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Preparing for Lease Administration

NAI is constantly evaluating tools for providing lease administration services to our clients.  However, determining the right solution for the client is not a casual effort.  Below are some of the key factors that need to be discussed and understood as you work through the process of setting up a lease administration solution.

• Clearly understand the client needs and how that balances with their requests and perhaps more importantly their expectations.

• It’s important to understand the timing for getting the system populated, tested and running. This is a critical element, as it is a major undertaking to make any system functional with the client information.

• What data is available and in what format it’s stored in is critically important.  Before any system can function properly, it must have a core database of information. The effort to gather the data; have it prepared for entry; entered into the system and verified that the data is entered correctly can be time consuming, potentially expensive and is probably the most important work required to make any lease administration solution successful.

• Obtaining key documents pertaining to the lease as the lease documents will need to be abstracted to provide the relevant information required for populating the chosen system solution. Documents used to provide information on leased property should be converted to electronic format and be stored within the lease administration system.

• Determining the reports or output the client is expecting from the system is an excellent tool for defining the necessary fields required in the database structure.  Most systems will provide for the “normal” data requirements but your client may have a unique management structure or specific metric it wants included for each lease and these fields or data structures will need to be clearly      understood as the system and data is organized in the database.

• Establish a process and responsibility for managing the system updates, imputing new leases, issuing reports and taking action as required.  Without this responsibility and process the lease administration system will quickly fail to function.

The above effort (if not already done) can be quite substantial and should be started immediately, even before you select a lease administration system that best fits your client’s needs.

I would suggest that if you collect the data mentioned above and implement a process to manage the lease activity, it will assist the effort in selecting a specific system, as there are quite a few good lease administrations systems available.

by NAI Global

For More Information about Local News, Market Intel, or Commercial Real Estate Opportunities; visit www.Bryan-Cole.com

Bryan E. Cole | Team Leader
NAI Keystone Commercial & Industrial, LLC
direct: 610-370-8502
Bcole@naikeystone.com

Check out my new website at www.Bryan-Cole.com

NAI Keystone is a full service commercial and industrial real estate firm located in Reading PA; We handle buyer, tenant, and landlord representation throughout Pennsylvania and with the association of our global partners we can assist in locating product throughout the country.

New Listing Release - 5320 Allentown Pike - Retail Land for Sale

New Listing Release - 5320 Allentown Pike - Retail Land for Sale

Click Here to Download the Full Release

Location:

5320 Allentown Pike Temple, Pa 19560

Property Info:

NAI Keystone Commercial & Industrial, LLC has been hired to exclusively represent the sale and/or lease of 5320 Allentown Pike in Temple PA.

This site has a total of 6.41 Acres, which is ideal for a retail, medical, or hospitality use. The site enjoys easy access to Rt. 222 and has frontage on 5th Street Highway. The property is located at the interchange in front of a Wal-Mart Supercenter, NAMCO Pools, Tractor Supply, and various other national tenants.

Description:

6.41 Acre Site, Zoned Highway Commercial.

Brokers:

The team responsible for the leasing and sale of the facility will be Bryan Cole 610 370 8502 and Steve Willems 610 370 8506.

Who is NAI Keystone:

NAI Keystone is a full service commercial and industrial real estate firm. NAI Keystone maintains a prominent market share in Berks and Schuylkill Counties.  NAI offers various services including but not limited to; Landlord representation, tenant representation, consulting services, site development, site selection, and property management.

NAI Keystone is part of NAI Global, which is a managed network of commercial real estate brokers and companies which spans throughout the world.  NAI Global has 325 offices in 55 countries and an annual transaction volume of $45 Billion.

For More Information about Local News, Market Intel, or Commercial Real Estate Opportunities; visit www.Bryan-Cole.com

Bryan E. Cole | Team Leader
NAI Keystone Commercial & Industrial, LLC
direct: 610-370-8502
Bcole@naikeystone.com

Check out my new website at www.Bryan-Cole.com

NAI Keystone is a full service commercial and industrial real estate firm located in Reading PA; We handle buyer, tenant, and landlord representation throughout Pennsylvania and with the association of our global partners we can assist in locating product throughout the country.

July 2011 Commercial Real Estate Newsletter

The Team Cole June 2011 Commercial & Industrial Real Estate Newsletter

See Link Below

The June 2011 Commercial Real Estate Newsletter.  This Newsletter outlines listings, events, deals, and articles relative to Commercial Real Estate in Berks and Schuylkill County PA.  For a full list of all our Newsletters please visit:  http://www.bryan-cole.com/Newsletters.html

Interactive Brochure: - Click Here

 

For More Information about Local News, Market Intel, or Commercial Real Estate Opportunities; visit www.Bryan-Cole.com

Bryan E. Cole | Team Leader
NAI Keystone Commercial & Industrial, LLC
direct: 610-370-8502
Bcole@naikeystone.com

Check out my new website at www.Bryan-Cole.com

NAI Keystone is a full service commercial and industrial real estate firm located in Reading PA; We handle buyer, tenant, and landlord representation throughout Pennsylvania and with the association of our global partners we can assist in locating product throughout the country.

Secondary Office Markets - Where Do We Go From Here?

Article obtained from www.naiop.org

Investors targeted top-tier, low-risk office assets in primary markets last year, while opportunity funds sought a once-in-a-generation prospect to acquire quality properties at deep discounts. Distressed sales disappointed the wall of waiting capital as lenders extended and modified loans on quality assets, parting only with true high-risk, low-end properties, generally in tertiary locations. Recompressed cap rates in the top tier and limited volume at the bot­tom have moved capital toward the middle-of-the market bell-curve, benefiting Class B properties in non-prime but still good locations. Initial yields for deals in secondary markets compressed 20 basis points in the second half of 2010 into the high-eight percent to low-nine percent range and will continue to tighten this year. While private buyers accounted for nearly half of the volume of office deals made in secondary markets dur­ing 2010, institutional investors and public REITs increased their pres­ence, comprising 26 percent and 19 percent of dollar volume, respectively. Nearly 70 percent of the dollar vol­ume from institutional investors was recorded in Seattle-Tacoma, Denver, Phoenix and Charlotte. Vacancy rates in these markets will improve by be­tween 60 basis points and 100 basis points this year, on pace or exceeding the projected U.S. vacancy decline of 60 basis points.   Opportunity Is Knocking Buyers looking to acquire distressed office properties in secondary markets may find value-add opportunities in Phoenix, as the metro has the largest inventory of assets with delinquent loans or REO, with roughly $1.4 billion in distress. Although vacancy rates will remain elevated in Phoenix until employers backfill underutilized space, the average rate will drop 90 basis points this year to 25.6 percent as construction slows to levels last recorded in the mid-1990s and office-using job growth accelerates leasing activity. Additionally, prices in the metro fell 23 percent last year to $130 per square foot, compared with a four percent decline nationally. In that time, average cap rates in Phoe­nix retreated 20 basis points to the mid- to high-eight percent range. Other distressed-asset opportunities may be found in Denver, where $800 million in distressed office proper­ties pushed down the average price 20 percent last year to $112 per square foot. Similar to Phoenix, office construction in Denver will fall to the lowest level in 15 years in 2011, and office-using employment growth will accelerate. Vacancy rates in the metro area will retreat 80 basis points this year to 19.5 percent, largely driven by improving performance in the CBD.   In Orlando, meanwhile, the inventory of distressed office properties is under $300 million; however, small inves­tors will continue to re-enter the mar­ket this year as financing improves and space demand outpaces supply growth. Vacancy rates will retreat 60 basis points to 16.5 percent, while effective rents will rise one percent to $16.80 per square foot. With average prices down 23 percent year-over-year in 2010, value-add investors able to put considerable cash into deals will begin to stir as the year progresses. By the second half of 2011, buyer demand will spread toward Class B assets that provide a value-add or turnaround path. Improving fun­damentals will play a clear role in boosting investor interest and moving capital down the quality chain. This will prove especially true for Class B and lower-quality properties as reduced rents in the top tier attract tenants and a slow recovery in startup formations and muted small business expansion limit demand. This article was published by www.naiop.org   For More Information about Local News, Market Intel, or Commercial Real Estate Opportunities; visit www.Bryan-Cole.com Bryan E. Cole | Team Leader NAI Keystone Commercial & Industrial, LLC direct: 610-370-8502 Bcole@naikeystone.com Check out my new website at www.Bryan-Cole.com NAI Keystone is a full service commercial and industrial real estate firm located in Reading PA; We handle buyer, tenant, and landlord representation throughout Pennsylvania and with the association of our global partners we can assist in locating product throughout the country.

Shillington architect to share loft life with Berks

 

NAI Keystone was the real estate broker responsible for the sale of the facility named in the article below.

 

By Reading Eagle:

Three years ago, architect David M. Kleckner undertook a $750,000 renovation project. He converted one of the former Fairy Silk Mill buildings on Catherine Street in Shillington into company offices and a loft for his family's home.

 

 

Since that time, Kleckner has received favorable comments on the look of his New York City-style loft.

Now Kleckner, principal in Kleckner Laucks Architects, is taking on a new project to share this style of living with the rest of Berks County.

Kleckner purchased another industrial building at 31 S. Sterley St., Shillington - just two blocks from his office and loft - with the intention of converting its five floors into trendy loft condominiums.

The building, which dates to the 1920s, also was once part of the Fairy Silk Mill complex. The location also has housed a swimwear manufacturing business and most recently Lakeland Reflective Apparel.

But Kleckner has a vision to retrofit the former industrial building with living spaces.

"In my mind, this is a great old shell of a building," Kleckner said. "I want to bring a new style of living to Berks County."

At this stage in development, new owners will be able to work with Kleckner - or any architect - to custom-design the space.

"Someone will be able to buy a shell, almost as is," he explained. "The owner of each loft will get one garage and one outdoor parking space. Then the ideal thing will be for the owner to work with me to custom-design the loft and the room divisions."

Kleckner said he plans to make general electrical, sewer, water and gas improvements to the building.

"I love the idea of saving old buildings and bringing something totally new to Berks County," Kleckner said.

He said he hopes to have all of the building's five floors converted into loft condominiums, complete with new owners, by the end of this year.

Then, Kleckner said, his goal is to focus on other industrial buildings, preferably in Shillington, to create more unique living spaces.

However, his overall vision is even broader.

Kleckner believes the loft condominiums can be a stepping stone to transforming the community.

"I am working closely with the borough of Shillington and the Shillington Business Association to try and create a more pedestrian-friendly shopping area along West Lancaster Avenue," Kleckner said. "I'm trying to do a full-circle thing for Shillington."

Kleckner hopes that when business owners begin to see positive changes, they too will get on board.

"By osmosis, we are hoping that business owners and property owners along the avenue will begin to make improvements to their buildings when they see what is being done," he said.

Kleckner believes a revamped, trendy shopping area in Shillington will be a draw for people who want to live in the lofts.

"People really like the open feel to lofts," Kleckner said. "The size and the space has a nice contemporary feel."

Contact David A. Kostival

 

For More Information about Local News, Market Intel, or Commercial Real Estate Opportunities; visit www.Bryan-Cole.com

Bryan E. Cole | Team Leader
NAI Keystone Commercial & Industrial, LLC
direct: 610-370-8502
Bcole@naikeystone.com

Check out my new website at www.Bryan-Cole.com

NAI Keystone is a full service commercial and industrial real estate firm located in Reading PA; We handle buyer, tenant, and landlord representation throughout Pennsylvania and with the association of our global partners we can assist in locating product throughout the country.

Office Tenant Improvement Costs are Skyrocketing

Commercial real estate tenant improvements (TIs) have always cost a lot, but you would think that with the real estate market as a whole slowly marching back from the worst overall recession since the 1970s that some discounts would be available. This has not proven to be the case at all; in fact, costs for TIs requested by new tenants has taken a significant upturn during the first two quarters of 2011. What is driving this trend?

Misconception Regarding
Labor Costs: One matter that causes people to think TIs should be flat or decreasing in cost is the fact that the
commercial and private real estate markets went flat or, in some areas, sank into chaos. Unfortunately, the price or availability of real estate has nothing to do with the cost of workers that must be hired in order to perform
tenant-requested modifications to a commercial real property. While there are plenty of workers available, the minimum wage for even menial tasks has risen and the cost of skilled labor has remained the same or increased due to average wages in a given market. In no case has the cost of construction labor, especially skilled labor, been reduced by the economy. A fair wage remains a fair wage and when a licensed contractor is required to perform work, that contractor requires a labor payment sufficient to cover his or her own pay as well as those people who must be hired to perform the tasks involved in the upgrade. As has always been the care, the more education, licensing, insurance, bonding, and other requirements that must be met by a legally operating skilled labor contractor, the higher the costs passed on to the property owner and, in the end, to the tenant paying for TIs.

Cost of Material Increases: As the economy rebounds, it seems that inflation is sneaking its ugly nose into everything everywhere. Even though salaries may not be increasing, costs are definitely on the rise. Donald Miller, a Central Texas contractor stated, “My cost for steel studs and related materials (used in TIs) have almost doubled during the first quarter of 2011. I’m not sure what caused this jump, maybe it is inflation, but I still have to pay the higher prices when I purchase materials to do my work.” Miller, like all other contractors,
has no control over the cost of materials that must be included in job bids for TI work or any other type of work and it is only because all contractors are faced with this same increase that bids remain competitive. It isn’t just
Central Texas that is facing these increases. Kenny Thompson of Thompson Concrete Construction, a Central Florida contractor, states, “I have to purchase lumber and steel for my jobs and I’ve noticed a sharp increase in the materials for what jobs that are available for RFP in the area in the last few months.” This impacts new commercial real estate, residential, and TIs – all phases of the real estate market and makes costs inch up.

Reverse Impacts of Poor Economy: Two years ago when the economy in the U.S. took a huge hit, many manufacturers of materials used in TI construction work had to lay off employees and reduce their inventory to
bare-bones levels. Some companies had to close their doors completely, leaving holes in the manufacturing of some areas and resulting in shipping costs to move materials from regions still producing or having on-hand inventory. This means that premium prices are required by the construction supply companies because of reduced inventory on hand or higher shipping costs being rolled into the price of materials.

So while the “reasonable” person would expect TI cost to be lower, reality is quite the opposite.

Backlink:

For More Information about Local News, Market Intel, or Commercial Real Estate Opportunities; visit www.Bryan-Cole.com

Bryan E. Cole | Team Leader
NAI Keystone Commercial & Industrial, LLC
direct: 610-370-8502
Bcole@naikeystone.com

Check out my new website at www.Bryan-Cole.com

NAI Keystone is a full service commercial and industrial real estate firm located in Reading PA; We handle buyer, tenant, and landlord representation throughout Pennsylvania and with the association of our global partners we can assist in locating product throughout the country.

 

Information via Officefinder

June 2011 Commercial Real Estate Newsletter

The Team Cole June 2011 Commercial & Industrial Real Estate Newsletter

The June 2011 Commercial Real Estate Newsletter.  This Newsletter outlines listings, events, deals, and articles relative to Commercial Real Estate in Berks and Schuylkill County PA.

Interactive Brochure:

http://www.bryan-cole.com/ibro/newsletters/2011/jun/jun.html

For more information please send us an email at Bcole@naikeystone.com or check us out on the web at www.Bryan-Cole.com.

Bryan E. Cole | Team Leader

NAI Keystone Commercial & Industrial, LLC
direct: 610-370-8502

Bcole@naikeystone.com

Check out my new website at www.Bryan-Cole.com

Bethel Industrial Park clears milestone

Groundbreaking is held at Berks Park 78.

A groundbreaking ceremony marking the commencement of infrastructure construction was held Thursday at Berks Park 78 in Bethel Township.

It marked a climax of sorts for the 10-year effort to create an industrial and warehousing complex in Berks County that will allow businesses to build or to lease space that will be constructed to suit their individual needs.

Thomas C. McKeon, executive director of the Berks County Industrial Development Authority, said the impetus for the entity sprang from the 2001 Leak-Goforth Co. study, which was commissioned to make an assessment of the county's industrial-site needs.

"That said that Berks was at a disadvantage because it didn't have shovel-ready sites," McKeon said. "So we feel we have fulfilled the mission we were given way back then."

BCIDA purchased the property in September 2004 for $6.3 million

The development, just off Interstate 78 along Route 501 in Bethel, has entailed about $43.5 million in federal, state and local funding, McKeon said.

He estimated that it will provide a minimum of 1,000 jobs.

The park also will necessitate the reconstruction of the I-78/Route 501 interchange, which in itself represents an investment of $23.4 million in highway funds, he said.

Infrastructure construction will include improvements to 501 and the building of access roads throughout the 323-acre site, as well as the construction of an entrance.

The next phase will include construction of a water tank, pump house and connections from wells for the park's fire-suppression system. A sewage pump station will also be built and traffic lights installed.

Metropolitan Edison Co. will provide power to the site. McKeon said the company is purchasing rights of way for that part of the project.

McKeon said there has been interest expressed in the location from developers and end users, including some Fortune 100 companies.

"We are seeing some companies consolidating warehouses, and imports are up, and that drives demand for warehouse space," he said. "We're starting to see the effects of that. Our advantage is that we're not like a build-to-suit developer, where the developer says, 'I own the land and I am going to build the building for you.' We're very flexible."

With its optimal location near a major interstate highway, McKeon said the park should be attractive to any number of potential tenants.

"This is a very big deal," McKeon said of the park, noting the jobs that it is expected will be created and the tax dollars it will generate for Bethel, Berks and the Tulpehocken School District. "That's what you need for the future. And it's really for the benefit of the entire county."

via The Reading Eagle

 

For More Information about Local News, Market Intel, or Commercial Real Estate Opportunities; visit www.Bryan-Cole.com

Bryan E. Cole | Team Leader
NAI Keystone Commercial & Industrial, LLC
direct: 610-370-8502
Bcole@naikeystone.com

Check out my new website at www.Bryan-Cole.com

NAI Keystone is a full service commercial and industrial real estate firm located in Reading PA; We handle buyer, tenant, and landlord representation throughout Pennsylvania and with the association of our global partners we can assist in locating product throughout the country.