:

Keller Williams Commercial Tri-State
Keller Williams Realty Parishwide Partners 1390 Hudson Lane Monroe, LA 71201 USA
Phone: (318) 388-0547 Cell: (318) 348-5815 Fax: (318) 322-6261 

E-mail: roark120@gmail.com

 

Past Clients | Market Reports | Home | Property Management | Lease Analysis | Blog

Copyright © 2012 KW Commercial Tri-State Team
Portions Copyright © 2012 a la mode, inc.
Another XSite by a la mode, inc. | Admin Login| Terms of Use| Site Map
All rate, payment, and area information are estimates and approximations only.