Experience On Your Side—How Tenant Representation Can Affect Your Bottom Line

There are many questions that come to mind when considering the best location for your business. How can I find a location that not only fits my needs, but is also within budget? What factors do I need to consider when determining the best area for my specific business? What terms are most important to address in my lease?

Diving head first into the commercial real estate world can be daunting for some, and having in-depth knowledge of suitable locations, key competitors, and industry trends can help you determine what available locations are the best fit for you. Having access to all of that knowledge and more through experienced tenant representation can also save you time and money.

Here are some ways tenant representation can help set you up for success.

Lock down the best location

One of the often underrated factors in ensuring a successful business is choosing the right location. Location affects everything from amenities to capturing the proper demographics for your business to making it convenient for customers, clients, or patients to visit your business. Considering things like traffic counts, parking availability, visibility, and accessibility are essential in the search for the right property. These are all things that brokers have an in-depth knowledge of within their markets.

Targeting the right location is a puzzle, and hiring tenant representation will help you on your search for researching median income, population, trends, and more. Many times, brokers have exclusive resources that are not available to the general public and can assist in the analysis of each specific location.

“At Crunkleton, your initial meeting with a broker will include a detailed evaluation that helps identify what demographics, features, co-tenants, amenities, etc… will help make your business as successful as possible,” said Zac Buckley, Vice President of Leasing. “The broker will then create a list of properties, complete with property details and comparative information, that will help you determine the ideal location for your investment.”

Have someone by your side when negotiating lease terms

One of the most common mistakes tenants can make during commercial lease agreements is going in with limited knowledge of the negotiation process. Sometimes it’s difficult to get up-to-speed when time is a factor and you have to get business moving.

Many commercial leases are 25 pages or more in length and can be quite overwhelming to someone not experienced in all the different components and terms.

Lease negotiations can be a tedious process, and even small details can bring about unexpected costs. Brokers with years of insight and experience can effectively guide tenants through the process of commercial lease negotiations ensuring you get the best deal for your investment.

“We can certainly advise a tenant in making sure all the important business points in regards to the commercial real estate aspect are accounted for,” said Zac, “but we do recommend that tenants seek legal, tax, and other competent advice in areas not directly related to real estate.”

Save time and money

Searching for the perfect property is a time-consuming and at times frustrating process. Having tenant representation allows you to focus on what matters to you while leaving the devilish details to experienced professionals.

A tenant representative will do the legwork to find you the property that best fits your needs. They will take the time to find spaces that meet your criteria and coordinate with landlords to schedule site visits. They will even be able to point you in the direction of properties that might not yet be on the market. This might just give you a leg up on other tenants or competitors looking for similar space.

And finally, they can help you save money by seeking out the most competitive deals and advise you on acceptable rental rates based on the market.

Working with experienced counsel 

“It is our goal to not only help clients secure a prime location with lease terms that will set them up for success, but to do so in a manner that is as efficient and pleasant as possible,” said Zac. “We value the relationship with our clients, and we work hard to ensure their needs are taken care of.”

Want to learn more about how Crunkleton can help improve your bottom line? Click here to download our Tenant Representation guide.

SplitLine
Make sure you’re staying on top of the latest trends, newest developments and hottest new stores in Huntsville by subscribing to our weekly blog updates!

haley_clemons_signature
haley_square
HALEY CLEMONS
MARKETING COORDINATOR
CRUNKLETON COMMERCIAL REAL ESTATE GROUP
HALEY@CRUNKLETONASSOCIATES.COM

5 Things To Consider When Leasing Medical Office Space

When it comes to negotiating a lease for medical office space, several unique factors play into identifying the appropriate property. Working with hazardous materials, complying with HIPAA, easy access, and convenient parking—all of these things should be considered when looking at a potential medical facility.

Having experienced counsel on your side can help identify key issues in the lease that make a difference down the road. Eric St. John, Broker at Crunkleton Commercial Real Estate, has brokered various medical office negotiations and has outlined some of the major factors that play into finding the ideal space for medical use.

“There are many differences between a general office space lease and a medical space lease,” said Eric. “You have to look at everything from the flow of the space to determining what specific pieces of equipment will be used in it. While every deal is unique, there are a few major questions that always need thoughtful answers. And it’s up to the tenant to understand what those are to ensure an effective practice.”

So, here they are—five things to consider when leasing medical office space:

1) Does the space work with your needs?

This may seem like an obvious question, but taking note of certain factors will help you come up with more concrete answers. Close your eyes and imagine the space at your current family doctor’s office. Are the exam rooms far away from the waiting area? Does the space allow the staff to be productive and efficient? All of these things play into proper flow within a space.

“The first thing many medical tenants look at when it comes to location is the space’s proximity to the major hospital system they are affiliated with,” said Eric. “From there, things like the flow of a space and accessibility are at the forefront of decision making.”

Making sure your location is easily accessible for your patient base—including those with limited mobility—is something that should be deliberated. Know what major roadways and paths your patients will take to get to your building, and make sure it’s an easy one.

 2) How will you handle the disposal of hazardous waste/materials?

Medical office spaces often house materials that are a biohazard. With general office spaces, most leases prohibit the introduction of any hazardous wastes on the property. This is not the case with medical leases. Instead, the lease should provide well-defined guidance as to who will be responsible for the removal of such wastes. Liability for this issue shouldn’t be ignored.

“Most leases address the guidelines for hazardous materials,” said Eric. “The tenant is usually responsible for the handling and disposal of such waste.”

It may be just a few sentences within the lease that save you from any future trouble. Have confidence that the materials are stored and disposed of properly. Make sure the lease is crystal clear on how it will be executed, as well as who will be granted access to those materials.

3) What will you do to ensure HIPAA compliance?

While every office space is sure to contain some form of confidential documents, medical spaces are required to comply with the Health Insurance Portability and Accountability Act (HIPAA). The laws outlined by HIPAA vastly affect the functionality and accessibility of medical office spaces.

“It’s important to include information in the lease that outlines the landlord’s access to the space,” said Eric. “Usually, landlords are required to provide a certain notice before entering, unless there is an emergency. Leases can also outline the restriction of certain areas at certain times.”

4) Will you need to accommodate special equipment/procedures?

Special equipment requires specialized accommodations. Because many machines need their own rooms, generate extra heat or require specific insulation, these terms need to be outlined in the lease. Completing your homework beforehand will ensure that utility services are able to accommodate any additional needs.

“You’ll notice that not every practice has an X-ray machine,” said Eric. “These types of machines need shielded rooms lined with lead or other materials to operate—something that may not be readily available in certain spaces. Knowing what equipment or procedures the physician plans on offering certainly affects the deal, what type of space they need, and the negotiation as a whole.”

5) Who are your neighbors?

Many medical doctors seek spaces that include other primary care and internal medicine specialists because it allows for a “built-in referral system.” Rather than sending your patient across the city to follow up on a matter, doctors can send them to another office within the building, cutting down on confusion and adding convenience for the patient.

“Knowing who is in the building with you is important,” said Eric. “Because their business can affect your business.”

Thinking ahead.

At Crunkleton, we do our best to help clients find the medical office space that fits their needs. By paying attention to the diverse needs of medical tenants, anticipating future trends, and connecting with clients, we create a relationship that aims to meet the unique needs of medical office lessees.

“We do our best to understand the medical business to make sure clients get what they need,” said Eric. “Our job is to read between the lines and make sure they are taken care of in any situation. It’s always rewarding when we are able to negotiate a lease that benefits both the landlord, the tenant, and the public who needs exceptional medical care.”

To learn more about how Crunkleton can help you with your medical office leasing needs, contact Eric St. John at eric@crunkletonassociates.com.

SplitLine
Make sure you’re staying on top of the latest trends, newest developments and hottest new stores in Huntsville by subscribing to our weekly blog updates!

haley_clemons_signature
haley_square
HALEY CLEMONS
MARKETING COORDINATOR
CRUNKLETON COMMERCIAL REAL ESTATE GROUP
HALEY@CRUNKLETONASSOCIATES.COM

When Is It Time To Hire A Property Manager?

You’ve noticed something unsettling. The number of vacancies in your property investment is growing, and it’s becoming a challenge to bring quality tenants to occupy your space.

Over the years, you’ve watched thriving tenants retire or outgrow their accommodations. But something has changed. Tenants are flocking to other properties and leaving your investment behind. What’s happening? And what can you do to attract new tenants, keep the ones you have, and market your property effectively?

It might be time to hire a property manager.

What can a property manager do for you?

Simply put, a property manager will do everything they can to help you fully maximize your investment. Your property should be making you money—that’s the bottom line. And having an advocate take care of the day-to-day management of your property could be the difference in reaching your full income potential, or having opportunities fall through the cracks.

So, what can property managers do to help you achieve your ideal investment outcome? Here are just a few of the many ways you can benefit:

  • Stabilizing and reducing operating expenses
  • Implementing tenant retention programs
  • Proactively applying Risk Management programs to protect assets
  • Serving as your support when negotiating service rates
  • Regular inspections of the property
  • Ensuring quality lease terms and conditions
  • Monitoring construction supervision
  • And much more

What are the signs you could benefit from property management?

Many property owners effectively manage their own properties. But when is it time to look into hiring a commercial property management team? Do a quick assessment.

Lack of time – It’s a simple question. Do you have time to execute all of the necessary property management duties without sacrificing quality service or your personal life? If you are managing several properties at once, a property manager can help you by taking care of the daily tasks that can consume your time.

A property manager can handle screening tenants, listening to tenant complaints, ensure tenant safety, and deal with any after-hours emergencies that need immediate attention. This frees up your time to focus on the things that matter to you.

Outdated understanding of the industry – Staying current with industry trends is a must. There is a constant need to be updated on the latest changes that occur in the insurance industry and legal system to safeguard your investment.

Property management teams can make sure that Risk Management programs remain current and effective. They can also enforce tenant obligations, collect delinquent rent and be there for you during difficult legal processes. It’s a welcomed weight off your shoulders.

Several vacancies within properties – Property management teams can help fill troublesome vacancies by utilizing their network of agents and marketing professionals to increase occupancy and improve tenant retention.

Furthermore, they can complete regular site visits, property assessments, and help negotiate the best terms and conditions for all of your leases. This builds a solid foundation of communication and trust with each tenant you manage.

You want more insight throughout the construction process – Supervising the flow of an entire construction process takes knowledge, dedication, and attention to detail. These are all things a property manager can offer. Handing over the reins to a skilled team can free up your time and minimize your stress because they can handle any challenges that arise and monitor from the pre-design stage all the way through construction.

You need assistance when handling income/operating expenses – It’s about more than managing a property, it’s about managing your assets. Part of the property management service is keeping a detailed record for the operation of the property.

Managers can help with your annual operating budget and stabilize operating costs, financial reporting, and account management. They can make sure that you aren’t paying more than you need to be, and help you navigate through the complex and confusing red tape.

The decision to hire a property manager is a personal one, but one worth looking into. When it comes to property management, what matters most to you? Let us know in the comments.

Interested in learning more about how Crunkleton can help manage your property? Click here to download the guide.

 SplitLine
Make sure you’re staying on top of the latest trends, newest developments and hottest new stores in Huntsville by subscribing to our weekly blog updates!

haley_clemons_signature
haley_square
HALEY CLEMONS
MARKETING COORDINATOR
CRUNKLETON COMMERCIAL REAL ESTATE GROUP
HALEY@CRUNKLETONASSOCIATES.COM

The Trend Report: Emerging 2017 Insights

While just a mere month into 2017, there are already a few emerging trends that savvy commercial real estate investors are taking notice of according to the 2017 Emerging Trends in Real Estate report recently released by the Urban Land Institute and PWC. After reading the report for ourselves, here are our top six emerging trends to watch out for in 2017!

Demographic Shifts

qwbobpeoxjo-josh-rose

We’ve gone into great length previously on the impact that the rising number of Millennials and Baby Boomers entering and exiting the work force is forecasted to have on the commercial real estate market, and the crossover point where more Baby Boomers are retiring than Millennials entering the labor force is now upon us. Boomers are retiring at a rate of approximately 10,000 per day and America’s population of persons over the age of 90 has almost tripled since 1980. This, combined with the fact that many younger (millennial) households are falling behind, has left older and younger households competing for housing in many of the same places, indicating that Multi-Family developments with evolving amenities will continue to stay a strong investment.

Urbanization / Densification

pexels-photo-203548

This trend, which has been steadily growing over the least several years, seems to have no indication of slowing down any time soon as walkability, extensive live/work/play opportunities and alternative transportation options continue to draw people of all ages into the urban core. Developers are also continuing to follow this trend, preferring to invest in creating high-density mixed-used centers that provide a mixture of luxury living spaces, retail, work, parks, gathering and entertainment spaces. Even the suburbs are feeling the pressure to become more “urban”.

The Suburbs Aren’t Dead

pexels-photo-186077

While urbanization is still a hot trend moving into 2017, it’s important to note that most suburban communities are still flourishing despite the fanfare of the urban movement. In fact, in America’s 50 largest (and most urbanized) metropolitan areas, suburbs account for 79 percent of the population and (despite popular and media perception) 75 percent of the 25-35 year old population. So while many are feeling the pressure of the urbanization trend, it’s important to note that our nation’s suburbs are still poised to maintain their relevance and predominance.

The Rise Of The “Surban” Neighborhoods

surban-living

As we just stated, the suburbs are far from dead. However, the market is beginning to see a trend toward the urbanization of existing suburban neighborhoods and new developments that are shifting their focus to provide greater density, diversity, walkability and transit accessibility. This trend is due in large to the Millennial preferences for these qualities, which studies have found they find equally attractive in the suburbs as they do in the densest urban core. This has seen more and more retail stores transforming their spaces into locations that sell experiences, rather than goods and more developments combining housing and retail to satisfy consumer demand for places that offer convenient, car-free shopping.

Forward Looking Strategies

winter-road-arrow-74780

One trend that has become glaringly apparent as we move into 2017 is a push toward investors and property owners utilization of forward-looking strategies. Whether it be opting for the build-out of dynamically configurable office spaces that can easily be transformed to suit a variety of tenants or the conversion of class B and C shopping centers into last mile distribution centers to help e-retailers tackle the holy grail of same day delivery, investors are looking forward to the future and taking drastic steps to breathe new life into outdated spaces that are rapidly trending towards functional obsolescence. It seems that while often viewed as a “disrupter” for real estate, e-commerce is gradually emerging with a symbiotic relationship beyond the first clicks-and-bricks rapprochement.

Labor Shortages

street-building-construction-industry

As labor shortages in the construction industry continue to rise across the US, demographic projections are indicating that the issue will only intensify over the coming years. As of April 2016, there were over 200,000 unfilled job openings in the building and construction industry. More young people than ever are seeking higher education and therefore remaining out of the workforce longer at the same time that the Baby Boomer generation is slowly leaving the labor force creating a significant shortage of skilled laborers. These shortages are poised to not only reduce the number of projects undertaken by developers (some are already hypothesizing that this may have been a key factor in preventing over building in 2016) and delay the timing of these projects, but may also drive up the cost of new development. This, in turn, may see a push towards developers opting for projects that target the luxury end of the market in order to help cover costs.

screen-shot-2017-02-07-at-10-09-10-am“One thing is coming through loud and clear from the Emerging Trends interviews: you can find opportunities in any of the markets in this year’s survey, whether the market is number-one Austin or number-78 Buffalo. It all comes down to your strategy, risk tolerance, return requirements, and access to deals. If the markets are the squares on the chessboard and the property sectors the pieces, then there is an almost infinite combination of moves that can be made.”

To read the rest of the Urban Land Institutes report on Emerging Trends in Real Estate for yourself, click HERE.

SplitLine
Make sure you’re staying on top of the latest trends, newest developments and hottest new stores in Huntsville by subscribing to our weekly blog updates!

404220_10150473102152791_1516819070_nKadie_Sig
KADIE PANGBURN
MARKETING COORDINATOR
CRUNKLETON Commercial Real EState Group
KADIE@CRUNKLETONASSOCIATES.COM