Thursday, December 16, 2010

These Are Ways To Get The Most From Your Facility Dollars

This Business Cycle has everyone looking at all their expenses. Typically one of the largest expenses of any business is the cost of their facility. Rent or Mortgage payments coupled with taxes, utilties and even maintenance repairs is a big part of the monthly Budget.

These are some ideas if you own your commercial facility. Insulation is a good place to start. Not that long ago the Building Code only required 3" insulation in roof and walls. Compare this to the current Code of 4" on the walls and 6" on the roof. At the cost of energy to heat and cool there is a good payback on dollars spent. Recently we retrofitted an older metal building with batt insulation between the purlins held in place with metal panels underneath. Changed the look and really improved the energy efficiency. These same type savings can be realized by updating doors and windows. Another simple idea is to glue foam board insulation to overhead sectional door panels, roll-ups do not work so well. If you are looking to remodel find a Contractor who knows, understands and uses the Rehabilitation Code vs. The Standard Building Code.

If your renting carefully review your lease looking for add-on costs vs. what might be an included item somewhere else. Examples of these types of costs would be taxes, water, sewer, common area maintenance, storm water fees, etc... The Flex Space on Posterity Court includes all these costs in the base rent. As suggested above look into your energy costs. An older building will cost more to heat and cool than newer construction because of the Code requirements on insulation alone. Remember if your making a 20% return with your business every dollar saved means five dollars less must be sold. Think also about the intangibles of where you lease. Would a Showroom generate more sales? If you could keep more parts or inventory would you sell more? Meeting in your office or conference room provide an edge in selling?

So whether construction or leasing call us.

Thursday, November 18, 2010

Struggling to Cut Costs, Increase Sales And Get Ahead in Your Small Business?

How Hard Working Is Your Business Location Working For You?

First Leasing is like a loan. For a monthly payment much less than the cost of finding, designing, developing and constructing you get the use of someone else’s facility thereby conserving your capital for other uses to grow your business. How you handle your Business Location can generate Working Capital. Who doesn’t need more of that.

Leasing doesn’t stop helping your Business there. Lease payments are 100% expensed. The cost of the space you occupy is tax deductible.

Additionally leasing space allows for quick changes in size, layout, etc… as your Business grows. Work around solutions typically cost money and when they involve commercial real estate they cost MONEY.

For the Math People let’s look at an old idea made new again by the Recession.

Economic Value=Project Earnings-(Required Return X Project Investment)

An example being ABC Company wants to lease new space from XYZ LLC and leave it’s old location in a remodeled mill. Old rent was $1,000.00/month and new rent is $1,200.00/month. ABC Company tries to obtain 20% return on all its sales, investments, etc…

Required Return (20%) and Project Investment ($200/month) means Project Earnings must be $1000/month for the move to have Economic Value.

Will the new location generate $1,000/month from:

  1. New construction vs old saves utility costs for heating & cooling?
  2. New lease includes a cost previously not included in the rent? (water/sewer, storm water, taxes)
  3. New location has space for showroom, displays, inside sales counter, more inventory, more parking, image improvement to get clients to site to see your products, people, etc… visibility for your Business

For Help In Reviewing These Factors and More Click For Free Leasing Guide

Wednesday, November 3, 2010

New Tools For Leasing Gastonia Office-Warehouse-Showroom-Retail Space

Click on Real Estate Broker Tab above and select from three work sheets.

Compare Leases          Space Planning          Facility Information

These should be helpful guides to getting your space budget producing the most value for your dollar.

Additionally The City of Gastonia had two building permits issued for October after only 4 in September. Don't use the wrong Contractor when the right Contractor is available to utilize his knowledge of

Soil & Erosion          Storm Water Phase II          Remodel Code  


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Wednesday, October 20, 2010

Moving On Up - Your Opportunity?

Alarm Sounds is moving to a larger unit in 2T Park. They are leaving 4475 Posterity Court and relocating in 4465 Posterity Court Suite 150. I always enjoy seeing the companies here in 2T Park grow. Small Business is the engine for the economy.

This move also opens 4475 Posterity Court to a new tenant. To me this is the best value at $1,200.00/month  I have due to all the office finish. There is 1,000 sf of office and 500 sf of storage. 4475 Video

For a larger unit see 4479 Video and to see a duplicate unit of 4465 Suite 150 see 4465 Suite 100

Wednesday, September 29, 2010

Gastonia Flex Space - Save Money

Saving Money has been on my mind and in my work. I was especially struck by this item.

From “DOUBLE YOUR PROFITS In Six Months or Less” by Bob Fifer – Step 33 Office Space


In the U.S. we have a crazy notion about the office space each of us needs. People who travel three or more days a week have their own (unoccupied) office. (In fact, very few people in your organization truly need their own office.) Offices are larger than they need be. Reception space is often wasteful and unnecessary.


The office space rules which you should follow are straightforward. Choose a lower cost suburban location. Double or triple people up whenever possible. Eliminate unused “airy” central space. Office size should be functional, not luxurious. Productivity will go up, because people sense a more serious and less wasteful atmosphere.


Finally think twice or three times before having your business invest in its own office real estate. In most areas, renting is a buyer’s market. Your needs change, and you don’t want to be stuck with too much or the wrong space. Owning your own building is a nice ego trip, but nine times in ten it comes back to haunt you financially. There’s an old adage that says if you’re not in the real estate business, don’t pretend that you are.

You can execute this cost saving program by leasing a Flex Space Unit from us. Units are located down South New Hope Rd. to Stroup Rd. and onto Posterity. Easy to find but not priced like a Franklin Square address. New units for Sucellus are open except for baths and fully heated/cooled. Floor Plan layout is up to you and except for the baths all space is usable in multiple ways. If your needs change we have 1750, 3000 (Taranis Properties LLC) and 3500 Sq Ft units currently available. These can be easily combined into larger spaces to accommodate growth. Click here to learn about other ways we save our tenants money.

Monday, September 27, 2010

Lean Process - New Term Old Idea for Commercial Leasing & Building

I had no idea when writing the last post that there was a techincal name for what I was doing. Apparently the idea of Value Engineering has been expanded into Lean Process. Value Engineering was about looking at Value as Function/Cost. Lean Process adds the concept of Waste so (Function/Cost)/Waste.

The five actions of Lean Process are:

  1. Universal - Function is staedy and Cost decreases
  2. Stable Builder - Function increases and Cost is steady
  3. Good Times - Large Function increase with small Cost increase
  4. Hard Times - Small Function decrease and large Cost decrease.
  5. Perfect World - Function increase and Cost decrease
Who knew I was describing a "Perfect World" last blog. While I cannot promise a "Perfect World" result I can say you should review your business lease and look at what we offer in Flex-Space and Retail keeping  the Five Actions in mind.

Thursday, September 23, 2010

Improvements - If Your Not Getting Better.....

We moved into our current location about 5 years ago. Moving brought a new copier and new phone and internet service. Moved in and went to work. The economy has caused us to review all of our expenses and services. The review brought changes to some services. One change in particular was internet.

Why do I tell you about this and what does it have to do with Gastonia Real Estate? Well for two years everyone complained about slow internet speed. Updates hogged bandwidth and made working slow. The files downloads got bigger and video was everywhere. On the sites of others and on our sites. I cannot tell you what updated internet speed has meant. I am working twice as fast when work involves the internet.

My point is that you can routinely do what you routinely do and you don't see the improvements others are making much less change into using them. Then the paridigm changes and you look into things realizing how inefficient you had been.

Your Business Space is not different. Paying retail rates and your a wholesaler? Wasting time warehousing in a space so small you can't organize or stop stacking items on top of items? Need a showroom to display items and increase sales?

Review your needs and talk to us. The business environment is always changing and like a Football Coach once told me if your not getting better your getting worse.

Wednesday, September 8, 2010

Experience Is Priceless In Providing Value

Time Warner is upgrading the cable infrastructure at 2T Park. The Park was developed in the late 90's and with VOIP Services and ever faster Internet requirements the cable needed updating. Working with Time Warner and their installation sub-contractor we, as Developers (Sucellus and Taranis Properties) of the Park and Builders (ICM) of the Buildings, were able to save time and money because multiple pvc pipe conduits were provided at utility service points on the buildings before drives and parking were paved. There was no need to cut the paving and very little tunneling required. This also minimized disruption for tenants as parking and drives were kept open.

This is just an example of what experience has taught us in keeping an eye on the little details that might be big problems if left out. Upgrade your leasing or building experience with us.

Thursday, August 12, 2010

Retail Lease Rates Gaston County & Where To Beat Them

From National Real Estate Data Service LoopNet Average Retail Rents In Our Area Are About $16.50 per Square Foot per Year Call Me Today To Rent In Franklin Square Area for $14 per Square Foot per Year With Gas and Electric Included!     

Monday, July 19, 2010

Leasing Terms For Gastonia Flex Space

Leasing terms are critical to calculating your overall cost of space. Beware of Triple Net Leases (NNN). The rent is just the beginning of tenants cost as these leases require tenants to pay property tax, building insurance, maintenance, common area maintenance, storm water fees and even water/sewer charges. In multi-tenant spaces they are prorated by tenant space divided by building size. These items can add substantially to the rent. Property Tax alone could add 9% to 16%.

Taranis and Sucellus believe in simple and direct leasing.We include most of these costs in the quoted rent. See our leasing proposition or review savings calculations showing we save tenants these add-on costs of 39% to 54%.

Contact us today.

Thursday, July 1, 2010

Gastonia Office Warehouse Showroom Available

60 Second Video Tour of Unit 4479


Entry Office with Display Area and Break Counter, Private Office, Two Large Work Areas, Storage Area and Half Bath. (2) 10x10 Doors in rear, (2) glass entries, Three Phase Power, 3,000 sf Mostly Air Conditioned. Ready July 1, 2010.

Monday, June 21, 2010

Gastonia Publishes Utility System Expansion Fee








Approved March of 2009 and final details debated into June 2010 for July 1st 2010 start is the System Utility Expansion Fee.

Avoid this fee by discussing alternate locations to City of Gastonia Sites and locations with water/sewer taps already in place with us.

Friday, May 7, 2010

Rising Vacancy and Lower Rents - The Facts

I was reading the May Commercial Property Executive Magazine when I came across some interesting data from REIS, Inc. for nationwide averages for retail vacancys and rents. Below is a table I did from the data looking at the percentage change from one year to the next in vacancy and lease rate.

Yr         Vacancy%         Rents$         Delta V         Delta $


2000         6.4                15.89

2001        7.1                 16.31           11%             3%

2002        7.3                16.68              3%            2%

2003       7.2                17.14              -1%           3%

2004       7                   17.62              -3%          3%

2005      6.8                18.22               -3%          3%

2006     7.1                18.92                4%           4%

2007     7.5                19.46                6%           3%

2008    8.9                 19.52              19%           0%

2009   10.6                19.13              19%          -2%

2010 Est 11.5           18.86                 8%          -1%

What this shows is that even a 19% change in vacancy at best reduces rents 2%.

This makes the retail rental rate of $14.50 at 831 South Church St at I-85 across from the Movies and up Church st. from Goodwill the best value around. And they include utilities!

Destination Retail in Flex Space Units off South New Hope for $7.50 have even more value.

Please note lease rate is annual base rate per sf per year before triple net charges of taxes, insurance & maintenance.

Tuesday, May 4, 2010

Sites at Exit 22 I-85 Lowell NC

MLH Properties to J&R Rentals property of 5.8 acres on South Main St. Lowell NC $5,200,000

22 at Lowell Sites 

Wednesday, April 28, 2010

Flex Space - Going ....Going

Have leased all the Taranis Properties LLC units at 2T Park. Only Sucellus LLC has some small bay business units still available.

These units still offer the same outstanding value

Tuesday, April 20, 2010

Recognition of Investment in Gaston County

Gaston County Economic Development Commission recognized us, Industrial Construction & Maintenance, Inc., for Million Dollar Investment in Gaston County for 2009. The Project was for our construction and development of a Flex-Space Development. for Sucellus LLC.

What can we do for you?

Wednesday, April 7, 2010

Need A Market For Your Business

How about a market where within 15 minutes almost 152,000 people live who have a median age of approximately 38 and household average incomes of almost $61,000.00? How about over 38,000 Owner occupied units and over 22,000 Renter occupied units?

I could just tell you. But how about clicking here to see Market One or here to see Market Two

Thursday, March 25, 2010

Gastonia Listings of Office-Flexspace-Land

It has been some time since I did a "Listing" post on the blog. So here goes:

Flex Space on Posterity Court - 1,500 SF Unit, (2) 1,750 SF Units, (1) 3,000 SF Unit and (2) 3,500 SF Units.

Retail Space Franklin Square - 831 South Church St. - Church St. @ I-85 - 1236 SF Unit, 1,600 SF Unit and 2,400 SF Unit.

Multiple Lots at Exit 22 I-85 - Interchange for Franklin Square and Southeast Gastonia Charlotte Commuters. High Traffic Count.

For Construction Services

For Development Services

Wednesday, March 17, 2010

No Increase In Supply of Commercial Space

I was asked why I thought the supply of new commercial space was not going to increase. The short answer is that no funds/loans are available for new projects. Where are those funds? The answer is below.

In February 2010 alone the Federal Deficit was $221 billion, the greatest in history.In the 1980's we had Deficit problems but this February alone equaled all of 1986's Deficit. The 1970's also had Deficit problems but again last month was triple the Deficit of all six years of Nixon. In fact February 2010's Deficit, for 28 days, is equal to the Deficit of 1776 to 1945, a period of 169 years and seven major wars.

In just one week last month the Fed borrowed new money and replaced old debt at the rate of $390,212 per second or $23.4 million per minute or 1.4 Billion per hour around the clock.

This means Federal, State and Local Governments are on an annual pace to raise $1,040.4 billion. Business is cutting their debt $1,097.5 billion and Consumers are cutting $510.4 billion.

Decling Business and Consumer borrowing signals economic weakness and this is worse because it is a decline to zero on a net basis. There is pressure on Business and Consumers to pay down debt and that credit is being removed by Government. This means credit is being denied or even taken away from those who could fuel a recovery.

What is currently available in the Commercial market is all there is going to be for sometime and almost any level of demand is going shrink the market and effect lease rates.

Tuesday, February 23, 2010

Surfing the Commercial Property Wave in Gastonia

Business Guru's are always talking about riding in front of the wave or surfing on top of the wave. In other words recognizing large trends early before others see them and take advantage of the opportunity.

A massive trend I see is that commercial construction and development has not just slowed down but actually halted. The retail, office and flex-space you currently see in the market is all that is going to be available for some time. Slowly and surely the space is leasing. Almost any level of demand will absorb supply when no additional supply is being made available.

More demand than supply leads to higher prices. Is this the next wave to be surfing?

Properties

Tuesday, February 9, 2010

Gastonia Office-Warehouse-Showroom Trends

I revised the e-marketing program for our group of companies at the first of the year. Since then we have seen a thawing in construction proposal requests and in people looking at commercial space to lease.

I do not know whether this small increase in activity is due to movement within the general economic environment or whether my revised e-marketing is ranking higher on search engines.

Whatever it is I welcome it and I welcome you to contact us about our services whether your need be new construction or real estate brokerage services.

Monday, January 11, 2010

Renewed E-Marketing 4 Offices, Retail, Warehouse

Spent the month of December renewing E-Marketing for ICM, our construction company, Samuel J. Fleeman, Jr., commercial real estate broker and the services offered individually and coordinated together.

The Goal is provide Clients with the services they require to make lease build decesions on the commercial office, retail, show room, warehouse or manufacturing space that best serves their needs. Whether the decision is to build new, remodel, or expand with ICM or lease/rent from Clients of Samuel J. Fleeman Jr. (listings) call us.