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Archive for August, 2010

Saving Technology Costs with Wireless Expense Management

Companies today are always looking for ways to save money and one such solution is wireless expense management. It is well documented that telecom expenses are often near the top of the list of expenses for businesses.  Finding savings wherever you can is important in today’s current economy so reducing wasteful spending might mean the difference in what color ink you use to write your bottom line.  Telecom expense management (TEM) deals with reducing the waste and inefficiency that is inherent within an uncontrolled telecom system.  Telecom expense management has a cousin called wireless expense management (WEM).  WEM is concerned only with your wireless expenditures, while TEM takes in everything else including your hard-wired phone system. You probably need one or the other, but the focus of this article is on wireless expense management.

Research has discovered that anywhere from 7% to 12% of wireless telecom invoices have errors, and those errors over time can have a huge impact on your company’s profit margin.  Did you know that a vast majority of those errors were in favor of the vendor/service provider?  Did you know that 85% of those invoices were paid without question?  Wouldn’t it be great if you could recover those dollars?  A wireless expense management company can do that for you.  Generally, wireless expense management companies work on a percentage basis, and therefore they have an incentive to do their best to save money for your company.  Invoice validation doesn’t cost … it pays.

Finding a wireless expense management company is easy.  Finding a reputable one that covers every angle of WEM isn’t quite so simple, but by spending some time researching wireless expense management firms online you will find the right company you can depend on for your WEM needs.  A good company will have a seasoned leadership team that will audit, negotiate, and act on your behalf to save you money, and they will also offer you a free communications expense audit.

Imaginative Leasing: Commercial Real Estate in the Boise Valley

A recent story in The Idaho Statesman discussed how tough economic times in the Treasure Valley are producing an intriguing by-product in the leasing of commercial buildings: free rent.

The Sundance Company was one of the first commercial real estate companies in the Boise Valley to realize how difficult the economy was on some of the local businesses and that is why they introduced their “Exchange of Business or Trade Services” for lease space program at the beginning of 2010.

The Sundance Company recognized the hard economic times, and also the importance of business relationships. So they worked with firms that had a need for retail, office, or industrial space in the Boise Valley, and with over 1.5 million square feet of space available for lease, The Sundance Company can meet most the needs of most businesses.

You can read the rest of the Statesman story here

Commercial Real Estate Lease Options in the Boise Valley

When you negotiate your real estate lease there are several options to include. The most common is the option to renew. Since landlords will want to raise the rent at the end of the initial agreed period, this will need to be addressed in advance. If you can get an option to renew at a predetermined fixed price, as opposed to renewing at the fair market price, you will likely save money when the initial term of the lease ends, especially if office rents have escalated.

A short lease with one or more options to renew gives you some flexibility. Typically, you have a certain time period before the end of the initial lease term in which you can notify the landlord in writing that you want to renew the lease at the predetermined amount. There may be an additional fee, also agreed upon in the initial lease for exercising your right to stay. Generally, with the exception of the increase in rent, other terms of the initial lease will carry over into the renewal period.

Another option you might include is the option for additional space. Being able to expand is key for a growing business. A landlord who sees the potential of having an important tenant that may attract other businesses, especially in a mall or similar retail situation, may be more inclined to grant you an option for additional space. You will need to examine and negotiate the terms for renting such extra space and make sure the space is suitable to your business needs.

The option for additional space may state that you will expand at the same per square foot rate that you are currently paying, at a fixed rate of increase or at the fair market rate at the time of the expansion. This will need to be determined when working out the initial option agreement. Such an option can only be included if the landlord can reserve or make such space available. A landlord may counter by offering you a right of first refusal, meaning you have first choice on any empty space at the same rental rate that any other tenant will pay. Again, it is a matter of which one of you is in the stronger position.

Also, becoming more common in commercial leases is the option to terminate the lease early. Landlords may offer such clauses to higher profile businesses to entice them to sign longer-term leases and help draw other established tenants into the facility. The landlord will receive some form of compensation if the tenant exercises the option to leave early. In the case of retail leases, particularly at malls, landlords may guarantee a level of occupancy among surrounding storefronts. If that level, for example 75 percent occupancy, is not met by a certain date, the tenant then has the option to terminate the lease.

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.

Boise Commercial Real Estate Terms You Need to Know

When buying or leasing office, retail, or industrial space for your business you should be familiar with some common real estate terms to help make the process as seamless as possible. Besides the terminology, another consideration should be the person you work with to identify real estate opportunities and bring the deal together. Make sure that you find the right real estate professional like The Sundance Company to guide you through the process and help you find the kind of property you need for your business in the Boise Valley including Meridian, Nampa, and Caldwell.

  1. Appraisal: a written report by a state-licensed professional that includes an unbiased analysis of the property’s value and the reasoning that led to that opinion. An appraisal report is required for any property sale.
  2. Broker: an agent who brings together a buyer and a seller, or a landlord and a tenant, in a real estate transaction. All brokers must be licensed by the state in which they work. Most work on commission, and the landlord or seller usually pays the fee.
  3. Build-to-suit: a method of leasing property in which the landlord makes improvements to a space based on the tenant’s specifications. The cost of construction is generally factored into the lease terms. Most build-to-suit provisions apply to long-term (10-year) leases.
  4. Concessions: benefits or discounts given by the seller or landlord of a property to help close a sale or lease. Common concessions include absorption of moving expenses, space remodeling, or upgrades (also called “build-outs”), and reduced rent for the initial term of the lease.
  5. Escalation clause: a clause in a lease that allows the landlord to increase rent in the future. Rent increases dictated under an escalation clause may be charged in various ways, including:

• A fixed increase over a definite period
• A cost-of-living increase tied to a government index, such as the tax rate
• An increase directly related to increases in operating the property

  1. HVAC: an acronym for “heating-ventilation-air-conditioning” system. In a commercial building, the landlord generally is responsible for maintaining the HVAC.
  2. Lease: an agreement by which the owner of a property (the “lessor”) grants the right of possession to a tenant (the “lessee”) for a specific period of time (the “term”) for a predetermined amount of money (the “rent”). A “leasehold estate” is the space occupied by the tenant. Common types of leases include:

• A straight, or flat, lease, which stipulates that the same periodic payment (usually monthly) be made for the entire term of the lease.
• A percentage lease, which uses a percentage of the net or gross sales to determine the monthly rent. This is most often used in retail properties and with a minimum base rent.
• A net lease, which requires the tenant to pay maintenance, taxes, insurance and so on, along with a fixed rent. This is also called “net-net-net” or “triple net.”

  1. Lien: a legal claim filed against a property for payment of a debt or obligation. If a property owner fails to pay a creditor, for example, the creditor can place a lien on the property. A lien can halt the sale of a property.
  2. Sale-leaseback: a transaction in which an owner sells a property to an investor, who then leases the property back to the original owner under prearranged terms. Sale-leaseback deals offer the original owner freed-up capital and tax breaks and the investor a guaranteed return and appreciation.
  3. Sublease: a lease given by a tenant for some or all of a rented property. For example, if a tenant rents 20,000 square feet but only ends up needing 10,000 square feet, they may want to sublet the extra space for some or all of the remaining term of the lease, providing they continue to occupy and pay rent for the property.

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.

Silverstone Amenity Center

Whether you’re hosting a business meeting, corporate retreat, or holiday party, The Silverstone Amenity Center is the perfect location for any occasion. Located at the corner of Eagle and Overland Roads in the Silverstone Park, the Amenity Center is right in the heart of the Boise Valley. Additional on-site services include:

  • Business Concierge
  • Food and Beverage Catering Arrangements
  • Presentation Equipment
  • Commercial Catering Station
  • Free Parking

More information available at www.silverstoneamenitycenter.com.