commercial real estate – Page 3 – The Sundance Company

Keep Your Employees Happy and Make More Money

Are your employees giving your company ‘their all?’ Do they believe that what they’re doing is important? Do they feel appreciated? Do they show up for work each day with passion and purpose?

A ‘red flag’ should go up if you answered “no” to any of those questions. Why? Managers who aren’t taking care of their employees are missing out on significant cost-savings and profits.

For business leaders in companies of all sizes, the writing is on the wall: You can make and save money by keeping employees engaged. Today’s managers must make it a priority to get to know them so that they, in turn, can provide whatever’s needed to keep their teams fully engaged in what they do. This creates wins for everyone. With that in mind, here are nine management tips for creating and sustaining employee engagement:

1) Let go of any negative opinions you may have about your employees. Approach each of them as a source of unique knowledge with something valuable to contribute to the company. Remember that you are co-creating the achievement of a vision with them.

2) Make sure employees have everything they need to do their jobs. Remember when you started a new school year and you’d prepare by getting all new school supplies? Why not build just such an opportunity into your department simply by asking each staff member, or the team as a whole, “Do you have everything you need to be as competent as you can be?” Remember, just as marketplace and customer needs change at daily, so do your employees’ needs change.

3) Clearly communicate what’s expected of employees – what the company values and vision are, and how the company defines success. Employees can?t perform well or be productive if they don’t clearly know what it is they’re there to do ? and the part they play in the overall success of the company. Be sure to communicate your expectations – and to do it often.

4) Get to know your employees – especially their goals, their stressors, what excites them and how they each define ‘success.’ I’m not suggesting you pry too deeply or start ‘counseling’ your team members. What I am suggesting is that you show an interest in their well being and that, when appropriate, you do what it takes to enable them to feel more fulfilled and better balanced.

5) Make sure they are trained – and retrained – in problem solving and conflict resolution skills. These critical skills will help them interact better with you, their teammates, customers and suppliers. It’s common sense – better communications reduce stress and increase positive outcomes.

6) Constantly ask how YOU are doing in your employees’ eyes. I know it can be difficult for managers to request employee feedback – and it can be equally if not more challenging for an employee to give the person who evaluates them an honest response. To get strong at this skill and to model it for employees, begin dialogs with employees using conversation starters such as, “It’s one of my goals to constantly improve myself as a manager. What would you like to see me do differently? What could I be doing to make your job easier?” Be sure to accept feedback graciously and to express appreciation.

7) Pay attention to company stories and rituals. Are people laughing at each other or with each other? Do they repeat stories of success of moments of shame? Stay away from participating in discussions that are destructive to people or the organization, and keep success stories alive.

8) Reward and recognize employees in ways that are meaningful to them (that’s why getting to know your employees is so important). And remember to celebrate both accomplishments AND efforts to give employees working on long-term goals a boost.

9) Be consistent for the long haul. If you start an ‘engagement initiative’ and then drop it your efforts will backfire, creating employee estrangement. People are exhausted and exasperated from ‘program du jour’ initiatives that engage their passion and then fizzle out when the manager gets bored, fired or moved to another department. There’s a connection between an employee’s commitment to an initiative and a manager’s commitment to supporting it. A manager’s ongoing commitment to keeping people engaged, involved in and excited about the work they do and the challenges they face must be a daily priority.

Ultimately, you must keep in mind that employees are a company’s greatest assets. Their collective ideas, feedback and enthusiasm for what they do can help your business grow and succeed. Some people are naturally wired to give their all and do their best no matter where they work. But the majority of people require the guidance of skilled managers who welcome their ideas, ask for feedback and generate enthusiasm in order to have a sense of purpose and energy about what they do.

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 is available at www.sundanceco.com or 208.322.7300.

April 5, 2011April 12, 2011 sundancecompany commercial real estate, Commercial real estate news, The Sundance Company

Globe St: Commercial Real Estate Recovery on Track

A recent article on Globest.com discusses how the nation’s commercial real estate market is back on track.

Despite the fits and starts and multiple global and domestic headwinds addressed in recent blogs, the economic recovery should continue this year and hopefully gain more momentum as bad news abates. A similar pattern exists for recovery of the nation’s commercial real estate market, only with different lag and lead times by property type.

Please click here to read the rest of the story …

http://www.globest.com/blogs/streetsmart/-308429-1.html

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 is available at www.sundanceco.com or 208.322.7300.

January 8, 2011January 4, 2011 sundancecompany Commercial real estate news, Economy news, The Sundance Company

Going Green in 2011

It seems like everyone is talking about saving energy, resources, and living green these days. Maybe your business has put it on the back burner but now that 2011 has begun it could be the perfect time for your office to get a green program going. Here are some tips for making your business greener.

Don’t print it. How many times have you seen an article or a webpage you want to read later and printed it? Try not to succumb to the temptation to print. If you can’t read it right away, bookmark the page.
Don’t print everything. Don’t print the entire article if you only want one paragraph. Highlight the paragraph you want, then copy and paste it into a Word document. It’s also a lot easier to use as a reference or a quote in a report if you don’t have to retype it.
Use both sides of the page. Many new printers can be set to print on both sides of the page, but if your printer cannot, keep a stack of “one-side-used” paper beside the printer to print drafts or articles that will only be used for reference.
Recycle. Offices generate a lot of waste other than paper, and some of it is toxic. Do what you can to recycle old office equipment. You will find a host of recycling tips, locations, and information on the Internet
Turn in old ink cartridges. Many office supply stores have recycle stations where you can drop off your old printer cartridges to be reused. Groups can even make money recycling old print cartridges.
Turn it Off. Unplug chargers when they are not in use. Chargers, when left plugged into the sockets are still eating power, even though your device is not refueling, so take a moment to unplug them or plug all the devices into a single surge protector and turn it off when not in use.
Lights Out. Take a moment before you leave the office to turn off lights, printers, computers, monitors, and copiers. You will extend the life of your equipment and save some money as well.

December 5, 2010 sundancecompany commercial real estate, Commercial real estate news, The Sundance Company

Commercial Real Estate News: Markets Stabilizing

A recent article from NAR (National Association of REALTORS®) discusses what 2011 looks like for commercial real estate markets.

Lawrence Yun, NAR chief economist, said commercial real estate sectors appear to be stabilizing. “The basic fundamental of rising commercial leasing demand, resulting from a steadily improving economy, means overall vacancy rates have already peaked or will soon top out,” he said. “The outlook for the office and industrial markets has moderated with modestly declining vacancy rates expected as 2011 progresses, while the retail sector should hold fairly steady. Still, high vacancy rates imply falling rents.”

Yun anticipates a rise in household formation from an improving economy, which will increase demand for housing, both ownership and rental. “Multifamily housing is the one commercial sector that has held on relatively well in the past year, and can expect the best performance in 2011,” he added.

“Apartment rents could rise by 1 to 2 percent in 2011, after having fallen in 2009 and no growth in 2010,” Yun said. “This rent rise therefore could start to force up broader consumer prices as well.” He noted that the housing shelter cost of primary rent, and owner’s rental equivalence, is the biggest component in the Consumer Price Index, accounting for 32 percent of its total weight.

The Society of Industrial and Office Realtors®, in its SIOR Commercial Real Estate Index, an attitudinal survey of more than 400 local market experts, shows vacancy rates are slowly improving, but rents continue to be soft with elevated levels of subleasing space on the market. The SIOR index, measuring the impact of 10 variables, rose 1.6 percentage points to 42.6 in the third quarter, but remains well below a level of 100 that represents a balanced marketplace. This is the fourth straight quarterly improvement following almost three years of decline.

The last time the commercial market was in equilibrium at the 100 level was in the third quarter of 2007; the index now matches where it was at the beginning of 2009. Fifty-nine percent of respondents expect improvements in the office and industrial sectors in the current quarter.

Commercial real estate development continues at stagnant levels with little investment activity, but is beginning to pick up in many parts of the country.

September 25, 2010September 14, 2010 sundancecompany commercial real estate, Commercial real estate news, Economy news, The Sundance Company

Commercial Real Estate Investment Remains a Smart Play

In economic terms, inflation is defined as a rise in the general level of prices of goods and services in an economy over a period of time. When prices rise, each unit of currency buys fewer goods and services, eroding real consumer purchasing power. Although deflation also is a risk to the economy, moderate inflation is much more prevalent over the course of modern history.

In the long run, the most significant factor influencing inflation is the growth rate of the money supply. Inflation occurs when the nominal supply of dollars grows faster than the real demand to hold dollars. However, in the short and medium term, inflation may be largely affected by supply and demand pressures in the economy, and influenced by the relative elasticity of wages, prices, and level of interest rates.

In the U.S., inflation is estimated by calculating the rate of change of the Consumer Price Index (CPI). The CPI measures prices of a selection of goods and services purchased by a typical consumer. The magnitude of inflation — the inflation rate — is usually reported as the annualized percentage growth of the CPI Index.

To read the rest of the article please visit here …

August 14, 2010August 4, 2010 sundancecompany Boise Commercial Real Estate, commercial real estate, The Sundance Company

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.

July 3, 2010June 27, 2010 sundancecompany boise build to suit, Boise Commercial Real Estate, Boise Commercial Real Estate Development, Boise Industrial Space, Boise Office Space, Boise Retail Space, commercial real estate, The Sundance Company

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.

March 15, 2010March 11, 2010 sundancecompany commercial real estate, The Sundance Company

Increase Productivity in Your Commercial Office Space

Many companies can experience an all-time low in productivity and morale due to the state of the economy and the pressure each business is under. That pressure can quickly trickle down through the commercial office space at all levels, adversely affecting companies hard.

So, if your office space is currently suffering from morale and productivity problems, then now is the perfect time to reignite the excitement and enthusiasm in your team and really make them feel as though they are a part of something great! But how do you do that? Here are some simple steps to help turn around staff morale and productivity.

Listen to Staff
One thing many businesses forget to do is listen to their staff. It sounds so simple, but rarely are team members given the luxury of speaking their mind and really sharing their thoughts and concerns. To get started, send out a company-wide survey asking all the hard questions. Be quite specific with your questions, allow staff to fill it out in work hours and keep the surveys anonymous so that you can get complete honesty from your team. Once you have collated the answers and can see which areas need to be fixed comes the next step…

Create a New Workplace Strategy
You’ll now be able to see all the real problems your team are facing, which is a great start. But now you know the issues, what are you going to do to fix them? Develop a strategy to combat the main problem areas and also an implementation plan. Then you’re ready to do the third step …

Communicate in the Office Space
It’s important to remember that staff members will respond to company efforts when you communicate with them and have an open and honest dialogue. When sending out communications, whatever the form, always mention the problem but then focus on the solution. This will give staff a reason to believe that these solutions are important and will be actioned.

Implement the New Workplace Strategy
Now that you have discovered the problems staff are facing in your commercial office space, figured out how to solve them and communicated this to the company, the most important thing to do is actually implement the solutions. If you don’t “walk the walk” you could be faced with even more disgruntled staff and a bigger problem that what you started with.

Please check out The Sundance Company website to view property photos, search for office space or learn more about Sundance’s start-to-finish capabilities. If you prefer to talk to someone in person about your commercial real estate needs, then just give us a call at our Boise office, (208) 322-7300

March 8, 2010March 2, 2010 sundancecompany Boise Commercial Real Estate, The Sundance Company

Commercial Lease Calculation Tools

Commercial and retail leases use various rental pricing methods. The decision as to which commercial lease calculation method to use is frequently related to the type of tenant business. It could also have to do with the economy, balancing a need to retain an occupant with their ability to pay based on their business revenues.

Rent per square foot – Rent is set at $xx.xx per square foot of the leased space. This can be expressed either as an annual or a monthly amount.

Example with annual quote: A 2200 square foot office space is quoted a rent of $11.50 per square foot. 2200 X $11.50 = $25,300 per year for rent.
Example, same building and rent for monthly amount: 2200 X $11.50 = $25,300 Divide by 12 months to get a monthly rental amount of $2108.33.

Percentage Lease – Retail volume can vary significantly due to many factors, including the economy and also location. For this reason, it is a common practice for a landlord, in their commercial lease calculation, to determine a base rent that they absolutely need, and then to have the tenant pay a percentage of their retail gross income in addition to the base rate. This is logical as, if the location is a good one, then retail sales should rise and enable the tenant’s ability to pay higher rent. There are two ways in which the percentage is normally calculated:

Minimum base rent + percentage over a certain base amount: In this case, the tenant pays a minimum base monthly rent, and then adds a percentage of all gross receipts over a certain base amount. Example: $1000 per month base rent, and 5% of all gross receipts over $50,000 per month. Using one month’s gross receipts of $72,000, we do the calculation this way:
$72,000 – $50,000 = $22,000. $22,000 X .05 = $1100. $1100 + base of $1000 = month’s rent of $2100.

Minimum base rent + percentage of all gross receipts: Here, we don’t set a bottom line revenue before the percentage kicks in. Rent is paid on all gross receipts from $zero. Example: $500 base rent + 2% of gross business receipts. If we use the previous numbers, we’d take 2% of the entire $72,000 and add that to the base rent, as here:
$72,000 X .02 = $1440. $1440 + $500 = monthly rent of $1940.

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 retail, office, and industrial space available in prime Boise and Meridian locations.

February 24, 2010February 21, 2010 sundancecompany Boise Commercial Real Estate, Boise Commercial Real Estate Development, commercial real estate, Meridian Commercial Real Estate, The Sundance Company

Leasing vs Buying Commercial Office Space?

Many businesses reach a point in which they are curious as to whether it would be beneficial for them to purchase a building rather than continue to lease space. While every business is different there are a few common factors that should be taken into consideration when evaluating whether buying a building space would be better than continuing to lease space. We will take a look at some of the pros and cons to purchasing compared to continuing to lease space.

* Cash Outlay – Typically if you are planning to purchase a building, you can expect to make a down payment of between 10% and 25% of the purchase price, depending on the lender and your credit. When you lease space you won’t need to put down nearly as much. With good credit, the typical outlay is the first and last months rent which is only about 10% to 15% of the cash outlay required when purchasing a building.
* Opportunity Cost – With the large outlay of cash required to purchase a building, the opportunity cost of that money needs to be taken into consideration. What return would you expect to receive on that money compared to the return you would expect to receive if you invested the money back into your business or into other investments?
* Fixed vs. Variable Cost – When you buy a building, you have a good idea what your costs will be over the long term. This is especially true if you have a long term fixed rate mortgage. If you lease space, the market will dictate what you will end up paying for rent over the long run.
* Growth Considerations – The growth phase of your business should be a major consideration in making the lease vs. buy decision. If your company is relatively new and/or in a high growth mode, leasing would allow more flexibility and fewer constraints to that growth. On the other hand, if your company is mature and stable, buying space is great way to meet your future space needs.
* Property Management – You’ve heard the expression, time is money. If you own a building, it needs to be managed. You can either hire out the function or do it yourself. Many businesses with long term growth plans buy a larger building than they need and rent out the expansion space. All the more need for good property management.
* Appreciation – One of the primary goals of buying a building space is to generate long term increase in value through market appreciation. A good idea in a healthy market and usually successful over the long term. It is usually a good way to add to your retirement fund, but keep in mind that recent commercial real estate cycles have come in 10 year periods.
* Tax Factors – Lease payments are usually fully deductible, but many expenses of owning office space must be written off over longer periods of time of up to 39 years. The good news if you buy is that you get to take depreciation on the improvement portion of the property and can usually deduct all of your interest payments. When considering the tax factors it is always very important to consult with your attorney and tax professional about the legal and financial considerations to owning office space.
* Cash Flow Analysis – The devils in the details. In order to really understand the financial aspect of purchasing a building, you need to prepare a detailed comparative net present value cash flow analysis which takes into consideration your predictions on the future including holding period, anticipated appreciation vs. rental increase, interest rates, and cost of expenses increases. It is a good idea to do three different analyses, optimistic, realistic and pessimistic, to help determine your margin of error. It seems like a daunting task, but there some good programs available to help you do this analysis including:

The Next Step

While the evaluation of the leasing vs. buying space decision seems somewhat overwhelming, there is help. Getting advice and assistance from a commercial real estate professional who is involved in the business day in and day out can significantly improve not only the accuracy of any analysis, but in general simplify the process. Many of the lease vs. buy factors can only be decided by you, but having a helping hand in the areas where space expertise is important will assure you of making the best possible decision. Call The Sundance Company today to see how we can help you with your lease or buy decision.

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 retail, office, and industrial space available in prime Boise and Meridian locations.