Monday, July 19, 2010

Getting Green

One of the most respected contractors in our area is helping companies reduce their carbon footprint and reduce cost at the same time.
I thought you'd like to read how they are helping companies save in this area!

Most of us are aware that buildings and development provide many benefits to society, but they also have significant environmental impact.

According to the latest information from the EPA:

• Buildings account for 38.9% of our total energy consumption
• Buildings account for 72% of electric consumption
• Buildings contribute 38.9% of our total carbon dioxide emissions
• Building occupants use 13% of the total water consumed in the U.S.

Just think, if we compared our buildings to the automotive industry; what is the “miles per gallon” of your building?

The latest trend in our industry is “sustainability.” The current accepted definition is “development that meets the needs of the present without compromising the ability of future generations to meet their own needs.”

Those of us in the building industry are increasingly exposed and requested to design and build buildings that meet this requirement. Rising energy costs, social activism and yes, government regulation have coalesced to create opportunities for almost all of us to recognize and to act progressively to embrace this concept. Further, an increase in corporate responsibilities has led some companies to become leaders in the “Green Movement” and they advertise accordingly.

The challenge is how do we incorporate and create structures and use processes that are environmentally responsible and resource-efficient throughout the life-cycle of the building and do so cost effectively. As prudent business people we are always reminded of “Return on Investment.”

A great and simple way to create alternative energy source, whether for new buildings or existing buildings is simply energy conservation. It is the lowest cost of energy we have at hand. Since 1973 alone, improvements in energy efficiency have resulted in a 50% reduction in our daily energy use, which is the same as discovering an extra 25 million barrels of oil every single day. Clearly saving energy is like finding it.

Renier recently recommended and completed the installation of an energy efficient lighting system for Atrium’s 265,000 square foot office/warehouse facility. Co-founder David Hirsch was excited to learn that his company will save 30% on electric costs.

If you would like to speak to the good people at Renier, contact Mike Vasbinder at
Enjoy your summer!

Sunday, July 18, 2010

The Silver Lining in Commercial

With everyone complaining about how bad business is, activity being down and companies procrastinating the one silver lining is the great opportunities for companies to improve their type of space in today's market.
Whether that is a start up going into a sublease space for thirty cents on the dollar, a tenant in a Class B office building moving into a Class A building for the same price with all the concessions being offered and negotiated NOW is the time to look at your current lease and those of your clients and see how they can improve their bottom line not only for 2010 but for years to come!
Chances like this don't come around very often I can say after almost 25 years in the business so take advantage of them NOW!

Wednesday, July 14, 2010

Residential to Commercial

Many Residential Agents are trying to figure out whether to refer commercial prospects or work the assignment themselves.
We teach a class on "Residential To Commercial" and think the best course of action is to work with a commercial agent together if you want to learn the business or refer the assignment out and let the experienced commercial agent do the job correctly.
No one can afford a poor reputation, not the agent, firm or our industry
so think before you think you can tackle an assignment outside of your experitise
or take the time to learn how to complement your residential business with commercial business.
See for more on this

Friday, July 9, 2010

Mid Year Commercial Real Estate Activity

I just read with interest the first half NAR report showing commercial activity . Here are some of the highlights I thought you would be interested in reviewing:

  • Sales Volume Compared with Previous Quarter - Down 3%
  • Sales Volume Compared with Previous Year - Down 6%
  • Sales Prices Compared with Previous Quarter - Down 9%
  • Sales Prices Compared with Previous Year - Down 16%
  • Expected Availability for the Next 12 Months - Up 12%
  • Expected Cap Rate Movement for the Next 12 Months - Up 9 bps
  • Rental Volume Compared with Previous Quarter - Up 3%
  • Rental Rates Compared with Previous Quarter - Down 10%
  • Level of Rent Concessions Compared with Previous Quarter - Up 9%
  • Direction of Business Opportunities Compared with Previous Quarter - Down 1%
  • Volume of New Construction Compared with Previous Quarter - Down 16%

What does this mean to you and anyone connected in commercial real estate?

You need to plan more than ever. Having a specific strategic plan and team of experts to help you formulate and implement that plan is now more important than ever.

Don't think you can do it by yourself. Surround yourselves with people experienced in the areas you are considering exploring. Take your time to do this right and you can prosper even in this market. We can show you the way!