Archive

Archive for May, 2009

The Sundance Company Services

At The Sundance Company, our team of specialist service teams strive to deliver levels of service and success beyond our clients’ expectations. We have developed numerous long-term relationships with our clients because of our goal to deliver beyond expectations. With The Sundance Company, you can be sure that you have a network of talented and committed people all working towards a common goal: the success of your business. The Sundance Company is one of the few local companies that self-manages and maintains its own properties—enjoying higher occupancy levels and superior quality control for its projects.

With more than 30 years of successful history in Idaho’s Treasure Valley and the Boise metropolitan area, The Sundance Company uses our individual expertise in the Treasure Valley market, combined with access to local market intelligence that few companies can match, to help you achieve, and surpass, your business goals.

With more than 1.5 million square feet of prime office and industrial space in the greater Treasure Valley, The Sundance Company has the size and diversity to avoid the need for a “one-size-fits-all” approach—thereby assuring customized solutions that are genuinely tailored to each client’s needs. For more information about The Sundance Company’s available office, industrial, or retail space in The Treasure Valley including Boise and Meridian please contacts us at 208.322.7300 or electronically.

Communication is the key

Communication may be one of the keys to helping retailers and developers cope with the current economic situation said speakers at the International Council of Shopping Centers’s RECon convention in Las Vegas that was held earlier this month. Read more about what some industry experts believe in the article below from GlobeSt.com.

The dramatic change in industry fortunes from last year’s event was noted by James E. Maurin, chairman of Covington, LA-based Stirling Properties, moderating a session at the Las Vegas Convention Center on how the crisis evolved and what lies ahead.
“A year ago, we knew we had some issues,” said Christopher Niehaus, a managing director of Morgan Stanley, New York City. “But in September, we experienced the collapse of the U.S. financial system.”
The credit and housing bubbles burst, hitting retail hard, while consumers reversed a period of low and negative savings.
“The consumer is going to be fairly muted for quite some time,” Niehaus said.
Unlike previous industry downturns, this current situation has several unique components: its worldwide reach, the lack of debtor-in-possession financing, and capital constraints, noted Charles B. Lebovitz, chairman of Chattanooga, TN-based CBL & Associates Properties.
“In the past, when CBL went to a lender, it wasn’t a question of getting the loan, but of the terms,” Lebovitz recalled.
Meanwhile, the closure of big boxes has had a dramatic affect on leasing. At year-end 2007, CBL had one vacant big box; at year-end 2008, the company had 50 empty boxes. The good news is that what financing is available is reasonably priced.
Companies today are looking at alternative uses for empty anchors, including educational facilities and home furnishings chains.
“How many golfers would like to play in 30 mile-per-hour winds? That sums up what retailers are experiencing,” said Donald Wright, senior vice president of real estate and engineering of Safeway, Pleasonton, CA.
The goal now is to survive.
“Right now, we’re marching in place, keeping our heads above water, keeping our organization intact and maintaining our properties,” Lebovitz said.
The company cut its RECon-related booth costs by 60% by eliminating private office space and reducing staff at the show. Corporately, it has reduced capital expenditures and some staffing. No new projects are being started this year, though four under construction are being completed.
“It’s an ongoing process,” Lebovitz said. “We don’t think the worst is behind us.”
Meanwhile, business must still be conducted.
“We’re going back to the basics: cost control, leasing,” Maurin said. “There are plenty of deals to be made, they’re just harder to do.”
The key is communication.
“Absolutely overcommunicate,” Maurin advised.
“The communication piece is a big deal,” Wright agreed. “If a retailer is struggling, it’s important to talk to the landlord.”
But that doesn’t necessarily mean an automatic rent reduction or deferral, at least without a few strings attached.
“We’re spending more time working with the retailers and exploring ways to [create] a win/win situation,” Lebovitz said. “We ask for a quid pro quo.”
The consensus, Wright said, is that once retail hits bottom, the industry will stay there for a while, forcing all to re-examine their models. Meanwhile, financial system losses continue to rise, from $1.4 trillion in the IMF’s semi-annual survey in October to $2.7 trillion in its April 09 survey.
“Government is a part of the solution, and the repairing of the balance sheet of the banks will be helpful,” Niehaus said.
Still, there is no quick fix. Wright predicted that it might take three to five years to clear up oversupply.
“The heard of the matter is that we’re still in a bad situation,” Niehaus said. “The economy is built on credit. If that dries up, everything stops. We have a massive pig working through the python. We’re only halfway there and we still have a long way to go.”

Boise Office Space – Red Hawk Court, Blackeagle Center

Red Hawk Court is a single-story office building with large windows located in the high profile Blackeagle Center, a 45-acre business park developed by The Sundance Company in Boise, Idaho. The Blackeagle Center is home to coffee and sandwich shops, athletic centers, as well as various medical providers. There are two access points to I-84 and Flying Wye Connector which are less than 5 minutes from Blackeagle. Located in a one (1)-mile radius of Blackeagle employees can access Costco, Wal-Mart, Lowe’s, Albertsons, Fred Meyer, Walgreens, Starbucks, Boise Spectrum Theatre Complex, and the Boise Towne Square Mall. In addition to these, there are a large variety of banking, day care centers, restaurants, fitness centers, and library in the surrounding area.

Red Hawk Court
9292 W. Barnes Drive
Boise, ID 83709

Site Area: 1.22 acres
Zoning: L-OD
Year Built: 1999
Project Size: 14,004 sq. ft.
Number of Floors: One
Parking: 5.1/1,000 ratio
Construction: Class D, wood frame
Exterior: E.F.I.S. over plywood sheathing
Roof: Single ply EPDM roofing system over ½” roof board over ¾” tongue & groove plywood sheathing over Trus Joist frame
Floor Construction: 4” concrete slab
HVAC: 5-ton, gas-fired rooftop units; 100,000 BTU; 2,000 CFM
Ceiling: Lay-in acoustic ceiling panels in 2’x4’ T-bar ceiling grid with indirect and recessed lighting
Ceiling Height: 10’ finished height
Restrooms: Common area restrooms in central core
Life Safety: Wet pipe fire protection system with alarm valves with Fire Department Connection
Miscellaneous: Extensive perimeter and site landscaping; distinctive wildlife sculptures at property entrances; consistent architecture throughout park.

About The Sundance Company
The Sundance Company has become a development powerhouse with more than 30 years of successful history in Idaho’s Treasure Valley and the Boise metropolitan area. The Sundance Company is one of the few local companies that self-manages and maintains its own properties—enjoying higher occupancy levels and superior quality control for its projects.

Savvy tenants and buyers look to The Sundance Company for development; office, warehouse, and retail leasing; property management; build-to-suit/construction; and land and building sales. With more than 1.5 million square feet of prime office and industrial space in the greater Treasure Valley, The Sundance Company has the size and diversity to avoid the need for a “one-size-fits-all” approach—thereby assuring customized solutions that are genuinely tailored to each client’s needs.

Every project by The Sundance Company is conceived and executed with integrity, innovation, accountability, and dedication by a team of seasoned experts who always remains mindful not only of tangible aspects of a property transaction but also the intangible. The in-house management team values its personal connections and the relationship of trust it has created with its tenants and property owners, which include national and regional companies, some of whom have been in Sundance buildings for more than 15 years.

Commercial real estate defined

Commercial real estate is commonly considered to be all real estate with the potential to generate outside income and/or revenue for the owner of the real property. This can include many property types:

  • office buildings
  • retail properties
  • apartment units
  • condominiums and
  • even raw land.

If the property has the potential to generate revenue now or in the future it may be deemed as commercial real estate. Alternatively, some people consider those properties that generate outside income and/or revenue, except for real estate that is habitable (houses, condos, apartment buildings), to be commercial real estate. Capital gains and rental income can also be earned, in addition to the property types listed above, through investment in niche properties.

About The Sundance Company
The Sundance Company has become a development powerhouse with more than 30 years of successful history in Idaho’s Treasure Valley and the Boise metropolitan area. The Sundance Company is one of the few local companies that self-manages and maintains its own properties—enjoying higher occupancy levels and superior quality control for its projects.

Savvy tenants and buyers look to The Sundance Company for development; office, warehouse, and retail leasing; property management; build-to-suit/construction; and land and building sales. With more than 1.5 million square feet of prime office and industrial space in the greater Treasure Valley, The Sundance Company has the size and diversity to avoid the need for a “one-size-fits-all” approach—thereby assuring customized solutions that are genuinely tailored to each client’s needs.

Every project by The Sundance Company is conceived and executed with integrity, innovation, accountability, and dedication by a team of seasoned experts who always remains mindful not only of tangible aspects of a property transaction but also the intangible. The in-house management team values its personal connections and the relationship of trust it has created with its tenants and property owners, which include national and regional companies, some of whom have been in Sundance buildings for more than 15 years.

How is commercial real estate square footage measured?

While all properties use the square foot as the basis of measurement, which parts of the property are included in the final calculations vary by building type. Gross square footage is most typically used with warehouses, industrial buildings and other stand-alone buildings, such as freestanding retail sites. Typically, the calculation will include the thickness of the sidewalls when measuring the total footprint of the site. When measuring multi-tenant warehouse, industrial and retail property, the inside measurement may be the most appropriate. This measurement will include 50% of the thickness of any demising walls.

Office buildings use substantially different calculations. The actual square footage that an office user may occupy is typically less than the amount upon which the rent is based. The square footage that you use exclusively is termed “usable square feet” and the amount upon which the rent is based is called “rentable square feet”. This is because office tenants pay their proportionate share for their use of building common areas. Common areas include lobbies, hallways, rest rooms, and service areas. The differential is expressed as a percentage known as a load or loss factor. When comparing properties, it’s a good idea to ask, “What is the load factor?” The higher the load factor the more of your space will be in the common areas and less inside the suite for your exclusive use. Occasionally, one may find a building that bases the rent upon the usable square footage. Since load factors can run 17 to 22 percent, this may represent real savings.

About The Sundance Company
The Sundance Company has become a development powerhouse with more than 30 years of successful history in Idaho’s Treasure Valley and the Boise metropolitan area. The Sundance Company is one of the few local companies that self-manages and maintains its own properties—enjoying higher occupancy levels and superior quality control for its projects.

Savvy tenants and buyers look to The Sundance Company for development; office, warehouse, and retail leasing; property management; build-to-suit/construction; and land and building sales. With more than 1.5 million square feet of prime office and industrial space in the greater Treasure Valley, The Sundance Company has the size and diversity to avoid the need for a “one-size-fits-all” approach—thereby assuring customized solutions that are genuinely tailored to each client’s needs.

Every project by The Sundance Company is conceived and executed with integrity, innovation, accountability, and dedication by a team of seasoned experts who always remains mindful not only of tangible aspects of a property transaction but also the intangible. The in-house management team values its personal connections and the relationship of trust it has created with its tenants and property owners, which include national and regional companies, some of whom have been in Sundance buildings for more than 15 years.

A Few Basics About Commercial Real Estate

So just what is commercial real estate? The next question you might have is what is investment real estate? Sometimes they are the same and sometimes they are not.

Commercial real estate is generally defined as any property that is used for the purpose of commerce. For example, an office building, a warehouse, retail store, shopping center or an apartment building with five or more units. Investment real estate is generally defined as property that is purchased for the income it produces. This can range from the purchase of a single-family home that is used as a rental, to a major shopping mall or office tower. It does not include the home you own and occupy.

While the valuation of a single family home is most often established by the sales of comparable homes in the same area, larger commercial property is usually valued by the income it produces. The more money it makes, the more it is worth. Simple, right? Well, sort of. Let’s start with an explanation of the general process of real estate valuation.
Keep in mind that what an appraiser says is defined as “an opinion of value based on supportable evidence and approved methods.” It is important to understand that the appraiser does not establish a property’s worth but rather verifies what the market indicates.

There are three processes of valuation an appraiser will use to determine the value of any piece of real estate. These three processes are:

Cost – The cost to build a similar piece of real estate.

Market – Based on the closed sales of similar properties in similar condition and areas. This is called the comparable or market value.

Income – The property value based on the net operating income the property produces. An appraiser will use all three processes, but select only the one (or, at most two) that most accurately reflects the market value. They are never averaged.

As an investor in real estate, you will be particularly interested in the Net Operating Income (NOI) in order to determine a property’s worth to you.

Here is an easy way to compute the Net Operating Income:

Start with the total income that would be generated if the property is fully occupied. Then subtract any money lost due to vacancies, uncollected rents or other credit losses. The remainder constitutes the money available to operate the property. From this figure, subtract all operating expenses, such as routine maintenance and property taxes, and then what is left is called the net operating income (NOI).

About The Sundance Company
The Sundance Company has become a development powerhouse with more than 30 years of successful history in Idaho’s Treasure Valley and the Boise metropolitan area. The Sundance Company is one of the few local companies that self-manages and maintains its own properties—enjoying higher occupancy levels and superior quality control for its projects.

Savvy tenants and buyers look to The Sundance Company for development; office, warehouse, and retail leasing; property management; build-to-suit/construction; and land and building sales. With more than 1.5 million square feet of prime office and industrial space in the greater Treasure Valley, The Sundance Company has the size and diversity to avoid the need for a “one-size-fits-all” approach—thereby assuring customized solutions that are genuinely tailored to each client’s needs.

Every project by The Sundance Company is conceived and executed with integrity, innovation, accountability, and dedication by a team of seasoned experts who always remains mindful not only of tangible aspects of a property transaction but also the intangible. The in-house management team values its personal connections and the relationship of trust it has created with its tenants and property owners, which include national and regional companies, some of whom have been in Sundance buildings for more than 15 years.