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Industrial space for rent

How to Maximize the Efficiency of Your Industrial Space

The task of managing an industrial space is becoming more and more demanding. Business owners are always focused on maximizing the space that they have and to find ways to cut costs as much as possible. Finding industrial space for rent can be easy with a great commercial real estate broker like Rakow Group, but maximizing the efficiency of the space is an entirely different proposition. Adding more square footage by finding more industrial space for rent is always an option, but there are several other ways you can make use of your space to save money and time. Let’s take a look at them below.

  1. Invest in Vertical Space

Warehouses and industrial space for rent are usually large spaces that provide a lot of vertical space. The trick is figuring out how to take advantage of this space. There are several ways to go about this. You can use industrial shelving to stack up the inventory and maximize the space that you have. Mezzanine shelving is another option that will allow you to have another level to your warehouse. Explore these options of going vertical to really maximize the efficiency of your commercial property.

  1. Barcode Labeling Improves Efficiency Dramatically

If you’ve signed a lease on industrial space for rent, you need a way to organize your inventory. A barcode labeling system is a great way to stay organized and efficient, especially because warehouses tend to be very large in size. These days, you can even use a cloud-based inventory management system to keep track of everything in your industrial space. Using technology and a barcode labeling system can make a big difference in improving efficiency.

  1. Consistently Re-evaluate all of Your Processes

As a business owner, it is easy to get stuck in set ways. This can lead to inefficient processes and losing lots of money if you aren’t careful. It’s important to take the time to re-evaluate all of your processes for your industrial space to make sure you are operating at full capacity at all times. Industrial space for rent can come with its own unique set of tasks and challenges, which means creating better business functions within the space is always essential.

We hope this article can help you improve the efficiency of your warehouse or industrial space. If you are seeking commercial property for rent, contact the Rakow Group for assistance in finding the best options on the market.

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commercial property for rent

The Advantages of Commercial Real Estate

Commercial real estate is a property that is directly used for business purposes. There are so many different types of commercial property for sale that it can be overwhelming for people without any direct experience in the industry. Commercial property is normally leased out for businesses to use as a workspace and for operations instead of living spaces for the public. Commercial property can be a lot of different things including retail space, hotels, strip malls, restaurants, office space, industrial space, and more. There are tons of advantages associated with commercial real estate. Let’s look at some of the main ones below.

  1. Investment Opportunities

Commercial property for sale provides lots of investment opportunities for people that have the capital to consider the purchase. You can invest in commercial property for sale and hope that it increases in value over time. Additionally, you can lease out your commercial property for nice monthly income from tenants. There are tons of commercial real estate investment opportunities out there, you just need a great brokerage firm like Rakow Group to help you find them.

  1. Leasing Options

If you are a business owner, at some point you will be looking for office space real estate to provide a place for your business to flourish. Commercial real estate is great for business owners because they can lease a space for a certain amount of time and have the flexibility to move on when they are ready. Leasing commercial property will be much less expensive than purchasing, as lots of commercial real estate offers great leasing rates. By investing in a commercial property for sale, it can be a much more permanent transaction that not every business owner is ready for.

  1. Variety in Commercial Real Estate Options

Another big advantage associated with commercial real estate is that it offers tons of variety in terms of property types. Literally, any business type can find commercial property for rent that will suit their individual business needs. The variety is also great for investors that are looking for a diversified portfolio. Investing in different property types can increase your chances of big returns and safeguard you against certain market factors that affect certain property types.

There are plenty more advantages you should keep in mind when thinking about commercial real estate. The opportunities are unlimited if you work with a great brokerage firm like the Rakow Group. Contact us today for all of your commercial real estate needs!

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industrial space for rent

Important Steps for Leasing Industrial Space

So, you are in the market for industrial space for rent? This is generally considered to be property like a warehouse, a manufacturing building, or a multi-use building. Leasing industrial space can help you find the home for your business operations for many years to come. However, finding industrial space for rent that meets all of your needs and business requirements can be a bit challenging, which is why it always helps to work with an experienced commercial real estate brokerage firm like the Rakow Group. We can help you with every step of the leasing process and also assist you in negotiating the best possible deal for your business. Below, we will walk you through a high-level overview of some important steps for leasing industrial space.

  1. Determine Your Business Needs

Finding the right industrial space for rent can mean a lot of different things depending on your business type. For example, some businesses need space for producing and manufacturing products, while others are looking for something to house their research and development activities. It really helps to spend some time determining your business needs prior to beginning your search, that way you can narrow down the properties you are looking for and ensure you are signing a lease for exactly what you need.

  1. Find a Broker to Help You Search

Another important step for leasing industrial space for rent is finding a broker to help you with the search. It can be overwhelming to find the right space in the location you are looking for without some professional help. The Rakow Group has an extensive database of properties to search through and can help you find exactly what you are looking to lease. We can also help you find commercial property for sale or commercial property for rent if needed.

  1. Assess the Lease Terms

It’s absolutely crucial to make sure you assess the lease terms of industrial space for rent prior to signing on the dotted line. Hidden expenses are a common thing to watch out for, especially with larger properties. The last thing you want is to have to pay for maintenance and upkeep all out of your pocket simply because you overlooked the lease. The Rakow Group can always provide you professional advice on lease terms and help you negotiate the deal you are looking for.

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office space for lease

What Is Cap Rate in Commercial Real Estate?

If you are new to the commercial real estate world or you are a business owner seeking office space for lease, you might be feeling a little overwhelmed. The sheer amount of terms and options to decide from can be intimidating without the right help. It always pays to hire a professional commercial real estate broker like the Rakow Group to help you find the best commercial property for sale. One term you might have heard mentioned before is the cap rate of a property. Cap rate, or capitalization rate, is a basic concept that refers to a percentage number which determines a property’s current value. It’s derived from an estimate of the property’s future net operating income. We will discuss some of the basics about capitalization rates in commercial real estate below to provide you with some powerful insight.

The cap rate is typically calculated by looking at appraisals or what similar properties have sold for in recent times. The actual equation simply takes the Net Operating Income of a property and divides it by the property value. However, calculating the cap rate for commercial real estate can be a complicated endeavor. That’s why it helps to work with a great commercial real estate broker like the Rakow Group.

It’s important to understand that the ways that different properties are evaluated impact the cap rate. For example, apartment buildings are viewed as property types that generate great cash flows, which is reflected in the cap rate. Office space real estate, on the other hand, will be viewed differently.

You might be wondering what a good cap rate is for a property? This depends on whether you are on the buying or selling side. If you are looking for commercial property for sale, you want a cap rate that is higher because your initial investment will be lower. On the other hand, if you are selling commercial property, you are looking for a capitalization rate that is lower because your property value will, therefore, be higher. It always helps to look at similar property’s cap rates to compare your calculations. Keep that in mind if you are trying to come up with a cap rate on your own. If you are looking for help with cap rate calculations or finding comparable properties to use, the Rakow Group can definitely help.

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commercial property for rent

What is a Triple Net Lease in Commercial Real Estate?

If you own a business and are in need of commercial property for rent, it can really pay off to learn about the different lease types that are available to you. The more you know, the more educated decisions you can make. Working with a great commercial real estate broker like the Rakow Group can go a long way towards helping you succeed in your commercial property for rent endeavors. We can help you step by step with all of your commercial real estate needs. Our extensive experience and professional approach to all of our client interactions can be hard to find with other commercial real estate brokers. One commercial real estate lease type to learn about is the triple net lease. It is also referred to as a NNN lease or a Net Net Net lease. We will provide a brief overview of triple net leases below and why they are important in the commercial real estate world.

A triple net lease typically requires the tenant to pay all of the operating expenses that are associated with maintaining the property that has been leased. This lease type is most commonly found in commercial real estate, particularly with single-tenant properties. Standard residential leases are typically gross leases, which means that the landlord will need to pay for all of the expenses related to the property. On the other hand, net leases mean that the tenant will pay for the operating expenses instead of the landlord.

There are three common operating expenses related to commercial real estate. They are insurance, common area maintenance, and property taxes. In a triple net lease, the tenant will be paying for all three. You might be wondering why a tenant would ever want to sign a triple-net lease? All of those expenses certainly can add up quickly for commercial property for rent. Well, the main benefit of a triple net lease is that the monthly rent cost will typically be much lower than normal gross leases. If the building is fairly new and you don’t anticipate lots of operating expenses like repairs, it might make the most sense financially to sign a triple net lease. However, if the building is an older structure, the costs can become quite the burden. For example, imagine having to foot the bill for a renovation on an older building.

We hope this article has provided you with some valuable information about triple net leases and why they might be a good opportunity for you.

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office space real estate

3 Commercial Real Estate Trends to Know for 2019

With every passing year, the necessity of staying up to date on all of the latest trends in commercial real estate becomes increasingly more important. Looking for success in commercial real estate? You must understand the market and keep yourself informed. The year 2019 is no different. If you are planning to invest in  or already have investments in commercial real estate, it makes a lot of sense to read up on all of the latest trends in the market. 2019 is shaping up to be a year with tons of potential in commercial property for rent and office space real estate. Keep reading below to learn about 3 commercial real estate trends you should know for 2019.

  1. Industrial Real Estate is Booming

The demand for industrial real estate is absolutely soaring, which is largely a result of a massive consumer shift to E-commerce and online shopping. Brick and mortar retail space is quickly becoming a thing of the past, which means you might be able to find commercial property for sale at a great price. The increasing prominence of E-commerce is a trend that is likely to continue throughout 2019, which means the need for industrial real estate to store and ship massive amounts of physical products will rise as well.

  1. The Fed Is Expected to Steadily Boost Interest Rates

Job growth in the United States is gradually increasing and the unemployment rate is low. There are more homebuyers than homes for sale. These are signs of a steady and stable economy. That means you can expect the Federal Reserve to continue boosting short term interest rates in order to maintain this economy and manage inflation. The Fed already delivered 3 boosts to interest rates last year, so keep that in mind for 2019.

  1. High Investor Demand for Industrial, Retail, and Multifamily Assets

As we mentioned earlier, the demand for industrial real estate is quite high. If you are seeking an investment that allows you to create commercial property for rent, keep in mind that large institutional investors are buying up industrial, retail, and multifamily commercial real estate assets as quickly as they can. A quick look at some of the most popular REITs will confirm that there is high investor demand for this type of commercial property for sale.

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office space real estate

3 Ways to Make Money by Investing in Commercial Real Estate

Making money in the world of commercial real estate can be quite challenging without the right experience and game plan. That’s why working with experienced brokers like Rakow Group can make all of the difference in the world. We want each and every one of our clients to find the commercial property for sale or industrial space for rent that they need to achieve success.

Commercial property typically consists of retail buildings, office space real estate, warehouses, apartment buildings, mixed use buildings, and industrial space. Navigating the different property types and understanding the market as a whole is easier said than done, which makes the expertise of Rakow Group priceless. Working with a tight budget and the pressure to produce can be intimidating for even the most seasoned commercial real estate executives, which is why we’ve written the following article that provides simple details on 3 ways to make money by investing in commercial real estate.

  1. Locate the Best Possible Property

This step is absolutely essential if you ever plan on making money with commercial real estate. The initial deal will have lasting impacts on your overall investment. Ensure that you don’t overpay or miss out on existing property damages that can be expensive to repair. Locating the best possible property involves doing research, comparing multiple options, and working with an experienced real estate broker. If you spend adequate time finding the commercial property for sale, you are well on your way towards a good return on investment.

  1. Know When to Sell

Making money in the commercial real estate market requires knowing the right time to sell. That means staying up on market trends and economic factors that impact commercial real estate. Look for signs that the economy is on its way up before you decide to sell. You can secure an immediate profit with knowledge and skill. On the other hand, don’t wait too long to sell or you could be stuck with commercial property like office space real estate that steadily declines in value.

  1. Spend the Money to Maintain Your Properties

After you purchase commercial property for sale, you should understand that maintaining the property is important for eventually making money. You can extend the life of the property by spending money on regular maintenance and necessary repairs. Look for property managers that have connections with maintenance companies. Don’t neglect your properties, or it could come back to haunt you.

 

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Should You Be Considering Apartments for Your 2019 Commercial Property Investments?

Multifamily use commercial property for sale has always been a strong seller for major investors. It’s a diverse type of commercial real estate that provides tons of potential and financial opportunity. If you are seeking an investment in commercial property for sale, it’s likely that you have considered apartments.

The income generated from rent and individually selling each apartment in your building can provide you with great returns on your investment if you do things right. That being said, it’s always important to analyze the latest market trends prior to making any investment decisions. You might be wondering if apartments can still be considered good commercial property investments in 2019. Continue reading to find the answer below. If you are seeking commercial property for rent or office space for sale, reach out to the experts at Rakow Group for help and access to tons of properties.

One thing that is important to understand about commercial property for sale is that every property type is different. That means that the market factors for each property type are unique as well. Apartments are different from other commercial properties because their value is tied to residential demographics and trends. Back during the recession of 2008, the demand for rentals increased dramatically. People were no longer looking to purchase homes, which, in turn, increased the rental prices of apartments. Thanks to the trend of increasing demand for rentals, the price of apartment buildings also subsequently increased. Does that mean that the commercial market for apartments is overbought? Not necessarily.

People will always need a place to hang their hats. Apartments can indeed still be a great long-term commercial property investment and certainly have a good chance of increasing in value over the next few years. Focus on finding commercial property for sale in great locations that are up and coming to maximize your potential profits. Purchasing apartment buildings that are close to major interstates and provide people great job opportunities is another great rule of thumb.

Apartments aren’t the only option for finding great commercial property for sale in 2019. Contact the offices of the Rakow Group for help with finding office space real estate, commercial property for rent, and more. We have a massive database of available properties and can help you through every step of your commercial real estate activities.

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DAVID RICHMAN NEW CEO OF RAKOW COMMERCIAL REALTY GROUP

DAVID RICHMAN NEW CEO OF 
RAKOW COMMERCIAL REALTY GROUP

Rick Rakow, founder of Rakow Commercial Realty Group (Rakow Group), announced today that David Richman, long time senior broker at the firm, has acquired the company and is the new CEO.  Richman will run the day-to-day operations of the firm, with Rakow stepping into his new
role as Chairman, working side-by-side with Richman to further grow the firm while continuing to serve its clients.

Rakow Group is a full-service commercial real estate firm that serves the office, medical, retail, investment, and industrial markets in Westchester and Fairfield counties with over 30 years experience. In addition to its several thousand transactions, they have represented such organizations as IBM, White Plains Hospital, Bleakley Platt & Schmidt, LLP, Citrin Cooperman,
Feeding Westchester, illy cafe’ North America and PURE Insurance.
 
“I am thrilled for David,” says Rick Rakow, who will continue at Rakow Group for the foreseeable future. “With his amazing record, I always knew he’d be the one to lead the next generation of Rakow Group. I look forward to working with him to support the business and its terrific growth
trajectory.”

Richman joined the firm in 2002 and has over 16 years of experience in commercial real estate. He was named one of Westchester County’s Rising Stars in 2009 by the Business Council of Westchester. He attributes his success to maintaining strong client relationships, being persistent, and providing personalized hands-on service.

“I am excited, grateful, and humbled to be able to continue the tremendous legacy and fine reputation that Rick and our team have built,” he says. “There is no greater pleasure than being able to bring about positive outcomes for the tenants, buyers, landlords and sellers who turn to Rakow Group for representation. We go above and beyond for all our clients.”
 
Richman also added that he is optimistic about the future of commercial real estate in the Westchester and Fairfield markets.  “Given the dynamics we’re seeing in the region now, tenants, landlords, and investors will greatly benefit from the sound guidance and judgment of the professionals at Rakow Group.”  
 
In addition to his volunteer activities with the Pediatric Cancer Foundation and Burke Rehabilitation Hospital, Richman has served on the Board of Directors of Kids X-Press and the Advisory Board of the Lighthouse Guild. He is president of the Executive Forum Business Group, and an active member of the Business Council of Westchester and the Westchester County Association.

David Richman is a graduate of Ithaca College. He is an avid tennis player and enjoys coaching youth sports and spending time with his wife and three young children.

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3 Simple Rules for Commercial Real Estate Success

Finding success in commercial real estate can prove to be elusive for many people. A lot of things need to come together for your business to find commercial real estate success. It doesn’t matter if you are looking for commercial property for sale or office space for lease, without doing some hard work and research, you could be digging yourself into a financial hole. With the help of a solid brokerage firm like the Rakow Group, you can find the best commercial property for sale and rest assured that you are getting a great deal thanks to their expert negotiators. Below, we will discuss three simple rules that can help you find success in commercial real estate.

  1. Seek Property with High Visibility

This is a rule that is absolutely essential if you are a vendor or storeowner. Visibility of the location of commercial real estate is extremely important. If your potential clients can’t find your business, how are you going to be successful? Customers will tend to choose the path of least resistance. If it’s difficult to find or get to your business, you could be in for trouble. Try to find commercial property for sale that is easy to see from the road and provides people with easy access in and out. Price visibility into your commercial real estate transactions because it certainly is a valuable quality.

  1. Find Commercial Property with Updated Zoning and Codes

The government can have a dramatic impact on the success of your commercial property investments. It’s something that you need to keep in mind when looking for commercial property for sale. A simple change of the current zoning and codes can cause big problems for your business if you aren’t careful. If you can find commercial property for sale with updated zoning and codes, that means they will be unlikely to change again in the near future. The most successful commercial property owners know how to work with zoning and codes, not against them.

  1. Property Located in a Good Neighborhood

When looking for commercial property for sale, location is absolutely key. The most successful real estate investments are located in an active and strong community. If you can find a property that is located in an up and coming neighborhood, even better. Your property value will grow along with the area. People are normally personally invested in their local economies, which means they will be inclined to support your business if you are in their community.

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