September 6, 2016

3 Reasons to Pay Attention to Your Restrooms Now

Mike Sr says: 

"When I was in the Army the barracks bathroom had 14 toilets side by side with no partitions.
Office buildings today put restrooms at the bottom of the priority list whether new construction or older buildings. You know the feeling you get when you go into a restroom it's either good or bad. As you can read in this article one person makes a visit 4 times per day. It also notes that some managers send someone by every hour to inspect. I have leased in class A buildings but never had that service. I think the Army scared me for life so when I go it brings back memories and not good ones. Odors, tight quarters, no soap, wet floors, stopped up commodes, sickening noises. In fast out faster. I wonder if the industry will put that experience higher on their priority list. Fast food restaurants don't even go there."

Get the full article here.

July 12, 2016

POKÉMON MAY BE SILLY BUT IT'S HAVING A SERIOUS EFFECT ON REAL ESTATE

Mike Sr says:

Are you a good landlord. Do you help your tenants generate more traffic in their stores. Bulk advertising, special events, e-commerce help. Of course the landlord will charge each tenant for these services. Here is one way you may not have heard of
POK`EMON e!! You have to be kidding. You must read this article with great attention to this internet phenomenon. My son says it's nothing new but has taken a giant step for man and a crazy dangerous leap for mankind. Let the buyer beware.

Get the article here.

Employees leaving vacation days on the table at record rate

Mike Sr says:

"If you are working in the commercial real estate business chances are you are so busy that you can't take your vacation time or get paid for it if you leave it on the table. This is not good but let me give you a few good reasons not to take your vacation.
1. You are closing on a deal that would put thousands in commissions in your pocket.
2. You are set to close on a property that is important for your business or portfolio
3. If business is rolling stay put and make the money
4. Sometimes to get ahead your work habits will give you that push
I guess money is the driving force as usual.

Another $500B Year Ahead For Commercial Mortgages

Mike Sr says:

"To give you an idea on how big buying commercial real estate is $500 billion for this year is a big number and countless ways to get involved."

Get the article here.

 

July 7, 2016

GREEN GOLD: 10 OF THE BEST MARIJUANA RETAILERS

Mike Sr says:

"Would you rent to a marijuana shop? These places are getting pretty fancy. Traffic makers? You bet. Just protect yourself legally and watch for crime. I don't even know if or what kind of insurance you need. One other problem your property has to be in Colorado or Washington state. Too bad. If you can shed light on the insurance you need let us know."

Get the article here.

July 5, 2016

HOTTEST C-SUITE SECRETS TO CREATING VALUE

Mike Sr says:

"Creating value in commercial real estate. Re-positioning, building new, new amenities, rehabbing, saving on expenses especially energy. This article has some of the top tier ways to add value to your property, but one thing they didn't mention which throws out all the good ideas is location. One thing about real estate is you can't move a building. So to consider adding value consider where you are located first. There is a lot of money flying into real estate but as I hear of buildings selling for below purchase price or foreclosures I check the location. One block can make a difference."

Get the article here.

June 28, 2016

Evicted: Poverty and Profit in the American City

Mike Sr says: 

"Evictions. There are several reasons for evictions. Non-payment of rent, understandable, abandonment, tenant leaves without notice, still have to go through the eviction process, new owner decides to evict tenants to get higher rent, that's a tough one. Ever hear of gentrification, driving people out of an area and they have no place to go. I see it everywhere. It drives them farther from their jobs or back in the basement. I have done many over the years and I am haunted by it."

Get the article here.

June 24, 2016

ZONING COMMISSION UNHAPPY WITH FOULGER-PRATT'S NOMA DEVELOPMENT, THREATENS REJECTION

Mike Sr says:

"Density, not a new word but the most important part of commercial real estate development. How much building can you get on that ground. This is where governments and neighbors get combative. Too big and traffic are the biggest complaints. This is where developers get in trouble after they close on the land they find out the numbers can't work because of lesser density imposed by the government. In today's environment it's hard for a buyer to get the seller to give you enough time to get an approved site plan. I won't do that again."

Get the article here.

WEAK SALES AREN’T DETERRING H&M FROM EXPANSION

Mike Sr says:

"H&M is a retail store whose sales have dropped 22%. They are aggressively opening up over 400 new stores. I hope they make it but if I was a landlord I would have second thoughts about renting to them. If I did I would want a corporate guarantee with a year's rent in escrow for default. Its so important to check sales per square foot for similar stores and a yearly report on sales per square foot. Over $300 good under pass."

Get the article here.

 

June 16, 2016

HINES PARTNERSHIP TO END OWNERSHIP OF FORMER EXXON MOBIL CAMPUS WITH FORECLOSURE AUCTION

Mike Sr says:

"The perils of having one major tenant. Don't assume any tenant will stay put. Turnover is inevitable but how do you handle it. Get a long notice period to renew, minimum of one year,  do the math can you re-rent at half the rent and still be viable? If not foreclosure or bankruptcy is inevitable. Remember there are no friends in this business. Your tenant doesn't care about you just your lease."

Get the article here.

SL GREEN CLOSES NYC’S BIGGEST DEAL SO FAR IN 2016

Mike Sr says:

"Unfunded tenant concessions.  If you are buying commercial real estate and if this phrase is not familiar to you it could cost you in the long run. Example, your sellers tenant has in its lease paint and carpet after the first ten years you are buying that expense unawares, or the tenant has 3 months free rent at each 5 year option, here's your sign! Don't forget to get all of the security deposits at closing."

Get the article here.

What Tenants Should Know about Rent Abatement

Mike Sr says:

"Clawback. Sounds intimidating and it is. If you get some free rent some leases say you must pay it back if you don't renew or you are in default. Most landlords today don't make any money on rents to speak of or cash flow. The real quiet profits come by rent increases, percentage of expenses over base year, common area maintenance charges, fees like increases in real estate taxes, insurance for the building itself beside your own policy. They can add a management fee in their expenses and a fee for calculating them. There is more but if you have a ten year lease it adds up quickly."

Get the article here.

June 15, 2016

Sex, Drugs & Property Management

Mike Sr says:

"Don't go alone, call police. After managing 15,000 apartments I can tell you every horror story. Property managers don't get paid enough to put their lives in danger. There has to be safety criteria in my management agreement and it's not cheap."

Get the article here.

6 Smart Strategies for Limiting Liability as a Landlord

Mike Sr says:

"Good suggestions plus many more. I wish I had the time to go over 20 strategies with you. If you want more email us mike@foundosassoc.com"

Get the article here.

June 9, 2016

Anchors Away: How the Loss of an Anchor Tenant Is Felt Down the Retail Chain

Mike Sr says: 

"I built 20 non-anchored strip centers but was killed on the anchored centers when they moved or went dark. Repositioning and dealing with the smaller tenants took up most of our time. Good article to read."

Get the article here.

WALKER & DUNLOP INKS $3.8B DEAL, TO BECOME THE LARGEST HUD DEBT SERVICER IN THE US    

Mike Sr says:

"It has always amazed me how the government can sell $3.8Billion in debt for 10 cents on the dollar and let taxpayers eat the rest. Another thing that I have seen is why doesn't the government give the debtor this deal or even 50 cents on the dollar. Give the debtor a break but I guess it's a true proverb, the debtor is servant to the lender."

Get the article here.

 

June 3, 2016

One in Five Americans Has Sacrificed Spending to Make Rent

Mike Sr says:

"If you are a landlord it pays to keep a good eye on market rents and not to be too aggressive on raising rents. For reasons in this article many tenants are keeping track of all their spending habits and when they get a big increase (3%) moving comes to mind and of course turnover is expensive. As I suggested before raise rents on the vacancies and be light on existing tenants whose leases are ending. Look besides rent increases tenants tenants move for all sort of reasons. The average turnover is 40% per year so keeping the rent increase low or none at all you will make up the difference anyway and maybe reduce that 40% turnover."

Get the article here.

June 2, 2016

RETAILERS CO-BRANDING: A WIN-WIN FOR EVERYONE

Mike Sr says:

"New word old idea. Co-branding. Two retail tenants share space and work off each other, sample Dunkin Donuts and Baskin-Robins. New idea, put a Subway in a Wawa. This would save Wawa from chores of sub-making. As a Landlord we don't allow exclusions which hurts tenants sometimes but the lease is more important."

Get the article here.

FOR-PROFIT COLLEGES' UNCERTAIN FUTURE PUTS $1.8B IN CMBS AT RISK

Mike Sr says:
"Have a for profit college as a tenant be careful on how they are doing.Each state has a department of licensing for colleges and they have to report their status on tuition and  job placements. This attached article will give you a low down on these colleges. Doesn't look good. Trump University!"

May 31, 2016

The Capitol Has No Clothes: Why Tenant Reps Want the Truth Out About D.C.

Mike Sr says:

"Are you kidding or has your head been in the sand. How many times have you read bad news from DC. There is plenty of it but I guess they are worried about ads. Don't believe everything you read. Kudos to Savills Studley."

Get the article here.

 

May 26, 2016

REGULATORS INVESTIGATE CBL REIT FOR ALLEGED ACCOUNTING FRAUD AND SENATORIAL TIES

Mike Sr says:

"Investing in real estate through reits, crowdfunding or other investment funds this could easily happen to you. This goes on more than you think. I see it everyday. They can't be making that kind of money. My advice is to stay small and run the business yourself with a professional. If the numbers don't work they won't."

Get the article here.

May 23, 2016

LETTER CLAIMS NY REIT DISREGARDED OFFERS TO BE BOUGHT OR MERGE
 

Mike Sr says:

"Sound familiar, pride comes before a fall not to mention greed. Agent may have buyer and seller side, seller won't leave any meat on the table, an answered call is priceless
These guys think they are superstars because the market is doing their work for them forgetting  what could happen. Don't worry I was one of those guys. Young too late old too soon."

Get the article here.

INVESTORS TURN TO REAL ESTATE AS NEGATIVE INTEREST RATES HIT SAVERS HARD

Mike Sr says:

"It's true trying to get a return on your savings, bonds and financial products is tough to do. This article suggests that you invest in real estate to get a decent return on your money. I would agree but one is harder than the other. If you don't know real estate your chances of making a return are slim to none. Make sure your partner up with a seasoned veteran. Want further proof check our site. Between the downturns, overpricing, the banks and much more we learned our lesson."

Get the article here.

May 20, 2016

Gap Q1 Profits Decline 47%, Will Close 75 Stores (GPS)

Mike Sr says: 

"How do you take a hit like that if you are a landlord. You better have a tight lease to at least they pay rent if they go dark and have the right to move them out if they do."

Get the article here.

 

May 18, 2016

In some towns, the strip malls can’t die fast enough

Mike Sr says:

"If strip malls, small retail centers are so out of vogue try buying one. They are perfect for neighborhoods with your dry cleaners, convenient stores with gas, liquor stores, pizza, doughnuts and many more. How far do you want to drive to get a cup of coffee or pick up your laundry. For small investors and developers these are cream of the crop. Mom and pop stores but they stay forever. That's our buying choice."

Get the article here.

3 Types of Commercial Real Estate Leases

Mike Sr says:

"There are many commercial leases but there are many pitfalls. Two suggestions, leave the legal terms to the attorney and you take care of all language pertaining to money."

Get the article here.

May 16, 2016

How Negative Interest Rates Work

Mike Sr says:

"Negative interest rates. The bank pays you to borrow money. Don't get too excited if you are in the commercial real estate business. If you happen to get one these loans you would be the first I have heard of. They ate for government loans and they only last for a short time. You know, loss leader, on sale, loan from us, come along. If you know where to get one of these loans there is an office building I want to buy."

Get the article here.

Wall Street’s deals slowdown heightens fears about the markets

Mike Sr says:

"Several stories of deals growing and slowing is swirling . If you're an investor consider each deal separately. Due diligence such as demos individual income, type of tenants, rental rates, age, locations, occupancy rates, inflated assumptions, financing, real expenses including closing costs and much more. Lot of completion. A lot of work but worth it. Let us give you a few tricks."

Get the article here.

May 13, 2016

Investing In Out-Of-State Property

Mike Sr says: 

"If you're an investor you should consider buying out of state property. I suggest starting with a tri-state area. If everyone is chasing your home area properties spread your net. The most important thing is to see the property. We can help you with that, usually by making a decision before flying off."

Get the article here.

Why the Biggest Big-Box Stores Survive

Mike Sr: says:

"Big box stores. They go from 15,000 square feet to 200,000 square feet. Some are successful but they all seem to have to discard some or all of their stores. Big problem for investors or landlords is that they don't tell you. When it happens you're not sleeping unless it's not your money which is mostly the case. Warning to small store operators with big box in your center. Put a clause in your lease they if they move or go dark you have the right to cancel your lease because you depend on the traffic they generate. Insist!"

Get the article here.

May 12, 2016

Kohl's profit sinks 87% on unexpected sales decline

Mike Sr says:

"Another buyer beware article. Kohl's stores are huge. I would be wary of buying a center that has a Kohls or a stand alone. Seems like buying commercial real estate is like buying individual stocks."

Get the article here.

Optimizing Your Building Schedule For Summer Weather

Mike Sr says:

"Saving on energy bills is a century old problem for building owners who supply heat and air to its tenants. Timing when the hvac goes on and off is tricky . On too late and complaints start at 9am. On too early no savings. If you can solve ok but if not it's not a pretty line item."

Get the article here.

 

May 11, 2016

Will Pre-funded Deals Strategy cause a shift in Real Estate Crowdfunding?

Mike Sr says: 

"Crowdfunding keeps changing and it seems for the good. If you need equity crowdfunding can give you a sort of letter of credit to hold the deal together through the financing stage and study periods. For small experienced developers and investors this could get them started with little cash to start. That's a big deal since all of your smaller banks or community banks as their  called are holding on tight to their cash. How many deals can you do with 50% down?"

Get the article here.

JWB Real Estate Capital completes a $1.5 million funding round in just 24 hours

Mike Sr says: 

"More good news on crowdfunding....TIME! These guys turned the deal around in 24 hours. Time is money in this game."

Get the article here.

May 10, 2016

How The Dollar Store Boom May Shake Up Big Grocers

Mike Sr says:

"Shake up coming or another successful niche. According to this Forbes article, all dollar store sales were $28 Billion last year while grocery stores did a whopping trillion dollars. For the small investor buying a dollar store stand alone is a good passive investment. Grocery anchored centers have been and still is a great investment if you have the money to compete in today's all cash markets."

Get the article here.

Far from the city, far from recovery

Mike Sr says:

"Suburbs, everyone wants to be in a quiet spot on the weekends. Developers are weary of building houses too far out because of the nightmare commutes that have been created around major downtowns. I have my own stories, let's hear one from you."

Get the article here.

Cheap and dirty: The toxic chemical New York's dry cleaners can't quit

Mike Sr says:

"Have a dry cleaners in your center? Is it a pick up shop or cleaning plant? They use a chemical called perc in the industry which is still hazardous. No problem until you try to sell your property. As a buyer if you see testing wells on the property there could be a problem. Banks back up when they see this on a phase one report. If your broker brings you a dry cleaning plant protect yourself in the lease and restrict certain chemicals. Personally I wouldn't rent to one but everyone needs clothes dry cleaned.

Get the article here.

May 9, 2016

Subway Revenue Drops as It Closes Hundreds of U.S. Restaurants

Mike Sr says:

For small centers Subway has always been a good bet. But it seems like they need attention also. Since most are franchises, an annual check up on this tenant is advisable. Yearly sales in your lease requirements is a good start."

Get the article here.

Miami Suddenly Has a Glut of Plush Hotel Suites

Mike Sr says:

"Thinking of owning or investing in hotels. Foreign investors like them and are way overpaying for the, a key was once a couple of years ago $300 per key now same hotel $1,000 per key. That said since I owned a hotel I thought I was getting into the real estate business. Instead I found myself in a labor intense retail business. Turnover is not good in real estate, turnover in hotels are it's lifeblood, the more the better equals a lot more work."

Get the article here.

Office Depot: Inside A Dying Retailer

Mike Sr say: 

"Big box stores were the big boys on the block. Looking to buy a center with mainly big box stores like Office Depot. Many have gone away along with the high rents. To refill has been a struggle and some have caused many centers or stand Alones to default on their loans. A lot are public companies so it's easy to see how they are doing. Don't ignore the warning signs."

Get the article here.

May 6, 2016

7 CUTTING-EDGE INNOVATIONS DEVELOPERS ARE LOVING

Mike Sr says: 

"Good ideas and adds value but let's start with the ground costs, construction costs then see where your rental rates wind up. Pricing yourself out of the market, well you can figure that one out."

Get the article here.

______________________

Guide to Crowdfunded Investments for Non-Accredited Investors

Mike Sr says:

"Banks are not lending to small investors so is crowd funding the answer I think so. For now it's the only source of funds for those not backed by pe, cmbs wall st or all cash. Banks will look at deals with some crowd funding backing. It's a good joint venture"

Get the article here.

_____________________

Bebe posts $30m loss, looks to liquidate assets

Mike Sr say:

"Are you in  retail commercial real estate? If you are buying a center, mall or stand alone it would be prudent to find out how your national regional and public companies are fairing. As you can see who is next. Forever 21 was all the rage until there expectations were not met by wall st. Receiving broker packages which include KMart, Sears, franchisees, etc. better check them out. I guess caveat emptor still holds true."

Get the article here.

 

 

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