More Store Closings in 2010

Store closings could keep piling up in 2010. Find out about Movie Gallery in this article published by Retail Traffic Magazine. Click HERE.

Smart Focus

If you are like many of us, you've made New Year's goals to get organized and do more investing. For us in the real estate business of selling and/or investing, that means we need to start looking at properties and putting deals together. My father had a good quote when it comes to investing and it goes something like this, "It's not how you get into the game, its when you get into the game." This means that it's not necessarily the size of the deal that is important, it is that time is a precious commodity and is important to take advantage of opportunities as soon as possible.

Whether it is putting more money away for retirement, buying your first rental property or moving your company from a lease situation to an ownership situation, you need to have focus and discipline. Here are a few ways to get organized and maintain your focus over the upcoming year:

Specific: A specific goal has a much greater chance of being reached than a goal that is general.
Measurable: Create specific deadlines and targets to keep track of progress.
Attainable: Set goals that are important to you and develop ways to reach them.
Realistic: Set goals you are willing and able to work towards.
Timely: Create a time-frame within which you wish to reach your goal.

After you have set your goals for the year, create a plan and don't deviate from it. Allowing yourself to get sidetraced or leting checkpoints pass by will prevent you from keeping your resolution. Stick with your goals and your plan of action. Take a moment to think about where you want to be in a year.

"Resolve to perform what you ought; perform without fail what you resolve." -Benjamin Franklin

Mr. Landlord, What keeps you up at night?

Is it the leases on your building expiring? Is it wondering if your rates are in line with the current market or are you leaving money on the table? How about any governmental actions in the works that could redirect traffic away from your building, make it hard for tenants or customers to get to work? How about the current debt levels that are putting you under water? What expenses could you be writing off that are costing you thousands come April 1? What if you agreed to some lease terms that turned out not to be so favorable and the lease doesn't expire for another couple years?

If any of these concern you, then you are not alone. These questions along with hundreds of other questions are everyday concerns of the commercial property owner and there is a place to start answering those questions.

If you haven't befriended a commercial real estate broker, it should be on your New Year's goal sheet.  There are several industries that are effected by the brokers recommendation for the myriad of services that need to be performed to maintain commercial real estate. Industries that benefit from good relationships with brokers are: general contractors, HVAC repairs, handywork, plumbers, alarm companies, lighting and electrical contractors, drywaller and plaster contractors, elevator repairmen, boiler engineers, landscaping companies, property managers, leasing agents, insurance agents, financial consultants, accountants, closing companies, title companies, abstract compancies, etc. to name a few.

The owners of the companies in each of the above named industries know that the broker has the buyer/seller/tenant or landlord's ear when it comes to property advice. The good CRE Broker knows that his or her role should include relationships with each of these industries and be quick with a recommendation that can help the buyer/seller/tenant or landlord. In almost every situation, the expertise and services performed from a good commercial real estate broker will help save thousands.

If you need ideas on how to improve your property situation, feel free to contact Neil Dailey at McGraw Commercial Properties at 918-853-7337.

Rattled Retail

Today, another gloomy story about Office Depot is announced.  According to Bloomberg, Office Depot, Inc said it will close almost 10 percent of its North American stores and cut 2,200 jobs or 4.5 % of its workforce as the demand for business furniture has fallen during the US recession. On the bright-side, shares jumped 11 % on the news.

Office Depot currently operates 1275 stores in North America and this number will be reduced to 1163. New store openings next year will be limited to 20 stores, which will reduce capital spending and increase cash flows by $70 million.

For more information on the story, click here.

If you are looking to buy, sell or lease commercial property, please contact Neil T. Dailey of McGraw Commercial Properties for expert advice on your next transaction. Neil can be reached at 918-853-7337.

Going For The Green

In the latest Realtors Commercial Alliance (RCA) report, there is some astounding information on the growth of green buildings and the effect of commercial buildings on the environment. For example, the article states that buildings are a major contributor to climate change-emitting 39% of U.S. CO2 emissions (18% from commercial buildings), consuming 71% of the country's electricity, and producing 65% of its waste according to the U.S. Green Building Council (USGBC.)

Not only that, the emissions are expected to grow 1.8% over the next two decades.

In addition to some staggering statistics, there are a few eye opening quotes such as this one from Joseph Scarpa, a broker associate with Legend Properties who says, "Green is making a major push forward. If you're putting a property in the ground today that isn't green, it will be functionally obsolete before it's finished.

Here is a link to the article.

Check out these other organizations for more Green Initiatives:

Building Owners and Managers's Association, California Sustainability Alliance, Ecobroker, Energy Star, U.S. Green Buildings Council.

If you would like to talk about buying, selling or leasing commercial property, please contact Neil Dailey at McGraw Commercial Properties, 918-853-7337 or ndailey@mcgrawok.com.

Commercial Real Estate Loan Portfolios holding up in weak economy

There has been a great article written about the commercial real estate loan portfolios held by banks and other lending institutions. In the midst of all the doom and gloom around the real estate industry, it's necessary to spotlight the good news so you are informed on all sides of the issues. Click here for a link to the article posted on CoStar today.

For more news and information on commercial real estate, or for general commercial real estate questions, call Neil Dailey of McGraw Commercial Properties at 918-853-7337.

Industry Stats

The latest industry stats have been released for the national retail real estate sector. First quarter of 2008 shows a sales volume of only $49 billion, down $100 billion from Q1 of 2007 say Real Capital Analytics in Retail Traffic Magazine. Most blame the economy as the reason for the massive pullback by developers and retailers alike.

In regards to rental rates, New York stands alone as the highest per square foot rate for in-line retail space at $133/psf. Next highest is San Francisco at $70/psf. On the home front in Tulsa, average rates are hovering around $20/psf.

For more commercial real estate news and information, call Neil Dailey of McGraw Realtors at 918-853-7337 or email at ndailey@mcgrawok.com.

Inflation Unleashed

As a commercial real estate broker, I get several periodicals about real estate and commercial properties across the country. One of the best publications that I have the chance to read is National Real Estate Investor. In this month's issue, there is a tremendous article about the state of inflation in our country and how it relates to commercial real estate. This article is an easy read for the novice, but still contains detailed information for the true investor. 

Take notice of the two paragraphs, "Effects on Real Estate" and "Selective Buying." Here is the link to the specific article and happy reading!

For more information on commercial real estate sales, leasing or property management, contact Neil Dailey at McGraw Commercial Properties or call 918-388-9588.

Ever Lease Space to the Government?

If you ever aspire to lease space to Ol' Uncle Sam, there are a few things to know before signing on the dotted line, even here in Tulsa. "The GSA or US General Services Administration, the nations largest public real estate organization, provides workspace for more than 1.2 Million federal workers through its Public Buildings Service. Approximately half of the employees are in buildings owned by the federal government and half are located in over 7,100 separate leased properties (including buildings, land, antenna sites, etc.) across the country." The other half of the buildings are ones that are owned by people like you and I.

In order to compete for the US Government to be one of your tenants, there is some competition involved and also an etiquette when submitting a proposed space. If you have a space that you would like to be considered in the latest govermental search, best to visit www.gsa.gov/leasing for more information. That link will cover: 1) Offering Space to the GSA, 2) Submitting a Proposal and Lease Awards and Payments.

For all your commercial real estate questions, contact Neil T. Dailey of McGraw Realtors at 918-853-7337 or at ndailey@mcgrawok.com.