According to the Denver Business Journal, commercial construction is expected to increase in 2008, due to a strong commercial real estate market in the Denver area.  Commercial builders expect a 10% increase in spending in 2008, completely opposite of what residential builders are seeing. 

With 2007 being a very strong year for office space absorption, many new speculative office buildings are planned to be built, both in Downtown Denver and the DTC.  A few of the large projects coming in 2008:  a new state prison in Canon City, relocating St. Anthony's hospital from Denver to the Federal Center in Lakewood, and a new VA hospital at Fitzsimons.  The energy boom is also driving new construction, particularly in the mountains and western slope.  The bad news?  National economists say they expect prices for materials such as steel and copper to continue to rise in 2008.

The aging population in the US is stimulating growth in the medical office building market, according to a Marcus & Millichap 2007 report.  By the end of 2007, 14.5 million square feet of medical office space is expected to be developed, up from 13.2 million square feet in 2006.  Median sales prices are up 6.4% compared to last year, with the number of transactions completed up by 9%.  Expect this trend to continue as the baby boomers move steadily into retirement, and the demand for medical services and doctors grows. 

Another new trend; in some metro markets (including Denver) physicians are more and more likely to invest in office condominiums, spurring the demand and construction of more of this product.

Looking for other mortgage broker/bankers opinions...I am looking to join a mortgage banker to expand the products we can offer, the states we can originate in, etc.  Seems as a "broker" there is someone with better pricing all the time now, and I am thinking it might be time to merge the company I own with a banker.  Would love to hear everyone's opinion on which mortgage banker out there offers the most, is easy to work with, etc.  Thanks!

I am curious to poll the management community, what kind of property management software do you use, what do you like about it, and what platforms have you heard about or experienced that others should avoid?

Last but not least, the different classification of retail buildings:

1. Neighborhood center - contains stores for convenience shopping of everyday needs, no indoor mall area, usually anchored by a grocery store
2. Community center - wider range than a neighborhood center, might include more apparel and soft goods stores
3. Freestanding - could be something small like a restaurant or drive-thru (on pads), usually not attached to other stores.  Larger buildings (big boxes - which usually have 120ft. bay depths) might fill a specific market need (like a Best Buy, Costco, Target, Barnes & Nobles)
4. Regional center - the "mall" which is normally enclosed, connected by a common walkway, and surrounded by perimeter parking; holds all manner of retailers
5. Super-regional center - multiple levels, the "mega-mall" (like Mall of America in Minnesota), more large anchor stores, deeper selection of stores and larger population base
6. Power center - dominated by the large retailers or "big boxes", often will include "category killers" which are stores that offer tremendous selection at low prices such as shoes, pet supplies, sporting goods, etc. (think Petco, Office Depot, Wal-Mart)
7. Fashion/specialty center - upscale apparel shops, boutiques and craft shops with high quality and corresponding prices; sophisticated; high income areas
8. Theme/festival center - unifying theme usually built around entertainment that appeals to tourists, like a casino
9. Outlet center - usually no anchors, just stores selling their brands at discounts

Here are a few types associated with industrial properties:

• Bulk - 4 walls, floor and roof, little office space, 50,000 SF and up, loading capability
• Office/Warehouse - 5-25% office, loading docks
• Office/Service - 25%+ office, park-like settings with higher rents (also referred to as flex space)
• Research and development - Hybrid of office and manufacturing, usually requires many improvements like "clean rooms", labs, etc.  Has rental and sale value 2nd only to pure office space
• Freestanding/large manufacturing - often designed for manufacturing, distribution, assembly, packaging, etc.

 

Even under the general heading of "office" there are many types of office buildings.  Generally they are broken up by size and class.  Here is a breakdown of the differences:

1.  Low-rise-  Above ground level, fewer than 7 stories

2.  Mid-rise-  Above ground level, between 7 and 25 stories

3.  High-rise-  Above ground level, more than 25 stories

• Class A - High quality finish, modern design, accessible, highest rents
• Class B - Lesser quality finish, may be somewhat outdated, typically older buildings
• Class C - Fair finish but with much lower rents, may have some functional obsolescence

 

Here is an easy to follow process of setting up a cost effecient maintenance program for buildings you may manage.  Preventative maintenance is key!

1. Prepare an inventory of equipment in the building and other building machinery
2. Determine the necessary maintenance tasks for each one.
3. Calculate the cost of maintenance.
4. Schedule the tasks.
5. Keep detailed records.

 

There are three primary goals for a property manager, whether that property be commercial or residential.  They are:

1.  Achieve the objectives of the property owner.

2.  Generate income for the owner.

3.  Preserve or increase the value of the property.

Though the job of a property manager breaks down into much smaller, definable tasks and functions, these are the overarching goals.  Everything done, from leasing, marketing, budgeting, maintenance, etc. must be aimed at those 3 goals, to not only make for a happy owner, but for a successful property as well.

HVAC (heating, ventilation and air conditioning) is a big part of any commercial property, typically a large part of the constant maintenance and upkeep that needs to be done.  Why do maintenance on your HVAC system?  The simple reason is that maintenance helps you avoid those cataclysmic failures that machines or systems are prone to.  Just like a car, if its maintenance is kept up regularly, chances are it will run better for you and last longer.  Properly maintained HVAC systems will typically cost you less money over time, not to mention inconveniences for tenants, and keeping good records on the maintainence done will help you when a building does go to market for sale.  Prospective buyers like to see that they arent buying a ready made disaster waiting to happen.