Commercial Real Estate Loans

Commercial real estate marketing is the most important thing that you can do if you own commercial real estate. Things you need to do to market your property for lease are as follows:

Marketing Materials

Put together a professional flyer outlining the spaces for lease. A good flyer will have pictures of the shopping center or office building and the space, information on the space such as its size and dimensions as well as location in the property, a site plan of the property, demographic information about the market area, traffic counts of the adjoining streets, an aerial depicting the area and showing other traffic generators, and your contact information.

Leasing Signage

You should have a sign at the main entryways and corners of the property as well as a sign in each vacancy in the property which has your contact information. Always have these signs done professionally.

Vacancy Preparation

Showing the space in a positive light is tantamount when marketing it. Have the space thoroughly cleaned with old or stained carpeting removed if it doesn’t show well, the walls repaired and painted, and ceiling tiles and light fixtures repaired and cleaned. You can stage the unit to help in leasing it. If it is unlikely that the next tenant can utilize the improvements in the space, remove them and place the space in a “vanilla shell” condition. Remember to also make sure that the outside of the space looks clean and fresh. Continue Reading

There are many types of commercial real estate mortgages that are available. Deciding on the type of financing you need or want depends on many factors. One of the most deciding factors is your exit strategy. If you plan to buy and keep a retail center for a long time, you would consider a long term permanent loan with a fixed interest rate. If you want to buy an apartment building and your strategy is to flip it pretty quickly, you want to consider a loan that has a low upfront cost and low interest rate. Here are the most common types of mortgages and how they are best utilized:

Long Term Loans – These loans are up to 10 years in length, are fixed rate loans, usually have a prepayment penalty and are typically amortized over 30 years.

Short Term Loans – These loans are typically up to 3 years in length, have lower interest rates than long term loans and are typically amortized for less than 30 years. These commercial real estate mortgages may suit you if you plan on selling the property within a short period of time and overall would cost you less because it doesn’t have a prepayment penalty.

Conduit Loans – These mortgages usually have low interest rates, with long amortization periods and can be nonrecourse loans. Nonrecourse means that you are not personally liable for the loan. These are good for properties that are stable with credit tenants.

Small Business Administration (SBA) Loans – These loans are insured by the SBA, given through SBA approved lenders and they have some of the most favorable terms such as low down payments, lengthier loan terms, as much as 40 year amortizations and low interest rates. Most of these loans are given to owners who occupy at least 51% of the property and can be used as a construction loan if you occupy at least 60% of the building. Continue Reading

Successful businesses arise through professionalism, industry and focus. The premise of a business also reflects on the reception of the trade by the public. The physical address where you conduct your business speaks volumes about your products and services. Entrepreneurs go to great lengths to make their appearances appealing on the outside.

A new business trend has emerged in the market. Due to the high cost of living, businessmen have found alternative ways of establishing themselves. Many entrepreneurs are now using virtual offices and serviced premises. Serviced offices are apartments that allow people to put up a trade of their choice. These premises come without the expenses of sourcing, managing, or furnishing.

Operating businesses in leased premises can cause many problems in the future. Leases restrict entrepreneurs to a fixed address until the expiry of the contract. This can pose a huge loss in cases where the business has to expand to operate efficiently. If an organization needs to expand globally, binding agreements prevent any form of progress. Serviced offices allow you room for flexibility and grant you freedom to respond to change.

Companies offering serviced office space also provide a wide range of services to their clients. Besides having a notable business address, the client organization can also benefit from furniture and cleaning services. The cost of furniture can be overwhelming for small scale businesses. Furniture equipment can be helpful to beginners who only have operational capital. The task of looking for cleaning agents is unnecessary in serviced offices. The service companies offer reliable cleaners to their clients. Continue Reading