Commercial-Apartment Division

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•  Apartment Buildings          •  Office Buildings           •  Retail Centers

•  Commercial Condominiums                           •  Office Condominiums



Tenant Representation - Commercial Leases

Los Angeles County - Ventura County

What is a Tenant Broker – Agent


A tenant broker - agent or tenant representative is a commercial leasing agent that represents prospective tenants, not landlords. Tenant agents or representatives (reps) inform their clients about the availability of suitable commercial space, current market conditions, and negotiate on behalf of their clients with landlords or landlords' leasing agents. It is important to differentiate between agents that represent the interests of prospective tenants from leasing agents that represent the interests of landlords.

Tenant broker - agents or representatives can be relied upon to provide their clients with objective advice because their commission income is not tied to any one particular commercial property. In short, they protect their clients - prospective tenants.

Reasons to Use Tenant Leasing Representatives

Prospective tenants avoid dealing directly with a leasing agent that represents the interests of the landlord. Even if the landlord's leasing agent represents that he or she will act as a dual agent, the leasing agent continues to represent the landlord. You can be certain that a landlord's leasing agent will never direct a prospective tenant to a building where the lease terms are more favorable for the tenant. A tenant rep will show a prospective tenant all suitable commercial space. This can save a tenant thousands of dollars over the term of a lease.
   
The services of a tenant representative will almost always cost nothing because the listing agent that represents the landlord will divide the listing commission with the agent representing the tenant as part of the normal brokerage fee sharing arrangement.
   
As the exclusive agent of a prospective tenant, the tenant rep can disclose information to his or her client, the prospective tenant, that the landlord's agent could and would never disclose.
   
As the exclusive agent of the prospective tenant, the tenant rep will not "inadvertently" disclose your confidential information to the landlord.
   
Tenant reps will almost always save prospective tenants money because leasing agents that represent building owners (the agent named on the sign are motivated to satisfy their clients.
Tenant representatives make it their business to be familiar with current market conditions and which building owners are most likely to offer the best lease terms.
   
Tenant reps make it their business to understand the complex provisions usually included in commercial lease documents and often have access to in-house real estate attorneys when legal advice is required.
   
   


Commercial Leasing -Tenant Representation

Frequently Asked Questions


Q. What are the differences between leasing agents and tenant representatives?
   
A. Leasing agents represent the interest of the landlord. Tenant representatives or tenant reps, represent the interest of prospective tenants, not the landlord. The identity of the landlord's leasing agent will generally be found on a sign located on the owner's building. Tenant reps will not have a sign on the landlord's building.
   
Q. Do I need a tenant rep to locate a suitable building for my business?
   
A. Finding buildings for lease is relatively easy. Negotiating the best available lease terms is where the knowledge and experience of a tenant rep becomes valuable. Remember, landlords and leasing agents representing building owners negotiate leases every day. You probably don't which is why we can protect you and also save you money.
   
Q. What is dual agency?
   
A. A dual agency occurs when one agent works for two opposing parties such as a landlord and prospective tenant in the same transaction. At one time, dual agencies were not permitted in California. They are currently permitted if both parties who have conflicting interests agree to accept the dual agency relationship.
   
Q. If the landlord uses an agent from a commercial leasing firm and the prospective tenant uses another agent from the same firm, does a dual agency still exist?
   
A. Absolutely.
   
Q. We are a tenant in an office building and have outgrown our space. Since we still have two years to run on our existing lease, we need to sublease our space. Should we let the leasing agent for the building handle the sublease or should we utilize the services of a tenant rep?
   
A. You will be better served by using a tenant rep who will represent your interests. The leasing agent for the building must protect the interests of the landlord. Our firm represents tenants and can assist with all areas of business-corporate relocation.
   
Q. Will I need the services of a real estate attorney to review a lease document before I sign it?
   
A. It is always a good practice to have a real estate attorney review a complex document such as a commercial lease before signing it.
   
Q. Is a letter of intent legally binding?
   
A. Letters of intent are usually not binding but it depends on the specific language. If you are in doubt, have a real estate attorney review it.
   
Q. What are some of the provisions that landlords attempt to include in their leases that should be of concern to prospective commercial tenants?
   
A. There are too many to list and there are new traps constantly being created by landlords, their attorneys, and their leasing agents. Following are some examples:

The right to relocate the tenant within the property;
   
Severe limits on the tenants' right to sublease or assign his or her lease;
   
The pass through of excessive expenses such as future leasing fees and real estate tax increases resulting from the transfer of title to the building, large management fees, and expense reimbursements paid to the building owner;
   
Unreasonable hold harmless and indemnification provisions;
   
Severe restrictions on signs;
   
An unlimited personal guaranty for the obligations of the business leasing the space;
An unreasonable or inaccurate formula for measuring the amount of space being paid for by the tenant;
Strict limits on how the space may be utilized by the tenant;
   
Requirements that the business remain open for business during specified hours; and
   
Large holdover penalties that apply at the end of the lease if you don't vacate on time.
   

Q. We are currently leasing a commercial condominium. Can you represent us in purchasing the property from the owner?
   
A. Absolutely



I Want to Lease - Sublease



 Lease Renewals

Exercising Options to Renew

The agents with Pacific Realtors represent office and retail tenants in negotiating lease renewals. We also assist tenants with the process of determining whether to exercise lease options. Please see our frequently asked questions and glossary of lease terms.



Sales and Acquisitions

Commercial Condominiums

Pacific Realtors represents buyers and sellers of office condominiums, industrial condominiums, and medial office condominiums throughout Southern California. We have also been providing commercial condominium property management services since 1987 through CoastManagement.net which is part of our real estate firm.

 

What Determines the Cap Rate When Buying or Selling

Income Properties?

A Capitalization Rate (Cap Rate) is the ratio between the Net Operating Income (NOI) of an income producing property and its original cost, or alternatively, its fair market value. The NOI is the income before interest on any loan, depreciation expense, and income taxes.

The Market, through the forces of supply and demand determines market values and cap rates for various types of assets including apartment buildings, office buildings, retail, and other income producing properties. Of course, the market is made up of many buyers (demand) and sellers (supply) at any one time who each participate in the overall market and who may pay or receive a higher or lower price or cap rate depending upon numerous factors. Some of these factors are objective while others are subjective. Buyers use market cap rates as a basis for comparison, but ultimately decide what is acceptable to them based on many factors including risk.

Following are numerous factors that are considered by buyers and sellers of income property investments that affect the price they will pay or receive and the corresponding cap rate:

Is the location of the property improving or declining?
   
If retail traffic is important, are any changes likely to occur that would materially effect the business location positively or negatively? For example, if you know that an anchor tenant in a shopping center (Nordstroms, Vons, etc.) was going to move out, would it make a difference in the price?
   
How stable or volatile is the income of the property? Is the income likely to increase, decrease, or stay the same with a change of ownership?
   
Do the business expenses include sufficient funds to pay the owners reasonable compensation for their work? Remember, return on the invested capital should be considered separately from compensation for work performed.
   
Do the operating expenses include a reasonable, realistic contingency factor?
   
Does the buyer own an existing property that will benefit by the acquisition of the subject property? Will the acquisition generate cost savings opportunities, or other benefits? Will the acquisition eliminate a strong local competitor?
   
Is the seller willing and able to provide attractive financing to the buyer?
   

 

 

 

Partner with Pacific Realtors

Develop an Income Property Portfolio

Whether you are just getting started, or currently have a portfolio of income producing properties, we can assist you in becoming financially independent by acquiring investment real estate. Following are some of the ways we are able to help people who invest in apartments and commercial buildings:

We can identify one or more good investment properties, complete the due diligence, negotiate the terms and conditions, and then jointly acquire properties with you. This allows an investor to benefit from our acquisition, due diligence, and financing knowledge and experience while making smaller investments in several properties.
   
We can provide superior property management services though CoastManagement.net which has been an important part of our real estate business since 1987. We can even defer the payment of our management fees until the managed property has been sold.
   
When the time is appropriate, we can assist you in completing a 1031 Tax Deferred Exchange of your equity in one or more properties into a larger more valuable income property investment.
   

Call us today to discuss how Pacific Realtors can assist you in building an investment real estate portfolio.

 

Partner with Pacific Realtors

Develop a Rental Home Portfolio

Whether you are just getting started, or currently have a portfolio of rental properties, we can assist you in becoming financially independent by acquiring investment real estate. Following are some of the ways we are able to help people who invest in rental homes:

We can identify one or more good investment properties, complete the due diligence, negotiate the terms and conditions, and then jointly acquire properties with you. This allows an investor to benefit from our acquisition, due diligence, and financing knowledge and experience while making small investments in several properties.
   
We can provide superior property management services though CoastManagement.net which has been an important part of our real estate business since 1987. We can even defer the payment of our management fees until the managed property has been sold.
   
When the time is appropriate, we can assist you in completing a 1031 Tax Deferred Exchange of your equity in one or more rental homes, or other investment properties, into a larger more valuable income property investment.
   

 

Condominiums for Investment

Rental Home Properties

When the real estate market is stable, condominium values tend to rise at the overall rate of inflation, or slightly faster. Historically over the long term, condominiums have made excellent investments and have made many investors wealthy. While it is always important to negotiate a good price, it is equally important to anticipate market trends and sell before the market starts to decline. In this regard, there is no substitute for professional advice. It also helps to team up with a knowledgeable, experienced partner. Call us if we can assist you in acquiring an investment property or if you are interested in becoming a partner in an investment property.

Reasons most often sited why condominiums make good long term investments:

Condominiums tend to attract lower maintenance tenants who prefer to live in a community that has strict rules and a high level of maintenance. Tenants who are trouble makers tend to avoid communities with strict rules because they know they will not be able to get away with poor behavior. In short, rules create value.
   
Generally, condominiums provide lower density housing than apartments located in the same area, and more amenities. This has the effect of reducing the vacancy factor that must be budgeted for any residential income property.
Condominium ownership usually results in a more even cash flow than non-condominium rental homes because homeowner associations are required to set aside reserve funds each month for roof replacements, exterior painting, and other major expenditures.
   
Over the long term, condominium values have tended to exceed the rate of inflation in most market areas.
   
The use of financial leverage combined with inflation in the value of assets, makes condominium ownership an attractive long term investment.
   
Every monthly mortgage payment reduces the loan balance and increases the owner's equity or net worth.
   
Federal and State tax rules permit the depreciation of the building improvements which generates an offset to the owner’s income, thus creating a valuable tax shelter.
   
Compared to single family detached homes, townhomes and stacked condominiums almost always have a higher ratio of building value to land value, thus increasing the amount of depreciation or tax shelter generated.
   
Owners of rented condominiums can take advantage of Section 1031 of the Internal Revenue Code permitting the deferral of capital gains and the utilization of those tax deferred tax dollars for investment.
   

 

Call us today to discuss how Pacific Realtors can assist you in building an investment real estate portfolio.

 


Commercial Sales

Pacific Commercial Properties, a division of Pacific Realtors, has the ability to consistently establish higher prices by effectively marketing your property. Upon engaging Pacific as your marketing agent, we will do the following:
  • Prepare an attractive, detailed marketing brochure which will include color photographs of the property, all relevant financial information and a description of all important features and benefits. The brochure will be made available to the commercial brokerage community and to numerous prospective buyers by mail and email. Mailings will be sent to our extensive list of investors and other prospects numbering in the thousands.

  • Advertise your property on those internet sites that we believe will assist in generating qualified prospects.

  • Prequalify all prospective buyers in order to make certain that they will qualify for any required financing.

  • Arrange new financing for the buyer, if requested.

  • Coordinate all inspections; corrective work, if required; and prepare all sales documents/escrow instructions.

  • Work with the buyers, escrow officer, property inspectors, title company, appraiser and any other parties involved in the sale, in order to expedite the closing.

  • Complete the transaction in a timely manner.

 

 

1031 Tax Deferred Exchanges

 


Management and Leasing
CoastManagement.net, an affiliate of Pacific Realtors provides property management services for over fifty residential and commercial properties located throughout Southern California. Please visit: Commercial Tenant Leasing Glossary, and Commercial Condominium Property Management.


R.E.O. Sales
Pacific provides sales and consulting services to financial institutions that have acquired properties by means of foreclosure. Pacific also provides qualified expert witnesses to financial institutions or their legal counsel covering many areas of real estate and finance.


Exchange & Equity Sharing
These programs can be customized for developers as well as individual buyers and sellers of properties. The management of Pacific Realtors are experts at structuring both exchange and equity sharing programs.


Land Sales
Pacific Commercial Properties offers its services to buyers and sellers of individual home sites, subdivision sites and commercial parcels of land.










I Want to Invest

Real Estate Due Diligence

Installment Sales

Accounting and Tax Services

Independent Insurance Broker






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All pages 1999 - 2017 PacificRealtors.net

 

 

Areas Served:
 
Los Angeles County:

Acton, Agoura, Agoura Hills, Agua Dulce, Alhambra, Altadena, Arcadia, Arleta, Artesia, Avalon, Azusa, Baldwin Hills, Baldwin Park, Bassett, Bell, Bell Canyon, Bell Gardens, Bellflower, Beverly Hills, Bouquet Canyon, Box Canyon, Burbank, Calabasas, Calabasas Hills, Canoga Park, Canyon Country, Carson, Castaic, Century City, Cerritos, Chatsworth, Claremont, Commerce, Compton, Covina, Cudahy, Crystalaire, Culver City, Del Sur, Diamond Bar, Downey, Duarte, East Los Angeles, East Rancho Dominguez, El Monte, El Segundo, Encino, Firestone Park, Flintridge, Gardena, Glassell, Glassell Park, Glendale, Glendora, Granada Hills, Hacienda Heights, Hawaiian Gardens, Hansen Dam, Hawthorne, Hermosa Beach, Hidden Hills, Highland Park, Hollywood, Huntington Park, Industry, Inglewood, Irwindale, La Canada Flintridge, La Crescenta- Montrose, La Habra Heights, La Mirada, La Puente, La Verne, La Canada, Lake Hughes, Lake Los Angeles, Lake View Terrace, Lakewood, Lancaster, Lawndale, Leimert Park, Lennox, Leona Valley, Lincoln Heights, Littlerock, Lomita, Long Beach, Los Angeles, Lynwood, Malibu, Manhattan Beach, Marina Del Rey, Maywood, Mission Hills, Monrovia, Monte Nido, Montebello, Monterey Park, Mount Baldy, Mount Wilson, Newhall, North El Monte, North Hills, North Hollywood, Northridge, Norwalk, Pacoima, Palisades, Palmdale, Paramount, Pearblossom, Pico Rivera, Pomona, Quartz Hill, Rancho Dominguez, Rancho Palos Verdes, Rancho Park, Redondo Beach, Reseda, Ritter Ranch, Rolling Hills, Rolling Hills Estates, Rosemead, San Dimas, San Fernando, San Gabriel, San Marino, San Pedro, Santa Clarita, Santa Fe Springs, Santa Monica, Saratoga Hills, Saugus, Sherman Oaks, Sierra Madre, Signal Hill, South El Monte, South Gate, South Pasadena, Stevenson Ranch, Studio City, Sun Valley, Sun Village, Tarzana, Temple City, Toluca Lake, Topanga, Torrance, Tujunga, Universal City, Val Verde, Valencia, Valley Village, Van Nuys, Venice, Vernon, Walnut, Walnut Park, West Covina, West Hills, West Hollywood, West Los Angeles, West Toluca Lake, Westchester, Whittier, Wilmington, Windsor Hills, Winnetka, Woodland Hills.

Ventura County:

Camarillo, Channel Islands, Faria Beach, Fillmore, Moorpark, Newbury Park, Oak Park, Oak View, Ojai, Oxnard, Port Hueneme, Santa Paula, Saticoy, Somis, Simi Valley, Thousand Oaks, Ventura (San Buenaventura), Westlake Village.

Orange County:

Aliso Viejo, Anaheim, Balboa Island, Brea, Buena Park, Corona Island, Costa Mesa, Cypress, Dana Point, Foothill Ranch, Fountain Valley, Fullerton, Garden Grove, Huntington Beach, Irvine, La Habra, La Palma, Ladera Ranch, Laguna Beach, Laguna Hills, Laguna Niguel, Laguna Woods, Lake Forrest, Los Alamitos, Mission Viejo, Newport Beach, Newport Coast, Orange, Placentia, Rossmoor, San Clemente, San Juan Capistrano, Santa Ana, Santa Ana Heights, Seal Beach, Stantonp, Tustin, Tustin Foothills, Villa Park, Westminster, Yorba Linda.



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