Posted by: Bob Wiley | December 19, 2017

How to Purchase Commercial Real Estate

bkt-buyingrealestate_4370If you’re thinking about purchasing office space, this guide will help you evaluate the pros and cons of leasing vs. buying, assemble a real estate search team, choose a location, and make the purchase.
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Posted by: Bob Wiley | December 8, 2017

Office Tenants Today Value and Expect Quality Connectivity

Technology-hand
Internet connectivity is second only to location in importance to tenants when seeking office space.

Patricia Kirk | Dec 04, 2017

A survey of 150 U.S. office leasing decision makers conducted by Radius Global Market Research for WiredScore found that a building’s Internet connectivity is second only to location in importance to tenants when seeking office space.

A global company with offices in New York and Europe, WiredScore is the founder of an internationally recognized program for rating building digital connectivity technology.  The survey, The Value of Connectivity, which was conducted online from Aug. 2  – 4, 2017 in New York City, Los Angeles, Chicago, Philadelphia, Dallas/

Fort Worth, San Francisco, Washington, Houston, Boston and Atlanta, found that 80 percent of tenants experience connectivity issues at one time or another. And more than half (77 percent) of them say poor connectivity affects their bottom line.

Additionally, 77 percent of tenants say they would sign a longer lease if a building has superior technology or sign a lease more quickly if assured the building’s connectivity meets their business requirements.

Other findings include that respondents have a preference for a “Wired Certified” building (79 percent) and are willing to pay more per sq. ft. for superior connectivity infrastructure (84 percent).

Brokers in the field had similar observations about tenants’ preferences.

“San Francisco is highly evolved (in regard to connectivity) and can meet all tenant needs,” says Jason Burch, Cushman and Wakefield managing director in downtown San Francisco. Burch points out that all modern office buildings in downtown are wired with high-speed fiber that can deliver 1 gigabite up and down and have four or five of the biggest, strongest Internet carriers in place. Additionally, Webpass—now a Google Fiber company—provides premium connectivity to tenants South of Market, where old warehouses have been repositioned for tech and other creative users.

Burch adds that the most common concern is when tenants have contracts with certain carriers, so they need a building that provides access to their specific Internet provider.

“I think Wired Certification is an important criteria for any company but with the exception of a few, most believe it’s (Internet connectivity) like electricity, that every major building in a particular market has access to high-speed fiber—with redundancy—and the existing tenant base wouldn’t be there unless that was the case,” says Tony Morales, and international director with JLL based in downtown Los Angeles.

“While I have never had a tenant make it an issue, I assume some tenants make it an issue,” Morales says, noting that connectivity infrastructure is more of an unknown in new developments, but in certain locations or buildings already occupied, the quality of fiber infrastructure is a known or assumed to have sufficient speed.

“Tenants are looking for connectivity and will pay a premium for quality service,” says David Cochran, a Colliers International executive vice president in Dallas and the company’s local building technology expert. “They always want to know which Internet providers are in a building they are considering, and if a top-rate provider is not there, it can deter a potential tenant.”

He notes that office buildings in the city and nearby suburban markets are wired for high-speed fiber, with only a millisecond of difference between the speed of connectivity in buildings. But many tenants are unwilling to pay a premium for that miniscule increase, Cochran adds, pointing out that heavy users like engineers and accounting firms, which send terabyte-size files daily, are the most concerned about the speed and capacity of connectivity infrastructure.

“Reliability is most important (across the board),” he says. “Tenants look for carriers that are nationally known and will be able to quickly resolve any issues if connectivity is lost. We are fortunate in Dallas to be home to AT&T’s headquarters and have a strong presence from Verizon, both of which provide top-rated service.”

While urban and suburban markest are typically wired for fiber internet, tertiary markets may not be as fortunate, with unknown or poorly-rated providers that are detrimental to leasing space in these areas. Cochran notes, however, that large corporations like Toyota will build offices wherever it suits their needs and use an in-house team to provide the highest quality internet connectivity for their buildings.

“Technology is changing rapidly to where connectivity will become a standard reliable feature and no longer an issue,” Cochran says, noting that AT&T and Verizon are quickly building a 5G network to move everyone to a wireless only environment. “Networks are moving away from cell towers toward a DAS system, Cochran concludes, explaining that DAS will enable users to send terabyte-size files with their smartphones.

Grant Schoneman, a senior vice president for JLL in San Diego who specializes in the life science/biotech sector, says, “Given the nature of their work, most biotech companies produce a large amount of data that is either stored on local servers or in the cloud.”  Therefore, when seeking space life science and biotech companies seek out buildings with fiber or other strong Internet connectivity platforms.

 

Click HERE to read more.

Source:  National Real Estate Investor

Posted by: Bob Wiley | November 16, 2017

Spotlight on Listing…

Park Ave

67 Park Ave, Wind Gap

Highly visible 3,298 SF Commercial/Retail Building Available on corner lot in Wind Gap with plenty of parking. The 1st flr consists of an open showroom area, office, private restroom, and rear workshop. The 2nd flr offers additional rental income with a 1 BR, 1 BA apartment with private entrance. The property is currently being used as a vacuum cleaner store. This successful store has been in business for 30 + years and is included in the sale of the building. Many financing options available including lease and lease to purchase. Contact the listing agent to schedule and appointment to explore the possibilities.

Available for Sale or Lease

$445,000 or $12.75/SF

Posted by: Bob Wiley | November 6, 2017

3 Easy Ways to Grow Your Real Estate Investment Portfolio

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When you decide to take a step into the real estate world, don’t remain a toddler; go in all the way. Think of venturing into corporate rentals, Airbnb rentals, rental properties or investing in shares with Real Estate Investment Trusts. Other than building long term wealth, you will benefit from the miscellaneous benefits.

It starts from buying your first property and learning how to grow it. You then expand and buy more properties creating a web of investments. Money is king in investing but it is not impossible to start with one and build a catalogue of portfolios from there. Other than being your own boss, earning passive income, and appreciation potential you will improve your financial competence. Here is how:

investing-Real-Estate

1. Get prepared

This is a war that you don’t want to go into without weapons. The result will be losses; both financial and psychological. You will need to come up with an objective. This will guide your path of investment and how you want your portfolio to look like. The goal will motivate you every step of the way.

Then do the math. There is magic in numbers. In real estate, cash flow and expenses tables make sense. You need to examine the amount of money coming in from your current properties and how much you spend. You will then know how much you have left to invest and grow your portfolio. That is what you will work with.

Ensure that your current investment has reached its maximum potential. You could add a new structure to that space, or renovate and increase the prices. Tap into any present potential first and get the most out of it before stepping out. If you are used to running properties on your own and lack management skills, this is the time to educate yourself or hire a manager. A big portfolio is not for amateurs.

2. Diversify

Going past property number one will need you to fight fear and plan wisely. If you wait for your savings to afford you the next property you would have to wait for life. So, you can raise money by borrowing against your current property or selling it at a higher price. You can then use this amount as deposit to your next property. Debt is good if you can pay on time and when used to increase positive cash flow.

You will need to focus on a strategy and spread out your investments. Try new locations, different kinds of properties and buy shares. This will cushion you when one sector is not doing well and will help you maintain a constant cash flow despite the market changes.

You could also increase your sources of income by applying for interest only loans. These ones will lower your expenses and increase your disposable income. If increasing rent is not possible, your accountant can help you get these loans so you don’t miss an opportunity to grow.

3. Learn

The market is always changing. The only way to remain relevant is to be educated at all times. You will need to read books, magazines, blogs, watch financial news and talk to as many experts as possible.

To spot opportunities in the market you will have to keep surveying to see what is going on. Monitor the changes in mortgage rates, house prices, tenants’ behavior, neighborhood changes and even the political temperature. Real estate market responds to all this factors in the factor and information will help you to grow your portfolio in a smart way.

Bottom Line

Whether you already own a house or planning to venture in to the real estate market, don’t settle for rental income from one property. Growing your portfolio will service you for the long term. Not to mention the fruits of constant capital gains. Every one to two years you will increase your asset base. You have the key.

 

Source:  realtybiznews.com

 

Posted by: Bob Wiley | October 18, 2017

About 40% of US Land Is at Risk for Sinkholes

The U.S. Geological Survey estimates that 35 to 40% of all the land in the U.S. is susceptible to sinkholes. While giant sinkholes often make news, smaller sinkholes are also exceptionally costly to homeowners. In 2009, the average sinkhole claim cost Florida insurance companies over $86,000 for cracked driveways, walls, and foundations. In that year, insurance companies paid out over $97 million.

People invest significant resources in their homes and vehicles. Mortgage companies require homeowners to protect their assets with suitable home insurance policies, but most do not require the inclusion of sinkhole insurance. Sinkholes have the potential to destroy homes and property, but because they are relatively rare, most people never consider; how real that threat could be for their family. Sinkholes are unpredictable, but you can protect your property with a sinkhole insurance policy.


Sinkholes in America

  • Most sinkholes in America occur in Florida
  • Pennsylvania has the second-highest rate of sinkholes
  • The ability to purchase sinkhole insurance is guaranteed in FL and PA
  • The largest sinkhole in the U.S. is the Texas Devil’s Sinkhole in Rocksprings, TX; it has a 50-foot wide opening and drops 350 feet into the ground

What Is a Sinkhole?

Sinkholes are catastrophic phenomena that occur all over the world. They are natural depressions or holes that form in the earth’s crust. Sinkholes can result from both natural and man-made causes.

The occurance of sinkholes can be a dramatic event that swallows up cars, roadways and even homes. Sinkholes can also cause merely minor depressions in the earth’s surface, barely visible but highly destructive. Some sinkholes happen gradually over time while others are sudden and disastrous. A ground-shift of as little as a couple inches can be enough to severely damage the structure of a home or building, rendering it unsafe for habitation.

What Causes Sinkholes?

Sinkholes can have a variety of underlying causes. Some are natural and some are man-made.

  • Natural causes: Sinkholes can be caused by the after-effects of earthquakes, erosions in the earth’s surface or the presence of excess groundwater. Although excessive rains and flooding can sometimes cause these disasters, there is evidence that extreme droughts can have the same effect. Natural sinkholes usually show early signs of erosion.
  • Man-made causes: Sinkholes can sometimes be precipitated by man-made forces that weaken underlying layers in the earth’s crust. Some common causes include excessive drilling, mining, construction and even lots of heavy traffic.  Some suspect that hydraulic fracture mining (“fracking”) may have this effect as well. Mine subsidence in abandoned coal mines over which development has occurred can also cause these catastrophes.
Source:  trustedchoice.com
Posted by: Bob Wiley | October 6, 2017

Spotlight on Listing!! Motivated Seller – Bring an Offer!!

commercial_land

Commercial Land Available For Sale in desirable East Penn. Just under 1/2 acre commercial lot perfect for destination business. Current approval for a 2 story building in footprint of existing building. (Existing building is a teardown.)

4302 Chestnut Street, Upper Milford Twp.

$59,980

Posted by: Bob Wiley | October 5, 2017

The 5 Types of Commercial Real Estate

To help manage the colossal scope of their industry, commercial brokers and investors have split it into five types of commercial real estate. Below, I’ll talk about what these different categories include and what to look for when investing in them.

Office

office types of commercial real estate

Office buildings range in size from the small suburban office parks to the towering skyscrapers in downtown New York City. To help differentiate between them, the category is broken down further into Class A, Class B and Class C buildings.

Class A is the premiere, cream-of-the-crop office building. They usually include high quality designs, a coveted location and above-average rent.

Class B is the average, everyday office building. They compete for a wide range of tenants and have a reasonable rent for the market.

Finally, Class C buildings are beginning to show their wear. They offer functional, if outdated, workspaces at below average rents.

Office real estate is influenced by factors like the local economy and the region’s industry focus – financial and technology companies demand a lot of space. The leasing companies may require special clauses in their contracts like the right to contiguous space.

Industrial

industrial types of commercial real estate

Industrial buildings are usually located outside of urban areas and along transportation routes. They are separated into four different classes: heavy manufacturing, light assembly, bulk warehouses, and flex industrial (a mix of industrial and office spaces.)

Manufacturing buildings are often outfitted specifically to a single tenant and may require extensive remodeling if a new one moves in. Warehouse are more generic and can be filled fairly quickly should your current tenant move out. Industrial buildings tend to have long leases meaning, over time, rent may fall behind the market.

Retail

retail types of commercial real estate

Retail is a huge category that includes buildings like malls, shopping centers, restaurants, big box stores and more.

Before purchasing retail real estate, it’s important to consider its location and the state of the local economy. Both of these will play a big role in the success of your investment. As with industrial buildings, retail spaces generally have long leases that may fall behind current market rent prices, and new tenants may require extensive remodeling to keep with their brand identity.

Read More

Source:  My NOI

Posted by: Bob Wiley | September 28, 2017

Valley shows 9.2M square feet in industrial growth

By Brian Pedersen, September 27, 2017 at 12:01 PM
The Lehigh Valley Planning Commission released Build LV, its annual development report today. Participating in a panel discussion about the data are, from left: Becky Bradley, executive director of LVPC; Justin Porembo, CEO of Greater Lehigh Valley Realtors; and Mike Alderman, vice president and Pennsylvania market officer for Liberty Property Trust.

The Lehigh Valley Planning Commission released Build LV, its annual development report today. Participating in a panel discussion about the data are, from left: Becky Bradley, executive director of LVPC; Justin Porembo, CEO of Greater Lehigh Valley Realtors; and Mike Alderman, vice president and Pennsylvania market officer for Liberty Property Trust. – (Photo / Brian Pedersen)

Driven by increases in e-commerce and proximity to major roads, industrial development proved to be a dominating force in 2016 in the Lehigh Valley.

And Berks County could be next.

According to data from Build LV, the Lehigh Valley Planning Commission’s annual development report revealed this morning, industrial growth showed a sharp spike in 2016, said Becky Bradley, executive director of LVPC.

Approved industrial floor space increased 168 percent from 3.4 million square feet in 2015 to 9.2 million square feet, hitting its highest level in the past 10 years, she reported.

Bradley shared details of the report at an event hosted by the Greater Lehigh Valley Chamber of Commerce at SteelStacks at ArtsQuest in Bethlehem, focusing on land development plans for commercial, industrial and residential projects in Lehigh and Northampton counties. Last year, LVPC reviewed 429 plans.

Each year, the report examines planning issues and identifies trends in development, taking into account updated data on population growth and its connection to real estate.

“Industrial is the leader of the pack,” Bradley said.

Nonresidential activity boomed in 2016, driven by industrial development that was highlighted by massive buildings, some totaling more than 1 million square feet of space, the report said.

“We are going to have more freight coming into the Valley,” Bradley said.

The warehouse projects now driving nonresidential development are generating employment largely at the urban fringes of the Valley, which creates challenges to providing adequate transportation service and reducing vehicle traffic, the report said.

A panel discussion explored some of these issues and trends in further detail.

Joseph Fitzpatrick, founder and shareholder of Fitzpatrick Lentz & Bubba, served as the moderator, with Bradley; Justin Porembo, CEO of Greater Lehigh Valley Realtors; and Mike Alderman, vice president and Pennsylvania market officer for Liberty Property Trust, offering insights.

INDUSTRIAL GROWTH

“The market is in a very healthy state,” Alderman said, referring to the industrial market. “This is the best market I’ve ever seen. The vacancy rate is less than 5 percent.”

Since the Great Recession, the Valley’s industrial market was also one of the first markets to have data to show rent recovery, absorption and demand for space, he said.

“We are seeing a lot of growth right now because of pent-up demand,” Alderman said.

There’s good opportunity for continued growth if developers can continue to deliver smart product and build good buildings, Alderman said.

The next wave of industrial development will push into Berks County, Alderman said. This would create a situation where people living in Allentown would be commuting to Berks County to work in these facilities, which creates transportation issues.

Bradley noted that the LVPC is starting to see a spike of people commuting from New Jersey into the Valley to work, and the numbers are starting to grow.

Naturally, the growth in the warehouse and logistics sector will continue to affect the region’s transportation infrastructure.

“When industrial development is at its best, you put the right building in the right community,” Alderman said. “We try to understand the impacts associated with the building. TIFs [tax increment financing programs] are the best workaround.”

While much of the industrial development is for warehousing and logistics, manufacturers are increasingly seeking smaller sites for their facilities. However, Alderman said, it’s been a struggle to get these facilities built.

“It’s hard to justify the return on investment, so you can’t get the approval to do it,” Alderman said.

While the community often wants them, it’s difficult to get investors to provide the financing, he added.

However, they often lease existing spaces. When shipping giant Uline moved out of its four buildings in Upper Macungie Township into two newly constructed sites to consolidate operations, Liberty Property Trust filled the vacated spaces with four companies, three of which were manufacturers or related to manufacturing, Alderman said.

RETAIL

The rise of e-commerce will continue to reshape the local retail and commercial landscape in many unpredictable ways, the report said.

“We still have population growth, we are adding density. There’s a need for more services,” Bradley said.

This is one of the reasons why retail brick-and-mortar sites will continue to be built, even with the rise of online shopping.

RESIDENTIAL

New apartment complexes have dominated the housing market and continued to gain momentum in 2016, particularly in the cities and some of the region’s townships. In 2016, municipalities approved 1,182 apartments, which more than doubled the 2015 total and hit a 10-year-high, the report said.

“This would be the third year in a row where apartments outpaced all other types of development,” Bradley said.

Single-family housing development continues to be slow, and significantly less land is being used for housing development, the report said.

“Since last spring, we are at about 41 percent inventory,” Porembo said, whose trade organization represents more than 2,500 Realtors in Carbon, Lehigh and Northampton counties. “Our findings are that we need more single-family housing. We are at about a 50-year low in home ownership nationally.

“There are some nuances and barriers with getting home ownership. Usually at this time, we see a cooling down of the housing market, but we are seeing a pretty good run on the market.”

Porembo said his concern is that inventory is a major issue and the amount of construction is not keeping pace with the inventory. It’s been a seller’s dream but a buyer’s nightmare, he added.

These trends offer an opportunity for municipalities to plan for more compact residential development patterns, with a focus on revitalizing the cities and boroughs and reducing vehicle traffic, the report said.

Source:  LVB.com
Posted by: Bob Wiley | July 27, 2017

The 10 Best Markets for Multifamily Investment

Donna Mitchell | Jun 22, 2017

multifamily-TS-1 (1)

Taking the changing environment into account, we took a look at the multifamily markets that offer some of the best opportunities for institutional investors.

By the end of the first quarter, a number of key apartment market fundamentals had begun to soften from very tight levels, according to research from real estate services firm JLL. Effective rent growth, for instance, slowed by 160 basis points nationally, to 3.0 percent.

Experts point to higher construction deliveries as the culprit. Many of the markets in this roundup experienced this. Higher supply put upward pressure on vacancies, which hit 5.0 percent, a year-over-year change of 10 basis points.

Taking the changing environment into account, we took a second look at the multifamily markets that offer some of the best opportunities for institutional investors.

 

Source:  nreionline.com

 

Posted by: Bob Wiley | June 19, 2017

Featured Home

3601 Cobblestone Ln

3601 Cobblestone Ln., Whitehall

Must See! Gorgeous corner lot in Whitehall School District with open concept floor plan. Features modern Kitchen with hardwood floors, new appliances (refrigerator is negotiable) and an eat-in Dining area. A nice size Living Room with new carpet, a working fireplace and allows walk-out access to the back deck and wide open back yard. First floor also features a carpeted Family Room, Dining Room with brand new tile flooring, half bath and entry to attached 2 car garage. Second level has 4 Bedrooms, the main full Bath and Laundry Room. Don’t forget about the Master Suite with full Master Bath including a double-vanity sink, bathtub and separate stand-up shower. Master suite also includes large walk-in closet. Basement is full but unfinished. The home comes with a brand new water softener and water heater that is just a year old. This one is too good to pass up so schedule your showing today and bring in an offer!  $319,500

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