The Real Estate TrendMill - Commercial Real Estate Blog

1031 Exchange? Yes Please!

Rob Beland Leominster Commercial Real Estate (Apex Properties) — Fri, 20 Jul 2007 22:41:19 -0500

Do you know the worst part about making money in commercial real estate???

Having to share it with the government when you decide to sell your investment property

Did you know there was a way to put off paying taxes on the money you earn on investment properties? And notice that I said put off and not avoid...unfortunately taxes are as sure as death so maybe you won't be paying the taxes today but you will have to pay eventually. I'll try and explain the process so even the most inexperienced investor understands the basics.

Something you really need to know about if you are planning on investing in real estate and what I am referring to is a 1031 exchange. The name comes from the particular section of the Internal Revenue Code (section 1031). Basically it's a way for you to sell a property and defer paying capital gains taxes by purchasing another property and reinvesting all of your profit.

As far as the person selling the property and completing the 1031 exchange is concerned, the whole process is transparent. You will have to add a few extra lines to the P&S but that's about it...
Here is how it works. I will use as an example, Steve, an investor, who currently owns a 3 family investment property and wants to buy a larger 6 family property.

Steve first consults his accountant and his financial planner to figure out his tax situation and what kind of profit he is looking at with the sale of his 3 family. He bought the 3 family for $100,000 3 years ago and its now worth $300,000. He has a potential gain of $200,000. The 6 family he wants to buy is listed for $500,000.
He contacts a QI (Qualified Intermediary) to discuss the 1031 exchange procedure. The QI is the middle man in the 1031 exchange process and you must use a QI, you can't do this on your own so don't try it.
Steve finds a buyer for his 3 family and puts in an offer for the 6 family which is accepted. Naturally he used a Buyer's Agent to find the new property. Here is where the fun begins...hold on tight!!!
Steve sells his 3 family and the $200K profit he just made is immediately transferred to the QI to hold for safe keeping until Steve closes on the 6 family.
At the same time as Steve is selling his 3 family, he is also working on closing on the 6 family. The QI takes the $200K he is holding for Steve and gives it to the guy selling Steve the 6 family. Steve then closes on the 6 family and never even sees the $200K and therefore doesn't have to pay any taxes on it. It's a beautiful thing...

Now for those of you that have had experience with a 1031 exchange, you will notice that I left out some of the details but my point here is to explain the process in a way that a novice investor can understand it. There are a couple of good references at the bottom of the post if you would like to learn more about 1031 exchanges. Here are some important points to consider when deciding to do a 1031 exchange...

The property you are buying must be of equal or greater value as the property you are selling.
In order to defer all capital gains taxes, you must reinvest all of your profits from the property you are selling into the property you are buying.
The IRS has a very strict timetable to complete a 1031 exchange. From the date that you sell your property you have 45 days to identify the property you wish to purchase and you must close on the new property within 180 days of the date that you sell the first property. The IRS doesn't care about weekends or holidays either...its calender days so if the 180th day is a Sunday and you waited until the last minute, you're out of luck since you can't record at the Registry of Deeds on a Sunday.
You are not avoiding the tax on the gain. In the example above, the gain was $200K but the money was reinvested in the new property. At some point, if Steve sells the 6 family, he has to pay taxes on the $200K profit he made on the sale of the 3 family unless he does another 1031 exchange and buys a property of even greater value.
You must hold the investment property for at least 2 years before the IRS will allow you to sell it and defer the payment of capital gains taxes.

Typically a QI will charge $1,500 to complete a 1031 exchange. I say typically because I only know about companies in my area and they all charge the same. Unfortunately there is no current regulations or licensing involved with being a QI so technically I guess they could charge whatever they want. If you are going down this road, make sure the company you are working with is reputable because as in my example above, the QI takes possession of $200K of Steve's money for a period of time while the exchange is completed. You have to be sure you can trust somebody holding $200K of your money.

Here are a couple of good resources to learn more about 1031 exchanges...

The Exchange Authority - This company is in Massachusetts but handles transactions all over the country and even overseas. I am working with a client completing a 1031 exchange now with this company. Tim Halligan is the man over there...

1031 Exchange, Wikipedia

...Rob Beland

The Real Estate TrendMill

Feed My Blog...Blogger Will Link for Content

Rob Beland Leominster Commercial Real Estate (Apex Properties) — Tue, 17 Jul 2007 18:19:08 -0500

I'm reaching out to the Active Rain community for your thoughts on commercial real estate and what you would like to know about it...

Have you had clients that had questions about commercial real estate that you couldn't answer?

Have you ever represented a buyer or seller in a commercial real estate transaction and felt like a fish out of water?

Are you a commercial real estate professional that like most of us only thinks you have all the answers but in reality there is that one area where you wish you had a little more knowledge such as 1031 exchanges or ground leases?

I recently started a blog, The Real Estate TrendMill that focuses on commercial real estate in Leominster, MA and throughout North Central Massachusetts. Although the main focus of the blog is the local commercial real estate market I also want to have plenty of information on commercial real estate in general. I want the blog to be a resource for business owners that are contemplating leasing space or buying a commercial property. I also want to be a resource for commercial real estate investors.

I know I have a long way to go if I want to be the "Bloggiest" blog ever but I'd like to be thought of as a valuable resource. One thing I've been noticing about real estate blogs is that there are two categories of blogs and also bloggers for the most part. There are blogs that are geared towards other bloggers and then there are the blogs that are geared towards our customers whether they are investors or home-buyers or anybody else...

The content you write for your customers in your market is in my opinion key to the success of the blog but writing content geared towards other bloggers is important as well since these other bloggers make up the majority of any blogs readership. I, like most of you, would be thrilled to have my blog read by my clients or my potential clients but the reality is that other bloggers are our audience for the time being...

Pat Kitano, from Transparent Real Estate made reference to this fact in one of his recent posts...here is a brief excerpt from his blog...

Hyperlocal content makes for useful and often entertaining reading... but blogging success requires a secondary effort that surprises many new bloggers - interacting with other bloggers to drive traffic. The reason? Most real estate blog readers are the bloggers themselves... the consumer readership hasn't solidly kicked in yet and the bloggers are building their online presence in anticipation of the consumer finding them.

So what is the point of all this and why should you care???

Well to answer the second question, I guess you have no reason to care other than because you as a blogger would like to reach out to another member of this great blogosphere of which we are all a part...

The point of my post is that I need content...simple as that. You all, as business owners and fellow real estate professionals are a big part of my readership and if I can reach out to you for inspiration, my blog will prosper and I will have all of you to thank. As the title of my post states, I will be linking to any bloggers that provide me with ideas for content for my blog. One thing I have learned in the short time that I have been blogging is that link exchanges are not the best idea. I do believe in the power of linking but I feel it has to be done naturally and the way to do it is to place the links directly in the posts. I will certainly give credit where credit is due and hopefully the success of my blog will add to the success of your blog.

Your input is greatly anticipated and I look forward to being a resource for each of you.

When Animals Attack!!! and Brokers insist on climbing into the Lion's Den...

Rob Beland Leominster Commercial Real Estate (Apex Properties) — Thu, 28 Jun 2007 15:58:12 -0500

OK so I'm not talking about lions but that title should grab a few more readers...

I wanted to share an experience I had recently with a residential broker that on behalf of a family member, decided to list a commercial property for sale.

The following is a true story although the names have been changed to protect the guilty. Incidents like this are happening every day all over the country and probably the world...Please don't let this happen to you.

I recently met with a fellow agent regarding a property she was listing on behalf of some of her family members. Ruthy Realtor, as she'll be referred, was listing a property for her aunt and uncle. The property consisted of a 3.75 acre commercial parcel containing two single family houses and a small building currently being used as a used car lot. The property is on a pretty busy numbered route in town and would be a perfect spot for a few small businesses within a strip mall or maybe a couple of free-standing buildings like a coffee shop or a small convenience store.

Now in my area commercial land can sell for upwards of $500,000/acre and if it's at a light with a high traffic count, the price can go up to $1M for 1 acre. Typically you would need a minimum of 2 acres to be considered by a national retailer willing to pay those prices. Generally speaking, commercial real estate is nothing like residential which is why not too many residential brokers want to get involved.

Back to my story...

Ruthy is a residential agent who occasionally "dabbles" in the commercial side of real estate. Ruthy has probably seen some of the recent sale figures on commercial land in the area and relayed these to her uncle or maybe her uncle has seen the sale figures and relayed them to Ruthy. I would bet on the latter. Ruthy's listing price for the property is $3.5M. Now mind you, as I pointed out previously, the higher end of the pricing spectrum for commercial land is reserved for the premier properties at lighted intersections. This particular property was not at a light nor was it in a premier location. Unfortunately Ruthy most likely wants to do right by her family but she is being blinded by the $$$

I don't want to bore you with lots of details but there were wetland issues, floodplain issues, right-of-way issues, and a small portion of the land was actually zoned residential so it would require some rezoning...

Point # 1 - Just because you are working for a family member, you are still the expert. Not them.

I don't care how long your uncle or mother has lived in the house and I don't care how well she cared for her fabric wallpaper, you need to be honest with your family just as you should be with any potential listing client. You need to set the price of the listing, not your uncle who you don't want to offend by telling him that his gun collection on the dining room wall isn't going to attract rich hunter guys to the house.

Point # 2 - Don't try and "dabble" in commercial real estate - it's not like cooking

Before taking on any listing that is outside of your usual scope of services, consult some experts. In the case of a residential broker listing a commercial property, call some of the area commercial brokers and bounce your ideas off of them. Get their input before you put your name of a flyer for a property with a $3.5M price tag that is only worth $1.2M. It doesn't help your credibility. The same goes for a commercial agent that is considering listing a residential property. Call a residential broker and ask for some help with the CMA and get their thoughts on the current market. They're your competition but they are human beings and should have no problem helping you. Maybe offer them a small fee for their services. It will be well worth it in the end...

Point # 3 - Know what you are selling before you try and sell it

If you are selling a property with questionable issues such as the existence of wetlands, or zoning issues or environmental issues that may negatively affect the price, before you waste the seller's time, your own time, and anybody else's time, resolve the issues. Make sure the property owner hires the proper experts ahead of time and get the issues resolved. Don't list a property with the assumption that the land can be rezoned and the stream on the property is not actually a stream but runoff from some abutting property. Hire an engineer and have an official determination made.

Don't tell a prospective buyer that you are working on a site plan to determine the property's maximum build-out potential. Do the site plan so at your first meeting with a potential buyer the question can be answered.

Don't list a property that may or may not have an underground oil tank. Find out about the existence of the tank and get a price to have it removed if it does exist. Getting the tank removed is actually less important than having a qualified contractor's quote in hand to remove it. The Buyer can deal with the tank if he knows how much it will cost to remove.

Be a professional and spend a little extra time and effort at the front-end of a transaction. You'll look like that much more of an expert than a salesperson. There is nothing a buyer hates more than unanswered questions. Ask yourself every potential question you can think of that a buyer would ask and find the answer and then ask your colleagues for their thoughts and answer those questions and then ask some more... get the point???

And most importantly, if you aren't a lion tamer, stay out of the lion's den...

Leominster's Commercial Real Estate Market - Office Space For Lease - Part 2

Rob Beland Leominster Commercial Real Estate (Apex Properties) — Wed, 20 Jun 2007 15:30:44 -0500

In this second part of my four part series on the Leominster office market, I want to focus on the Erdman Way

Business Park located across the street from Staples just off Route 12 at the Interchange of Routes 2 and 12.

With a total combined leasable area of close to 120,000 SF, the Longview Corporate Center and the Commerce Place Corporate Center represent two of the five Class A office buildings in Leominster and represent the two largest office properties in the area. In the first part of this series, I highlighted the Woodblock Building and 14 Manning Ave, two of the other Class A office buildings in Leominster.

The Erdman Way Business Park is also home to the Four Points Sheraton Hotel, Bj's Wholesale Club, and The Center for Digestive Wellness. Access to the park is convenient for visitors who can take Exit 31B off of Route 2. Erdman Way is a right turn off of Route 12 at the first set of lights.

Some of the many amenities of the Corporate Centers include on-site professional managment and maintenance services, executive office suites built out to tenant's specific needs, ample parking for employees and guests, and convenient access to the area's services including restaurants, public transportation, shopping, and a first class hotel directly across the street.

Below is a breakdown of the two Corporate Centers:

Longview Corporate Center, 80 Erdman Way

53,000 SF Class A Office Building
Current tenant mix includes several medical users, the Registry of Motor Vehicles, insurance companies, and a mix of other professional businesses.
Lease Rates typically range from $16/ - $18/SF Gross - A little more for Medical Users
Fully ADA compliant with dual passenger elevator access to all three floors
Executive level finishes
High Speed Internet Service

Commerce Place Corporate Center, 100 Erdman Way

60,000 SF Class A Office Building
Current tenants include MWCC, North Central Mass Career Center, United States Armed Forces Recruiting Center, and several other professional businesses such as attorneys, accountants, and mortgage companies.
Lease Rates ranging from $16 - $18/SF Gross
Fully ADA compliant
Executive level finishes
High Speed Internet

Unlike downtown properties, the Erdman Way Business Park offers its business clients a different setting with more convenient access to the highway system. Parking at the Corporate Centers can be found in two adjoining on-site parking lots or in a third auxillary parking lot just across Erdman Way. Even though Erdman Way isn't downtown, to get there is a merely a straight shot down Route 12. Access to Erdman Way for clients coming from Fitchburg is just as easy considering Route 12 is one of the major routes residents of Fitchburg must travel to access Route 2.

The park's proximity to UMass Medical Center's Leominster campus (Leominster Hospital as the locals still say) make it a great location for medical users that aren't able to locate their office within the hospital. Nearly half of all tenants at the Longview Corporate Center are currently medical users.

As far as office space goes, the Corporate Centers are considered the flagships of the Leominster market. Originally built in the late 1980's, these two properties have undergone extensive renovations including upgrading to the latest, modern, energy-efficient HVAC systems, ongoing site improvements to improve on and add to the existing parking infrastructure, and ongoing interior upgrades including painting, flooring, and numerous capital improvements.

If you're not fan of the congestion of the downtown, and want to locate to a first class professional building, Erdman Way is the place to be...

In the third installment of this series, I'll focus on the smaller sub-office markets including the Rte 12 corridor from Sterling to downtown Leominster and the Rte 117 corridor from Lancaster to downtown Leominster as well as some of Leominster's Class B & C properties.

Leominster Commercial Real Estate Market - Office Space For Lease

Rob Beland Leominster Commercial Real Estate (Apex Properties) — Sun, 17 Jun 2007 20:15:54 -0500

Are you looking to lease office space in Leominster?

Are you aware of all of the options there are in Leominster to lease office space?
I'd like to provide you a breakdown of the different options there are in Leominster for leasing office space. You may want to consider a downtown property, a property with good highway access, or maybe you want to be close to the hospital because you're a doctor.

In this first of a four-part series, I'll focus on the downtown area and all that it has to offer. I have separated the downtown into two sub-markets. The first being Main St and the surrounding commercial properties heading up Merriam Ave towards from the Post Office to the court house and extending South from about the Post Office down Main St to the BankNorth building and the second being the Woodblock building and 14 Manning Ave.

Main St/Courthouse area to BankNorth building

Relatively low rents typically between $10-$12/SF Gross
Older buildings, most without elevators so upper story offices are not ADA compliant
parking can be found in the municipal lot behind the post office, in the garage next to the police station, or on street in a metered space. There are limited off street spaces available in a couple of privately owned lots
Current mix of downtown businesses include several attorneys, staffing agencies, bank branches, and a few food and drinking establishments
Biggest benefit of being downtown: Short Walk to all necessary services such as post office, drug store (new Walgreen's coming to town), coffee shop, etc...
Biggest Drawback: Not easily accessible for clients especially for businesses in the middle of Main St on a second or third floor, and highway access is better elsewhere in town.

In general, the Main St office market is a love it or leave it type of location. If you're down there you love it and if you aren't you never want to be down there. Attorneys love the downtown because of the proximity to the courthouse. Staffing agencies, as I recently learned when I was out with a staffing agency looking for office space, love to be on Main St because there is basically a stream of job seekers that start at one end of downtown and walk to the other end hitting all of the staffing companies looking for work. Their clientele generally take the bus so the downtown is a convenient location for the temporary staffing industry.

You find very few medical professionals in the heart of downtown since the majority of the leasable space is in buildings without elevators so there is a problem with ADA compliance.

The outskirts of the downtown market offer older triple deckers that have been nicely converted into office buildings catering to small businesses looking for an inexpensive, small private office. You'll find real estate companies, massage therapists, attorneys, and several other local professionals within these buildings.

If you're looking for a place to grab a sandwich at lunch or a drink after work, you can walk to any one of several downtown eateries and drinking establishments such as La Tazza or Roma Bakery.

14 Manning Ave & Woodblock Building

Higher than average rents in the $18/SF range but quality of space is reflected in price
Class A space, fully ADA compliant, many modern amenities
Plenty of off-street parking in two adjacent municipal lots as well as privately owned off-street lots
On-Site professional management and maintenance services
The #1 reason to locate to the Woodblock or Manning Ave locations: Owner's commitment to excellence apparent throughout both properties -worth every dollar...
The biggest drawback to leasing here: Owner has a relocation provision in all leases which can be inconvenient if you are having to move every few years even if he is paying for the move.

The Manning Ave and Woodblock buildings are two of the five Class-A office buildings in Leominster. The tenant mix in these properties include attorneys, mortgage companies, engineering firms, real estate companies, and several other professional businesses. Being owned and professionally managed by a local investor, the properties are maintained and kept up to the highest standards so if you are looking for that executive feel in a downtown property, these buildings offer you both. The best reason to locate to the Woodblock Building, in my opinion, is the well known watering hole on the first floor, The Monument Grill. (They serve some exeptional food as well...)

If the downtown is where you want to be, there are several options to consider. Should you need further information on any particular property downtown or should you require any additional information, as I always say, please contact a qualified real estate professional. The leasing market in Leominster is very competitive and virtually every property you might consider has professional representation on their side so why shouldn't you???

The second part of this series will focus on the Erdman Way office park located just off Route 12 at the Route 2, Exit 31B interchange. This area offers a different set of benefits and drawbacks and caters to a lot of different types of businesses.

I just hit 5,000 Points...Do I get a Prize???

Rob Beland Leominster Commercial Real Estate (Apex Properties) — Sun, 17 Jun 2007 10:03:31 -0500

Where is my swiss army knife? I just hit 5,000 points on Active Rain!!!

Yay to Me!!!

Rob Beland

The Real Estate TrendMill

Laconia Bike Week - 2007 "Real Estate" Rally

Rob Beland Leominster Commercial Real Estate (Apex Properties) — Sun, 17 Jun 2007 09:25:14 -0500

Have you ever been to "Bike Week" in Laconia or some other national motorcycle rally such as Daytona or Sturgis?

I just returned home from a night in Laconia and spent about 17 minutes amidst the 26 million bikers that basically took over the town for the week. Don't get me wrong I would have loved to spend the entire day just people watching and being a part of such a major event but I was one of the 7 people in Laconia today that does not own a motorcycle and I cleverly parked on a street that was closed to 4 wheeled vehicles. Unfortunately as soon as I made it down towards the strip I noticed there was a tow truck in the area.

Sure it's a "motorcycle rally" and yes the locals and the bikers refer to it as "bike week" but I think it's turned into more of a "real estate" rally than anything else. The whole event is basically centered around really expensive real estate needs.

It starts with the fact that in general, room rates in Laconia are pretty standard throughout the summer except for this one week when the rates just about double or triple not to mention the fact that you have to book a hotel room 3 years in advance (not really but you get the point). The locals don't want to be around during this week so they rent their houses out for between $1,500 and $4,000 for the week depending on how close you are to the "Strip" and the likelihood of some guy in chaps puking on your lawn as he leaves The Broken Spoke.

Once you arrive, you then have to make your way down to the Weirs Beach area where all the action is. Route 3 is the main route from Meredith to Weirs where you will see the never-ending parade of motorcycles and it's lined with vendors on both sides for miles and miles. This is prime real estate for companies selling motorcycles and related "gear"... These vendors pay anywhere from $2,000 - $10,000 to set up a booth for the week. Some of this money goes to private property owners and some goes to the city of Laconia which owns land along the road that they make available to vendors. Three of the more notable booths were the bikini bike wash, the guy cleaning sunglasses, and the fresh squeezed lemonade.

Then you figure there are the 26 million bikers that come for the week and although you might think that all they do is drive around and around revving their engines looking mean, they do get off their bikes once in a while to shine their boots, get a meal, have a beer...etc...These bikers pay anywhere from $5 - $10 to park their bikes in people's backyards that have been turned into makeshift parking lots throughout the area. If you were one of the 7 people there with a 4 wheel vehicle that wanted to park somewhere, you would have noticed that the price went to $20 and you had to park way in the back by the port-o-potties.

In terms of available commercial real estate being a hot commodity, there are properties in the area that actually stay vacant all year round and then a company will come in, rent a space for bike week, set up a store, make tons of dough, and then the following week...ghost town.

My point is that although the 26 million (yes I'm over-estimating) people in town for the week are there because of a common interest in motorcycles, you have to consider the effect this one week has on every aspect of real estate for the city of Laconia.

Who goes to Laconia for any other reason other than to experience bike week?

Have you ever been to Weirs Beach?

Oh and speaking of Port - o - Potties...there was actually a whole section of a street that was closed down to accommodate about 50 portable toilets. I'd bet the family that lives next door to that lineup has a much different feeling about the effect of Bike Week on real estate values...

Renovating "Flipper Uppers" for Profit

Rob Beland Leominster Commercial Real Estate (Apex Properties) — Thu, 14 Jun 2007 14:23:34 -0500

A few things to consider if you are looking to get into flipping houses for profit...

Popcorn belongs in a bowl with butter - It's great to snack on during a movie or while watching a marathon of Soprano's reruns but it looks terrible hanging from the ceiling

Wood Paneling - It's fine as long as the walls it covers happen to be in the smoking room.

Shag Carpet - Leave it in the van...

Crack Kills - Whether it's the plumber's version, or the kind you find in a foundation, either way it's bad news.

Lastly...Don't ever ask Casey Serin for advice!!!

Follow these simple rules and you will be a millionaire in less than 18 months...
(No guarantees on the millionaire thing though)

I'm King of the (Google) World!!! almost...

Rob Beland Leominster Commercial Real Estate (Apex Properties) — Thu, 14 Jun 2007 12:21:09 -0500

I'm finding that it's actually not terribly difficult to climb close to the top of Google's search results for certain keywords pertaining to my geographic area. SEO Companies charge lot's of money to get high keyword rankings and you can see that with a company like Active Rain in your corner, you can get the high rankings without the SEO companies help.

The key is getting my personal blog to the top of the search results page as well...

One example is Leominster commercial real estate agents

I'm also 2nd for Leominster commercial real estate

My goal is to make it up to the top for Massachusetts commercial real estate but this is a pretty broad and popular keyword that's crowded with national real estate listing services, and regional/national brokerage companies.

There are three things I believe new bloggers need to focus on get to the top of the google world and to ensure they aren't grouped in with the majority of blogs out there that don't last through the first year:

Continue to post every day and if you can't post every day post as often as you can on a regular basis.
Stay away from posts that involve the hottest news or the latest trends unless they are specific to your geographic area. There are too many successful blogs out there writing about the big national news headlines so the likelihood of your blog getting noticed diminishes when you try and follow in the big guys footsteps.
Make sure you know a lot about what you are writing about...you can't fake it. The more you come across as an expert, the more people are going to read your blog and start linking to you and you'll build up some clout with Google.

If only I could master rules 1, 2, and 3 I'd be a successful blogger.

Feel free to add to my short list of tips for new bloggers. I'm sure I can use the advice as well...

267 Days on the market and counting...Office For Lease

Rob Beland Leominster Commercial Real Estate (Apex Properties) — Wed, 13 Jun 2007 18:40:26 -0500

Not all office space is created equally...
For those of you working in commercial real estate that may have a client/property owner with office space that they want you to lease for them, one of the first things you do is go out to the property and take some photos.

For future reference...don't bother taking a photo at all if the office looks like this. This office needs a quick face lift with some paint and flooring and hopefully the old desk and debris will be gone before somebody even considers leasing the space.

Convince the property owner to spend minimal dollars to give the office a neutral coat of paint and and hire a company to haul away the trash. If you were listing a house and this was a bedroom in the house do you think a young couple with a small child would fall in love with the house based on this photo???

There are actually two problems with the photo...

The listing agent actually took the photo, reviewed it, and added it to his listing thinking it would attract a business owner to the property.
The listing agent was either not upfront with the property owner about the need to clean up the office before listing it or despite the owner's unwillingness to do just that, the listing agent still took the listing and actually thinks he is going to attract a business owner to the property.

Think about this the next time you go out on a listing appointment.

Rob Beland

The Real Estate TrendMill

Day Spas, Doctors, and Disappearing Councilors

Rob Beland Leominster Commercial Real Estate (Apex Properties) — Wed, 13 Jun 2007 10:48:47 -0500

Before the Leominster City Council is a petition to allow a Day Spa to operate in a residential neighborhood. At face value, it seems like a reasonable request; a quiet business, not much traffic...what harm could there be? Quite a bit unfortunately...

The basis of whether or not to pass the petition has nothing to do with whether or not the business owners are nice people as Councilor Dave Rowlands expressed in his well-spoken comments. I don't usually agree with Mr. Rowlands views but in this case I think he hit the nail on the head. Councilor Marchand made the argument that because he knows the business owners personally, and they are great people the petition should pass. He had other arguments as well, but none as flawed as that one.

Another argument is that since there is a doctor on the street already and a couple other businesses in the area, the day spa will fit in nicely. Wrong! Sure this particular street (Orchard St) has a few businesses on or around it and a day spa may fit in nicely but what about some of the residential neighborhoods on the other side of town with no businesses at all? What happens when day spas start to pop up there? Then somebody else will come before the council to explain that because there is already a day spa in the neighborhood they want to open a tanning salon. The two businesses could work well together. Next somebody wants to open a hair salon, a nail salon, a Curves...you get the point. Where does it end???

Should the City Council set this type of precedent? Are they opening the door for many other types of businesses to come before them wanting to open up in a residential area? If one type of business is allowed and not another is that grounds for a lawsuit? It probably isn't but as the saying goes...anybody can be sued at anytime for an reason.
Beyond the merits of the petition and the somewhat intelligent debate, another issue came up during the meeting. The councilors, in front of a live audience and in front of a televised audience, started to count their votes and actually tried to manipulate the process when it was discovered that there may not be enough votes to swing the decision one way or another. Now I don't know about legality, but at a minimum you have to question the ethics and the integrity of the councilors involved...

In short it went down like this...

(FYI...I have read between the lines of what was actually said so you can see what they meant to say)

Councilor Rowlands makes a motion to give leave to withdraw without prejudice. Motion is denied.

Councilor Dombrowski makes a motion to grant the petition...discussion follows

Councilor Rosa brings up the fact that Councilor Lanciani is not there so since we need a 2/3 vote of the council to pass the petition, we may need his vote (this is where I read between the lines)

Discussion....

Councilor Dombrowski decides to change his motion to further time

Councilor Freda thinks the whole process is flawed and treading on illegal and unethical. Thank you Claire for speaking out against what you saw happening...

Councilor Tocci opens her mouth for the first time since joining the council and publicly accuses Councilor Dombrowski of doing what everyone else there knew he was doing but were afraid to admit.

more discussion...the council argues, banters, looks like fools...Councilor President Marchand loses control of the council for a minute but quickly brings the group back under control.

more discussion...

The initial motion to to pass is withdrawn and a motion is made to give further time

Motion passes...

For the first time in history, as far as Councilor Freda knows...the councilors successfully manipulated the outcome of the petition and now the deciding vote on whether or not this petition ultimately passes is in the hands of Councilor Lanciani who was not present at the meeting due to unknown circumstances.

Am I the only one who thinks this is funny? These are the people elected to represent us as citizens...

So for now the fate of the Day Spa in hanging in the balance. How many phone calls and emails are there going to pass between the councilors over the next two weeks about this petition creating a violation of the open meeting laws?

For the record, I am against this petition passing because of the simple reason that it sets bad precedent. I don't care about a day spa opening up next door to my house but I do care about the next business that wants to open up on the other side of me since there is already a day spa on my street...

Does this type of thing happen anywhere else or just in Leominster?

The Obligatory Century 21 Name Tag

Rob Beland Leominster Commercial Real Estate (Apex Properties) — Thu, 07 Jun 2007 09:02:37 -0500

How do you distinguish yourself from the hundreds of other brokers (agents) in your area?

There have been many changes in the real estate industry throughout the years when it comes to marketing techniques and how we get our name out there and how we distinguish ourselves from our competition.

Century 21 has those little gold name tags their brokers used to wear (actually they still wear them today but I'll never figure out why) and I've never seen one but I hear they even have a gold jacket they give you if you sell enough real estate; something I'll bet Tiger Woods doesn't have...

Re/Max has their signature hot air balloon;

and Bloodhound Realty has their Bloodhound.

Have you considered how things have changed over the years?

Then: Professional resume on company letterhead
Now: Active Rain profile

Then: Fancy marketing flyer with picture, bullet-points, logo, phone number
Now: Custom Website

Then: 1 Gallon Mums to show your appreciation to your listing clients
Now: Free Segway Personal Transport device

Then: Broadcast Faxes
Now: Email Blasts

Then: Rolodex
Now: Agent Office

Then: Open house on Sunday afternoon
Now: Occasionally an open house on Sunday Afternoon
Someday will replace the open house: Virtual Tours

Then: Television commercials
Now: Podcasts

Now: Blogging
Then: What did we do back then???

I'm sure there are others that I have missed but you get the point... And yes there are companies that are going to stick with the old ways but unfortunately these companies aren't going to make it much longer...

What are some of the other ways you see the real estate industry changing in your area?

This is a test...please disregard

Rob Beland Leominster Commercial Real Estate (Apex Properties) — Tue, 05 Jun 2007 07:20:28 -0500

Technorati Profile

Pink Flamingos...on the Verge of Extinction

Rob Beland Leominster Commercial Real Estate (Apex Properties) — Mon, 04 Jun 2007 20:20:01 -0500

What does the future hold for the plastic pink flamingo? If you didn't have one in your front lawn growing up, you surely had a neighbor that had six of them on their front lawn. They first appeared on the scene in 1957, dissapeared in the 70's, made a reappearance in the 80's, and now are on the verge of dissapearing from the world's front lawn forever.

Did you know that as of November 1, 2006 the original manufacturer of the plastic pink flamingo has stopped manufacturing these iconic lawn ornaments?

Did you know they had been manufactured in Leominster, MA for nearly half a century until the plant shut off the molding machines for the last time and shut their doors just about 7 months ago? I know this because I live in Leominster. It's been a sad few months since their closing but we'll all pull together and move on, I promise you that.

Don Featherstone, a young artist, was hired by Union Plastics in Leominster to redesign their two dimensional lawn ornaments into a three dimensional version. His first project was a plastic duck but his fame came when he redesigned the pink flamingo into a three dimensional masterpiece. Little did he know his simple design with the yellow beak and black tip would turn into such a symbol of suburbia and americana with movie features like 1972's Pink Flamingos, websites, fan clubs (maybe not fan clubs but you get the point)...by the way you know it's an original Flamingo by the Don Featherstone signature under the tail. If you don't see that, just turn and run!!!

Back in the seventies cities and towns across America started banning the tacky treasures and as a result of these bans, Union Plastics (later became Union Products) started manufacturing a blue version of the flamingo. Cities and towns caught on and actually expanded their ban to include flamingos of all colors...to think about the amount of time and taxpayer dollars that were actually spent back then on this legislatioin is amazing!!!

What does this have to do with real estate you ask???

And what does this have to do with commercial real estate???

Well it just so happens that the plant where these plastic pieces of American history will be sold at public auction on June 22nd. The former Union Products facility at 511 Lancaster St, Leominster MA sits on over 8 acres of prime commercial land. Sure the price tag will be close to $2M but the development possibilities for this site are endless.

Unfortunately, the molds were sold to a company from New York that intends to resume manufacturing so if your thoughts were to bring this flourescent phenomenon back you're outof luck. I do have to say it just won't be the same when these blow mold beauties start coming off of a different assembly line than that of their original place of origin.

Fear not...you can still find these legends of lawn decoration on Ebay and several other online shopping sites but remember to always ask if the flamingo you are purchasing features the Don Featherstone signature under the tail.

Rob Beland, Apex Properties

Leominster, MA Commercial Real Estate Professional

The Real Estate Trendmill

CB Richard Ellis going Green...this is impressive stuff

Rob Beland Leominster Commercial Real Estate (Apex Properties) — Thu, 31 May 2007 21:53:09 -0500

Please check out this article and consider taking similar measures with your own real estate companies...

http://www.commercialpropertynews.com/cpn/article_display.jsp?vnu_content_id=1003592385

When a company as big as CBRE makes this type of commitment, we should all take note and maybe follow suit...

"Mill" you please buy me???

Rob Beland Leominster Commercial Real Estate (Apex Properties) — Thu, 31 May 2007 13:02:26 -0500

I'm only 87 years old, I have 90,000 SF of floor area on two levels in my main building, and I have another 40,000 SF on two levels out back. All of this is situated on 4.5 acres of prime land right downtown Leominster and I can be yours for $2M.

If you act now, you also get to pick up the tab on a complete restoration that could top $5M or more!!!

You're probably asking yourself..."Is this guy crazy???" Why would somebody want to spend $5M to fix up a property they just purchased for $2M (hopefully you can negotiate that price down closer to $1.5M)?

This is a question that is being answered in the Lowell/Lawrence area, in Fitchburg, and even here in Leominster. Developers are slowly but surely realizing there is some value to these vacant, run-down eye sores scattered throughout the area. The property I was referring to is an available mill building at 98 Adams St in Leominster.

A couple of perfect examples of ongoing mill renovations in the local area are Bob Ansin's project on Oak Hill Road, The Massachusetts Innovation Center Mass Innovation Center and Steve Boucher's project on Lancaster St; The Gateway Business Center. These two developers went to bed one night never having thought about renovating a mill before but woke up the next morning and unknowingly began a journey that would take them to the forefront of a growing trend in real estate development in Massachusetts. They're spending hundreds of thousands and even millions of dollars to turn these properties around.

Leominster's Mayor Dean Mazzarella and Fitchburg's Mayor Dan Mylott would surely like to see these buildings renovated and occupied by start-up businesses, law firms, technology companies, and a host of other professional businesses. The recently formed Economic Development Council recognizes the potential for these properties and wants to help developers get funding to subsidize the cost to redevelop the buildings.

Ultimately it's going to benefit the local economy with the increased tax revenue; it's going to benefit the small business owner because renovated mill space has historically seen lower lease rates than a standard high rise office building like the Longview Corporate Center on Erdman Way or 14 Manning Ave, downtown Leominster; and it's going to further benefit the local community and the economy by creating jobs and putting the guys to work that will be in there completing the renovations.

Where is the support of the Legislature???

How about a grant program geared towards the redevelopment and reuse of existing buildings for alternative uses?

How about some financial support for the Steve Bouchers and the Bob Ansins???

They made a commitment to the local economy the morning they woke up and decided to renovate a mill building. They decided to do something about an eye sore in their community. If the Legislature doesn't get involved, there aren't going to be any more Steve Bouchers or Bob Ansins and the 87 year old mill will sit vacant for another 87 years...

Rob Beland, Apex Properties

Leominster, MA

Commercial Real Estate Professional

The Real Estate TrendMill

What is so gross about my lease???

Rob Beland Leominster Commercial Real Estate (Apex Properties) — Wed, 23 May 2007 11:04:57 -0500

What is a "Gross Lease"?

A question I get asked fairly frequently from business owners is what does it mean for a lease to be "gross"? This is a common term in commercial real estate.

It doesn't meant that your lease smells funny, has stuff oozing out of it, or anything like that...

A pretty good textbook definition is that a gross lease is one in which the landlord pays all expenses associated with the ownership of the property including maintenance, taxes, and insurance.

Basically, with a gross lease a tenant pays their monthly rent and the landlord pays all associated expenses with the property. This arrangement is usually found in office buildings and buildings with many small tenants. It's a simple way of calculating a rental rate.

The "opposite" (for lack of a better word) of a gross lease is a triple net lease. What is that all about? Three nets???

Basically a textbook definition of a triple net lease is one in which the tenant pays rent to the landlord, as well as a share of the taxes, maintenance, and insurance expenses based on the tenant's use of the property.

In this example, a tenant would have a fixed rent and on top of that he would pay a share of all expenses of the property (the nets). If the taxes go up, the tenant kicks in a little more, if the taxes go down, the tenants obligation to pay goes down. The amount of the expenses a tenant must pay is based on the amount of space they occupy in a building. If a tenant occupies 1,000 SF of a 5,000 SF building, he would be responsible for 20% of all of the taxes, insurance, and maintenance costs such as snow removal and landscaping.

This type of lease is commonly seen in retail properties and industrial properties or in properties where there is only one company occupying the entire property. It is also becoming more and more popular and is commonly seen in newer buildings.

Is one better than the other??? There are arguments on both sides I guess.

If you have a gross lease, you don't have to worry about drastic increases in property taxes or insurance because your rent is fixed and the landlord pays the taxes and insurance. With a gross lease there is usually some sort of pre-determined annual increase built into the lease to cover possible expense increases but because that is all negotiated up front, you can budget for the annual increases. Now if the taxes go down (yeah right!) then the landlord benefits because he is still collecting the same amount of money and his expenses just went down.

With a triple net lease, the expenses are usually reviewed every 6 months and if there has been an increase in taxes or insurance, that increase is passed along to the tenant and they may not have even known that taxes were going to go up. With a triple net lease, if any expenses go down, the amount the tenant pays goes down accordingly so the tenant is able to take advantage of the decrease.

There are several variations of both types of lease includind modified gross leases, double net leases, graduated leases, single net leases...the list goes on but the "Gross Lease" and the "Triple Net Lease" are the two you are most likely to come across.

Just remember that with any commercial real estate lease or any lease for that matter, you should consult a real estate professional and also an attorney. These people are experts at what they do.

So the next time you hear somebody talking about how gross their lease is, you won't be caught with your jaw down wondering what they are talking about...

Rob Beland, Apex Properties

Leominster, MA

Commercial Real Estate Professional

The Real Estate TrendMill

What does your voicemail say???

Rob Beland Leominster Commercial Real Estate (Apex Properties) — Tue, 22 May 2007 15:25:48 -0500

What does your voice-mail say when you don't answer the phone? I don't care if it's your cell phone or your office phone.

Chances are it says something like this...

"I'm out of the office on appointments, I'll be returning at 3 pm so please leave a message and I'll return your call when I get back."

Or this...

This is so and so...I'm sorry I can't take your call I'm either on the other line or away from my desk, please leave a message after the tone...blah blah blah...

The point I'm trying to make is that the minute your voice-mail picked up the person on the other end of the line knew immediately that you weren't there...and chances are they don't care where you are. They know that if they hear a beep that is their signal to leave a message, and they know that when they leave a message, the next step in the process is a return call from you. Whether you work in real estate, or you sell office supplies, you probably rely on your voicemail quite a bit to be your link to new clients. Make your voicemail memorable and make it different from the next guy...

Try something different on your voice-mail. Be creative, maybe the next person that calls will tell somebody else to call just to hear your message. Leave a message like this...

This is so and so...I'm out taking a couple of my biggest clients golfing so if you're not with me then we should talk when I return to see how I can change that for you.

Or this...

This is so and so...I'll be out all afternoon trying to drum up new business so I can afford to pay my wife's most recent credit card bill. If you're calling with a listing opportunity i'd be glad to get back to you but if you're calling because you are looking for payment on the credit card, please hit * (star) and listen to the first part of the message again.

By the way...if you were to call my office and my voice-mail picked up, it says something like this...

This is Rob Beland with Apex Properties. Chances are you've reached my voice-mail because I'm out building a successful real estate business. If you're looking for real estate services, leave me your name and number and the next time you get my voice-mail it might be you I'm out there working for.

Then I go on to leave my cell phone number in case they need to speak with me right away.

Any other creative ideas when it comes to what you say on your voice-mail besides the usual "I'm out of the office...blah blah blah...please share your ideas.

Rob Beland, Apex Properties

Leominster, MA

Commercial Real Estate Professional

The Real Estate TrendMill

Are you a "Zero Waste" business?

Rob Beland Leominster Commercial Real Estate (Apex Properties) — Mon, 21 May 2007 18:05:25 -0500

Does your office have a recycle bin for used fax cover sheets and other paper products that you might otherwise throw away in the trash? Do you have a compost bin set up for employees to discard their food scraps? Even better...would you consider giving your customers the option of returning the packaging to you so it can be recycled???

The Grassroots Recycling Network http://www.grrn.org/ came up with 10 principles for businesses to follow that want to commit to becoming a "Zero Waste" business.

I've got a few simple principles to pass along that I follow but I'd encourage you to click the link above and see how your company measures up to the Zero Waste Business Principles.

Get rid of the trash barrel under your desk. If all you are throwing away is paper then why don't you replace the trash barrel with a recyling bin and keep a small trash barrel somewhere that everyone has access to it so if you have the occasional candy bar wrapper to throw away bring it to the common trash barrel or even the dumpster. That will give you the opportunity to get up from your desk and stretch and go for a walk. You'll be surprised how conscious you are about not producing waste when you don't have a convenient place to throw it.
Buy recycled paper. It may cost a bit more but if you start buying it in bulk, you will see a volume discount and you will be reducing the amount of packaging as well. The boxes that the reams of paper come in make great recycle bins so everyone within your organization can have one.
Instead of sending a fax, send an email whenever possible. Work with your clients and customers to gather email addresses and suggest they send you emails rather than faxes. You can even look into online fax services which are inexpensive and more convenient since you can send faxes right from your computer in the event you have no other option but to send a fax.
Recycle the printer cartridges you used to throw away and buy refilled cartridges. If you compare the recycled cartridges to the brand name cartridges you will actually see that typically there is more ink in the refilled cartridge than the brand name.
Start a co-op for purchasing office supplies with other companies in your building. If you get together with a couple of other businesses and pool your resources you can not only get a better price on supplies since you are buying in bulk but you reduce the number of trips the delivery truck has to make to your building and you reduce the amount of packaging since products shipped in bulk typically use less packaging than those products packaged for individual use.

Again...these are just a few simple steps you can take to reduce the waste your office produces. You can designate one person each week or month to bring the recycle bin to the transfer station in your town depending on how much paper you go through and as an incentive buy that person lunch. After you see how much paper you are going through challenge your office staff to come up with ways to reduce the usage and come up with some sort of incentive to get everyone involved and interested.

Rob Beland, Apex Properties

Leominster, MA

Commercial Real Estate Professional

The Real Estate TrendMill

Leominster Commercial Real Estate

Rob Beland Leominster Commercial Real Estate (Apex Properties) — Mon, 21 May 2007 15:33:21 -0500

Are you looking for real estate representation in Leominster or any of the surrounding cities and towns or are you looking for real estate in Leominster or any of the surrounding cities and towns?

My name is Rob Beland and I'm an agent with Apex Properties in Leominster. Apex Properties specializes in commercial real estate brokerage, Buyer/Tenant representation, investment portfolio development, and can assist with basically any aspect of commercial real estate.

I personally focus on Buyer/Tenant representation and the sales and leasing of commercial real estate in North Central Massachusetts. I work one-on-one with business owners to assess their current situation and determine the best path to take whether it be purchasing real estate, leasing additional space, downsizing, or doing nothing at all...I also work with investors looking to either start a real estate investment portfolio or expand on their existing portfolio with quality real estate investments.

In addition to commercial real estate services, Apex Properties has a seperate division focusing on construction management, propety services, landscaping, and snow plowing.

Our services division has managed construction projects as small as 1,000 SF and as large as a 24,000 SF office fitup. We handle everything from space planning and permitting to the selection of sub-contractors through a competitive bid process, all the way through the delivery of the keys to the front door.

In addition to construction management, Apex Properties handles the day-to-day maintenance of several area condominium developments in Leominster and Lancaster and also handles the day-to-day maintenance of commercial and industrial facilities in Leominster and Fitchburg.

Please check out our website for more information

Apex Properties

And please check out my blog, "The Real Estate TrendMill"

The Real Estate TrendMill

Rob Beland, Apex Properties

Leominster, MA

Commercial Real Estate Professional

Buyer's Agents in Commercial Real Estate

Rob Beland Leominster Commercial Real Estate (Apex Properties) — Mon, 21 May 2007 12:14:43 -0500

When you're in the market for a new home one of the first things to do is contact a real estate agent in the area to see what houses are out there in your price range. This is pretty common and in fact Buyer's Agents are getting more and more popular every day. They have a simple agreement that is signed and you agree not to negotiate the purchase of any house without your "buyer's agent" being involved. It's pretty simple and makes a lot of sense. Why would you make one of the largest investments of your life without the help of an expert???

Why hasn't this idea caught on with respect to commercial real estate transactions? Not for nothing but if you're considering purchasing real estate for your business or even just considering leasing space, this investment may very well be even bigger than the purchase of your home. Why wouldn't your first call be to a commercial real estate agent when considering such a transaction???

There are several reasons to engage a professional to guide you through the process.

A commercial real estate agent knows the market and it's his job to know real estate. You chose to enter into a different field so why pretend you're a real estate expert?
You don't have time to run your business and be on the phone all day long calling on classified ads, searching the internet, and driving around taking phone numbers off of signs. A buyer's agent can do all that in his sleep.
The person selling the property that you want to buy has already hired a real estate professional to sell his building so right off the bat you're at a disadvantage. He has professional representation and you're on your own to figure out if you are getting a fair deal.
It just makes sense...You wouldn't go into court without an attorney, you call a travel agent when you want to book a vacation (and if you don't use a travel agent because you think you're getting a better deal with an online travel site you're mistaken...but that's a story for another day) so don't go into a major commercial real estate transaction without having a real estate professional representing your interests.

The big question is how much is this representation going to cost? Rather than asking that question ask another question, "How much am I going to save by having a professional on my side? If a buyer's agent charges you $10,000 and his services result in a savings of $11,000 off the asking price then you just made $1000. What if his services resulted in a savings of $50,000?

Would it be worth spending $10K to save $50K???

Effectively Planning for the Future Growth of your Business...

Rob Beland Leominster Commercial Real Estate (Apex Properties) — Thu, 17 May 2007 20:55:47 -0500

Do you know one of the greatest challenges facing even the most successful business owners when it comes to commercial lease negotiations? Surprisingly, it's effective planning for the future growth and expansion of their business. In the fourth year of a five year lease business owners are facing the realization that they may have to pick up and move in a year or less; disrupting not only their business but the entire culture and climate of their organization.

What can you do? When negotiating a lease, two ways to prepare for this growth and avoid the disruption to the business are Rights of First Refusal and Options on adjacent space. We'll discuss the distinction between these two commonly overlooked lease provisions and ensure that your next lease negotiation properly addresses the future space needs of your company.

The first lease provision to consider is a "Right of First Refusal" on adjacent space in the building. This gives the tenant the ability at a time in the future to match a third party offer to lease adjacent space ensuring the tenant's future expansion can be accommodated. The way this works is that upon receipt of a bona fide offer from this third party, a landlord must give the tenant the opportunity to match the offer prior to accepting it. The benefit of this is that you have the ability to match any other company's offer to lease space that you may need in the future for your business. The drawback is that you may have to make this decision at a time when you are not ready to expand and may have to refuse the space thereby opening the door for the third party to lease space you were hoping to occupy at a future date.

The second commonly overlooked lease provision is the "Option" to occupy adjacent space. The way this works is that rather than having to match a third party offer for adjacent space, you are given the "Option", for a specific period of time; typically a few months to several years, to occupy adjacent space at a pre-determined rental rate. The benefit of this provision is that the adjacent space is effectively off the market to other companies during your option period and waiting for your future occupancy. The rental rate for the option space is commonly set at the same rate as what you are paying for the rest of your space but can vary depending on required improvements and other deal specific factors. A drawback to this type of lease provision is that options typically require some sort of monetary exchange such as a non-refundable deposit or option fee. In order for a landlord to agree to take vacant space off the market for a period of time, a fee is typically paid to offset some portion of the forfeited rental income and as good faith that you intend to exercise the option on the adjacent space. You should be fairly certain that your company will require the additional space before paying any option fees since these fees are typically non-refundable in the event you do not exercise your option to occupy the additional space.

Commercial leases are complicated legal documents. Since leases are typically drafted by the landlord, you should always consult a real estate professional and/or attorney when negotiating a commercial lease. The above-mentioned provisions are just the tip of the iceberg when it comes to executing a lease for professional, industrial, or any other type of commercial space. A poorly negotiated lease can mean the difference between years of efficient, planned growth and several thousands of dollars in unanticipated moving expenses.

New To ActiveRain

Rob Beland Leominster Commercial Real Estate (Apex Properties) — Thu, 17 May 2007 20:34:36 -0500

I recently joined ActiveRain with the hopes of networking with other commercial real estate professionals in Massachusetts and even throughout the country. Pleaes check out my profile and my blog

http://apexproperties.blogspot.com

Hopefully I'll learn a few things here about real estate and hopefully some of you will learn something from me about commercial real estate.

Condominiums Without Bedrooms...An Alternative to Commercial RE Ownership

Rob Beland Leominster Commercial Real Estate (Apex Properties) — Wed, 16 May 2007 20:23:19 -0500

Have you noticed the direction that the price of vacant commercial land in Leominster and basically all over Massachusetts has been going lately? Better yet...have you seen any vacant commercial land for sale in Leominster?

There's not much out there and what vacant land there is out there is owned by a very small group of people with pockets much deeper than you or I and there is not incentive big enough to get them to sell...

What does that mean for the small business owner that is tired of writing checks every month to their landlord and wants to get into the real estate market for themselves without having to find land and put up a building? It's time to consider an alternative to traditional commercial real estate ownership...business condominiums. Sure you could buy an existing building but like the availability of vacant commercial land, the availability of existing free-standing commercial buildings is not much better.

There aren't too many business condos in the area although they're starting to catch on I think...very slowly of course. They're out there and hopefully more are coming on the market if enough developers and land owners realize this idea is a good one and can be a very profitable one too...

A perfect example of a business condo development that you probably didn't even know about is 54 Main St, Leominster on the corner of Main St and Merriam Ave across from the post office. This building consists of 10 or so individually owned office condominiums. Like with a free-standing building each condo has it's own deed that can be transferred at any time, can be mortgaged, and can be foreclosed if you don't pay your mortgage.

Unlike a free-standing building, a business condo is one individual office among many others within a condo association. They're all under one roof so the cost to repair or replace the roof is shared by several owners, and they're all located within one building so the maintenance on that building and the general upkeep is shared by several owners. The biggest benefit financially is that many business condos can fit on one parcel of land so the cost of that land is shared by several owners.

The newest office condo development was recently constructed at 30 Williams St, just off of Whitney St at the intersection of Whitney and Mill St. This single story, 8,000 SF building sits on just under an acre of land but accomodates up to 6 different businesses. A few units have been recently sold and leased. Like the owners at 54 Main St, these condo owners benefit from not having to go out and find land, put up a building, did I mention find land??? They were able to purchase only the portion of the building that they occupy and now share in the maintenance and upkeep of the whole property with the other unit owners.

Doesn't that sound like a great idea? Rather than go out and try and find one of the remaining vacant parcels of usable commercial land or try and find that rare free-standing building with a price-tag that won't make you gag, buy into an association of business condominiums. The idea is catching on in places like Marlboro, Hudson, and many cities closer to Boston and hopefully the idea continues to grow in popularity out here in Central and Western Ma...

What do you think about the idea of purchasing a business condo rather than a free-standing building or a vacant piece of land that must be developed?

Would you consider this option?

Are you interested in more information about business condos?

I'd like to hear from you...

Rob Beland, Apex Properties

Leominster, MA

Commercial Real Estate Professional

The Real Estate TrendMill

Buyer's Agents in Commercial Real Estate

Rob Beland Leominster Commercial Real Estate (Apex Properties) — Thu, 10 May 2007 19:33:49 -0500

A commercial real estate agent knows the market and it's his job to know real estate. You chose to enter into a different field so why pretend you're a real estate expert?
You don't have time to run your business and be on the phone all day long calling on classified ads, searching the internet, and driving around taking phone numbers off of signs. A buyer's agent can do all that in his sleep.
The person selling the property that you want to buy has already hired a real estate professional to sell his building so right off the bat you're at a disadvantage. He has professional representation and you're on your own to figure out if you are getting a fair deal.
It just makes sense...You wouldn't go into court without an attorney, you call a travel agent when you want to book a vacation (and if you don't use a travel agent because you think you're getting a better deal with an online travel site you're mistaken...but that's a story for another day) so don't go into a major commercial real estate transaction without having a real estate professional representing your interests.

Would it be worth spending $10K to save $50K???

Rob Beland, Apex Properties

Leominster, MA

Commercial Real Estate Professional

The Real Estate TrendMill