Idaho #3 in Richard Florida’s new list of 20 most innovative states

Idaho #3 in Richard Florida’s new list of 20 most innovative states: http://www.thedailybeast.com/blogs-and-stories/2010-10-20/most-innovative-states-in-america Don’t be fooled by the Gem State. The wide mountainous spaces and greenery from the Snake River provide ample resources for the booming industries of wind and geothermal energy, so much so the state is grabbing the attention of energy powerhouses like California. In addition to wind... (more...)

The Downside of Month-To-Month Leases

People ask me frequently if they can get a month-to-month lease. For new tenants, the answer is generally “no,” unless you’re willing to pay twice the monthly rent for that space. If you have an event and are looking for a daily rate, that’s not a proposition owners are generally willing to take. You can sweeten the deal to get them interested, but you need to do so early in the conversation. First of all, owners don’t... (more...)

BUILDING LOAD FACTORS IMPACT YOUR USABLE SPACE SIZE

I am helping a client evaluate two different spaces and they made a comment about one space being a little larger & having a higher price. What I had pointed out, albeit subtlety, was that the two spaces had different building load factors. Literally, one building has a 15% load factor & the other has a 6% load factor. It occurred to me that small & mid-size tenants almost never ask about this issue. When I represent a building owner,... (more...)

Commercial Lock Boxes

Just a short note on lock boxes for commercial real estate properties. When you are looking to engage a commercial real estate agent, I recommend you only use a commercial real estate firm that uses commercial lock boxes on their listings.  First, commercial lock boxes in the Boise Valley of Idaho are different than residential lock boxes. 1.     As a rule, commercial real estate agents in this area do not utilize residential lock boxes so agents... (more...)

Understanding How Rentable Square Feet Is Determined

In leasing, Tenants need to know how their leasable / rentable square footage (rsf) is determined.  If you’ve ever purchased a residence, you understand that the size of the house is determined by the exterior measurements – “from corner to corner.”  When it comes to commercial property, the concept is very similar, but not well understood by people outside the commercial real estate industry. Leasing A Stand Alone Building.  If you were... (more...)

Understanding NNN or CAM Leases

I’ve walked several industrial and retail properties with potential tenants lately and am reminded each time that these properties have a tad more complexity due to the nature of those leases since they are typically NNN or CAM type leases. You need to understand the type of lease you are negotiating when dealing with commercial real estate properties.  You may be incurring legal responsibilities for costs you might not have anticipated if... (more...)

The Leasing Process – Part 2 – Functionality

Leasing space, whether that be office, industrial / warehouse, or retail space involves a lot of thought on the part of the tenant. If you’re in the retail business, but need some warehousing, you might want to consider “flex” space. If you need a warehouse and are looking for low rent, make sure you don’t need 3-phase power. All users have a priority list of needs – whether they’ve realized it or not. Let’s... (more...)

The Leasing Process – An Overview – Part 1 – Size & Zoning Requirements

We deal with a lot of people with various levels of experience leasing commercial property. Some people are going out on their own for the first time, others are with an existing company, but may be responsible for the leasing process for their first time, while others have been through the process and are competent in the process. Another factor at work, although rarely discussed, is how to work with commercial real estate agents. We’re going... (more...)