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Archive for July, 2010

Looking For New Office Space? Don’t Make These Mistakes

Following payroll expenses, facilities and related expenses are generally the second highest expenditure for a company. While people are naturally the most important asset to a company, real estate decisions should not be far behind. Too often though, companies fail to see the significance of real estate in the same light.
The impact real estate has goes far beyond the bottom line because it plays an important part in everything from employee retention to the level of productivity and workplace morale. It’s for these reasons that companies should always be cognizant when making real estate decisions.

The top mistakes that companies make when leasing space are:
• Waiting Too Long to Start The Process. The longer a tenant waits to start the process, the fewer the number of options that will be available to them. Waiting too long can mean that a tenant will pay more, receive less favorable lease terms, or that they are forced to leave and take less than desirable space elsewhere.
• Leasing The Wrong Amount of Space. Figuring out how much space to lease is not an exact science. Forecasting involves assumptions, which can often lead to costly mistakes if incorrect. Uncertain events notwithstanding, companies should take the time and effort to work with a space planner or architect to plan and program to determine the right amount of space to lease. With that information in hand, companies should then go one step further and think about the impact certain business scenarios would have on that number, the likelihood of those events happening, and adjusting the number so as to minimize the likelihood of taking down too much or too little space.
• Picking the Wrong Location. What may seem like the right location might in fact not be. Companies should consider things such as access, public transportation, demographics, zoning laws, and other factors to help identify the right location for their business.
• Not Thinking About The Future. Aligning a real estate plan with a corporate business plan is difficult to do when milestone events and setbacks do not always go according to plan. To help deal with the “unknown”, negotiating leases which provide both expansion and contraction rights to the extent possible is therefore instrumental. Companies need to go beyond the simple lease and think about sublease rights, expansion rights, rights to cancel, and options to extend.
• Not Measuring The Space. Companies should strongly consider verifying the landlord’s square footage numbers. In larger transactions, even a small difference can translate into a large savings. If it is not possible to measure the space, tenants should at least try to negotiate a tolerance in the measurement. Generally though, and per BOMA standards, a variance of up to 2% is acceptable.
• Signing Too Long or Too Short of a Lease. Companies often think that by signing a short lease they are buying themselves flexibility. That may be true in many cases, but that flexibility often comes at a price. On the flip side, tenant’s may feel a long term lease provides maximum stability, but there are far too many cases – particularly in Silicon Valley where swings in rent can be large – where long term leases signed at the height of the market have gone so far as to force companies into bankruptcy or caused severe harm to the company. It’s therefore imperative that companies take a long-term approach to real estate, while keeping short term trends and business activities in focus.
• Not Verifying Building Systems and Infrastructure. In today’s environment, data, power, networking, and HVAC capacity and availability are crucial. Tenants should ensure that buildings they intend on occupying are capable of providing the network connectivity and other building systems necessary for a tenant’s operation before signing any lease.
• Not Having Your Insurance Carrier Review the Lease Language. Tenants should always have their insurance carrier review the language within a lease that pertains to insurance and subrogation to verify that the insurance is not only attainable, but attainable at a reasonable cost. It is strongly recommended that the actual lease or lease language be sent to your insurance carrier for review before any lease is signed.
• Not Retaining Legal Counsel. By using an attorney well versed in the documenting of a real estate transaction, companies can help avoid ambiguity and errors which could lead to expensive litigation or legal wrangling down the road.

If you are looking for commercial real estate space and do not want to make one of the preceding mistakes then contact The Sundance Company and we can walk you through the process of procuring a great location for your business. Established in 1976, The Sundance Company has more than 1.5 million square feet of office and industrial space available in prime locations throughout the Treasure Valley including Boise, Meridian, and Nampa so contact us today to see how we can help you find the right office or retail space for your company. More information is available at www.sundanceco.com or 208.322.7300.

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Meridian, Idaho Commercial Real Estate for Lease – Silverstone Town Square

Located in Silverstone Park, an 80-acre business park at S. Eagle and E. Overland Roads in Meridian, Idaho, Silverstone Town Square is a 33,409 square feet Class A commercial real estate building that is a natural fit for office, medical, and retail users. The desirable Overland Road exposure features an approximate traffic count of 14,000 cars daily. Silverstone Town Square is situated less than one mile south of Interstate 84

Interchange and St. Luke’s Regional Medical Center, and there are over three million square feet of services and amenities within a one and a half mile radius.

Silverstone Town Square
3715 E. Overland Road
Meridian, Idaho 83642

Building Size: 33,409 square feet
Site Area: 2.33 acres
Zoning: C-G
Year Built: 2006
Number of Floors: Two
Parking: 4.6: 1,000 useable square feet
Construction: Reinforced concrete tilt-up with 8-inch square steel columns on approximately 34’ x 36’ grid
Exterior: Reinforced concrete tilt-up panels with artificial stone and stucco finishes
Roof: Single ply EDPM membrane roofing system
Floor Construction: Ground Floor -4” reinforced concrete slab
Second Floor—3 1/2” to 5” of concrete over corrugated steel pan
HVAC: Ground Floor—2 to 5 ton, 13 seer condensing units with 5-20 kw heater with relays
Second Floor—3 to 6 ton gas fired rooftop units
Ceiling: Lay-in acoustic ceiling panels in 2’x4’ T-bar ceiling grid with indirect and recessed lighting
Elevator: General purpose, 2,100 lbs capacity, 100 feet / minute
Ceiling Height: 10 feet in office areas
Restrooms: Ground Floor –in Tenant’s suites
Second Floor—common restrooms around elevator core; also Tenant suites
Life Safety: Wet pipe fire protection system with alarm valves with Fire Department Connection
Miscellaneous: There is extensive perimeter and site landscaping; distinctive granite sculptures at entrances. Signaled entry intersections on Eagle Road as well.

About The Sundance Company
Established in 1976, The Sundance Company has the experience to help you with your commercial real estate needs in Boise, Meridian, Nampa, and the greater Treasure Valley. If your requirements include property management, leasing, real estate development, project planning, construction or space planning then look to us. The Sundance Company has more than 1.5 million square feet of office and industrial space available in prime Boise and Meridian locations. More information available at www.sundanceco.com or 208.322.7300.

Meridian, Idaho Commercial Real Estate for Lease – Silverstone Corporate Center

A quarter mile from Interstate 84 at the Eagle Interchange, SilverStone Corporate Center is a 90-acre master planned employment center centrally located in Southern Idaho’s Treasure Valley. With over 1 million square feet of tenant amenities within minutes of Silverstone Park, the center is an efficient three level floor plan, accommodating office users from 1,500 to 90,000 square feet. Silverstone also features a professional on-site business concierge available to assist with all of your business planning and state-of-the-art meeting facilities designed to provide your business with everything you need to keep your company productive

Silverstone Corporate Plaza
3405 E. Overland Road
Meridian, ID 83642

Building Size: 120,792 square feet; does not include 4,004 square foot drive-thru
Site Area: 6,196 acres
Zoning: CC
Year Built: 2009
Number of Floors: Three
Parking: 4.5/ 1,000 usable square feet (partial covered parking and walkways)
Construction: Steel super structure with steel stud framing
Exterior: Granite exterior panel system with gold reflected window system
Roof: Single ply EDPM membrane roofing system
Floor Construction: Ground Floor – 4” reinforced concrete slab
2nd & 3rd Floors – 3 1/2” to 5” of concrete over corrugated steel pan
HVAC: Ten (10) RTU’s with a VAV individual zoned system
Ceiling: Lay-in acoustic ceiling panels in 2’x4’ T-bar ceiling grid and indirect and recessed lighting
Elevator: Two (2) general purpose, 2,100 lbs capacity, 100 feet/minute
Ceiling Height: Minimum of 10’ in office areas
Restrooms: Two restroom cores per floor; located near each elevator core
Life Safety: Wet pipe fire protection system with alarm valves with Fire Department connection
Access: Keyless card entry with electronic door monitoring
Miscellaneous: A landmark building located at Silverstone Park, with unprecedented combination of accessible location, luxurious finishes and unusually distinctive amenities.

About The Sundance Company
Established in 1976, The Sundance Company has the experience to help you with your commercial real estate needs in Boise, Meridian, Nampa, and the greater Treasure Valley. If your requirements include property management, leasing, real estate development, project planning, construction or space planning then look to us. The Sundance Company has more than 1.5 million square feet of office and industrial space available in prime Boise and Meridian locations. More information available at www.sundanceco.com or 208.322.7300.

A Guide to Commercial Real Estate Building Classifications

When considering office space, tenants will find that office buildings are generally classified as being either a Class A, Class B, or a Class C building. The difference between each of these classifications varies by market and class B and C buildings are generally classified relative to Class A buildings. Building classifications are used to differentiate buildings and help the reporting of market data in a manner that differentiates between building types. That said, there is no definitive formula for classifying a building, but in the general characteristics of each are as follows:

  • Class A. These buildings represent the highest quality buildings in their market. They are generally the best looking buildings with the best construction, and possess high quality building infrastructure. Class A buildings also are well-located, have good access, and are professionally managed. As a result of this, they attract the highest quality tenants and also command the highest rents.
  • Class B. This is the next notch down. Class B buildings are generally a little older, but still have good quality management and tenants. Often times, value-added investors target these buildings as investments since well-located Class B buildings can be returned to their Class A glory through renovation such as facade and common area improvements. Class B buildings should generally not be functionally obsolete and should be well maintained.
  • Class C. The lowest classification of office building and space is Class C. These are older buildings (usually more than 20), and are located in less desirable areas and are in need of extensive renovation. Architecturally, these buildings are the least desirable and building infrastructure and technology is out-dated. As a result, Class C buildings have the lowest rental rates, take the longest time to lease, and are often targeted as re-development opportunities.

The above is just a general guideline of building classifications. No formal international standard exists for classifying a building, but one of the most important things to consider about building classifications is that buildings should be viewed in context and relative to other buildings within the sub-market; a Class A building in one market may not be a Class A building in another.

About The Sundance Company
Established in 1976, The Sundance Company has the experience to help you with your commercial real estate needs in Boise, Meridian, Nampa, and the greater Treasure Valley. If your requirements include property management, leasing, real estate development, project planning, construction or space planning then look to us. The Sundance Company has more than 1.5 million square feet of office and industrial space available in prime Boise and Meridian locations. More information available at www.sundanceco.com or 208.322.7300.