Posts Tagged ‘commercial’

Moving a business to London or managing office moves across the capital can be daunting. With thousands of available properties, it is essential a business can conduct an efficient office move.

London remains a magnet for businesses of all sizes. Serviced by five airports, including Heathrow and its new Terminal 5 and the latest European rail connections, it is still favoured by major corporations.

Knight Frank’s most recent survey of commercial property activity within the M25 revealed 72 per cent of property take-up was in out-of-town developments, with budget office moves enjoying units one-third greater than town centre lettings.

There has also been a marked interest in the West End, which remains popular with the developing media industries. Investment has more than doubled during the first three months of this year, compared with the final quarter of 2007. Property group, Frank Knight, has revealed £1.15 billion was spent on commercial property in the West End since January.

Media reports have recently noted a decline in commercial property markets. However, for companies planning office relocations there is much good news. With a number of commercial properties nearing completion, vacancy rates have risen to 6.2 per cent and there is 13.7 million sq ft of commercial property available across Central London. Added to this, the ongoing credit crunch has contributed to lower rental prices in the City, which now average £60 per sq ft reduced from £63.50 per sq ft.

Managing office moves can be made easier by first considering your firm’s needs and the cost of moving – will it involve a new IT system and office design, or can the cost of office refurbishment be limited by continuing to use current equipment?

London’s skyline is filling with high-profile commercial property, although it is equally likely when moving offices firms will find themselves in renovated or refurbished buildings.

In the next 12 months, 15 separate refurbishment projects are set to be completed within the boundary of the M25 adding a further 833,789 sq ft of accommodation.

Successfully relocating in the capital and ensuring an efficient office move can be better achieved with expert help. Employing the services of a relocation advisor that maintains its loyalty to your business and not the building would be an excellent start.

Whatever the reason for your relocation, its effect on staff is likely to be considerable. Estate agents, Savills, in its recent study, What Workers Want and What this Means for Property, revealed the importance employees place on quality offices. It found 82 per cent of respondents said immediate workspace conditions, such as comfort of work area and lighting, were most important.

Firms planning corporate relocations will have many properties to choose from. By recruiting the help of experts in managing office moves, they increase the chance of getting office moves right and minimise disruption to their business.

For interviews, quotes, images or comments contact:
Shivani Gurtu-Louth
Devono Operations Manager
Tel(DDI): +44 (0)20 7096 9911
E-mail: sg@devono.com
Website: http://www.devono.com

Resources:
Market rent guide – http://www.devono.com/Market-Rent-Guide/
Office Space Calculator – http://www.devono.com/Office-Space-Calculator/
Industry News – http://www.devono.com/News/

Getting a commercial mortgage for a hotel property is very similar to getting a commercial mortgage for an owner occupied commercial property with a few subtle differences. The driving force for the majority of most hotel income is the RevPar or revenue per available room. RevPar is most commonly calculated by multiplying a hotels average daily room rate (ADR) by it occupancy rate and is a key indicator of performance. Rising RevPar is an indication that either occupancy is improving; the ADR is increasing, or a combination of the two.

Although RevPar only evaluates the strength of room revenue, it is typically the most relevant indicator of performance. While many full service hotels generate revenue through other means such as restaurants, casinos, conferences, spas, or other amenities the majority of hotel properties are either limited service flagged properties or limited service unflagged properties. A limited service hotel is simply a hotel with out a restaurant. Because the operating costs of the restaurant component generally run higher than that of the hotel operations, it is common for the net operating income (NOI) as a percentage of total sales to be lower for a full service than a limited service hotel. For this reason the majority of commercial lenders prefer to finance limited service hotels.

Flagged vs. Unflagged Properties:

A flagged hotel property is simply a hotel that belongs to a national franchise. An example of a flagged property would be a Holiday Inn or a Best Western. For the guest, a flagged property provides the benefits of a uniform standard that is upheld by the franchisor. A guest could stay in a flagged property on the east coast and could expect the same flag on the west coast to have the same standard of cleanliness and amenities. The owner of the property gets the benefit of a nationwide reservation system and marketing. For this benefit the operator is expected to pay a franchise fee which can typically range anywhere from 5% to 10% of room revenue. Because of the advantages that a flagged property has, most commercial lenders prefer to finance them over an unflagged property. Sometimes it can be extremely difficult to get a commercial loan for an unflagged property, especially if the property isnt in what is considered a destination resort area. A destination resort area would be an area like Miami, Myrtle Beach, or Orlando FL. An unflagged property in a destination resort is easier to obtain a commercial loan on than an unflagged property in other areas of the country.

Exterior Corridor vs. Interior Corridor:

An exterior corridor property is a hotel property where you can actually see the door to the rooms from the exterior of the property. These are sometimes referred to as a motel instead of a hotel. The term motel is actually derived from the term motor hotel where most travelers would park their vehicle directly in front of their room. While there are disagreements between what defines a motel and what defines a hotel, there is typically very little difference between the two outside of a lenders perception.

Most exterior corridor properties are older and subsequently will not have the quality of furnishings and will have more deferred maintenance than an interior corridor property. An interior corridor property is going to be more energy efficient and would have a lower utility expense as a percentage of gross revenue.

Financing Your Hotel Property:

When trying to get a commercial loan for your hotel property there are a few distinct differences you can expect as opposed to financing other commercial properties. A hotel property is considered special purpose in nature which simply means that it is generally cost prohibitive to convert it to alternate use. An office building or retail space can accommodate numerous types of businesses whereas a hotel property can only accommodate a hotel. Because of this a commercial mortgage for a hotel is going to be considered riskier to the lender than a commercial mortgage for other general purpose property types. A lender will mediate this risk by taking a more conservative approach to underwriting a hotel property.

The loan to value (LTV) for a hotel property will be lower than other general purpose property types. For a limited service, flagged property 65% LTV is typical and that number can go down depending upon the age of the property and whether its interior or exterior corridor. The LTV is simply a ratio calculated by dividing the loan amount by the value of the property. The debt service coverage ratio (DSCR) for a hotel will also need to be higher than that of a general purpose property type. The DSCR is a ratio that determines the strength of the property or business income in relation to the proposed mortgage payment. A typical required DSCR for a hotel property by a commercial lender is 1.30 which simply means that for every $1.00 in proposed mortgage expense there should be $1.30 available to pay it. For other general purpose property types the DSCR is lower. A DSCR of 1.20 is common for general purpose property types and can go oven lower for a less risky property such as an apartment building.

Because the acquisition of a hotel property under a conventional program requires a large capital injection, many borrowers prefer to purchase a hotel property by utilizing the SBA 504 program. This program enables the borrower to put in as little as 15% and still obtain a better interest rate than a traditional commercial mortgage for a hotel.

A commercial mortgage loan is a loan which is secured by opting for opting using real estate as collateral to secure repayment. By taking out a commercial mortgage, you can maximize your business finance. Property can be a significant cost for many businesses. Hence, it is important to invest wisely. Commercial mortgage guide can help take a wise decision.

A mortgage is in fact, one of the best kinds of financial products. Commercial mortgages are taken out by the owners of a business to buy the warehouse, factory or office premises from where their firm operates; or to re-mortgage an existing loan on more favourable terms. They can also be taken as an investment on a ‘buy-to-let’ basis, where borrowers rent the building they’ have purchased out to a business. They are different from residential mortgages and can be sued for other things too. For instance, you can use commercial mortgages to buy a concern such as farm, pub, restaurant or care home. They can also be used to part fund a management buyout or corporate acquisition, or even to simply raise some additional working capital to help take your business forward.

There are many advantages of securing commercial mortgages. They are the best way to finance the purchase of land and buildings for your business. The repayments on a mortgage are likely to be similar to rental payments. Buying a commercial mortgage property will help you keep protected against any hefty rent rises. Moreover, you will also be able to sub-let any free space that you may have.

You can also build extensions and make conversions to your premises. Mortgage repayment schedules are agreed upon in advance and are also flexible. They are easier to manage your budget. Apart from this, interest payments on commercial mortgages, like other types of loans are also tax deductible. Commercial mortgages can also be used as repayment loans. The repayment term ranges from 15 to 20 years if it’s a new property. There are a wide range of choices in this kind of mortgage. 

With a commercial mortgage guide, you can take a right decision. Commercial mortgages are specialised in nature. This is due to the fact that the lender has a legal claim over the property until the loan has been repaid in full. In fact, a commercial mortgage is the best way to finance the purchase of buildings and land for business purposes as it provides the most flexible and affordable finance solution.

While the recent recession and economic crisis have made it difficult to secure many types of loans, Texas property tax loans stand out as an exception. Texas continues to report some of the highest property tax rates in the country and with real estate values holding up well in this state, there has been little tax relief for property owners.  Given the high rates and the ever present challenges in the economy, property owners should know that delinquencies can be addressed with a property tax loan before penalties, interest, and possible foreclosure by the county.

With the economic crisis worsening, property tax lenders expect a record number of borrowers in the months ahead.  If you are interested in a solution for your delinquent property taxes, these frequently asked questions may assist your search.     

Q: What is a property tax loan and how can it help me?

A: Property taxes are due in a lump sum by January 31st.  The amount of tax due increases every month thereafter until the taxes are paid.  A tax loan consolidates the delinquent taxes, accrued penalties, interest, and any legal fees owned on the property into a loan with affordable monthly payments. The taxing authority´s existing lien is transferred to the property tax lender as security for the loan. 

Q: What type of property will qualify for a Property Tax Funding loan?

A: Loans are available for almost any type of real estate as long as the borrower is not in bankruptcy, there is no IRS lien on the property, and the property is reasonably maintained. This includes residential, commercial, investment properties, and vacant land. 

Q: What if I’ve had past credit problems?

A: Credit history is typically not an issue, except in cases of current bankruptcy.  Loans are approved for most applicants, even those with not so perfect credit.  All loans are subject to income verification

Q: How long does the loan process take?

 A: From the time the application is completed the closing can occur in less than a week.  Applications can be taken online or over the phone.  Loan closings are typically handled with a mobile notary that comes to a location convenient to the borrower. 

Q: How much money can be saved by avoiding interest and penalties on a delinquent property tax bill?

A: Penalties and interest are set by state legislature and begin to accrue on February 1st.  While county rates vary, you can expect penalties, interest, attorney fees and court costs of 37% to 44% per year.  It´s easy to see how a property tax loan can save thousands in penalties and interest, while more importantly, avoiding foreclosure and lawsuits by the taxing authorities.

Q: What are some considerations when choosing a property tax lender?

A: In addition to choosing a lender with years of experience and specialization in property tax lending, only work with a lender who is licensed by the state of Texas.  You can validate if the property tax lender is licensed to make property tax loans in Texas with the Office of Consumer Credit Commissioner.   http://www.occc.state.tx.us/pages/searches.html

You can also learn more about Texas property tax loans by contacting Property Tax Funding at http://www.propertytaxfunding.com/ or calling a loan officer at 877-776-7391.

Gerald Celente predicts “Commercial Real Estate Collapse” in ’09. Today I drove around town and filmed all the vacancies. All film was shot in one city! It looks like this in neighboring areas as well. I didn’t even go to the mall or the industrial areas. That will be later. Check out Gerald at wwww.trendsresearch.com

April 19, 2009

http://www.propertytaxfunding.com/

Property Tax Payment

Taxing units usually mail their tax bills in October. The date of delinquency is normally February 1st.  If you have not received your tax bill by January 1st, you should contact your tax assessor to determine the amount owed. 

Property tax bills often include more than one taxing jurisdiction because some taxing jurisdictions combine their collection operations.  Likewise, certain properties will be subject to multiple taxing jurisdictions collected by different assessors.  Contact the central appraisal district for your respective county to determine the taxing jurisdictions which apply to your property.  Many county central appraisal districts now post their property tax data online. 

If you escrow taxes and insurance, then your mortgage company will pay the property taxes on your home.  You should receive a receipt from the tax assessor indicating payment has been made.  The receipt is important to retain, as many homeowners deduct property taxes for federal income tax purposes.

When Is the Deadline for Payment?

In most cases, the deadline for paying your property taxes is January 31. Taxes that remain unpaid on February 1 are considered delinquent. Penalty and interest charges are added to the original amount.

Taxes are due in one lump sum.  Some tax collection offices provide payment options, such as:

 Payment by credit card, typically with additional fees of 3% to 5%  Deferment or installment plans for taxes on homestead properties for disabled property owners or property owners over 65 years of age  Discounts for early payment  Partial payment of your taxes

If you are qualified for the over-65 or disabled homestead exemptions, you may pay your current taxes on your home in four installments. You must pay at least one-fourth of your taxes before the February 1 delinquency date. The remaining payments are due before April 1, June 1 and August 1, without any penalty or interest. If you miss an installment payment, you will face a penalty and also pay interest at 1 percent for each month of delinquency. You must indicate on your first payment that you are paying your home taxes in installments. Installment payments apply to all taxing units on the tax bill.

Homeowners whose residences are damaged in a disaster and are located in a designated disaster area also may pay their taxes in four installments, in the same months as over-65 or disabled homeowners.

What If my Taxes are Delinquent?

The longer you allow your delinquent property taxes to go unpaid, the more expensive and risky it becomes for you.

Penalty and interest charges will be added to your taxes.
Penalty charges and interest charges will be added to your tax balance.  Private attorneys hired by taxing units to collect delinquent accounts can charge an additional penalty to cover their fees.  The following table details the potential penalties, interest, and attorney charges imposed on a delinquent property tax account.

Month Penalties & Interest
February        7%
March            9%
April              11%
May              13%
June             15%
July               32% to 37%*

*Collection Attorney Fees Vary by County, but are typically 15% to 20%.

Accounts not paid in full by June 30th of the year in which they become delinquent are normally referred to the delinquent tax attorneys for collection and incur an additional penalty equal to 15% – 20% of the total taxes, penalties and interest due.  Generally, any payment on the quarterly payment plan that is not paid before the delinquency date of the installment accrues a full penalty of 6% immediately, and begins to accrue interest at the rate of 1% per month until paid.

You will receive delinquent tax notices.
The tax collector will send you at least one notice that your taxes are delinquent. They often send multiple notices and warnings. You may have the option to set up an installment plan.
Some tax collectors will allow you to pay delinquent taxes in installments for up to 36 months. They are not required to offer this option. You may be sued.
The tax collector can take a delinquent taxpayer to court. All court costs will be added to the delinquent tax bill. Your property may be foreclosed upon.  You could lose your property! 
Each taxing unit holds a tax lien on each item of taxable property. A tax lien automatically attaches to property on January 1 each year to secure payment of all taxes. This tax lien gives the courts the power to foreclose on the lien and seize the property. The property then will be auctioned and the proceeds used to pay the taxes.

 Are there other options available to pay property taxes?

 Yes, specialized lenders exist who focus solely on property tax lending.  These lenders provide an alternative to the lump sum payment of your property taxes.  A property tax loan will immediately stop the added penalties, interest, attorney fees, and pending lawsuits for the county.  Most lenders offer flexible loan terms with repayment schedules up to 10 years.  Loans are available for almost any type of real estate as long as the borrower is not in bankruptcy, there is no IRS lien on the property, and the property is reasonably maintained. This includes residential, commercial, investment properties, and vacant land. 

 To learn more about property tax loans and the lending programs available visit Property Tax Funding, http://www.propertytaxfunding.com/, or call a loan officer at 877-776-7391.

inflation.us What will happen to vacant commercial buildings as the economy begins to unwind? The Answer is right in front of my eyes. They will be destroyed.

jim rogers on CNBC 04 juin 2009 Jim Rogers expects currency chaos and the fall of the dollar : jimrogers1.blogspot.com http for more

Anchorage protesters bring their guns and slogans www.adn.com Washington protest over health proposals www.rte.ie 3 more down: Bank failure tally hits 92 money.cnn.com www.fdic.gov After Corus, who’s next to fail thanks to commercial real estate woes? www.dailyfinance.com Venezuela to Develop Nuclear Energy With Russian Help www.bloomberg.com Obama challenges Wall Street to change www.msnbc.msn.com

From the October 6, 2009 PBS “News Hour.” One sees this every day. Storefronts on Park Avenue South where overpriced restaurants sat two years ago are empty with “For Rent” signs, something one never saw in such neighborhoods. Traditionally in NYC, property changes hands in private deals, never through the posting of rent signs. With 1% down payments, commercial real estate makes the subprime meltdown look outright responsible.

• ISBN13: 9780940352162
• Condition: USED – VERY GOOD
• Notes:

Product Description
How to Succeed in Commercial Real Estate is a comprehensive, practical book for those considering entering the field of commercial real estate, those just beginning in the business, as well as experienced brokers and sales managers who want to evaluate and strengthen their current strategies—especially those related to listings, negotiations, contracts, and sales. The author provides a straightforward overview of the business of selling commercial property, in… More >>

How to Succeed in Commercial Real Estate

Australia offers profitable opportunities for city investment as well as Australia commercial properties for sale in current property hotspots in coastal resorts such as those in Western Australia and North Queensland.

Intelligent investors are making the most of today’s real estate market in Australia, while opportunities still last, for land, buy-to-let and pure investment options and for >”>Australia commercial properties.

There is a strong supply pipeline with a significant element of speculative development, restrained rental growth in 2007, with rents remaining relatively static in the western regions.

According to Australasian Industrial Property Guide Winter 2008, the North and South were the only two regions to experience notable rental growth. In 2007, 776,118m2 of industrial space was leased throughout Sydney industrial markets across 201 reported transactions. The Outer West region dominated leasing activity, accounting for 47% of recorded lease transactions.

Record supply levels were recorded in 2007, with 921,221m2 entering the Sydney industrial market, up 42% from 2006. However, 2008 is set to exceed this record by a substantial 42%, and break the 1 million mark with 1.31 million sqm due for completion. The Outer West will continue to lead the charge, housing 52% of this new stock.

Construction of warehousing and distribution centres continues to rise driven by strong demand for imports, accounting for 64% of new stock to enter the market in 2008 (Australasian Industrial Property Guide Winter 2008).

Australia commercial properties are wide ranging due to the sheer magnitude of the country. Buyers of Australia commercial properties are looking for a buoyant market in which to invest and are looking at various areas where the local economy is growing and the job market is strong, bringing with it a healthy supply of tenants for rentals as well as home purchasers.

• ISBN13: 9780470457467
• Condition: NEW
• Notes: Brand New from Publisher. No Remainder Mark.

Product Description
As it currently operates, the commercial real estate construction industry is a disaster full of built-in waste. Seventy-percent of all projects end over budget and late. The buildingSMART Alliance estimates that up to fifty-percent of the process is consumed in waste. Almost every project includes massive hidden taxes in the form of delays, cost overruns, poor quality, and work that has to be redone. Building new structures is a fragmented, adversarial process that… More >>

The Commercial Real Estate Revolution: Nine Transforming Keys to Lowering Costs, Cutting Waste, and Driving Change in a Broken Industry

• ISBN13: 9780470380352
• Condition: NEW
• Notes: Brand New from Publisher. No Remainder Mark.

Product Description
Many investors are frightened of investing in commercial real estate. But with residential real estate struggling, the time is right to make the switch to commercial properties. Trump University Commercial Real Estate Investing 101 takes the fear out of commercial investing with easy-to-understand, step-by-step principles that will make you successful and lower your risk. You?ll learn the differences between residential and commercial properties, how to invest profi… More >>

Trump University Commercial Real Estate 101: How Small Investors Can Get Started and Make It Big

Housing Crisis – Analysis and Discussion with Harrison LeFrak of LeFrak Organization: Commercial Real Estate is in a Slow-Motion Car Crash; No Green Shoots Ahead (Bloomberg News)