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office space real estate

Mistakes that First Time Commercial Real Estate Investors Make

When it comes to commercial real estate investing, everyone has to start from square one. Investing in commercial real estate for the first time can present you with a fair share of decisions to make that will impact the overall success of the deal. Finding commercial property for sale that meets your business needs and budget is part of the equation, but you also need to be aware of a few common pitfalls that first-time investors make to give yourself the best chances for success. Below, we will provide you with details on some of the most common mistakes that first-time commercial real estate investors make so that you can avoid them at all costs. If you are looking for office space real estate or commercial property for sale, reach out to the Rakow Group today.

 

  1. Planning as You Go Along

One of the biggest mistakes that first time commercial real estate investors make is planning as they go. The key is to try to anticipate issues and problems before they actually happen so that you are always prepared. Investing is very similar to starting a business. You would never go and start a business without creating a business plan. The same holds true for investing in commercial real estate. You should create an investment plan and strategy that considers the future before you purchase any commercial property for sale.

  1. Not Creating Multiple Exit Strategies

Your exit strategy in a commercial real estate investment is one of the most important aspects of making money from your investment. This tip goes along with planning ahead. You should always be thinking about what exit strategies will help you maximize your return on investment. There’s nothing worse than being trapped in a deal because you didn’t create a proper exit strategy.

  1. Avoiding Creating a Great Team

Being successful in the commercial real estate world means surrounding yourself with a great team. You want a great property manager, a solid leasing team, and maintenance professionals that will help you protect your investment. This is even more crucial during the search for commercial property for sale. Reaching out to a great brokerage firm like the Rakow Group can make all the difference in the world.

We hope this article helps you avoid making any significant mistakes when you are investing in commercial real estate. Connect with the Rakow Group today if you have any questions about your first commercial real estate investment.

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commercial property for sale

Choosing the Right Property Manager

After you find the right commercial property for sale and get the deal closed, you are officially a commercial real estate property owner. You will have new opportunities as well as new responsibilities to take care of. It doesn’t matter if you own office space real estate or a warehouse, you will need to find someone to manage your commercial property. Finding a great property manager after you close on commercial property for sale is absolutely essential. Choosing wisely can help you protect your investment and keep your tenants happy while choosing poorly can lead to problem after problem. That’s why we’ve prepared the following article that details how to choose the right property manager for your commercial property.

 

  1. Licenses and Certifications

When you are evaluating your choices for your property manager, you should try to confirm if they have the appropriate licenses and certifications. It’s common for states and municipalities to require property managers to have a current and valid real estate broker’s license or a license that allows them to manage a property. Without the licenses, you should move on to the next candidate.

  1. High Performer

Being a property manager means choosing an individual that will be protecting your investment and helping the property run smoothly. You want to hire a property manager that you know will be consistently performing at a high level. It’s a good idea to interview several different property managers and property management companies to get a sense of their knowledge level and commitment to excellence. You can look at the current properties they are managing for additional insight as well.

  1. Likeability

Keep in mind that you will be working with your property manager on a regular basis. If they are someone you don’t really like or someone that you constantly try to avoid talking with, they probably aren’t the right choice. You want someone that is likeable and responsive so that you can ensure your property will be in good hands. Additionally, if you have tenants, you want a property manager that will be able to deal with their needs in a professional and friendly manner.

We hope this article has provided you with some great insight into how to choose the best property manager for your office space real estate or commercial property. Remember to reach out to the Rakow Group if you are seeking the best commercial property for sale on the market.

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commercial property for rent

How to Lease a Warehouse

If you are a company owner looking to scale your business, you might be interested in leasing a warehouse. A warehouse is industrial space for rent or industrial space for sale that can provide you with tons of room to grow. You can store, manufacture, and ship physical goods and products from a warehouse. It’s a versatile type of commercial property for rent that can be the launch pad for your future success. There are many things you should consider ahead of leasing a warehouse. Important considerations like costs, expenses, and overhead should always be at the top of your mind. Finding industrial space for rent that can suit your company’s needs, while also keeping your costs low, is the key to success. Below, we will touch on a few important considerations if you are planning to lease a warehouse.

 

  1. Make Sure There Are Capital Repairs Parameters in Place

Before you lease a warehouse, you should make sure that you and the landlord have clearly defined responsibilities when it comes to making repairs to the property. Anything from structural damage to parking lot issues should all be laid out clearly in a legal document. You also want to make sure you understand what you are paying for in terms of total square footage. You want to avoid paying for square footage that isn’t actually usable.

  1. Hire a Plumber to Inspect the Water Systems

Another crucial step for leasing a warehouse is to hire a plumber who will inspect all of the water systems. This is even more important if your business relies on water to operate on a daily basis. Warehouses tend to be large commercial property for rent with a lot of pipes and water systems to inspect. The last thing you want is to miss out on significant water issues or repairs simply because you avoided a proper inspection up front.

  1. Inspect the Electrical Capacity of the Warehouse

You should try to determine the electrical capacity of the warehouse before you sign the lease. Check out the HVAC system to see if it’s functioning properly. Make sure that the warehouse has the required voltage you need to run your business. If a warehouse isn’t able to meet all of your electrical and business needs, you should move on to the next option.

We hope this article has helped you learn about what to look for when leasing a warehouse. Remember to reach out to the Rakow Group if you are seeking the best industrial space for rent.

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office space real estate

Important Legal Tips for Purchasing Commercial Property

If you are in the market for commercial property for sale, you need to make sure you cover all of your bases from a legal perspective. There are plenty of state and local laws that can make or break the purchase of a commercial real estate. After you’ve found the right office space real estate to purchase, the last thing you want is to have the closing held up over legal matters. Keep reading on below to learn some important legal tips to keep in mind when purchasing commercial property so that your transaction will go as smoothly as possible.

  1. Figure Out the Sector

Due diligence is an absolutely essential aspect of purchasing commercial property for sale. In order to successfully handle due diligence for commercial property for sale, you need to identify what sector it is. For example, you might be purchasing real estate in the industrial, retail, multifamily, office, or mixed-use sectors. It’s important to determine what sector the property is in because there are certain legal regulations and requirements that are specific to certain sectors.

  1. Hire a Structural Engineer

It’s always a good idea to look into hiring a structural engineer to help out when you are purchasing commercial property for sale. They will help to make sure that the building is safe and will continue to be safe after the purchase. They can review the structural integrity of the property as well as conduct a Property Condition Assessment. Basically, it’s a good idea to have an expert assess the current state of things like the foundation, roof, HVAC, landscaping, and fire systems of the property before you move forward.

  1. Obtain the Required Permits and Titles

You will have to obtain the required permits and titles for a property depending on what sector the office space real estate is in. Sometimes it can take weeks and even months to get things squared away in terms of permits and titles. It all depends on the local regulations and what type of real estate you are purchasing. Don’t cut corners with this step, otherwise, you could significantly delay the entire purchase process.

The legal aspects of investing in commercial property for sale should not be overlooked. It’s absolutely crucial that you take the tips mentioned above seriously so that your purchase will go as smoothly as possible. You can always reach out to an experienced broker like Rakow Group for advice if you need additional assistance.

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commercial property for sale

More Mistakes to Avoid When Investing in Commercial Real Estate

The commercial real estate world offers endless opportunities and possibilities for savvy investors. However, there are plenty of mistakes that people make every day when they are investing in commercial property for sale. If you aren’t well-versed in commercial real estate terminology or are new to investing in office space real estate, you need to tread lightly. Making mistakes in commercial real estate can be very expensive. You can always work with a great commercial real estate brokerage firm like Rakow Group to avoid major issues. Keep reading on to learn about some big mistakes to avoid when you are investing in commercial real estate.

  1. Not Hiring a Great Property Manager

It doesn’t matter what type of commercial property for sale you are purchasing; if you don’t have a good property manager to handle things for you after the investment, you are making a huge mistake. A property manager can handle everything related to tenants, keep you stress-free, and provide you with more time to do more valuable business activities. A great property manager will take your investment further in many different ways, so don’t neglect finding the best person for the job.

  1. Miscalculating the Impact of Vacancy

After you purchase commercial property for sale, you probably want to focus on filling the space up with tenants. If you have to spend time and money on improving the property so that tenants are interested in signing a lease, keep that in mind before you purchase the property. Vacancy is very expensive for business owners, and if the property will be vacant for an extended period of time it can take a lot of money for the investor to start seeing positive returns. Try to keep vacancy in mind when you are working on valuations for office space real estate.

  1. Rushing to Buy Property

The best investors in the commercial real estate world take their time to make the best possible decisions. If you are in a rush to buy commercial property for sale, it can end up costing you big time. Negotiating and due diligence take time. This is a reality in the commercial real estate world that should not be overlooked. Just because you are very interested in a property doesn’t mean you should skip out on the important steps needed to make the right decision.

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commercial property for rent

Buying Versus Leasing Commercial Real Estate

If you are in the market for commercial real estate, you’ve probably thought about either buying or leasing. Both options have their own unique sets of advantages and disadvantages. It’s worth spending a good amount of time thinking about which option is right for you before you even start searching for available properties. Below, we will be discussing the difference between buying commercial property for sale or leasing commercial property for rent.

Buying Commercial Real Estate

A big plus with buying commercial real estate is that the asset has the possibility of appreciating over time. That means that your investment in commercial property for sale can pay off in a big way. You can also rent out a commercial property to get some steady monthly income coming in. There are also plenty of tax benefits and equity upside associated with buying commercial property for sale.

The downsides to buying commercial real estate have to do with the initial investment as well as the added liabilities. When you buy, you will have to come up with a large amount of capital to make your purchase. There are downside risks with any investments, and commercial real estate is no different. If you are interested in purchasing commercial property for sale and want to minimize the downsides, you should work with a great commercial broker like Rakow Group.

Leasing Commercial Real Estate

If you are looking for a little more flexibility with your commercial real estate, leasing might be the right option for you. Leasing offers you more liquidity and flexibility thanks to a lower initial investment and lease terms that can be for pretty much any timeframe. You can also get some nice tax benefits when you lease commercial property for rent. You can typically deduct things like lease payments, property taxes, and utilities from your taxes.

One of the primary downsides to leasing commercial real estate is that there isn’t any investment potential. You will also be paying higher monthly payments and not have the same control that you would if you owned the property outright.

We hope this article has provided you with some great insight into both buying and leasing commercial real estate. Ask yourself whether you want flexibility or investment potential before making any final decisions. Remember that you can always reach out to a great commercial broker like the Rakow Group for additional insight and assistance.

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commercial property for rent

How Long Should My Office Space Real Estate Lease Term Be?

If you are starting your search for commercial property for rent or you are already in the process of negotiating a lease for office space real estate, you might be wondering what the appropriate amount of time the lease should be for. This is something that depends on a variety of factors. What’s important is to remember that you don’t have to sign a contract that doesn’t work well with your budget or your business plans. As a tenant, you have the right to walk away and to ask for what you need in a contract. Having an expert commercial real estate broker helping you out with negotiating a lease is always an advantage, so keep that in mind before you decide to handle things on your own. Let’s look at some of the main factors that influence an office space real estate lease term.

  1. Landlord Personal Preferences

Sometimes, landlords are only willing to lease their property to tenants for long periods of time. They want to lock in their tenants for a long period of time because it makes their life easier and guarantees them monthly rental income on their office space real estate. If you are dealing with a landlord that won’t negotiate the amount of time in the lease, you can factor that into the monthly rent price.

  1. Market Conditions

Another one of the biggest factors that will determine the amount of time on a lease for commercial property for rent is the current market conditions. If there isn’t a lot of vacancy for office space real estate in your areas, you might only be able to sign leases for 3-5 years or more. Landlords always prefer to have longer-term contracts, which means if demand is high in the market you are looking for, you might not be able to find short term leases.

  1. Tenant Improvements

If you are leasing office space real estate, there’s a good chance you will receive a tenant improvement allowance from your landlord. If they are giving you a lot of money for tenant improvements, you will likely be receiving a longer term on your lease.

Remember that if a deal doesn’t work for you or doesn’t make business sense, you can always walk away! Contact the Rakow Group if you have any questions about office space real estate leasing terms or would like help with any steps in the commercial leasing process.

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industrial space for rent

Vital Considerations for Leasing Industrial Space

You should always remember that when you are looking for industrial space for rent, the process is different from renting other types of commercial property. There are specific things to consider that will influence the success of the transaction. The last thing you want is to overlook something important and end up renting industrial space that doesn’t truly meet all of your business needs. Hiring a commercial brokerage firm like the Rakow Group to help you find the right property is always a great idea. If you are interested in learning more about choosing the right industrial space for rent, keep reading on below.

  1. What are the power requirements for your business?

Industrial space for rent is often used for factories, and shipping and receiving lots of materials. Power requirements can be extremely high if you plan to use the industrial space for these types of activities. That means that determining your power needs and how the industrial space for rent will meet those needs is absolutely crucial. If you find out that there is not enough voltage in the space after you sign the lease, you could be facing a big issue.

  1. How are you shipping and receiving items?

Another classic use for industrial space for rent is shipping and receiving products. If you plan to have 18 wheelers docking in and out of your industrial space on a daily basis, make sure that the space can accommodate them. You also want to make sure there is a dock that serves as a loading area for packing and unpacking your goods and materials.

  1. How much can the floor hold?

If you are looking for industrial space for rent, there’s a great chance that you will be using heavy equipment or machinery. You need to check out the concrete slab that is in the space to determine what kind of loads it can hold. Verifying that the industrial space for rent will be able to accommodate your business needs is one of the most important considerations during your search.

We hope this guide has provided you with some valuable insight into finding the right industrial space for rent. Don’t neglect any of the ideas mentioned above, or it could come back to be an expensive mistake. You can always reach out to a great commercial brokerage firm like the Rakow Group for assistance with all of your commercial property needs.

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office space real estate

Figuring Out What Type of Office Space Real Estate You Need

Renting office space real estate can be difficult if you don’t really know what type of office space you are looking for. There are so many different types of properties in different locations that you can choose from, it’s only normal that you might be feeling overwhelmed during your search. Hiring a commercial real estate broker to help you find the best commercial property for rent is certainly helpful, but you also need to figure out exactly what type of office space real estate you need. We want to help you figure it all out, so continue reading on to learn about some of the types of commercial property for rent you should be considering.

Multiple-Story Office Buildings

When you think about office space real estate, it’s likely that the first image that comes to your head is multi-store office buildings. These are the towering buildings that provide workspaces for a lot of different companies all in one place. They include shared spaces like lobbies, bathrooms, gyms, and hallways that all tenants have access to in addition to private office space. These types of buildings are typically classified as either Class A, Class B, or Class C depending on their overall status. With this option, you can typically expect the landlord of the office space real estate to handle the repairs and maintenance costs, which is certainly an attractive prospect.

Commercial Housing Office Space

This type of office space real estate is becoming increasingly common in today’s marketplace. Old commercial housing is now being repurposed to house companies as office space. Commercial housing office space provides a more relaxed work environment that makes life easier for you and your employees in a lot of ways. It’s an intriguing option to consider if you are in the market for office space real estate.

Flex Office Warehouses

Sometimes, you are looking for office space real estate that also functions as a warehouse. This option has it all, as you can use it for office space, light manufacturing, retail, and more. All it takes is some creativity and finding the right flex office warehouse to make your vision become a reality. If you are looking for this type of office space real estate, give the Rakow Group a call today. We have a huge database of all of the latest properties to hit the commercial market and would love the opportunity to help you out with your search.

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commercial property for rent

More Commercial Real Estate Terminology to Know

The commercial real estate industry consistently provides amazing opportunities for business owners and investors. However, if you aren’t up to date on your commercial real estate terminology, you could be missing out on some important details. Rakow Group can help you make sense of any commercial real estate deal and help you find the absolute best prices for a commercial property for sale. Contact us today to experience why we are an industry leader.

Below, we will shed some light on commercial real estate terminology you should know. Hopefully, these terms can help you better understand the commercial real estate industry and take steps towards making more profit.

  1. Option to Buy

If you are a tenant that is looking for commercial property for rent, you might notice that the contract states the “Option to Buy”. This is a great option if you do plan to invest in commercial real estate soon. If you see the “Option to Buy” in the contract and are serious about pursuing it, you should try to have the owner include specific terms and the price you can expect to pay for the property in the contract.

  1. Rent Concessions

Sometimes, if you are renting commercial real estate, you might be offered rent concessions. These are typically allowances that provide tenants discounts on their rent for a certain period of time. It usually happens if the property is being renovated or if the tenants need to avoid extra expenses when they are moving into the commercial property for rent. It always helps to have a great commercial real estate broker look over anything like rent concessions before you sign a lease.

  1. Usable Square Footage

When you are evaluating industrial space for rent or commercial property for sale, you should review the total usable square footage before making any decisions. This term refers to the total amount of space that is being leased. It’s a great idea to have a number in mind for the total square footage your business needs before searching for commercial property for rent. That way, you can narrow things down quickly and stay focused on only the properties that will meet your needs.

These three terms are important for anyone to know if they are interested in commercial real estate. Remember that Rakow Group can help you out with any of your commercial real estate needs and negotiate the best possible deals for you and your business.

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