Informed commercial real estate news

Hello Recently i got two quotes from two different lender on a 1.4mil propety, i was wondering which one would you choose and what i should beware of. Thanks 1) Here is what we could potentially finance roughly $850,000 possibly a bit more and rates as of today: 5-year term, amortized for 25 years with prepay (breakfunding) Rate is 7.05% 5-year term, amortized for 25 years with every year repricing but with opportunity to prepay without a penalty on every year anniversary. 6.45% ** No lender fees, no points, no origination fees. 2) this one appears to pencil at 60% leverage or $837,000 in loan proceeds. Current multifamily pricing is 3-year fixed at 6.47%, 5-year 6.57%, 7-year 6.67%, and 10-year 6.77%, 30-year amortization, no loan fee, recourse, and stepdown prepayments. An open prepay structure is available with a loan fee and rate add. Our processing time is averaging 60 days from start to finish. submitted by /u/Puzzleheaded-Log2264 [link] [comments]

Like some of you, I thought I wanted to be a hot shot real estate guy. Background is working at a small commercial real estate investment manager. Turns out it’s just not for me. Been unhappy for a while, make a decent income, but just want something more chill / easy / repetitive. Feel like I’m constantly on fire drills and stressed and working late nights. I’d like to work in a specific smaller market and have a family, but I currently barely have time for anything. How’s the switch into lending or the like? Is that a good fit? submitted by /u/excelquestionf1112 [link] [comments]

Someone negotiated a June 20 rent escalation on a lease expiring May 31 clearly never had to prepare a rent roll! And then they threw in free rent, a building transfer, an RSF discrepancy, AND a separate space amendment. Just for fun! Now, if the next tenant could just have ONE lease, ONE RSF figure, and rent increases on January 1, I'd be eternally grateful. ☕😂 Be kind - ask your rent roll preparer, whomever they may be, to review leases first please! submitted by /u/ThickAsAPlankton [link] [comments]

What are the best real estate data plugins that you use with ChatGPT? More so on the data side, like property information, permits pulled in the area, or even skip tracking. I do single-tenant retail developments and I’m curious if there are any plugins that could help me with site selection and outreach. submitted by /u/the_ugly_snail [link] [comments]

For those on the brokerage side, curious what you're also experiencing. So many conversations are resulting in owners referencing offers they had during this time period. And it's just creating a false expectation of what their property is actually worth. And for the foreseeable future, given the current economic conditions, prices are more or less going stay the same or probably drop slightly. How are you approaching this with a owner? Do you just be direct with them they will never see X price? submitted by /u/Tkfit09 [link] [comments]

Having spoke with a handful of brokers the past few days, I’m seeing general cap rate guidance have moved around 50bps. What was a 6 cap stabilized deal is now at 6.5% cap guidance. General consensus is that “all” buyers are at 7.5% cap guidance and thus not competitive if you are at this spot with not having a relationship with the broker. Looking at a deal today and it’s interesting because most of these deals seem to be 5-7 year term remaining that the tenant then has an extension option. I can get to justifying the 7.25% cap rate range to be more competitive then the masses but it’s still quite a swing vs. cap guidance. Curious if there are any brokers here who can shed some light as to whether offers are so light right now that it’s worth the submission and by seeing an actual offer changes the conversation then the scoff of a verbal and if expectation is in the low 7 range when guidance is now mid-high 6. What’s ultimately the risk I see is whether or not said tenant renews. If they renew then all is good. Can refi or resell to the next guy in 5 years. If you factor vacate and at the purchase cap that likely gets deal done (high 6 to flat 7) then it becomes a quite boring return that I don’t see really making sense. Future problem or going to be a boring few months until we get some consistency of debt and thus guidance to match reality? For what it’s worth on non lifeco debt im getting 190-200bps, 30yr amort. submitted by /u/mostly_irrelevant007 [link] [comments]

Location: Ontario Canada I own a mid-sized plaza in Ontario, Canada. Over the past 2 years the City has been doing roadworks on the arterial road my plaza sits on. Last year / this year the work was being done just down the road from the plaza, which impacted my tenants business with slightly reduced traffic and sales (approx. 10% I've been told). Most of my tenants are Destination Tenants (Dr's, Physio, etc.), but several are convenience/retail tenants (Variety Store, Cafe, Shawarma). In speaking with the City recently, I have been told that next spring they will be redoing the road directly in front of my plaza. This will certainly impact my tenants, as access will be very limited and the Arterial Road is being closed in the middle to deter through-traffic. Construction is expected to take the entire Spring/Summer/Fall to complete. I truly like my tenants and believe in being open with them, and this is certainly weighing on my mind. My agent says I don't need to inform them as the City/Region has been very open about the construction and the information is certainly out there for anyone to find. On the other hand, I think it important that if they don't know that they be informed so they can prepare for the reduction in traffic and sales. I already have an email drafted and ready to go to the tenants, but I'm putting it out there to the experts here - do I send the email, or do I let the process unfold naturally? Additional Info: No leases up for renewal between now to the end of construction. submitted by /u/WildManOfUruk [link] [comments]

Small time landlord-to-be helping my mother out. Specs of the property are: Warehouse Class C (16ft ceilings, no loading dock, garage, no AC, old build) 1800sqft Asking $3k/mo gross Rahway, NJ Turned over with fresh paint, freshly epoxied floors, 60k lumens of lighting, new door, drywalled ceiling (was exposed joists with insulation) Potential tenant is asking for 1 month free rent and AC to be installed. Installing a 5 ton AC in the space would require installing ductwork, building out a maintenance closet, coming in around $25k. Was going to ask for an extra 500/mo for 5 years ($3.5k/mo) for the AC buildout and a PG for the AC portion of the lease. We'd want 2 months security + 1st months rent to lessen the capital burden. My understanding is that the area is around $15-20 NNN, and I'm pricing at around $20 gross + AC buildout. Does this pricing seem reasonable for the area? submitted by /u/itchyouch [link] [comments]

Did he actually ever retire? Howd the transition go? Did you buy him out? Remortgage everything? submitted by /u/goodthanksyou [link] [comments]

Any thoughts? What’s the play and how can I be helped to see the 30k view submitted by /u/irepresentprespa [link] [comments]

Consider a (~1,500 sq ft) 2nd gen inline retail unit being converted from a retail store to a fast-casual restaurant. Would you consider the following scope part of the "shell" delivered by a landlord, or would this traditionally be treated as tenant improvements deducted from the TIA? - Utilities to the back of the unit: i. A minimum 2-inch diameter natural gas pipe and meter rated for 500 CFH continuous flow. ii. A 4-inch uncapped sanitary sewer stub. iii. An upsized 3-phase commercial electrical service panel. - Cut the concrete floor slab at the rear for the placement of 3 drains (2 floor sinks and a mop sink) - Roof cuts for an exhaust fan and a makeup-air supply fan. Seal the penetrations after the tenant's fixtures are installed. Roof penetration for a plumbing sewer vent pipe. - Install a single-occupancy, ADA-compliant washroom adjacent to the existing one. submitted by /u/TheJasonJBailey [link] [comments]

So I don’t expect an answer or a solution here, but I feel the need to rant about something that makes absolutely no sense to me. I am a landlord and I have a commercial tenant in Michigan. This tenant was the principal for a Michigan LLC. The lease was written using tenancy laws from Michigan and negotiated by Michigan attorneys. The building is in Michigan and the tenant has broken their lease, owes back rent and utilities. There is also a personal guaranty that they signed based on Michigan law. They have since moved to Illinois. Can someone please tell me why on earth, I need to hire an attorney from Illinois and litigate this case there? What the hell does Illinois have to do with this? This is the third tenant in my career that screwed me and skipped town and there’s nothing I can do about it unless I sue in a different jurisdiction with different laws and a different collection attorney. Someone make this make sense. submitted by /u/kimjongswoooon [link] [comments]

Hello Recently i got two quotes from two different lender on a 1.4mil propety, i was wondering which one would you choose and what i should beware of. Thanks 1) Here is what we could potentially finance roughly $850,000 possibly a bit more and rates as of today: 5-year term, amortized for 25 years with prepay (breakfunding) Rate is 7.05% 5-year term, amortized for 25 years with every year repricing but with opportunity to prepay without a penalty on every year anniversary. 6.45% ** No lender fees, no points, no origination fees. 2) this one appears to pencil at 60% leverage or $837,000 in loan proceeds. Current multifamily pricing is 3-year fixed at 6.47%, 5-year 6.57%, 7-year 6.67%, and 10-year 6.77%, 30-year amortization, no loan fee, recourse, and stepdown prepayments. An open prepay structure is available with a loan fee and rate add. Our processing time is averaging 60 days from start to finish. submitted by /u/Puzzleheaded-Log2264 [link] [comments]

Like some of you, I thought I wanted to be a hot shot real estate guy. Background is working at a small commercial real estate investment manager. Turns out it’s just not for me. Been unhappy for a while, make a decent income, but just want something more chill / easy / repetitive. Feel like I’m constantly on fire drills and stressed and working late nights. I’d like to work in a specific smaller market and have a family, but I currently barely have time for anything. How’s the switch into lending or the like? Is that a good fit? submitted by /u/excelquestionf1112 [link] [comments]

Someone negotiated a June 20 rent escalation on a lease expiring May 31 clearly never had to prepare a rent roll! And then they threw in free rent, a building transfer, an RSF discrepancy, AND a separate space amendment. Just for fun! Now, if the next tenant could just have ONE lease, ONE RSF figure, and rent increases on January 1, I'd be eternally grateful. ☕😂 Be kind - ask your rent roll preparer, whomever they may be, to review leases first please! submitted by /u/ThickAsAPlankton [link] [comments]

What are the best real estate data plugins that you use with ChatGPT? More so on the data side, like property information, permits pulled in the area, or even skip tracking. I do single-tenant retail developments and I’m curious if there are any plugins that could help me with site selection and outreach. submitted by /u/the_ugly_snail [link] [comments]

For those on the brokerage side, curious what you're also experiencing. So many conversations are resulting in owners referencing offers they had during this time period. And it's just creating a false expectation of what their property is actually worth. And for the foreseeable future, given the current economic conditions, prices are more or less going stay the same or probably drop slightly. How are you approaching this with a owner? Do you just be direct with them they will never see X price? submitted by /u/Tkfit09 [link] [comments]

Having spoke with a handful of brokers the past few days, I’m seeing general cap rate guidance have moved around 50bps. What was a 6 cap stabilized deal is now at 6.5% cap guidance. General consensus is that “all” buyers are at 7.5% cap guidance and thus not competitive if you are at this spot with not having a relationship with the broker. Looking at a deal today and it’s interesting because most of these deals seem to be 5-7 year term remaining that the tenant then has an extension option. I can get to justifying the 7.25% cap rate range to be more competitive then the masses but it’s still quite a swing vs. cap guidance. Curious if there are any brokers here who can shed some light as to whether offers are so light right now that it’s worth the submission and by seeing an actual offer changes the conversation then the scoff of a verbal and if expectation is in the low 7 range when guidance is now mid-high 6. What’s ultimately the risk I see is whether or not said tenant renews. If they renew then all is good. Can refi or resell to the next guy in 5 years. If you factor vacate and at the purchase cap that likely gets deal done (high 6 to flat 7) then it becomes a quite boring return that I don’t see really making sense. Future problem or going to be a boring few months until we get some consistency of debt and thus guidance to match reality? For what it’s worth on non lifeco debt im getting 190-200bps, 30yr amort. submitted by /u/mostly_irrelevant007 [link] [comments]

Location: Ontario Canada I own a mid-sized plaza in Ontario, Canada. Over the past 2 years the City has been doing roadworks on the arterial road my plaza sits on. Last year / this year the work was being done just down the road from the plaza, which impacted my tenants business with slightly reduced traffic and sales (approx. 10% I've been told). Most of my tenants are Destination Tenants (Dr's, Physio, etc.), but several are convenience/retail tenants (Variety Store, Cafe, Shawarma). In speaking with the City recently, I have been told that next spring they will be redoing the road directly in front of my plaza. This will certainly impact my tenants, as access will be very limited and the Arterial Road is being closed in the middle to deter through-traffic. Construction is expected to take the entire Spring/Summer/Fall to complete. I truly like my tenants and believe in being open with them, and this is certainly weighing on my mind. My agent says I don't need to inform them as the City/Region has been very open about the construction and the information is certainly out there for anyone to find. On the other hand, I think it important that if they don't know that they be informed so they can prepare for the reduction in traffic and sales. I already have an email drafted and ready to go to the tenants, but I'm putting it out there to the experts here - do I send the email, or do I let the process unfold naturally? Additional Info: No leases up for renewal between now to the end of construction. submitted by /u/WildManOfUruk [link] [comments]

Small time landlord-to-be helping my mother out. Specs of the property are: Warehouse Class C (16ft ceilings, no loading dock, garage, no AC, old build) 1800sqft Asking $3k/mo gross Rahway, NJ Turned over with fresh paint, freshly epoxied floors, 60k lumens of lighting, new door, drywalled ceiling (was exposed joists with insulation) Potential tenant is asking for 1 month free rent and AC to be installed. Installing a 5 ton AC in the space would require installing ductwork, building out a maintenance closet, coming in around $25k. Was going to ask for an extra 500/mo for 5 years ($3.5k/mo) for the AC buildout and a PG for the AC portion of the lease. We'd want 2 months security + 1st months rent to lessen the capital burden. My understanding is that the area is around $15-20 NNN, and I'm pricing at around $20 gross + AC buildout. Does this pricing seem reasonable for the area? submitted by /u/itchyouch [link] [comments]

Did he actually ever retire? Howd the transition go? Did you buy him out? Remortgage everything? submitted by /u/goodthanksyou [link] [comments]

Any thoughts? What’s the play and how can I be helped to see the 30k view submitted by /u/irepresentprespa [link] [comments]

Consider a (~1,500 sq ft) 2nd gen inline retail unit being converted from a retail store to a fast-casual restaurant. Would you consider the following scope part of the "shell" delivered by a landlord, or would this traditionally be treated as tenant improvements deducted from the TIA? - Utilities to the back of the unit: i. A minimum 2-inch diameter natural gas pipe and meter rated for 500 CFH continuous flow. ii. A 4-inch uncapped sanitary sewer stub. iii. An upsized 3-phase commercial electrical service panel. - Cut the concrete floor slab at the rear for the placement of 3 drains (2 floor sinks and a mop sink) - Roof cuts for an exhaust fan and a makeup-air supply fan. Seal the penetrations after the tenant's fixtures are installed. Roof penetration for a plumbing sewer vent pipe. - Install a single-occupancy, ADA-compliant washroom adjacent to the existing one. submitted by /u/TheJasonJBailey [link] [comments]

So I don’t expect an answer or a solution here, but I feel the need to rant about something that makes absolutely no sense to me. I am a landlord and I have a commercial tenant in Michigan. This tenant was the principal for a Michigan LLC. The lease was written using tenancy laws from Michigan and negotiated by Michigan attorneys. The building is in Michigan and the tenant has broken their lease, owes back rent and utilities. There is also a personal guaranty that they signed based on Michigan law. They have since moved to Illinois. Can someone please tell me why on earth, I need to hire an attorney from Illinois and litigate this case there? What the hell does Illinois have to do with this? This is the third tenant in my career that screwed me and skipped town and there’s nothing I can do about it unless I sue in a different jurisdiction with different laws and a different collection attorney. Someone make this make sense. submitted by /u/kimjongswoooon [link] [comments]